News

Organics Defy the Economic Crisis

2009-07-22

In frank expansion in the past few years and heated up despite the worldwide economic downturn since September 2008, Brazilian organics’ exports are still undergoing a diversification process and an increase in the number of products, businesses, and destinations that tend to strengthen the country’s share of the organics market in the medium and long terms.

A survey carried out by Project Organics Brasil, linked to the Brazilian Agency for Exports Promotion and Investments (Apex-Brasil), shows that in 2008 exports earned at least US$ 58.4 million compared to US$ 21 million, in 2007. “At least”, because these figures include only the project’s member companies – also growing in number.

Just to illustrate, in September 2008, Organics Brasil had 63 member companies, of different sizes; today they are 74, in 13 Brazilian states (Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Rio, Minas Gerais, Mato Grosso, Paraíba, Ceará, Rio Grande do Norte, Amapá, Pará, and Amazonas) and export more than 50 products to 78 countries, mostly in Europe.

According to Ming Liu, director of the project launched in 2005, sugar, honey, grains, and fruits account for 90% of the exports, but the list also includes nuts, oils, teas, cosmetics, and textiles. In his opinion, there are no definite data on the shipments made in the first semester, but the international trade shows in which Organics Brasil has displayed its products show that there is still much interest on the part of importers.

“The organics market has barely felt the impact of the financial crisis. We have seen that investments in the acquisition of goods and leisure have dropped, but that spending in food has remained rock solid. Eating out has decreased, but not at home; this sector of the economy has kept the consumption of organics at high levels”, says Liu to Valor Econômico.

According to the executive, in the first semester the project participated in trade shows in Germany, the United States (California and Chicago), and Montreal. The latter deserves Liu’s special mention for being the project’s first show in Canada. “The results exceeded expectations”. In the second semester Organics Brasil will participate in the Organic Products and Agroecology International Fair – which opens in São Paulo tomorrow, inaugurated by President Lula – and in events in the USA, Japan, and Germany.

The agreement with Apex-Brasil is biennial and it’s about to be renewed. The expectations are for shipments to increase at a 20-30% annual rate, since today’s comparison data are higher. “There is growing demand abroad; now it is up to us to work hard arrive at the same speed in the domestic market”, says Liu.

Along these lines, he thinks that the regulations for the sector – that should take effect beginning in 2010, and include compulsory certification and other standardization requirements – will drive up the number of domestic consumers. According to the government, organics move about R$ 500 million annually and involve 15 thousand producers in Brazil, on 800 thousand hectars of land – not including harvested products, which would push estimates up to 5 million hectars.