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A Look on the Productive Reality Apple Brazilian Scenario

A Look on the Productive Reality Apple Brazilian Scenario. Pierre Nicolas Pérès Associação Brasileira de Produtores de Maçã ABPM. Madrid 21 st . October 2011. About ABPM. ABPM – Associação Brasileira de Produtores de Maçã.

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A Look on the Productive Reality Apple Brazilian Scenario

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  1. A Look on the Productive RealityApple Brazilian Scenario Pierre Nicolas Pérès Associação Brasileira de Produtores de Maçã ABPM Madrid 21st. October 2011

  2. About ABPM

  3. ABPM – Associação Brasileira de Produtores de Maçã Non-profit association with a permanent secretariat based in Fraiburgo Created in 1978 to set up a national forum of discussion for issues affecting apple production, regulation, research and trade Incorporate the 3 states Association, Cooperatives and apple Producers, representing 90% of the volume produced . President elected

  4. ABPM’s objective • Mission • Facilitate to the associate access to private and publics means financial and scientific for production of high quality fruits, using technology respecting the environment and consumer health. • Vision • To be the reference in the brazilian fruit sector, contribute to the economy of the apple regions, looking for the engagement of federal, state and municipal authorities • Principles

  5. Principles • Ethic and integration of the producers, social responsibility, respect of environment, respect of individual value, equilibrium between the fruit growing segments and client’s satisfaction.

  6. BRAZILIAN DATA

  7. PRODUCTION SURFACE AND VARIETIES

  8. PRODUCTION (t) Source: IBGE, ABPM, AGAPOMI, EPAGRI, DEROL

  9. APPLE PRODUCTION PER STATE 2010-11 (VOLUME – T) Source: IBGE/ABPM/AGAPOMI/FRUTIPAR

  10. APPLE SURFACE (ha) Source: ABPM, AGAPOMI, EPAGRI, DEROL, IBGE

  11. APPLES VARIETIES ( %) Source: ABPM, AGAPOMI

  12. Cold Capacity (T) and Packings Source: ABPM

  13. EXPORTandIMPORT

  14. APPLE EXPORT (T) Fonte: ABPM, SECEX

  15. EXPORT PRICE FOB ($/kg) Source: SECEX

  16. EXPORT PRICE FOB (R$/kg)

  17. DESTINATION (2008 in %) Fonte: ABPM, SECEX

  18. DESTINATION (2011 in %) Fonte: ABPM, SECEX

  19. IMPORTAÇÃO DE MAÇÃS 2010 (T) Source: ABPM, SECEX

  20. ORIGIN 2010 (%) Source: ABPM, SECEX

  21. TRADE

  22. POSITIVES ASPECTS • According to the POF-IBGE, brazilian apple was the 4th. fruit most consume in 2008. • In 2011, CNA realize a study regarding fruit consumption, apple became the 2nd. fruit most remembered by the public. • In the same CNA’s study apple became the 2nd. Fruit most consumed and the brazilian’s preferred fruit. • Apples do have an appeal for health and good taste. • Wholesalers and retailers do recognize the importance to have apples in their mix and in the shelves.

  23. Actual situation Apples is the second fruit most consumed in important cities like São Paulo and Belo Horizonte: Belo Horizonte São Paulo Source: Connection Pesquisa e Análise de Mercado, 2004

  24. Wealth Distribution

  25. Source: Centro de Polliticas Sociais FGV

  26. Demography Source: Mundo Corporativo n. 28 - Deloitte

  27. Source: Mundo Corporativo n. 28 - Deloitte

  28. DEMOGRAPY BONUS • Unique moment in the brazilian history and will not repeat. • During the next 3 decades the economically active population (PEA) will be more important than the other kinds, non working, kids and elderly. • => More saving • => More Job • => More investment and consumption •  More GROWTH

  29. Brazilian Apple Market Fonte: ABPM, SECEX

  30. Source: ABPM; CEAGESP; IEA – Instituto de Economia Agrícola - 2011: up to May

  31. YEARLY AVERAGE SALES OF PACKED APPLES Supermarkets: 2003 a 2009 +45% Source: ABPM

  32. SUPERMARKETS STRUCTURE 2009 (R$177bi, +11,7%) Source: NIELSEN 2009

  33. Increased role of exchange rate on trade

  34. OUTLOOK 2012

  35. 2012 CROP • Very good winter • Climate condition during blooming good • No frost • No hail so far • Thinning under way • May be a bumper crop

  36. FINAL COMMENTS

  37. Review of concerns Sustainability • Increased costs for supply ( food safety, logistics, packaging, actives substances, labor, ...) • Return often below cost of production for many growers • Supply fragmentation v. retail concentration • Emergence of discounter and impact for suppliers • Multiplication /proliferation of requirements • Consequences on demand of changing consumer behavior • Improved postharvest techniques making a flat price along the year

  38. Review of concerns Consumption • Stagnating consumption and increased competition from other products • Limited initiatives on promotion, need to enhance marketing campaign, how? Financing of marketing - growers, state, both? • Role of innovation and varietal or club development • How to benefit from healthy assets of apples, • consumer purchasing patterns and dietary behaviors will influence demand for apples? • Quality, how to cope with fruits under standard • Rito Sumario

  39. Review of concerns Market • Concentration of buyers versus pulverization of growers/packers • Consortium • Growers Concentration • Promoting Consumption • Government? • Fruits in the school • Army • Global marketing project

  40. Review of concerns Emerging issues • Role of unexpected climatic conditions on production and trade ( snow, frost, drought, flood,..) and also on consumption • Role of currency fluctuation ( € ; £, $, zl, Ruble, SH currencies, … ) • Future impact of the climate change debate ( environment, water, waste, packaging , logistics,..) • Coping with NGO negative campaign in Europe affecting image of produce and consumer confidence

  41. Review of concerns CLIMATE • Mainly Hail • Insurance • Netting • Lower taxes on investment against hail • Subsidy of interest rates • Long term loan MECANIZATION • Orchard and Packing FINANCIAL DEBTS • Retruscturation

  42. CONCLUSION

  43. Brazilian Government through law n. 4504 – 30/11/64, is encouraging the producers to create a consortium to get back power of negotiation to the growers, allowing to form one legal entity for sales and for buying. • Boost Internal market • Project: More fruits at school • Project: Healthy Tourism • Project: Bella • Fruits presentation in supermarket • Degustation • Communication • Merchandising • Reinforcement Action in the press • Web Marketing

  44. To increase consumption we must offer improved quality, have a better divulgation throughout the media, • we do have an asset, our apple is recognized for its flavor that is nationally recognized. • Apple cannot missed at home and in the supermarket, according to consumer • It is an item of the shopping list Consumers want to buy good quality apples.

  45. Strengthening Farmers organization • Association • Cooperative • Consortium • Qualify the offer • Marketing, communication, promotional events, listening to the consumer’s wishes • Give value to our products • Invest in fundamental research, biotechnology • Better clones, productivity, mechanization, orchard conduction

  46. GRACIAS WWW.ABPM.ORG.BR

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