The grape market has shown a variable behavior in recent years. "Last year we had spectacular prices, but currently the rains have affected production. Brazilian production has the advantage of a flexible harvest thanks to the climate and special geographical conditions of the Petrolina region, which allow us to offer grapes all year round. However, the first half of the year is particularly challenging because the region regularly experiences rain, which limits production and can affect export volumes," stated Jerry Ito, producer and director of Coana.
Logistical difficulties are also a determining factor for Brazil's grape industry. "Petrolina, our main growing area, is 500 to 1,000 kilometers from the port, which implies land transport costs of $1,500 to $1,600 per container. Other obstacles to export include the availability of shipping space and changes in ocean freight prices," Ito stated.
Despite these obstacles, Brazil has a unique competitive advantage: its vast domestic market. "We only export 10% of our production; 90% stays in Brazil, a market with 220 million people. Thanks to this domestic demand, producers can cushion the fluctuations of the international market and reduce their dependence on exports," Ito stressed.
"Coana exports approximately 700 containers of grapes a year. In the second half of the year, we export 450 containers, mainly of Cotton Candy, Arra Sweets, Timpson, Sugar Crisp, Candy Snaps, Autumn Crispy, and Cherry Crunch varieties," Jerry Ito said.
One of the biggest difficulties for the sector is the lack of skilled labor. "In Brazil, subsidies have encouraged informal work and many prefer not to register officially. This makes it difficult for certified companies like Coana, which must comply with strict international standards. We cannot employ workers without formal registration because our certifications require compliance with strict labor regulations. In addition, Brazil's geographical location makes it difficult to recruit foreign workers because the distances to countries like Colombia or Peru are too great to ensure an efficient flow of labor," he added.
"We have taken measures to mitigate the effects of climate and improve resource efficiency. All of our farms have grape protection systems and we have our own packaging facilities to ensure product quality from harvest to export," he stated.
For more information:
Jerry Ito
Coana
Brazil
Tel: +55 87 3986 1542 /+55 87 98822 3780
Email: jerryito@uol.com.br
www.coanabr.com.br
Renato Alves
Coana
Tel: +55 87 3986 1542 / +55 87 9919816467
Email: renato@coanabr.com.br
www.coanabr.com.br