The world's single largest melon grower and exporter from Brazil, Agricola Famosa, intends to increase exports by at least 10% to 15% this season. However, the emphasis is on making up for the lost volumes and sales from earlier this year. Carlo Porro, CEO of Agricola Famosa, "Spain finished early while the European melon production finished sooner. We suddenly had an empty market to supply. Our logistics is functioning super well, our break bulk has double of the capacity this season."
Porro says the heavy rain they had in Brazil earlier this year is a blessing in disguise. "Of course it was damaging for our winter production and our extension season. It was not good in terms of results, but on the other hand the soil was washed, the natural vegetation is strong. Therefore, the melon season started with very good quality. The market started very strong. Brazil is producing yellow melon, but the market was not good with prices dropping. November is a tough month, the consumption was ok. Whatever we produce is being consumed in Europe on a regular basis, despite the prices not being great. The market is in balance with our supply and consumption."
Volume growth driven by increased demand from supermarkets
"The big volume growth of around 15%, which is quite a lot, is due to contracts with supermarkets. Our main volume increase would be from week 9 to 30 through the Central America and Spanish seasons, we intend to increase the volumes quote a lot. We intend to harvest what we lost last year due to the rain. We've been able to harvest everything. During last year we exported 1,500 containers, just in the extension season alone. Our overall volume is more than 10,000 containers for the whole season. We'll probably have another 5,000 containers in the domestic market in Brazil. We should produce between 14,000 to 15,000 containers of fruit with 10,000 containers exported to Europe, 1,500 to the U.S. and Latin America with an increase of around 10%. Our intention is to recover what was lost during the rainy season, during weeks 9 to 30 to increase by 15%. We hope to harvest what we could not harvest in the last rainy season," declares Porro.
UK volume to increase
He says Agricola Famosa's volumes are set to grow even more to the United Kingdom market. These are down to a few factors, which the company is known for says Porro. "It is going super well with Melon & Co in the UK. Our clients are happy with the direct service from grower to retailer, we reach record after record of volumes this year. We'll increase the volume around 10% in the UK, more and more it's the quality that's being observed much closer. This together with the reliability that our own boats bring. Because of our efficient logistics, the reliability it brings as well as the genetics are all factors that's increasingly being considered for us as a business that can secure supply."
Brazil heading into rainy season
As Brazil heads into the traditional rainy season, Porro says they hope not to have rain so soon like last season. "We're trying to get prepared, we bought land in sandy soil, we're increasing our production that would hopefully prevent the losses we had last season. This is apart from applying other techniques on the farms like good drainage etc."
Started new logistics company carrying grapes and mango from Brazil
Porro says they started a new logistics company after the past few seasons of success with contracting their own boats. Agricola Famosa recently more than doubled their capacity of own contracted reefer vessels from 2,500 to up to 6,000 pallets per vessel. "Our season started super well. We opened a company TopLink by selling this logistics service we have contracted with Cool Carriers. We're carrying 40 to 50 containers of mangoes and grapes from Petrolina. This service works like clockwork that is super regular. We also changed all our logistics and acquired 75 reefer trucks carrying high cubes on long trucks that take 30 pallets, it is good for lower Co2 emissions and costs. The whole logistics chain was changed with the opening of TopLink," concludes Porro.
For more information:
Carlo Porro
Agricola Famosa
Tel: +55 85 991999392
Email: [email protected]
www.agricolafamosa.com.br