The market for organics in Brazil: growth and prospects

Ming Liu (picture), executive coordinator of the Organics Brazil project, explains the market position of organics in Brazil as well as the project’s agenda.

Is there a quality assurance ID seal for organic products in Brazil?
 

Since 1 January 2011, there has been a national seal for organic products issued by SISORG (Brazilian Organic Conformity Assessment System - picture) that identifies and monitors the national production of organics and adopts the participatory system thanks to the large number of family farmers and direct sales from local markets, which is a marked feature of this segment. As for the consumer, regulation is also beneficial, because it makes it easier to tell certified and non-certified products apart from each other.
 

What was the Brazilian organic products balance of exports in 2011?
 

The Organics Brazil project has been examining the annual exports of its 74 member-companies, 42 of which export regularly. Although this is a project developed to promote exports, not all the companies have been able to fully exploit this channel yet. The year 2011 closed with exports amounting to US$ 87 million, a drop from the US$ 108 million achieved in 2010, because most companies are gearing their strategic efforts toward strengthening the domestic market. Another issue contributing to the decrease in the monetary value of exports is the appreciation of the Brazilian currency (the real) in the past two years.
 

Does the Organics Brazil project encourage its members to add value to their products? 
 
Adding value to products is a basic requirement for any company wishing to export. When we talk about adding value to products, we also talk about company history. We recommend all companies turning out final products that bear their own brands to draw attention to their background. End consumers do not purchase a product based on a seal alone; if it was so, price would make all the difference. We should escape from this type of marketing model and truly meet the consumer´s needs: product traceability and quality consistency, with production process and chain in keeping with social development principles respectful of the environment. A product´s added value is not only in its functional characteristics but also in how it was produced from the very start. Adding value to a product means product and brand development and identification of origin. (Pictures: MN Própolis products, the first apiary certified by IBD)
 

What is the Brazilian organic products´ competitive edge in relation to foreign competitors? 
 

Regarding Brazilian products, what could be better than to show the splendour of Brazilian biodiversity with its Caatinga, Atlantic Forest, Cerrado, Pantanal, Amazon, and Pampa biomes? We have açaí, cupuaçu, andiroba, guaraná, buruti, tucuman, babassu, hancornia Speciosa, cajui, pequi, baru and mamacadela in addition to tropical fruits, honey, sugar, palm oil and grains - each one in its own region, each one with its own history. Our motto is: Brazil, Organic by Nature; this is our biggest asset. And we have showcased this asset very prominently in campaigns and in visual communication materials, where we highlight the country´s biodiversity in the Brazil Biodiversity campaign. (Picture: Ranchers of the Pantanal region got organised in the Brazilian Organic Livestock Association ABPO) 

What other trade fairs are member companies of Organics Brazil participating in? 
 

Traditionally, we have participated in the leading trade fairs in the United States of America, such as BioFach America and Expo West. In Canada, we have participated in joint campaigns promoted by the Brazilian Embassy in Canada and in Sial Canada. We were present at a trade fair in Australia too, and this year we exhibited at BioFach in Germany and in the United Kingdom´s Natural Organic Product Expo. And we’re going to participate in Sial France and in BioFach Japan. We’ll also be attending the Natural Products Expo in Hong Kong. (Picture: Talentos do Brasil – Natural Fashion was among the exhibitors at BioFach Germany in 2012)
 

The Organics Brazil project is the result of a private sector joint initiative by IPD (Development Promotion Institute) and Apex-Brazil (Brazilian Exports Promotion and Investments Agency). Created in 2005, the project has 74 member companies from the food, drinks, raw materials, textiles, cosmetics, ingredients, certification and services industries. In the first half ot 2012, the Organics Brazil Project achieved a turnover of US$ 46 million. More information is available here: www.organicsbrasil.org