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Horticultural and Tropical Products Division (H&TP)
THE BRAZILIAN MARKET FOR
Horticultural and Tropical Products
Foreign Agricultural Service
August 1, 1999
TABLE OF CONTENTS
SITUATION AND OUTLOOK FOR HORTICULTURAL PRODUCTS
MARKET TRENDS AND OPPORTUNITIES
DISTRIBUTION OF FRESH FRUITS AND VEGETABLES
SHIPPING TO BRAZIL
BRAZILIAN INSPECTION REQUIREMENTS FOR PLANT PRODUCTS
General facts about Brazil
Key ministries and institutions in Brazil
Country market research firms
Foreign Agricultural Service staff in Brazil
References and information sources
Selected US horticultural product exports to Brazil in US dollars
Brazil is an enormous market of 167 million people in an area larger than the contiguous 48 states, and ranks as the world's eighth largest economy. It is by far the largest economy in Latin America with a Gross Domestic Product (GDP) higher than that of Argentina, Chile and Mexico combined. The country has the fourth largest territory, covering half of the continent and has the fifth largest population in the world. It enjoys an enormous natural resource base of agriculture and minerals.
The Brazilian economy is historically one of the most volatile in the world. Poor planning by military and civilian governments caused years of stagflation combined with high unemployment. However, fiscal and monetary stability was finally realized with the implementation of the Real plan in 1994. By 1997, inflation fell to 4.3 percent a year, the lowest since the 1950's. U.S. horticultural exports boomed to Brazil as importers and consumers gained confidence. The economy was improving steadily until the Asian and Russian economic crisis spread to Latin America in 1998. The Asian crisis has had a negative affect on the Brazilian economy, most notably causing the devaluation of the Real from about $1=1 Real in 1995 to about $1= 2 Real in 1999, making U.S. exports much more expensive for the Brazilian consumer.
However, the positive outweighs the negative. Despite the recent downturns, a growing economy, including a growing middle class, and a better educated consumer, top the list of plusses. The export booms in 1994 and 1995 will most likely not be repeated as consumers become more conservative with their money and the market settles. In the short term, the trade actually expects total consumption of both domestic and imported products to decline, however, the long term trend looks good. Despite government inaction on key reforms, inflation is slated to reach only 8 percent in 1999, unemployment has stabilized at about 8 percent, and the economy is now expected to decline only 1 percent or remain flat after predictions of a 3 to 4 percent decline. The development of a distribution system, and a freer trade atmosphere all point to a growing market for U.S. products.
SITUATION AND OUTLOOK FOR HORTICULTURAL PRODUCTS
After implementation of the Real plan and the subsequent strengthening of the Brazilian economy, exports of U.S. fresh fruit and vegetables skyrocketed. In calendar year 1993, before reform, U.S. sales were only 30.2 million, dominated by hops, beer, and potato chips. By 1995, US exports reached $153 million, making Brazil the number eight market for US horticultural products. While U.S. exports of horticultural products have slowed due to a cooling of the Brazilian economy and a strengthening U.S. dollar, U.S. exports still topped $91 million in 1998 (see charts on page 22). While beer and hops are still large, albeit declining, components of that trade, fresh fruits, nuts and frozen vegetables have become big ticket items. Fresh fruits, especially apples, grapes, pears, and stone fruit lead the export boom. Dried fruit, french fries, walnuts, almonds, also have seen increases in exports.
Before economic reforms, the U.S. held less than a 6% market share, much of that in the form of hops and hop products. In 1994, the U.S. share of the Brazilian horticultural products trade jumped to 13 percent, but has since settled down to a little more than 7% in 1997.
Three main factors appear to have accelerated U.S. exports of fruits and vegetables to Brazil right after the Real Plan implementation, and in some ways, are responsible for the decrease in horticultural exports from 1996 to 1998:
1) The Real to Dollar exchange rate heavily favored imports. When the Brazilian government instituted the Real Plan in July 1994, the Real equaled US$1.19, a rate that promoted imports. However, the Real has been devaluing and, currently, the exchange rate is 1 Real = US$.85 (September 1998), and it is expected that the government will devalue the Real further to help inhibit imports and promote a positive trade balance.
2) The decline in tariff rates. The tariff on fruits declined from 30 to 10 percent in 1994, allowing U.S. fruits to compete better with local and imported products. Imports from MERCOSUL members receive a preferential rate of zero. However, at the request of the Argentine government, MERCOSUL announced an increase of 3 percentage points for all products imported from third countries, in November 1997.
3) The open and transparent license system. Brazil used to control imports through the use of import licenses. Import licenses are still needed but only require that the importer submit a pro-forma invoice to the local Customs office or agent thereof. However, in March 1995, the Brazilian government imposed some phytosanitary restrictions on U.S. fresh fruit exports. While protocols are now established, the issue disrupted trade in 1995, and like any phytosanitary protocol, has since hindered trade.
As would be expected, coffee and coffee products are Brazil's primary exports to the U.S. In 1998, the U.S. imported $477 million of coffee and coffee products. Sugar is a major export and in 1998, Brazil shipped $130 million of sugar and sugar preparations to the U.S. Outside of the tropical products arena, the top U.S. 1998 imports from Brazil are cashew nuts, valued at $103 million, and frozen concentrated orange juice (FCOJ), valued at $213 million.
Brazil is a major exporter in the global produce trade. Already a world leader in the export of coffee, orange juice, and soybeans, and there is no reason to believe that Brazil will not develop into a major exporter of juice oranges, apples, grapes. In 1998, Brazil exported US$14.7 billion in agricultural products, about 10 percent of which was shipped to the United States. However, Brazil's biggest agricultural export market is the European Union, with over 35 percent of all agricultural products shipped there.
MARKET TRENDS AND OPPORTUNITIES
There is a growing demand for frozen vegetables, mostly "premium" vegetables in single serving packages. Between 1996 and 1997 frozen vegetable sales increased by over 260 percent. In the near future, the frozen food section in Brazilian supermarkets may account for 60 percent of total supermarket sales.
The market for frozen vegetables is currently dominated by a few Brazilian companies and one French firm, whose sales reportedly grew 30 percent in 1997. In 1997, Brazil imported nearly US$10.5 million (US$ FOB) in frozen vegetables, mostly mixed vegetables such as peas and carrots. This market is expected to continue to expand. However, the Brazilian market for frozen products is not an easy market for foreign products due to the poor distribution system and lack of storage and transportation resources. Costs of handling imported frozen products are considered too high by local importers and supermarkets which place imported products at a major disadvantage with locally produced items.
Fresh Fruit and Vegetables
Brazil is a major producer of fruits and vegetables, mainly tropical fruits, and in 1998 exported about US$120 million of fresh fruits. However, Brazil is also a major importer of certain temperate fruits such as apples, pears, grapes, plums, peaches and nectarines, and imported a record of US$262 million in fruits 1997 (1998 imports are not yet available), mostly apples (US$99 million), pears (US$92 million), grapes (US$26 million) and plums (US$23 million), peaches and nectarines (approximately US$7.5 million each). US exports of fresh fruits to Brazil have continued to decrease since 1985. Chile, MERCOSUL members, and to a lesser extent, the European Union dominate the Brazilian market for these products. Exporters of U.S. fruit should focus on products which have significant quality and seasonal advantages. The major constraint, however, is competition from Argentina and Chile in terms of lower transportation costs and lower import tariffs. In addition, plant health restrictions have become a burden for U.S. fruit exporters, especially for those exporting stone fruit from California. Brazil has begun to implement its harmonized phytosanitary requirements negotiated with MERCOSUL members, resulting in more difficult requirements for U.S. fruit exporters.
Brazil is a major importer of fresh and refrigerated vegetables such as potatoes (US$6 million) and onions (US$77 million) in 1997. Brazil also imports garlic (US$97 million in1997), peas and lentils (US$14 million in 1997). The market for imported fresh vegetables is dominated by Argentina and other major suppliers such as Chile. Major constraints for U.S. exporters are the lack of product awareness, price and higher import duties.
Nuts and Dried Fruits
Brazil is the world's second leading producer of cashew nuts and first in Brazil nuts, with exports in 1998 totaling US$163 million. However, Brazil is also an importer of tree nuts. The market opportunities are mostly for walnuts, almonds and hazelnuts. Imports of these totaled US$28 million in 1997, and are known as "Christmas products," due to the concentration of consumption during the Christmas season. The United States has a market share of 40 percent and a significant potential to grow despite competition from Chile, which, as an associate MERCOSUL member, is favored by lower tariffs and lower transportation costs. The market for dried fruit is mostly for prunes and raisins. The import market for these two products averages US$39 million of which the United States holds an insignificant share, since the market is dominated by Argentina and Chile. The potential for the United States to export these products is great due to higher quality and increased utilization by the processed food and baking industries.
Canned Fruits and Vegetables
The market is dominated by large and medium size Brazilian companies and some European multinationals. Except for canned peas, corn, tomato products and fruits, mainly peaches and pineapple, most Brazilians are not heavy buyers of canned foods. With the exception of canned peaches, the prospects for these products is poor due to competition from local suppliers and from Argentina and Chile. The Brazilian canned peach industry has suffered from large imports of Greek canned peaches and import duties are now quite high. Total Brazilian imports of canned peaches in 1996 were 35,751 metric tons, valued at US$24 million. In 1997, canned peaches imports dropped to19,159 metric tons valued at US$12 million.
Fruit and Vegetable Juices
Brazil is a leading exporter of fruit juices, mostly frozen concentrated orange juice (FCOJ), grape juice concentrate and tropical juices (pineapple, guava, passion fruit, etc.). In 1998, Brazil exported approximately US$1.3 billion in fruit juices, mostly FCOJ. The market opportunity in Brazil for fruit and vegetable juices is growing. However, in 1997 Brazil imported US$14 million in juices, mostly citrus, grape, peach and vegetable mixes. The U.S. market share is growing but the market is primarily dominated by Argentina and Chile. According to local importers, the United States has the potential to export vegetable juices and mixes to Brazil, but needs to overcome the lack of product awareness.
Beer, Wine and Spirits
Prior to 1990 imported alcoholic beverages were assessed import duties of more than 80 percent, plus all other local taxes, which increased total taxes to more than 150 percent in some cases. The import duty on beer and spirits is now fixed at 23 percent plus additional local taxes. The market for imported beer represents a small percentage (approximately 1-2 percent of total Brazilian beer consumption). The Brazilian beer market, the fourth largest in the world, is dominated by two large national companies, Antarctica and Brahma, which account for over 60 percent of production and have joint ventures with two other U.S. breweries. However, it is estimated that imported beer may increase its percentage of local consumption as the Brazilian economy improves.
Despite the high import duty of 36 percent, the import market for wine is promising. Brazil spent US$39 million in 1996 on imported wine, mostly from Germany, Portugal, France, Argentina and Chile. The U.S. presence is insignificant. There are a few California wines currently being imported and distributed in Brazil. To increase market presence, promotional efforts must be made to educate importers and consumers. Brazilian supermarket owners frequently comment on the low availability of U.S. wines. Brazil is also becoming an important wine producer with current production estimated at 280 million liters and exports, mainly to the United States, at approximately US$10 million per year.
DISTRIBUTION OF FRESH FRUITS AND VEGETABLES
The distribution system for fresh fruits and nuts, and to a certain extent, dried fruit, is inefficient, due to the poor infrastructure of ports, roads, and warehouses in many parts of the country. Brazil does not have a history of importing and therefore, the links in the distribution chain have just begun to form. Almost all fresh fruits from countries outside MERCOSUL enter through the ports of Santos in Sao Paulo (Santos), Paranagua, Itajai and to a lesser extent Rio. Fresh fruit from Argentina and Chile are imported mainly by truck. The poor infrastructure to handle imports affects all imported commodities and food products, not just fresh fruit. The Brazilian distribution system for imported consumer-ready food products is undergoing important changes. These changes are driven by market developments that followed trade liberalization in 1990, and by changes derived from the economic stabilization program, which increased the level of competition in the economy.
The traditional distribution system of imported foods by which specialty importers, wholesalers, trading companies and brokers played a major role is breaking up rapidly. Today food manufacturers, supermarkets, and large food retailers are also buying directly from foreign suppliers. However, some product categories such as fresh fruit are likely to continue to depend In the traditional distribution system.
The Brazilian food distribution system for imported fruits and vegetables are handled mainly by specialty importers. The markup on these products varies between 5 and 12 percent. These importers do not handle large volumes of foods, and basically they take delivery at the ports of entry and sell the items to supermarkets or other food retailers. Most of the time they serve as brokers, and products are sold before they make their orders.
The two largest seaports are Santos (Sao Paulo) and Rio de Janeiro. Both have extensive facilities, including bonded and refrigerated warehouses, and several grain installations. They are undergoing improvements and expansion. However, the most important port for fresh deciduous fruits is Paranagua. This is most likely because Brazilian apple growers are the primary importers and their storage facilities are located south of Sao Paulo. Unfortunately, Brazilian ports are currently among the most expensive in the world due to the near-monopolistic labor and managerial situation prevailing there. As a result, there are a variety of fees levied at the port and warehouse facilities that increase the cost of imported goods dramatically.
Tenants claim that more fruit passes through the CEAGESP wholesale produce market than any other terminal in the world. The market boasts 582 boxes or shops, and over 2000 outlets. Approximately 10,000 MT of product passes through per day valued at $4-5 million Real, 53% of which is produce. The market was originally divided into import and domestic areas but in the last few years, that line has blurred. Currently all importers are wholesalers, but not all wholesalers are importers. Some importers think that in the future, the wholesale concept will decline and that a few large distributors will dominate the retail market. This shift is slowly taking place. In the days of high inflation, before the Real Plan, companies could make money by playing the inflationary spiral. They would buy hard goods in the beginning of the month for 100 Cruzeiros and sell at the end for 150 Cruzeiros. But now that the economy has settled, more efficient companies are quickly coming to the fore, and many others are going out of business.
RIO DE JANEIRO
Rio de Janeiro ranks as a distant second behind Sao Paulo as an entry point for horticultural products in Brazil. However, despite some major problems, this city of 6 million people remains an important market for imported fresh fruits and vegetables.
The Rio terminal market is fairly small, and most tenants are unsure about its future. Slums surround the market and the area has become run-down and dangerous. Cold storage capability is limited. One trader mentioned that if the state does not pump some funds into the market's infrastructure, it will probably close. If this happens, importers who have their own cold storage will gain the upper-hand and the Rio market will depend more on the Sao Paulo terminal. Either way, costs will likely rise and many local firms may go under.
The structure of the food retailing in Brazil has undergone great changes in the past few years. The economic stabilization with low inflation levels has increased competition among supermarkets, reduced the importance of the wholesale sector, and is forcing the modernization of the traditional "Mom and Pop" stores into more convenience type stores. Supermarkets handle an estimated 75 percent of retail food sales in Brazil. Total sales of the Brazilian supermarket sector reached an all time record of US$46.4 billion in 1996 and the 600 largest supermarket companies accounted for 70 percent of the sector, with 3,757 stores and 40,100 check-outs. The largest supermarket in sales remains the French Carrefour with US$4.9 billion sales in 1996, followed by Brazil's Pao de Acucar with US$3.5 billion. In 1996, the Dutch group Royal Ahold NV made a major inroad in Brazil by purchasing 50 percent of the shares of the third largest supermarket chain in Brazil, Bompreco. Sam's Club (Wal-Mart) is the only U.S. presence in the Brazilian market so far. Generally, fruits and vegetables flow into Brazil like so:
|US Food Supplier/Exporter -->||Specialty Importer -->||Supermarkets -->||Consumer|
|Small Markets -->||Consumer|
|Fruit Stores -->||Consumer|
|Street Vendor -->||Consumer|
Feiras are large open "wet-markets" with many different fruit stands grouped in an area. The percent distributed through the different retail outlets varies greatly by city and by product, as can be seen in the following chart:
|Sao Paulo||Rio de Janeiro||Porto Allegre|
Other Supermarkets: Eldorado, Paes Mendonca, and Se are other large supermarkets based primarily in Sao Paulo. There are many medium and small market chains in Brazil, including: Candia, Millos, Pastorinho, Extra, Bazar 13, Bon Marche, Sendas, and Sondas.
SHIPPING TO BRAZIL
Tariffs - MERCOSUL, tariffs for horticultural products are, for the most part, simple. All tariff rates described below have an additional 0.5% service fee.
Harmonized Tariff System (HTS):
- Chapter 07 - Edible vegetables and certain roots and tubers*.................................13%
- Chapter 08 - Edible fruits and nuts; peel of citrus fruit or melons*.........................13%
-- Except hazelnuts, which enter at 9% plus 0.5%.
- Ginseng (Chapter 13)............................................................................................... 5%
- Chapter 20 - Preparations of vegetables, fruits, and nuts.........................................17%
- Except Canned Peaches, which enter at 21% plus 0.5%, but
at a minimum of US$0.20/Kilogram.
Chapter 21 - Miscellaneous edible preparations - Sections 2103, 2104, 2105
If for immediate consumption in containers less than 1 kilo..............21%
- Chapter 22 - Alcoholic Beverages............................................................................23%
- Except whisky greater than 50% alcohol by volume and in containers
greater than or equal to 50 Liters, which enter at 11%
Source: MERCOSUL 1997
* Products intended for planting enter Brazil duty free. Other fees and port taxes may apply.
In March of 1995, the Government of Brazil established new phytosanitary import requirements for about 40 agricultural commodities, including apples, pears, and table grapes as part of its effort to harmonize phytosanitary requirements with other MERCOSUL countries. USDA subsequently determined that a number of the new requirements, if implemented in their proposed form, would disrupt U.S. horticultural product exports to that country. However, as of July 1999, for many fruits, including: apples, apricots, cherries, grapes, nectarines, peaches, pears, plums, and strawberries, fumigation is still required at origin.
APHIS and the Brazilian authorities are discussing lifting some of the fumigation requirements but no Directive has yet to be published by Brazil. Also, Brazil is considering building a fumigation facility in Sao Paulo. If built, Brazil would allow fumigation upon arrival.
Typical Import Steps
There are numerous procedural requirements associated with importing into Brazil. They warrant careful consideration, as failure to comply with regulations may result in fines and delays. Typically a Brazilian importer will follow the steps outlined below.
1. The importer files an application for an import permit (pedido de guia de importação) for a specific transaction, accompanied by a foreign supplier's pro forma invoice for the product(s) to be imported.
2. Once the application is approved by SECEX, the importer notifies the supplier to ship the product(s) and to send all shipment documents and commercial invoices along with the exporter's statement, certified by any chamber of commerce or Brazilian consulate, that the prices quoted are those prevailing for goods for export. (Goods should not be shipped until SECEX has granted an import permit.)
3. The importer arranges for a Brazilian government licensed customs broker to clear the goods and pay customs duties and other taxes.
4. A copy of the import permit (pedido de guia de importação) and the paid customs declaration are sent to the importer's exchange broker, typically a bank, for closing the foreign exchange transaction.
An importer may deal with SECEX directly or through an expediter (despachante). It is generally advisable for an importer to retain an expediter to assist in moving the import request through the bureaucratic approval process with SECEX and the customs authority.
Many government companies, agencies, and the military import directly, without SECEX authorization, and are exempt from all taxes and duties.
Hypothetical Cost Buildup for an Imported Product (In US$) *
|FOB Price of Product||$10,000|
|Freight and Insurance (9% and 1%, respectively)||$1,000|
|Total c.i.f. of Product||$11,000|
|Bank Charges (90 days at 4% per month)||$1,320|
|c.i.f. Plus Bank Charge||$12,320|
|Landing Charges (Merchant Marine Tax: 25% of Ocean Freight)||$225|
|Import Duty (13% of c.i.f.)||$1430|
|Service fee (0.5% of c.i.f.)||$55|
|Port Costs (2.5% of import duty)||$35|
|Syndicate Fee (2.2% of c.i.f.)||$242|
|TOTAL FINAL COST||$14,307.00|
* FOB value, insurance, freight, bank charges, IPI and duties are all assumed numbers.
Brazilian Food Safety Regulations are subject to modification: thus the exporter must stay abreast of changes. The Brazilian Ministry of Health, and the Ministry of Agriculture and Supply (MAA) are the two official entities responsible for overseeing food safety regulations. Most rules and procedures are published in Brazil's Diario Oficial, roughly equivalent to the U.S. Federal Register.
Brazilian federal regulations concerning imported, processed products in original packaging do not require the product to be registered with MAA, but products must comply with Brazilian food safety regulations. Products may be tested at the port of arrival to ensure compliance. Each Brazilian state has a lab which is certified by the federal government, where such testing can be carried out.
The Consumer Protection Law (number 8078 of September 11, 1990) requires that consumers be provided in Portuguese all pertinent information about products including product name, ingredients, net weight in grams, manufacturers name, country of origin, and importer's name. This information in Portuguese can be placed on a sticker label over the original label, and must be attached to each unit of the product.
For the State of Sao Paulo, state law requires that importers obtain permission to import from the State Secretary of Health. Importers must provide all requested information including ingredient list, formula, etc. Thus far, no other state has imposed this requirement. ABIA SERVICES, a branch of the Brazilian Food Industry Association, can answer U.S. exporters' questions on food safety requirements for processed non-animal origin products. The cost of this service will vary, but a "typical" request, usually is charged about R$200.
ABIA works closely with its members to provide services which includes market surveys, analyses of patents and trademarks, and investment possibilities.
ABIA Contact Information
Leo F. Bick, Technical Director;
Susi Richter, Product Registration Department;
Denis Riberio: Economic Services;
Associacao Brasileira das Industrias da Alimentacao (ABIA)
Av. Brig. Faria Lima, 2003 -11.0
01451-001 Sao Paulo, SP
Tel. (55-11) 816-5733
Fax (55-11) 814-6688
Telex (11) 82324 ABIA BR
Moacyr Saraiva Fernandes
Director: Instituto Brasileiro de Frutas (IBRAF)
Av. Paulista, 807 conj. 922
01311-100 Sao Paulo, SP
Tel/fax (55-11) 289-7509
BRAZILIAN INSPECTION REQUIREMENTS FOR PLANT PRODUCTS
1. All unprocessed products of plant origin (fresh fruits, nuts, bulk popcorn, dry fruit, etc.) must be accompanied by a USDA/APHIS/PPQ phytosanitary certificate. Frozen fruits and vegetables also do need a phytosanitary certificate.
2. The U.S. exporter should contact the nearest APHIS/PPQ office to check about the plant health requirements needed for Brazil, which change from time to time.
3. Questions about specific Brazilian import requirements can also be directed to APHIS/PPQ at the following address:
Export Certification Unit
Plant Protection and Quarantine (PPQ)
Animal and Plant Health Inspection Service (APHIS)
U.S. Department of Agriculture
4700 River Road Unit 139
Riverdale, MD 20737-1236
Tel: (301) 734-8537
Fax: (301) 734-5786
GENERAL FACTS ABOUT BRAZIL
Population: The Brazilian population is estimated at 167 million people. However, the economically active population is only about 110 million people, of which about 20 million people constitute the market for imported consumer-oriented agricultural products.
During the last half-century, the Brazilian population has aged. The fraction under 14 years of age has fallen from 43 percent to 34 percent, while the fraction over 60 years of age has risen from four percent to eight percent. Life expectancy at birth has increased from 46 years to 65 years. The literacy rate has increased from 50 percent to 77 percent.
Cities: The country is highly urbanized, with 75 percent of the population living in cities, of which over 30 percent reside in 10 major metropolitan centers including Sao Paulo, the second largest city in the world. Brazil has 150 metropolitan areas with populations of more than 100,000 people, and more than 10 cities with more than 1 million people. The metropolitan areas of Sao Paulo and Rio de Janeiro alone constitute a megalopolis of nearly 30 million people.
People: There are three basic racial sources for the Brazilian people. Indian (the native inhabitants), Europeans (mainly Portuguese), and Africans (descended from slaves). Dutch and French colonization also added to the mix in the Northeast. In the 19th century, waves of Germans, Italians, and Poles, and Lebanese moved to Brazil. In the 20th century, Japanese immigrants began to arrive and now, Brazil boasts the largest Japanese population outside of Japan. With regard to religion, Brazil is predominantly Roman Catholic, with a growing Protestant influence.
Government: Brazil is a democratic republic, using a presidential system, with executive branch agencies, two house congress (upper - Senate, lower - Chamber of Deputies), and judicial branch.
Language: The language of Brazil is Portuguese, although many educated Brazilians speak English and Spanish. The non-Portuguese speaking U.S. executive may need an interpreter on more than 50 percent of business calls. Correspondence and product literature should be in Portuguese, and English is preferred as a substitute over Spanish. Specifications and other technical data should be in the metric system.
Work Week: The work week is typically Monday - Friday 8:30 or 9:00 am to 5:30 or 6:00 pm with a one to two hour lunch. Some factories function half day Saturdays.
Business Customs: Compared to the U.S., the pace of negotiation is slower and is based much more on personal contact. It is rare for important business deals to be concluded by telephone or letter. Many Brazilian executives do not react favorably to quick and infrequent visits by foreign sales representatives. They prefer a more continuous working relationship. The Brazilian buyer is also concerned with after-sales service provided by the exporter.
Travel Advisory and Visas: While foreign business visitors may enter Brazil with only a tourist visa, Brazilian law requires that they must have a temporary (business) visa if they plan to transact business. "Business" would include signing legal documents, engaging in financial or commercial transactions, and working or engaging in research.
Tourist visas are valid for 90 days. A temporary business visa is valid for 90 days. Transit visas are valid for 10 days and require travelers to enter and exit through the same port.
Membership in Free Trade Arrangements
Brazil is a member of ALADI, a Latin American organization providing duty rate reductions to its members. Brazil also is a member of the MERCOSUL -- the Southern Common Market, composed of Brazil, Argentina, Paraguay, and Uruguay (known as MERCOSUR in the Spanish language countries.)
The Foreign Agricultural Service has developed the internet based questionnaire Are You Ready To Export? The questionnaire was developed to help you determine if exporting is right for you and identify your strengths and weaknesses for developing an export strategy. Go to: /agexport/exporttest.asp to try it out.
Foreign Country Import Requirements
The following links will take you to websites that will help you identify the particular import requirements imposed by the target country for your product:
Food and Agricultural Import Regulations and Standards [ /itp/ofsts/ImportPolicy/importr.html ] reports contain, by country,
descriptions of import procedures and lists of useful contacts to help get your product into the market.
The USDA Animal and Plant Health Inspection Service (APHIS) [ http://www.aphis.usda.gov/ ] provides inspection and veterinary services for plants, meat, poultry, live animals and animal products, to help ensure that your product will meet foreign import requirements. Finally, the USDA's Agricultural Marketing Service [ http://www.ams.usda.gov/progserv.htm ]provides services such as scientific testing and quality grading and certification to facilitate getting your product into a foreign market.
The ATF Alcohol Import/Export Guide [ http://www.atf.treas.gov/core/alcohol/info/interre1.html ]contains information regarding the international import requirements for various countries for beer, wine and distilled spirits. These requirements may include licensing, labeling and taxation considerations.
KEY MINISTRIES AND INSTITUTIONS IN BRAZIL
Brazilian Ministry of Agriculture
and Supply (MAA)
Esplanada Dos Ministeros, Bloco D
Annexo B, 4 Andar, Sala 406
Brasilia, DF 70043-900
FAX: (5561) 224-3996 or 218-2316
Brazilian Central Bank
BANCO CENTRAL DO BRASIL - BACEN
SBS - Edifício Sede do Banco Central do Brasil
70074-900 Brasília, DF
Bank of Brazil
BANCO DO BRASIL S/A - BB
SBS, Qd.4, Lote 32, Bloco C,
Ed. Sede III, 20 andar
70073-900 Brasília, DF
AMERICAN CHAMBER OF COMMERCE SÃO
Rua Alexandre Dumas 1976
04717-004 São Paulo, SP
AMERICAN CHAMBER OF COMMERCE RIO
Praça Pio X 15, 5 andar
20040-020 Rio de Janeiro, RJ
COUNTRY MARKET RESEARCH FIRMS
A.C. NIELSEN S/C LTDA.
Av. Bernardino de Campos, 98, 9o. andar
04004-040 Sao Paulo, SP
BOOZ, ALLEN & HAMILTON DO
BRASIL CONSULTORES LTDA.
Rua Gomes de Carvalho 1765, 5 andar
04547-901 São Paulo, SP
M & L MAGNUS LANDMANN
Av. Brig. Faria Lima 1544, 4 andar, cj.41
01452-001 São Paulo, SP
BICHUETTI CONSULTORIA EMPRESARIAL
Av. Brig. Faria Lima 1541 - 6B
01451-000 São Paulo, SP
DATAMARK CONSULTORES S/C LTDA.
Av. Brig. Faria Lima 1238, 3 andar, cj.31
01452-000 São Paulo, SP
BARROS RIBEIRO PLANEJAMENTO,
E REPRESENTAÇÕES LTDA.
Rua Dr. João Climaco Pereira 46
04532-070 São Paulo, SP
ADELA EMPREENDIMENTOS E
Av. Brig. Faria Lima 1541, 7 andar, cj.7D
01451-000 São Paulo, SP
ARTHUR D. LITTLE S/C LTDA.
Av. Brig. Faria Lima 2003,
19/20 andares, cj.1901/2015
01451-001 São Paulo, SP
SCHLOCHAUER & ASSOCIADOS
CONSULTORIA E REPRESENTAÇÃO LTDA.
Caixa Postal 21151
04698-970 São Paulo, SP
S. BEKIN & CONSULTORES S/C
Rua Estela 265, casa 11
04011-001 São Paulo, SP
LINDSEY CONSULTORES S/C LTDA.
Rua Bela Cintra 1932
01415-002 São Paulo, SP
SIMONSEN ASSOCIADOS S/C LTDA.
Av. 9 de Julho 5017, 12 andar
01407-200 São Paulo, SP
FOREIGN AGRICULTURAL SERVICE STAFF IN BRAZIL
Much of the text and information in this report was culled from various reports written by the Office of the Agricultural Counselor in Brasilia, and the Agricultural Trade Office in Sao Paulo.
Herbert (Finn) Rudd (Counselor)
Leslie O'Connor (Attache)
American Embassy, Brasilia
Avenida das Nacoes, Lote No. 3
70403-900 Brasilia, DF BRAZIL
Telephone: (011-55-61) 321-7272/Direct Line 226-3159
Joao Faustino SILVA (Agrl Spec)
Andrea BEZERRA (Agrl Mktg Assistant)
Soraya GUERRA (Admin Asst)
Soraya de Avila GUERRA (Secretary)
Marc Lower, Director
American Consulate General, Sao Paulo
Edificio Juarez Trade
Alameda Santos 2224
Sao Paulo, SP - BRAZIL
Telephone: (011-55-11) 881-6511/Direct Line: 282-3528
FAX: (011-55-11) 883-7535
Sergio BARROS, Agrl Spec
Lynn H. WONG, Agrl Mktg Spec
Irene A.M. MARCHETTI, Admin Asst
REFERENCES and INFORMATION SOURCES
The abovementioned offices have written many reports that go into more detail than this report.
The following is a partial list of the reports available, and can be found on the FAS home page at: :
|Date Released||Subject||AGR Number|
|May 7 1999||New Food and Drug Inspection Agency||BR9619|
|Apr 21 1999||ORGANIC FARMING IN BRAZIL||BR9616|
|Apr 6 1999||Changes in Trade Financing Restrictions||BR9613|
|Mar 10 1999||MERCOSUL Import Finance||BR9610|
|Feb 3 1999||SPECIAL STONE FRUIT REQUEST||BR9605|
|Jan 14 1999||TOMATOES & PRODUCTS ANNUAL||BR9602|
|Oct 6 1998||ANNUAL MARKETING PLAN||BR8035|
|Aug 7 1998||FOOD AND AGRICULTURAL IMPORT REG||BR8614|
|Feb 5 1998||CONSUMER-READY FOOD MARKET||BR8004|
|Feb 3 1998||TREE NUTS ANNUAL||BR8603|
|Jan 16 1998||AGRICULTURAL SITUATION ANNUAL||BR7633|
|Nov 25 1997||IMPACT OF NEW ECONOMIC MEASURES||BR7635|
|Nov 24 1997||CHANGES IN THE MERCOSUL'S CXT||BR7634|
|Oct 6 1997||SIAL MERCOSUL||BR7050|
|Jul 25 1997||MARKET BRIEF: WINE||BR7619|
|Jul 14 1997||PEACHES - CANNED AND FRESH||BR7622|
|Jun 10 1997||APPLES, PEARS GRAPES IMPORTS||BR7617|
|May 9 1997||WINTER VEGETABLES & BERRIES||BR7615|
|Apr 10 1997||NEW TRADE FINANCING||BR7611|
|Mar 27 1997||FROZEN VEGETABLE MARKET||BR7018|
|Jan 9 1997||THE BEER MARKET||BR7001|
|Feb 8 1996||MERCOSUL COMMON EXTERNAL TARIFF||BR6006|
DISCLAIMER: This report has been prepared by the Horticultural and Tropical Products Division of the USDA/Foreign Agricultural Service in Washington, DC for U.S. exporters of domestic food and agricultural products. While every possible care has been taken in the preparation of this report, information provided may be no longer complete nor precise as this type of information is subject to frequent change. Insertion of company names in this report does not imply any recommendation on the part of USDA or the U.S. government.
US Exports of Selected Horticultural Products to Brazil in US Dollars
|GRAPE DR,RAISINS 1,251,353 1,012,866 1,533,668 3,763,430 1,736,508|
|PRUNES, DRIED0 MT 292,849 760,049 729,435 509,715 416,825|
|ALMDS,FR/DRD/SH 1,782,411 2,212,085 1,242,180 3,736,511 1,240,656|
|ALMOND,FR/DR,N/S 367,933 781,117 676,010 467,767 776,491|
|PSTCHIO,F/D/N,SH 517,556 1,457,252 1,340,705 1,435,908 1,543,999|
|PSTCHIO,F/DR/SHL 146,796 172,563 474,047 118,396 17,934|
|WALNUT,FR/DR/SHL 593,729 748,662 2,213,356 720,900 1,225,774|
|WLNT,FR/DR/IN,SH ,867,963 3,697,285 3,749,657 1,832,294 2,635,864|
|APPLES, FRESH 7,489,292 5,853,928 6,532,782 2,354,527 2,255,430|
|GRAPES, FRESH T 1,939,849 2,427,389 2,472,992 1,953,988 865,519|
|PEACHES,NCTRNS,FT 531,231 834,382 1,852,097 657,521 139,077|
|PEARS & QUINCE FT 3,949,184 9,606,824 7,939,915 7,746,796 6,400,356|
|POTATO CHIPS,P/P 2,676,724 4,068,078 4,393,603 5,031,653 13,001,914|
|TOMATO PASTE 708,990 1,535,504 3,726,952 14,188,272 1,904,254|
|HOPS, TOTAL 14,889,901 21,539,565 13,434,914 16,676,730 8,430,619|
|BEER/MALT 14,665,009 44,274,321 37,255,585 4,883,427 469,882|
For additional information, please contact Ted
Goldammer at Goldammer@fas.usda.gov
or on (202) 720-8498.
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