From fruit to derivatives: the rise of the grape market
Cited in the Bible, in Greek and Roman culture, grapes have conquered their space of importance a long time ago. Appearing in different shapes, colors, sizes and flavors, the grape has been one of the most exported and imported fruits in Brazil in recent years.
The history of the grape in Brazil begins in the southern region, in the 19th century. Although its climate was not favorable, the region managed to stand out as a production hub. In 1960, the São Francisco River Valley began planting the first vines. The dry and arid climate proved to be favorable for the planting of grapes, and made it possible for the region to now account for 15% of the supply of the national domestic market, according to data from G1 Petrolina.
Increase in Brazilian exports
According to TradeMap, the Netherlands was Brazil's main grape importer from 2015 to 2019. Last year, the country imported 20,000 tonnes of grapes, equivalent to US$36 million. Worldwide, in 2019, Brazil exported 45 thousand tons of grapes, equivalent to U$93 million. Europe is the main target for the export of grapes, and much is given to the production of world-famous European wines. Brazilian grapes produced in the arid soil of the São Francisco Valley are new to Europeans, as this does not exist there, opening the door to new investment opportunities abroad.
New countries interested.
National and international market on the rise
Countries like Spain and Ireland are countries that have a high consumption of Brazilian grapes according to the same website, becoming a target market not yet explored by Brazilian exporters, generating an opportunity in the market. The first imported in 2018, 495 tons of grapes, equivalent to almost U$998,000, while in the following year it imported 1094 tons, with a value of U$2 million. The second in 2018 was responsible for importing 143 tons of grapes, equivalent to US$243 thousand, and in 2019, 579 tons, worth US$1.3 million.
New countries interested
In the case of the domestic market, most Brazilian grapes are destined for the production of grape juice. According to data from the Vinícola Registry, in the first half of 2018 there was a growth of 34.12% of grapes destined for this consumption in relation to the same period of the previous year. The three largest wine cooperatives (Aurora, Garibaldi and Nova Aliança) produced 76 million liters of juice, earning R$462 million. The company Vinícola Aurora, producer of whole grape juice, produced 140,000 bottles of juice in just eight months of 2019, triple compared to 2018. In these 8 months, the company was able to export to 9 different countries, 5 of them are new buyers of the product: China, Argentina, South Africa, Portugal and the United Kingdom.
The importance of the performance of an international consultancy
Brazil stands out in the production and export of grapes and derived products. With the rise of this market, we see an export opportunity to countries that have recently started to take an interest in the product. As it is a market with many exporting countries, a deeper analysis is needed on where to invest in the export of the fruit and how to do it.
By Lígia Rabello on 06/18/2020