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Jim Udsen -
Agristar do Brasil Ltda. |
April 2003 |
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Where do you
see key opportunities in the Brazilian seed industry? |
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With the new
government and its policies, we believe that there will be
tremendous growth in agribusiness, both in processed and fresh
foods. Anything Brazil can produce with export quality,
whether fresh vegetables, processed foods, or vegetable seeds
will be a profitable business.
Since Brazil itself has a large, expanding internal market,
the export of vegetable products is low, mainly melons to
Europe. A limited amount of processed vegetables are exported,
mainly to neighboring South American countries. We are
exporting our branded products to South American countries and
bulk seeds to the USA, Europe and Africa. Agristar is probably
the largest exporter of Brazilian produced vegetable seeds
today.
New opportunities for the vegetable business are in the
interior of Brazil. Traditionally all Brazil’s vegetables were
planted around the cities because there was no infrastructure
allowing for long distance shipment of fresh vegetables. With
the development of the interior of Brazil, mainly the high
plains, new farming areas have opened up to crops such as
soybeans, corn and edible beans for the wet season production
(summer). The winter months are dry and irrigation is needed,
usually by pivots. Over the last 20 years vegetable farmers
moving to these areas have been able to plant onions, beets,
carrots, tomatoes and peppers on a much larger scale than in
the city green belts. These vegetables can hold up better for
the long transport to the markets. The leafy vegetables
remained around the cities for obvious reasons. The high
plains have become today the center of the tomato processing
business. What is necessary now is for professional packing
houses to decide to invest money in Brazil in this area. This
will create economies of scale, reduce costs, and bring
standardized packaging and higher quality products. |
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