Jim Udsen - Agristar do Brasil Ltda.

April 2003

Where do you see key opportunities in the Brazilian seed industry?
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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