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Opportunities in the Potato Sector; Brazil an Analysis of the Value Chains from Seed to Consumer Product

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Opportunities in the Potato Sector; Brazil an Analysis of the Value Chains from Seed to Consumer Product Opportunities in the potato sector; Brazil An analysis of the value chains from seed to consumer product Associação Brasileira da Batata December 2015 Prepared by: Wageningen UR/PPO, Lelystad, Netherlands Huub Schepers and Romke Wustman Agriment International BV, Twello, Netherlands Rene Oostewechel Agrivalue, Buenos Aires, Argentina Pepijn Verheij In cooperation with APH-group, Heerenveen, Netherlands Harco Christiaens Farm Frites BV, Oudenhoorn, Netherlands Jochem Rovers Associação Brasileira da Batata (ABBA) Natalino Shimoyama Gitah 2015; Opportunities in the potato sector Brazil 1 TABLE OF CONTENTS Page 1 PREFACE ................................................................................................................................................. 5 2 EXECUTIVE SUMMARY .......................................................................................................................... 6 3 GENERAL SIZE AND CHARACTERISTICS OF THE POTATO SECTOR ............................................. 8 3.1 INTRODUCTION .................................................................................................................................... 8 3.2 PRODUCTION REGIONS IN BRAZIL ........................................................................................................ 8 3.3 PRODUCTION SEASONS IN BRAZIL ........................................................................................................ 9 3.4 CLIMATE CHARACTERIZATION PRODUCTION REGIONS ......................................................................... 10 3.4.1 Altitudes and temperatures ......................................................................................................... 10 3.4.2 Irrigation, precipitation and water availability .............................................................................. 11 3.5 POTATO PRODUCTION AREA, YIELD AND PRICES ................................................................................ 14 3.6 COST OF PRODUCTION ...................................................................................................................... 16 3.7 TRENDS AND EXPECTATIONS ............................................................................................................. 19 3.8 PRICES AND CONTRACTS ................................................................................................................... 20 3.9 POTATO SECTOR OVERVIEW .............................................................................................................. 21 4 PRIMARY PRODUCTION ....................................................................................................................... 22 4.1 POTENTIAL PRODUCTION CAPACITY IN THE SELECTED PRODUCTION AREAS .......................................... 22 4.2 SEED POTATO PRODUCTION .............................................................................................................. 23 4.2.1 Seed Potato Varieties ................................................................................................................. 24 4.2.2 Seed producers in Brazil ............................................................................................................. 25 4.2.3 Brazilian Seed Potato Categories ............................................................................................... 26 4.2.4 Brazilian Seed Potato market 2013 ............................................................................................ 27 4.2.5 Phyto-sanitary requirements ....................................................................................................... 27 4.2.6 Conditions for the export of seed potatoes to Brazil ................................................................... 27 4.2.7 Current structure ......................................................................................................................... 29 4.2.8 Legislation ................................................................................................................................... 29 4.2.9 Cultivation practices .................................................................................................................... 29 4.2.10 Diseases, pests and fertilisation ............................................................................................. 29 4.2.11 Storage ................................................................................................................................... 30 4.2.12 Quality ..................................................................................................................................... 30 4.2.13 Problems and bottlenecks according to the growers .............................................................. 30 4.2.14 Economic analysis / Production cost structure seed potatoes ............................................... 31 4.2.15 SWOT ..................................................................................................................................... 31 4.3 WARE POTATO PRODUCTION (TABLE PLUS PROCESSING) .................................................................... 32 4.3.1 Current structure ......................................................................................................................... 32 4.3.2 Cultivation practices .................................................................................................................... 33 4.3.3 Diseases, pests and fertilisation ................................................................................................. 34 4.3.4 Storage ....................................................................................................................................... 34 4.3.5 Quality ......................................................................................................................................... 34 4.3.6 Problems and bottlenecks according to the growers .................................................................. 35 4.3.7 Economic analysis / Production cost structure ware potatoes ................................................... 35 4.3.8 SWOT On the primary production .............................................................................................. 35 5 INFRASTRUCTURE ............................................................................................................................... 36 5.1 CROP PROTECTION AND FERTILIZERS ................................................................................................. 36 5.1.1 Crop management systems ........................................................................................................ 36 5.2 MECHANISATION ............................................................................................................................... 37 5.2.1 History of Mechanization in Brazil .............................................................................................. 37 5.2.2 Availability and Suppliers of Mechanization Technology ............................................................ 38 5.2.3 Service network for machines..................................................................................................... 39 5.2.4 Price levels of mechanization technology ................................................................................... 39 5.2.5 Special demands – opportunities ............................................................................................... 39 5.3 STORAGE ......................................................................................................................................... 40 5.4 IRRIGATION ....................................................................................................................................... 40 5.5 LABOUR ............................................................................................................................................ 41 5.6 LOGISTICS ........................................................................................................................................ 41 6 VALUE CHAINS...................................................................................................................................... 42 6.1 GENERAL .......................................................................................................................................... 42 6.2 FRESH MARKET ................................................................................................................................. 43 6.2.1 Varieties and size ....................................................................................................................... 43 6.2.2 Wholesale ................................................................................................................................... 44 6.2.3 Retail sector ................................................................................................................................ 45 Gitah 2015; Opportunities in the potato sector Brazil 2 6.2.4 The main constraints in this sector ............................................................................................. 46 6.2.5 Foodservice ................................................................................................................................ 48 6.3 INDUSTRIAL PROCESSING .................................................................................................................. 50 6.3.1 Processed Consumption
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