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 ...... 50 6.3.2 French fries ...... 51 6.3.3 Bem Brasil...... 54 6.3.4 Hortus Agroindustrial ...... 55 6.3.5 Crisps ...... 55 6.3.6 PepsiCo ...... 57 6.3.7 Yoki ...... 58 6.3.8 Cooperative Castrolanda ...... 59 6.3.9 Other small crisps factories ...... 59 6.3.10 Other ...... 59 6.3.11 EU-Mercosur free trade agreement ...... 63 6.4 SWOT ...... 63 7 INFORMATION FOR THE SECTOR ...... 65 8 SECTOR REPRESENTATION ...... 66 9 EDUCATION AND RESEARCH ...... 67 10 GENERAL LEGISLATION ...... 68 10.1 BRAZILIAN PRODUCT CODE AND CLASSIFICATION ...... 68 10.2 BRAZILIAN IMPORT DUTY AND TAXES...... 68 10.2.1 Edible vegetables, certain roots and tubers ...... 68 10.2.2 Frozen French Fries: Tariff (Import Policies) ...... 68 11 CONCLUSIONS AND RECOMMENDATIONS ...... 69 11.1 GENERAL CONCLUSIONS...... 69 11.2 ISSUES TO ADDRESS AND RECOMMENDATIONS ...... 70 12 INTERVIEWS AND REFERENCES...... 74 12.1 INTERVIEWS ...... 74 12.2 REFERENCES ...... 74
Figures Figure 1: Different climate zones in Brazil ...... 10 Figure 2: Min. temperatures in potato regions during ...... 10 Figure 3: Production region altitudes ...... 11 Figure 4: Irrigated area (ha) in Brazil according to Agricultural Census ...... 12 Figure 5: Normal Climatological Rainfall 1981-2010 per period of the year...... 13 Figure 6: Potato sector overview Brazil 2012-2014 ...... 21 Figure 8: Map with all potato producing regions in South –Central Brazil ...... 22 Figure 9: Seed storage in pallet boxes with forced ventilation ...... 30 Figure 10: Four sizes of potato seed ...... 30 Figure 11: 15 kg potatoes per plastic crate plus 50 kg polypropylene bags ...... 45 Figure 12: Retail turnover share by region (2009) and population density ...... 45 Figure 13: Packed in PS-trays, potatoes for cooking, potatoes for frying ...... 48 Figure 14: Promotion of packed product and loose product ...... 48 Figure 15: BEM processing facilities ...... 55 Figure 16: Crisps brands in Brazil ...... 57 Figure 17: PepsiCo Potato Processing Plan ...... 58 Figure 18: Batata palha production ...... 60 Figure 19: Steamed whole potatoes, vacuum and peeled crude potatoes ...... 61 Figure 20: Peeled potato chunks, fresh fries and vacuum mix of potato and carrot ...... 61 Figure 21: Potato purée, retail pack and retail packing of frozen pre-fried potato products ...... 61
Graphs Graph 1: Brazilian potato production regions ...... 8 Graph 2: Potato production seasons (% of total supply) ...... 9 Graph 3: Yearly increase of irrigated area in Brazil ...... 14 Graph 4: Yearly increase of irrigated area by type of irrigation technology ...... 14 Graph 5: Potato area in Brazil ...... 19 Graph 6: Potato production in Brazil...... 19 Graph 7: Price development of potatoes 2002-2012 ...... 20 Graph 8: Growing upper- (AB) and middle income (C) classes ...... 42 Graph 9: Composition of foodservice sales, Brazil ...... 49 Graph 10: Compound Annual Growth Rate Brazilian Foodservice: Dynamics by channel 2006-2016 ...... 50 Gitah 2015; Opportunities in the potato sector Brazil 3
Graph 11: Origin of imported frozen potato products in Brazil in % ...... 52 Graph 12: Price levels EU and Mercosur pre-fried frozen potatoes (FOB in origin) ...... 53 Graph 13: Frequency of labels being read ...... 62 Graph 14: Label information most looked for ...... 62 Graph 15: Main sources of information for consumers about food ...... 62
Tables Table 1 Main Brazilian production regions and characteristics ...... 8 Table 2: Dry- and winter season harvest areas ...... 15 Table 3: Wet season harvest areas ...... 16 Table 4: The cost evolution if the last 10 years in Vargem Grande Do Sul (SP) ...... 17 Table 5: The cost evolution in the last 6 years in Sul de Minas Gerais ...... 17 Table 6: Potato Production Yields per Region in 2014 (see annex 2) ...... 18 Table 7: Cost of potato production in rainy season (South MG 12/13- 13/14) ...... 18 Table 8: Cost of potato production in in winter (Vargem Gr.do Sul 2013-2014) ...... 18 Table 9: Production statistics in 2013 ...... 20 Table 10: Cultivated area with potatoes in Brazilian states in 2012 ...... 23 Table 11: Potato Varieties and Market destinations ...... 24 Table 12: Varieties used in Brazil for processing purposes: ...... 24 Table 13: Bottlenecks in the Brazilian Potato Seed Production ...... 25 Table 14: The current proposal of categories for production of potato-seed is as follows: ...... 26 Table 15: Confirmed norms ...... 26 Table 16: Benchmark Tolerances field inspection Netherlands ...... 26 Table 17: Benchmark Lot inspection tolerances Netherlands and EU ...... 27 Table 18: Brazil Seed Potatoes Phyto-sanitary Requirements ...... 28 Table 19: Other Phyto-sanitary requirements ...... 28 Table 20: Strengths & Weaknesses of the actors in seed chain (Internal factors) ...... 31 Table 21: Opportunities and threats of the actors in seed chain (External factors) ...... 31 Table 22: Brazilian Planted area, harvested area and production Season 2013-2014 ...... 32 Table 23: Planting and harvesting periods in different regions +yield indications of some varieties ...... 33 Table 24: Strengths & Weaknesses of the actors in seed chain (Internal factors) ...... 35 Table 25: Opportunities and threats of the actors in seed chain (External factors) ...... 35 Table 26: Phyto-sanitary status ...... 36 Table 27: Available Mechanization technology in Brazil, origin and suppliers ...... 38 Table 28: Cost of irrigation systems in Brazil per hectare ...... 40 Table 29: Top-five supermarket chains ...... 46 Table 30: Main fast food chains in Brazil ...... 49 Table 31: Processed Potato Sales in Brazil 2010 ...... 51 Table 32: Total Import of frozen prepared potato in US$ and in weight...... 51 Table 33: Of which from Argentina in US$ and in weight...... 51 Table 34: Characteristics of Potato chips producers ...... 56 Table 35: Formal – versus informal market ...... 56 Table 36: PepsiCo production in Brazil ...... 58 Table 37: Strengths & Weaknesses of the actors (Internal factors) ...... 63 Table 38: Opportunities and threats of the actors (External factors) ...... 64 Table 39: Companies active in mechanization ...... 65 Table 40: ABBA members ...... 66 Table 41: Tax overview ...... 68
Annexes
Annex 1 Laboratories for potato seed control Annex 2 Participants round table meeting Annex 3 Production Brazil July 2014
Gitah 2015; Opportunities in the potato sector Brazil 4
1 PREFACE This study has been conducted within the frame of the GITAHpapa project in which a group of Dutch companies active in the potato sector, cooperate on the Latin American market with focus on Argentina. As such, this report has been supported by the Dutch Enterprise Agency (RVO) of the Netherlands Ministry of Economic Affairs (EZ).
The purpose of the study has been to map the potato sector in Brazil and the developments that are taking place within this sector. Specific focus was put on consistency of quality and availability during the year. This report aims to substantiate the current problems and bottlenecks regarding quality and availability and to present the conclusions to local producers, based on which solutions can be suggested.
Starting point for the study has been to analyse market driven developments, based on a broad, world-wide knowledge of the potato sector with the members of the investigation team. A concept version of this report has been provided to ABBA (Brazilian Potato Association) and has been commented by ABBA-members. As such, this report also bears the logo of ABBA. On 19 November 2015 a 1-day round meeting table was organised in Campina during which a concept version of this report has been discussed with representatives of the Brazilian potato sector during a 1-day round table (see Annex 2 for participants). In § 11.2 the conclusions and recommendations that have been the outcome of this round-table, are summarised.
Geographic focus has been on the regions Minas Gerais (MG), São Paulo (SP), Paraná (PR) and Goiás (GO). This study includes a desk-study but above all has concentrated on interviewing many representatives in several links of the different value chains. These interviews have specifically focussed on how the different players in each link of the value chain, understand ‘quality’ and ‘consistency in quality’ and where they experience problems and bottlenecks in this field. Additional issues that are being considered problematic by the persons being interviewed, have also been registered and included in the analysis.
The study covers the processing industry (French fries, crisps, palha, and other forms of processing) as well as the fresh market table potatoes and their value chains
The study has been conducted in the period May to August 2014 by Wageningen University & Reasearch centre/PPO (Chapters 4, Primary production and 9, Education and Research), Agriment International (Paragraph 3.9 Potato sector overview and Chapter 6, Value chains) and Agrivalue (Chapters 3, General, 5, Infrastructure, 7, Information, 8 Sector representation and 10, Legislation) in consultation with the companies APH-Group and Farm Frites International and assisted by local specialists.
Where there is mention of prices, especially farmer- and consumer prices, it should be noted that these are valid at a specific moment, but may differ substantially in other periods or other years.
Gitah 2015; Opportunities in the potato sector Brazil 5
2 EXECUTIVE SUMMARY
General Brazil produces approximately 3,5 to 3,9 million ton potatoes annually on 130.000 to 140.000 hectares divided in a dry- wet- and winter season. The main production areas are located in Minas Gerais, Paraná and São Paulo. The state of Bahia clearly decreased in importance lately and currently produces less than 5% of the total crop. The number of potato growers has decreased from 30.000 in 1995 to less than 5.000 in 2014. Less, but bigger producers and an increased yield per hectare.
A lack of available level land on the higher elevations that are suitable for a mechanised winter crop, is a limiting factor for extension of the area in production. Limitations in water availability is a second constraint in several areas and is the main reason for a reduce in area in Bahia. But also in other areas, possible lack of water availability is being considered a risk by produces, resulting in for example earlier planting and out of balance supply.
The main varieties grown are Agata (fresh market), Atlantic for palha and crisps (75% of the crisps production), FL varieties (25% of crisps production) and Asterix and Markies (French fries). Average yield levels range from 22 to 45 tons per hectare which is reasonable for the fresh market because that is purely a local market, but rather low for a competitive raw material price for French fries production which must be competitive in global market.
Seed RENASAM is responsible for certification of seed potatoes that are commercially sold. When producing for own use, farmers are not obliged to use certified seeds. The big farmers buy small volumes of certified seed and multiply these during two- or three generations within their own company. Only 2 or 3 commercial seed producers exist in the country. Approximately 15% of seeds is certified. The rest is multiplied by the ware potato growers themselves. Growers express they would like to have alternative high-yielding varieties less susceptible to disease, especially for crisps production. Sometimes, seeds are being sold as ware potatoes on the fresh market and the resulting lack of available seeds limits the area being planted.
Mechanisation In general, the level of mechanisation in potato production in Brazil is still low. But as labour is getting more expensive and difficult to get and because farms become bigger, the sector is about to invest substantially in mechanisation. Especially when producing for the industry where small damages on the skin are no major problem. But also packers of table potatoes need flexibility and capacity to harvest substantial amounts of potatoes when the weather conditions allow them to do so. For the fresh market, farmers need limited storage capacity, mainly to form a week’s buffer to be able to continue supplying the market during periods when harvest is not possible due to rains. The producers for industry need medium term storage (3 to 4 months) and therefore bigger capacities in order to be able to lower the cost price of potatoes via a higher yield in the winter crop that over-compensates for storage costs.
Market Key market drivers are: Increased spending power of the upper- and middle class that grew between 2003 and 2013 from 46% to 63%, a trend still continuing, although at a somewhat slower pace lately. Increase of the number of single households that look for convenience food. Inclusion of women in the labour market increasing demand for convenience food. The result is a substantial increase in consumption of convenience products like frozen French fries as well as peeled and dehydrated potato products whereas at the same time the consumption of table potatoes decreases somewhat.
Gitah 2015; Opportunities in the potato sector Brazil 6
Most potatoes on the fresh market are sold loose. All are washed and sold within only days after harvest resulting in a nice looking product with (hardly) no peel. Consumers are very much accustomed to this kind of freshness. Only 3 packers currently exist, that pack in consumer packages and supply these to the DC’s of supermarket chains. 10% of the packed table potatoes are the variety Asterix (frying) and 90% are Agata (cooking).
The use of frozen French fries started in Brazil in 1992. Currently, in 2014, the consumption is approximately 370.000 ton and is growing by 7% per year.
With 282.000 ton imported, three quarters of all frozen fries consumed are imported, and one quarter is produced locally. The main local producer is BEM Brasil with a production capacity of 100.000 tons (ready product) and plans to double this capacity during the next years (including storage capacity for raw material). Main exporting countries of frozen fries to Brazil are Argentina, Netherlands and Belgium. International main players on this market are McCain and Farm Frites that both supply from their production facilities in Argentina as well as from Europe. It looks like both also opt for cooperation in local production of oven fries and other flakes-based frozen potato products and the supply of the standard frozen French fries via import, due to the production costs of the raw material that is not sufficiently competitive in an international context. Foodservice accounts for 80% of the pre-fried frozen potato sales of which 25% is realised in the fast-food segment and 75% in the rest of the foodservice sector.
The crisps market is well developed and all crisps are produced locally. Production and consumption are approximately 75.000 ton for which 300.000 raw material is required. PepsiCo/ Frito-Lay has 50% of the market. Yoki (General Mills) is the second biggest producer with 25.000 ton crisps. Procter & Gamble (pringles) is a third big supplier in this market, but pringles are made of flakes whereas crisps are made of whole potato. Palha (straw potato) is a typical Brazilian product, consumed with a beef Stroganoff meal. It is all being produced locally, by many different producers. 80.000 tons raw material is used to produce 20.000 tons of palha annually Steamed whole potatoes and vacuum packed peeled raw potatoes are to forms of processed potatoes for which a market is rapidly developing.
Currently approximately 17% of the Brazilian crop is being processed (French fries, crisps and palha mainly). General expectation is that within 10 years the consumption of processed potato products has surpassed the consumption of fresh potatoes, like already is the case in most of the developed world. This trend is clearly visible in Brazil.
Gitah 2015; Opportunities in the potato sector Brazil 7
3 GENERAL SIZE AND CHARACTERISTICS OF THE POTATO SECTOR
3.1 INTRODUCTION
In Brazil, intensive cultivation of potatoes began in the 1920s1, in the green belt of São Paulo. Today, it is considered a main vegetable in the country.
3.2 PRODUCTION REGIONS IN BRAZIL
Currently potato production is concentrated in the South and South East regions (Paraná, Santa Catarina, Rio Grande do Sul, Minas Gerais and São Paulo). These states have traditionally been the main producers, accounting for approximately 98% of the planted area in Brazil.
Graph 1: Brazilian potato production regions
Source: Adapted from IBGE 2014
Brazilian production regions and their characteristics are described in the next table, based on information of IBGE, ABBA and interviews with stakeholders in the Brazilian potato production sector.
Table 1 Main Brazilian production regions and characteristics Region Characteristic Goiás Great potential to grow and develop. Presence of big farmers that exercise a marked influence on the national supply and prices. To take into account: Brasilia, Cristalina and Mucuge reach average yields of 40 ton /ha. Alto do One of the more mechanised regions, but with small participation in the Paranaiba national production. It is a very good region, thanks to the good crop Triangulo conditions Minero Average productivity is 40 t/ha Vargem High level of technology use . Right climate to guarantee a homogeneous Grande do Sul production during the entire production cycle. Average productivity is 30 to (São Paolo) 35 t/ha (mainly due to climatic influences) South of Minas One of the main production areas in quantity. Many small farmers. Gerais Low technology application. Low productivity. South West Has two harvesting periods (May-July and Oct-Jan). The Oct-Jan production São Paulo is for seed production as well. Average yields 25-30 t/ha. Search for more productivity results in migration to the Triangulo Minero and Alto Paranaiba Paraná Has a good technological level, Main production is for industry purposes. Many small and medium-sized producers Source: Agrivalue SA 2014 In the Northeast, the potato crop has been expanding in area in the states of Bahia and
1 http://www.abbabatatabrasileira.com.br/2008/revista.asp?id_REVCAT=32&id_REVCON=708 8
Gitah 2015; Opportunities in the potato sector Brazil
Paraíba, on the basis of certain favourable climatic conditions. However, in 2008 production of potato in these states came into crisis due to the constant droughts and competition in production from the Southern and Southeast states.
According to IBGE there are several factors that have contributed to this, among others: - low soil fertility-producing region, mainly low in organic matter, nitrogen and phosphorus; - the depletion of soil through successive crops year after year; - conditions of risk in planting under rain-fed conditions resulting from climate irregularities; - inappropriate soil management, reduced use of nitrogenous and phosphate fertilizers; - low purchasing power of most farmers; - the quality of the harvested potatoes or final product that does not compete on price with the potato of the South and Southeast2.
3.3 PRODUCTION SEASONS IN BRAZIL
Brazil’s potato production takes place in three periods (wet-, dry- and winter season). The participation of these harvests in the total supply is as follows: Wet season 45.0%; Dry season 33.0% and Winter-season 22%.
Graph 2: Potato production seasons (% of total supply) Winter season Dry season 22% 33%
Wet season 45%
Source: Agrivalue SA based on IBGE (2013)
In the South-eastern production areas, three crops per year are grown, while the potato farmers in other regions opt for two seasons potatoes and the third season they plant corn or other grain to complement the activities and make crop rotation. Thus some regions have higher expression in a particular culture.
The main harvest in the Southern and South-Eastern part of Brazil is the “Wet” crop, which is planted from August to December and starts to be harvested from November. The planting of “winter” crop, is practiced also in the same regions, in places that do not suffer from frost, but it depends on irrigation during the cycle. The planting is carried out from April until July and harvest takes place in July-October.
In the state of São Paulo the main crop is the winter crop, followed by the wet season and thirdly the dry season. - Dry season potatoes are planted during the months of January-March and are harvested after 120 days in June and July, to avoid the frosts in regions where there are rigorous winters. - The winter potato crop is being planted in April and May and harvested in August, September and October. - Wet season potatoes start to be planted in August and September and are harvested between December and March. Non-traditional potato production regions, like the Central Tableland and the high altitude areas in the Northeast, present reasonable conditions of planting during the entire year, in case excess rainfall does not complicate control of diseases and damages of the potatoes. Bigger productivity and better quality of the product are obtained during the dry winter, under irrigation.
2 IBGE, 2006 9
Gitah 2015; Opportunities in the potato sector Brazil
3.4 CLIMATE CHARACTERIZATION PRODUCTION REGIONS
3.4.1 Altitudes and temperatures
Figure 1: Different climate zones in Brazil
The potato crop requires cool temperatures, especially at night. Especially a high amplitude (difference between day- and night temperatures) is beneficial.
Figure 2: Min. temperatures in potato regions during coldest time of the year (Jun-Jul Aug) The accumulation of reserves in the tuber is a function of the amount of energy that the plant assimilates during the day. The more the plant accumulates during the day as a result of photosynthesis, the greater the accumulation of reserves. The cold temperatures at night help to reduce the plant respiration and thus accumulate more reserves. The coldest zones therefore are better for potato cultivation. There are climatic differences between regions, especially concerning the maximum temperature. The differences in minimum temperature (occurring at night) are smaller. The cultivation areas are concentrated in high altitude tropical and subtropical regions.
As an example, Figure 2 shows the minimum temperatures at the coldest time of the year, corresponding to the months June, July and August.
Source: Embrapa
The map shows what occurs with the temperature in the regions producing higher yields.
Gitah 2015; Opportunities in the potato sector Brazil 10
Like this map, there are seven other maps, showing the weather at other times, and the maximum temperature throughout the year, per 3 month-periods. As can be seen on the map, the south of Minas Gerais has very similar conditions to the climate of the entire Southern Region of Brazil.
São Paulo also presents high-altitude regions with similar climates, where potato is cultivated as well. However, producing regions of Bahia and Goiás have higher minimum temperatures and still have high production, using state of the art technology. The minimum temperature in these regions is on average around 5 to 6°C higher than that of the states of the South region of Brazil. The north of Paraná, Southeast and Midwest are capable of producing only in winter, using irrigation.
The regions north of the parallel 24ºS are known as regions with tropical climate and high- altitude regions south of the parallel 24ºS are known as temperate. Temperatures during the day are higher in regions of high-altitude with a tropical climate during the coldest quarter of the year.
The work also related to altitude of the regions that produce potatoes, provided that, in most regions, even in areas with temperate climates, crops are concentrated in higher altitude areas.
Figure 3: Production region altitudes
In Figure 3, the altitudes are presented. The dots represent the regions where potatoes are being produced. Most regions, mainly highland tropical climate, are above 800 meters. Only the southern region of Rio Grande do Sul and Santa Catarina coastline have lower altitudes with potato production.
Source: Empraba
3.4.2 Irrigation, precipitation and water availability
Rainfall patterns in the potato production areas have changed during the last few years. As a result, reservoirs are far below their usual level (S. Paulo) and farmers see a lack of rainfall during the growing season as a risk. As a result of this, they plant earlier and consequently, harvest earlier. Leading to an out of balance supply with negative effects on prices.
Rio Grande do Sul represents the largest irrigated area representing 20% of the total in the country (almost 800 thousand hectares in 2006). primarily due the production of rice in flooding systems. The states of São Paulo and Minas Gerais are also highlighted and have 747.000 and 453.000 hectares of irrigated land, respectively (approximately 17 and 10% of the total, respectively). In the Northeast region, the state of Bahia has 287.000 hectares of irrigated land (6.5% of the total), mainly due the fruit production in the northernmost area of the state.
Gitah 2015; Opportunities in the potato sector Brazil 11
The North region has less irrigated area compared to other regions in Brazil, generally due to the smaller proportion of agricultural land and the prevalence of extensive livestock farming.
Figure 4: Irrigated area (ha) in Brazil according to Agricultural Census
Source: IBGE 2006
The spatial distribution pattern of irrigated land observed in the figure above can be related, among other factors, to the climate characteristics of the regions. According to Silva et al. (2010), the geographical regions can be described as follows:
North: high temperatures throughout the year and a well-defined rainfall pattern (experiences a dry season from June to November and a wet season from December to May). The warm and humid climate virtually eliminates the need for irrigation.
Northeast: characterised by high temperatures and an uneven rainfall pattern, with an annual average ranging from less than 250 to 750 mm. The climate conditions are extremely favourable to irrigated agriculture, especially in fruit cultivation, horticulture and grain production. Recently, this region has seen increased adoption of irrigation systems, such as sprinkler and drip, especially in fruit production.
Southeast: presents high temperatures in summer and mild ones in winter. Moreover, there is a wet season during summer while the winter is moderately dry. Farmers usually adopt irrigation only in a complementary way, especially during winter.
South: characterised by warm and wet summers and cold and dry winters. There is no regularity or uniformity in the rainfall and climate patterns. Regarding irrigation, this region has large flooded areas, especially in rice production in rotation with pastures. In years with particularly dry winters, irrigation may be an additional guarantee for production.
Central-West: this region is warm and wet during the summer and dry during the winter. The rainfall distribution pattern in the far west of the region can reach up to 2.500 mm year, reaching 1,000 mm year- in the east of the region, requiring both supplemental and continuous irrigation during the six-month dry season.
Gitah 2015; Opportunities in the potato sector Brazil 12
Regarding the main crops produced in Brazil, the cultivation of rice and other grains, as well as sugar cane, are the major irrigation users, with 1.241.716 and 1.044.936 hectares, respectively, corresponding to 28 and 23% of the total irrigated area in the country. The production of soybean, fruits, horticulture, ornamental plants and coffee are also notable for their use of irrigation; altogether, they account for approximately 26% of irrigated land in Brazil.
The type of irrigation that is being applied is as follows: (Surface water 95%) Flood irrigation: 42% Furrow irrigation: 6% Sprinkler irrigation: 22% Central pivot irrigation: 23% Localized irrigation: 6%
With exception from the states in the Southern region (mainly Rio Grande do Sul and Santa Catarina), potato production is totally irrigated. Application of irrigation, even in the rainy season in the southern regions of Brazil, enables the farmers to reach up to 50% of higher productivity (bigger tubers and better physical aspect). This reason, in combination with the reduced risk of losing the crop to drought, has caused the rapid increase of potato irrigation in the region.
The following graphs indicate the requirement for irrigation per period of the year.
Figure 5: Normal Climatological Rainfall 1981-2010 per period of the year
Rainfall Jan-Feb-Mar Rainfall Apr-May-Jun
Rainfall Jul-Aug-Sep Rainfall Oct-Nov-Dec
(source: INMET - Instituto Nacional de Meteorologia, 2014)
Gitah 2015; Opportunities in the potato sector Brazil 13
Graph 3: Yearly increase of irrigated area in Brazil
Source: ANA – National Water Agency 2014
Graph 4: Yearly increase of irrigated area by type of irrigation technology
Source: ANA – National Water Agency 2014
A strong increase in irrigated area can be observed from these graphs, mainly for the account of Center pivot irrigation.
3.5 POTATO PRODUCTION AREA, YIELD AND PRICES
In 2011, Brazil had 150 thousand hectares of potatoes cultivated with a production of 3.89 million tons (equal to a productivity of 25.9 t/ha). Yield levels vary however from 22 to 40 tons depending the zone and harvest season. However, also the planted area varies. For example in 2012 it was 136.000 hectares and in 2014, 130.000 hectares were planted with potato and the total yield was 3,6 million tons.
In 2012 the state of Minas Gerais was the biggest producer, with 35 % of the national production, followed by São Paulo with 24 %, Paraná with 22 % and Rio Grande do Sul with 11 %. The production in the states Santa Catarina, Goiás and Bahia totalled 8%.
The highest average potato yield in 2012 was obtained in Goiás (40 t/ha) and Bahia (36 t/ha), while the lowest values were obtained in Santa Catarina (19 t/ha) and in Rio Grande do Sul (18 t/ha). Minas Gerais, Brazil’s main production state, had an average productivity of 31 t/ha.
Gitah 2015; Opportunities in the potato sector Brazil 14
Especially the lack of good, certified potato seed is a factor that limits the expansion of the potato production area. Other factors that may be mentioned are: Losses from previous years, difficulty in hiring labour and very strict labour laws, and high prices of inputs such as fertilizers and pesticides due to increased dollar, increasing value and the high price for leasing land in some regions, due to competition with other crops. Being the forecasted area practically stable, there possibly will be excess supply in the domestic market. The prices tend to be above the cost of production.
In Brazil weather conditions also have a strong influence on prices and may increase or decrease the volume available in the domestic market.
Table 2: Dry- and winter season harvest areas Dry harvest and Winter harvest season (June to November) Planted Area Region Harvest city 2012 2013 Var. % Vargem Grande Vargem Grande do Sul, São João da Boa Vista, 11.450 11.850 3% do Sul (SP) – Mogi Guaçu, Aguaí, Casa Branca, Santa Cruz winter das Palmeiras, Mococa, Itobi, São José do Rio Pardo and Porto Ferreira Southwest Capão Bonito, São Miguel Arcanjo, 2.400 2.350 -2% Paulista – dry Pilar do Sul, Itapetininga, Tatuí and Paranapanema Southwest Capão Bonito, São Miguel Arcanjo, Pilar do Sul, 2.830 2.830 0% Paulista – winter Itapetininga, Tatuí and Paranapanema Curitiba (PR) Almirante Tamandaré, Araucária, Balsa Nova, 3.207 3.207 0% Campo Tenente, Campo Largo, Campo Magro, Contenda, Fazenda Rio Grande, Lapa, Mandirituba, Piraquara, Quitandinha, Rio Negro and Tijucas Ponta Grossa Arapoti, Castro, Imbaú, Ipiranga, Iraí, 1.800 1.800 0% (PR) Jaguariaíva, Ortigueira, Palmeira, Piraí do Sul, Ponta Grossa, Porto Amazonas, Reserva, São João do Triunfo, Telemaco Borba, Tibagi and Ventania São Mateus do União da Vitória, Antônio Olímpio, Paulo Freitas 1.300 1.300 0% Sul (PR) and Paulo Frontin Irati (PR) Mallet, Rio Azul, Rebouças, Irati, Fernandes 900 850 -6% Pinheiro, Teixeira Soares, Imbituva, Guaramiranga and Inácio Martins Brasília (DF) Brasília and Cristalina 5.220 5.430 4% /Cristalina (GO) Mucugê and Mucugê and Ibicoara 5.925 5.100 -14% Chapada Diamantina (BA) South of Minas Cambuí, Pouso Alegre, Ipuiúna, Poços de 9.250 9.100 -2% Gerais (dry- and Caldas, Areado, Bom Repouso, Camanducaia, winter season) Senador Amaral, Maria da Fé, Bueno Brandão, Espírito Santo do Dourado, São João da Mata, Andradas, Alfenas, Alterosa, Serrania, Machado, Paraguaçu, Três Corações, São Gonçalo do Sapucaí, São Bento do Abade, Santa Rita de Caldas and Congonhal Triângulo Araxá, Ibiá, Perdizes, Pedrinópolis, Sacramento, 3.000 3.000 0% Mineiro/Alto Tapira, Santa Juliana, Patrocínio, Iraí de Minas, Paranaíba (MG) Uberaba, Uberlândia, Rio Paranaíba and São Gotardo
Ibiraiaras (RS) Ibiraiaras and Santa Maria 1.295 1.250 -3% Source: Cepea, statistics released by Cepea not represent the total cultivated area in each region. The data reflect the views of key industry players and are considered the major market benchmarks.
Gitah 2015; Opportunities in the potato sector Brazil 15
Table 3: Wet season harvest areas Wet harvest season (December until May) Planted Area Region Harvest city 2012 2013 Var. % South of Minas Cambuí, Pouso Alegre, Ipuiúna, Poços de 9.900 9.900 0% Gerais Caldas, Areado, Bom Repouso, Camanducaia, Senador Amaral, Maria da Fé, Bueno Brandão, Espírito Santo do Dourado, São João da Mata, Andradas, Alfenas, Alterosa, Serrania, Machado, Paraguaçu, Três Corações, São Gonçalo do Sapucaí, São Bento do Abade, Santa Rita de Caldas and Congonhal Triângulo Araxá, Ibiá, Perdizes, Pedrinópolis, Sacramento, 12.770 12.100 -5% Mineiro/Alto Triângulo Mineiro/Alto Paranaíba (MG) Tapira, Paranaíba (MG) Santa Juliana, Patrocínio, Iraí de Minas, Uberaba, Uberlândia, Rio Paranaíba and São Gotardo Guarapuava Guarapuava, Campina do Simão, Cândoi, 4.300 4.500 5% (PR) 1º and 2° Guarapuava (PR) Foz do Jordão, Pinhão, crop Prudentópolis and Reserva do Iguaçu Curitiba (PR) Agudos do Sul, Almirante Tamandaré, 5.590 5.590 0% Araucária, Balsa Nova, Campo Tenente, Campo Largo, Campo Magro, Contenda, Fazenda Rio Grande Lapa, Mandirituba, Piên, Piraquara, Quitandinha, Rio Negro e Tijucas Ponta Grossa Arapoti, Castro, Imbaú, Ipiranga, Iraí, 2.300 2.300 0% (PR) Jaguariaíva, Ortigueira, Palmeira, Piraí do Sul, Ponta Grossa, Porto Amazonas, Reserva, São João do Triunfo, Telemaco Borba, Tibagi and Ventania Irati (PR) Mallet, Rio Azul, Rebouças, Irati, Fernandes 1.280 1.280 0% Pinheiro, Teixeira Soares, Imbituva,Guaramiranga and Inácio Martins São Mateus do União da Vitória, São Mateus do Sul, Antônio 1.660 1.800 8% Sul (PR) Olímpio, Paulo Freitas and Paulo Frontin Santa Catarina Água Doce (SC) and Palmas (PR) 6.680 6.680 0% Rio Grande do Bom Jesus, São José dos Ausentes Ibiraiaras, 7.150 7.285 2% Sul Santa Maria and São Francisco de Paula Source: Cepea, statistics released by Cepea not represent the total cultivated area in each region. The data reflect the views of key industry players and are considered the major market benchmarks.
3.6 COST OF PRODUCTION
The cost of potato production is basically composed of the following items3: seed, cultivation, fertilizers, pesticides, harvesting and processing, administrative and financial costs. Until the appearance of variety Agata, seed was the most expensive item in Brazil, because it usually represented about 25% of the production cost. With the emergence of the Agata variety, the majority (over 90%) of the producers began to use part of the ware potato crop as potato seed. The results of this change were undoubtedly reducing the cost of the seed and the explosion of phyto-sanitary problems - etc. blight common scab, silverscurf,.nematodes,.viruses. …………………………………………….
Expenditure on cultural practices such as tillage, ridging, spraying, irrigation, harvesting, shipping etc. increased significantly, mainly due to the increase in the price of diesel. Costs for processing or washing, administration and financial costs also increased due to the new requirements created in the tributary, environmental and labour laws. Chemical expenses are also increasing. On average, producers make 15 applications (crop protection and fertilizers), but this number can vary from less than 10 to more than 25 applications per crop cycle.……
3 http://www.abbabatatabrasileira.com.br/2008/midiacon.asp?id_ABM=36&tipo=1 16
Gitah 2015; Opportunities in the potato sector Brazil
Besides the high price, fertilizers also are short in supply. Surely this pricing policy is related to increased global demand for fertilizers. The trend is continuing to rise.
In order to give a comparison of some of the main production regions, hereafter a cost evolution table published in Hortifruti magazine of October 2014 is represented:
Table 4: The cost evolution if the last 10 years in Vargem Grande Do Sul (SP) Items 2005* 2014 Variation (%) ‘05-‘14 (A) Fertilizer and crop protection 5.903 5.973 1 % (B) Seed 5.704 4.375 -23 % (C) Mechanical operations for soil preparations 626 488 -22 % (D) Mechanical operations for cultivation and ridging 513 655 28 % (E) Irrigation 1.306 898 -31 % (F) Operations for mechanical harvesting 336 198 -41 % (G) Manpower 620 1.650 166 % (H) Picking the semi-mechanized harvesting system 1.001 1.610 61 % (I) Administration costs 412 796 93 % (J) Commercialization/processing 4.395 4.690 7 % (K) lease of land 2.662 2.066 -22 % (L) Working capital 1.319 1.035 -21 % (M) Operational costs (OC) = A+B+..+L 24.995 24.433 -2 % (N) CARP 938 953 1 % (O) Total Cost (TC) = M + N 25.932 25.386 -2,1 % Productivity 50 kg bag 600 700 10.0% Cost (RS/bag) 43,22 36,27 -11,0 % * the actual values of 2005 were obtained and corrected by the inflation by IGD-DI August 2014 (Source: Cepea 2014 / Hortifruti Magazine October 2014)
Table 5: The cost evolution in the last 6 years in Sul de Minas Gerais Variation(%) Items 2008/09* 2013/14 08/09-13/14 (A) Fertilizer and crop protection 5.290 6.374 21 % (B) Seed 3.257 3.600 11 % (C) Mechanical operations for soil preparations 643 743 16 % (D) Mechanical operations for cultivation and ridging 168 322 92 % (E) Operations for mechanical harvesting 265 369 39 % (F) Manpower 945 2.834 200 % (G) Picking the semi-mechanized harvesting system 1.656 2.130 29 % (H) Administration costs 1.345 1.961 46 % (I) Commercialization/processing 4.479 5.280 18 % (J) lease of land 1.402 2.066 47 % (K) Working capital 889 1.066 20 % (L) Operational costs (OC) = A+B+..+L 22.002 26.746 22 % (M) CARP 4.829 2.906 -40 % (N) Total Cost (TC) = M + N 27.103 29.652 9,4 % Production 50 kg bag 600 660 10 % Cost (RS/bag) 45.17 44.93 -0,5 % * the actual values of 2005 were obtained and corrected by the inflation by IGD-DI August 2014 (Source: Cepea 2014 / Hortifruti Magazine October 2014)
Cost per season It should be emphasized that in general in Brazil the harvest in the rainy season is less productive with higher costs compared to the winter harvest. Therefore, many big producers in Brazil focus more and more on the winter harvest.
Gitah 2015; Opportunities in the potato sector Brazil 17
Table 6: Potato Production Yields per Region in 2014 (see annex 2) Region Harvest period (harvest area, hectares): yield / hectare (T) Batata – inglesa (1a Safra) (68.129) 26,52 Brazil Batata – inglesa (2a Safra) (41.181) 27,66 Batata – inglesa (3a Safra) (21.420) 34,10
At the same time there is an increasing domestic demand for industrialized potato that requires year round supply. In the rainy season a decline in production has already been observed. Investment in long-term storage facilities might be a solution. A more detailed study on the commercial, financial and technical feasibility on storage solutions is recommended.
Cepea realized an analysis of potato production costs in winter (Vargem Grande do Sul) and in the rainy season in South Minas Gerais.
Table 7: Cost of potato production in rainy season (South MG 12/13- 13/14) 2013 2014 items R$/ha % R$/ha % (A) Inputs 5.185 19,7 6.374 21,5 Fertilizers 3.560 13,5 3.500 11,8 Crop protection 1.626 6,2 2.874 9,7 (B) Seeds 4.200 16,0 3.600 12,1 (C) Mechanical operations for soil preparations 711 2,7 744 2,5 (D) Mechanical operations for cultivation and ridging 273 1,0 322 1,1 (E) Irrigation (F) Operations for mechanical harvesting 295 1,1 369 1,2 (G) Manpower 2.952 11,2 2.834 9,6 (H) Picking the semi-mechanized harvesting system 1.980 7,5 2.130 7,2 (I) Administration costs 1.913 7,3 1.961 6,6 (J) Commercialization/processing 4.380 16,3 5.280 17,9 (K) Lease of land 1.240 4,7 2.066 7,0 (L) Working capital 1.005 3,8 1.066 3,6 (M) Operational costs (OC) = A+B+..+L 24.135 91,7 26.746 90,2 (N) Fixed costs 2.197 8,3 2.906 9,8 Total costs 26.331 100 29.652 100 Average productivity in 50 kg bags./ha 600 bags 660 bags Costs per bag (50 kg) R$ 43,89 R$ 44,93 Source: Cepea 2014
Table 8: Cost of potato production in in winter (Vargem Gr.do Sul 2013-2014) 2013 2014 items R$/ha % R$/ha % (A) Inputs 7.114 27,0 5.973 23,5 Fertilizers 3.730 14,1 3.601 14,2 Crop protection 3.384 12,8 2.372 9,0 (B) Seeds 5.000 18,9 4.375 17,2 (C) Mechanical operations for soil preparations 468 1,8 488 1,9 (D) Mechanical operations for cultivation and ridging 590 2,2 655 2,6 (E) Irrigation 638 2,4 997 3,5 (F) Operations for mechanical harvesting 187 0,7 198 0,8 (G) Manpower 1.661 6,3 1.650 6,5 (H) Picking the semi-mechanized harvesting system 1.495 5,7 1.610 6,3 (I) Administration costs 791 3,0 796 3,1 (J) Commercialization/processing 4.355 16,5 4.690 18,5 (K) Lease of land 2.066 7,8 2.066 8,1 (L) Working capital 1.114 4,2 1.035 4,1 (M) Operational costs (OC) = A+B+..+L 25.480 96,5 24.433 96,2 (N) Fixed costs 919 3.5 953 3,8 Total costs 26.399 25.386 100 Average productivity in 50 kg bags./ha 650 bags 700 bags Costs per bag (50 kg) R$ 40,61 R$ 36,27 Source: Cepea 2014 Gitah 2015; Opportunities in the potato sector Brazil 18
Conclusion of their research is that the three regions are difficult to compare due to the difference in scale of production, number of farmers, and availability of labour, harvest season, technology and climatological differences. What the numbers indicate is that the producing regions of São Paolo and Minas Gerais will hardly manage to compete with Brasilia (DF) / Cristalina (GO) to supply the market of the North and Northeast, not only due to higher cost of production, but also due the costs of logistics.
3.7 TRENDS AND EXPECTATIONS4
In general, productivity has increased significantly during the last decades and continues to do so. The production areas became more concentrated in the climatologically best suitable areas. Mechanisation of the crop has decreased the amount of labour that is required. Increasingly less labour will be required due to further investments in mechanization. These investments are being made due to labour costs and (lack of) availability and due to the increased acreage per farmer and increased capital intensity of the primary production sector.
Graph 5: Potato area in Brazil
Source: (IBGE, Instituto Brasileiro de Geografia e Estatística, 2014
Graph 6: Potato production in Brazil
Source: (IBGE, Instituto Brasileiro de Geografia e Estatística, 2014
4 Cepea - Centro de Estudos Avançados em Economía Aplicada Hortifruti BRAZIL - April 2013 19
Gitah 2015; Opportunities in the potato sector Brazil
3.8 PRICES AND CONTRACTS
Facing drought since the beginning of 2012, producers of the region Chapada Diamantina (BA) reduced cultivation in 2013 by 13.9% compared to the previous year. The positive quotes throughout the year - the greatest of all areas surveyed by Cepea - animated producers, but the bad weather prevented the expansion in area. Even the rainiest months as January and December were drier than normal. Given the fact that the reservoirs are still at low level, it will be difficult to reach the volume considered ideal in 2014, which should follow restricting cultivation. Although the limited area, local farmers continued prioritizing growing potato front of other crops such as grains. As a way to compensate for the lost part of the planting area they migrated to other places, especially Cristalina (GO) and even Guarapuava (PR).
Other regions profited from the low bid in the North-eastern market, as Triangulo Mineiro / Alto Parnaíba. In certain periods, producers reported that the sales-price to the Northeast was up to R $ 30 / higher than the one traded within the Southeast. Even with the drought in Chapada Diamantina (BA), assured good yield of 40 ton / ha on average thanks to irrigation. In addition, there were severe problems with pests or diseases in the region.
According to local farmers, the challenges for the coming years are searching for alternatives that maximize the use of water resources of the region such as irrigation projects and climate monitoring and the use of crop monitoring- and management systems for irrigation water use optimisation. …………………………………
Table 9: Production statistics in 2013 Item Characteristics 2013 Potato offer Low Imports of pre-fried frozen French Fries Increase in until October) 23% Area under cultivation Decreased (Bahia due to drought -14% ) Price level Highest nominal average in the history (May) Price record R$ 128.00 / 50 kg bag Imports of certified seeds Increased with 129% (until October) Source: Agrivalue SA based on Cepea data (2014)
Record prices for potato producers capitalized in 2013, since there was no sharp falls in production. The 2013/14 wet harvest planting area is estimated to increase only 1%.
According to PepsiCo high variation in prices makes processing inviable, therefore they started with the introduction of contracts. The establishment of contracts is a security for both processor and farmer. However, here have been severe problems lately by contract obligations not been respected by the industry.
Graph 7: Price development of potatoes 2002-2012
Source: PepsiCo
Source: PepsiCo
Gitah 2015; Opportunities in the potato sector Brazil 20
3.9 POTATO SECTOR OVERVIEW
An overview of the current potato sector in Brazil is presented in Figure 6: Potato sector overview Brazil 2012-2014. It shows that the country is more or less self-sufficient in seeds and in table potatoes. FAO states that production increases by 5% per year. At the same time a significant change from the consumption of fresh table potatoes to processed potato products can be noticed, especially in the large foodservice sector which comprises one third of all expenditures in food in the country. Note: the total production fluctuates somewhat per year. This fluctuation almost fully is absorbed by the fresh market as processing capacities are fixed.
Figure 6: Potato sector overview Brazil 2012-2014 15% 3% Import seeds 6.000 ton Seeds* * certified 97% Local seeds 324.000 ton 330.000 ton 50.000 ton
9 % production 73% decreasing losses (±130.000 ha) ±3.600.000 ton 36.000 ton 17% 1% Industry increasing Fresh 600.000 ton 2.628.000 ton
33% 17% 50% Pre-fried frozen Crisps Other
80% Raw mat. Raw mat. Raw mat. Raw mat. Raw mat. 200.000 ton 300.000 ton 100.000 ton 80.000 ton 2.628.000 ton
Import Pre-fried frozen Local prod. Crisps Local prod. Flakes / Peeled Palha import Fresh Local prod. (2013) granules 282.000 ton 382.000 ton 100.000 ton 75.000 ton 75.000 ton ton ton 20.000 ton 23.000 ton 2.651.000 ton 2.628.000 ton Arg. 50% 1,9 kg p.capita Bem 80.000 375 gr p capita Frito-Lay 38.000 100 gr p capita 13,8 kg/ capita Belg 25% Hortus 20.000 Yoki 25.000 Import Neth. 18% Others 12.000 Flakes & gran 9.000 t Starch 90% C WSM DC 20% 60% 20% 1.437 ton 85% 15%
Fast food Other Retail Retail foodservice foodservice Small shops/ hypermarkets Foodservice neighbourhood 76.000 ton 230.000 ton 76.000 ton 76.000 ton 18.000 ton 1.000.000 ton 1.253.550 ton 397.650 ton increasing increasing stable increasing increasing increasing increasing decreasing stable decreasing 10% per y. 90% 50kg bags; 10% 25kg bags 20% cons. packed Source: Agriment, based on data from FAOSTAT 2012, IBGE 2014, ABBA and field research Gitah 2015; Opportunities in the potato sector Brazil 21
4 PRIMARY PRODUCTION
4.1 POTENTIAL PRODUCTION CAPACITY IN THE SELECTED PRODUCTION AREAS
From 1976 to 1980, Paraná was the primary potato producing state in Brazil. This area is south of 20° S latitude, the south central region characterized by a humid, subtropical, mesothermic climate without a distinct dry season. The warmest month has an average temperature of less than 22 ºC, and the coldest month a temperature of less than 18 ºC. The state of Rio Grande do Sul has the climate best suited for potatoes, though it is not ideal. The area is classified as temperate, but the irregular temperature and rainfall make agriculture in general a risky enterprise. During the warmest months (January and February), the temperature ranges from 19 ºC to 26,9 º C, and in the coldest months (July, August) from 8,8 ºC to 14,8 ºC. Snow is rare, but frost at higher altitudes is frequent during winter (August- September). Annual rainfall ranges from 1.100 to 2.500 mm, and the annual relative humidity ranges from 75-87 %. Potato is grown at altitudes as high as 1.100 m above sea level. Extreme temperature fluctuations and irregular precipitation (long droughts and excessive rainfall both hazards) favour potato varieties with short growing periods.
Whereas in 1980 potatoes were produced in 30 regions in Brazil, this has now (2014) been reduced to 15-20 regions. The main production areas are presented in Figure 7: Map with all potato producing regions in South –Central Brazil and Table 10.
Regions in Minas Gerais, Paraná and São Paulo account for more than 75 % of the total production area in Brazil. Growers have adapted the planning of planting and harvesting according to the climatic conditions in their region
Figure 7: Map with all potato producing regions in South –Central Brazil
Gitah 2015; Opportunities in the potato sector Brazil 22
Table 10: Cultivated area with potatoes in Brazilian states in 2012 Classification City and State hectares 1º Cristalina – GO …………… 6.000 2º Perdizes – MG ……………. 4.960 3º Itapetininga – SP 4.000 4º Casa Branca - SP 3.600 5º Ipuíuna – MG 2.900 6º Castro – PR 2.800 7º Mucugê – Bahia 2.700 8º Paranapanema – SP 2.700 9º Itapeva – SP 2.600 10º Itaí – SP 2.500 11º São Mateus do Sul – PR 2.500 12º São Fr.de Paula – RS 2.500 13º Lapa – Paraná 2.450 14º Araucária – Paraná 2.090 15º Guarapuava – Paraná 2.035 16º S José d Ausentes – RS 2.000 17º Uberaba – MG 1.900 18º Ibicoara – Bahia 1.800 19º Tapira – MG 1.800 20º Sacramento – MG 1.750 21º Campo Largo – PR 1.700 22º Bueno Brandão – MG 1.650 23º Maria da Fé – MG 1.556 24º Bom Jesus – RS 1.500 25º Contenda – PR 1.400 26º Bom Repouso – MG 1.240 27º Ibiraiaras – RS 1.200 28º Campo Alegre de Goiás – GO 1.159 29º Quitandinha – PR 1.100 30º Santa Juliana – MG 1.050
Total 30 regions 69.140 (50,83 %) Total Brazil 136.019 (100 %) Source: FAOSTAT
4.2 SEED POTATO PRODUCTION
On average, Brazil produces approximately 140.000 hectares of potatoes on a yearly basis and per hectare the farmers use approximately 80 boxes of 30 kg of seed. This means that in Brazil 336.000 tons of seed per year is being planted.
Based on the number of samples that are analysed by the laboratories that realize the phyto-sanitary analysis on behalf of MAPA (Seed Potato Commission from the Ministry of Agriculture) it is estimated that there are 3.000 ha in production for seed potato, representing about 50.000 tons of local seed production. Taking into account that 6.000 tons were imported in 2013, this means that only 15% of the total seeds that are being used is certified.
The principle challenge of local seed multiplication is the rapid virus accumulation in seed lots through each generation, whether disease free seed stocks are imported or started from tissue culture locally. Pressure of aphids (many species) and viruses (mainly PVY and PLRV) are high throughout the year. The value of disease free seed for seed production leads seed producers to voluntarily seek Agronomic Institute of Campinas (IAC) ELISA services before deciding to sell their production either as seed or consumption (> 75%).
Gitah 2015; Opportunities in the potato sector Brazil 23
4.2.1 Seed Potato Varieties
There is a basket of varieties available on the market that varied over the decades. The most famous and long-lived variety, Bintje is smooth and suitable for frying. - In the 1970s and 1980s Bintje prevailed beyond cultivars: Patrones, Radosa, Delta and Aquila - In the 1990s prevailed in the market besides the Bintje; Achat, Baraka and Monalisa - In 2010, Agata, Cupido, Asterix, Atlantic, Mondial, and Markies5 are popular varieties' Potato farmers that produce for crisps production, in general import Atlantic seeds. The seed potato production in general is realized by farmers that have greenhouses for the production of mini-tubers.
Atlantic represents a better cost-benefit relation and will maintain its importance until another variety can supplant it, to respond to the demands of the Brazilian market, which values mostly the external aspect of the tubers, demanding good size and smooth and shiny skin.
Varieties like Agata and Cupido are destined to the fresh consumption market, since they are quite solid and of firm colour, presenting culinary aptitude for cooking.
Varieties like Atlantic, Lady Roseta and Panda are more used in the crisps industry for chips (or slices) and potato straw (palha). Because of its round format, rough skin and white pulp, this variety does not have a good acceptance in the fresh market.
Table 11: Potato Varieties and Market destinations Potato Market Varieties 1980 2012 Consumption Bintje, Achat, Delta, Baronesa, Ágata, Monalisa, Cupido, Baraka, Radosa, etc. Mondial, Asterix Crisps Atlantic Atlantic, FL , Caesar, Lady roseta, Ágata, Mondial, Cupido, French Fries No local industry Asterix, Markies Source: Agrivalue SA based on sector interviews
Table 12: Varieties used in Brazil for processing purposes: Pre-fried frozen fries Crisps Russet Burbank Atlantic Ranger Russet Norchip Shepody Snowden Kennebec Kennebec Bintje Lady Rosetta Asterix Lady Claire Agria Saturna Lady Olympia Panda Source: Agrivalue SA based on sector interviews
According to Natalino Shimoyama, of ABBA (Brazilian Potato Association) there is no official statistic information available about seed production in Brazil. He observes that not many new ware potato varieties are being developed or introduced. The crisps varieties maintained a same level or worsened, of which Atlantic and Lady Roseta is considered a quality product.
The big potato producers have their own seeds and these are of good quality. However, free seed in the market sometimes is of a very bad quality (when Agata has been sold as ware and only bad quality remains for planting) From end of May there may be seed shortages (Agata) as this variety is difficult to store.
5 POTATO SHOW (2010) 24
Gitah 2015; Opportunities in the potato sector Brazil
4.2.2 Seed producers in Brazil
The biggest seed production state is Santa Catarina, leading the ranking of seed potato producers in Brazil. Minas Gerais is the 2nd largest national producer, but considerably below Santa Catarina in terms of production. A reference within the Brazilian potato sector, during an interview alerted about the situation of potato seed production and quality in Brazil, mentioned that according to him it is of upmost importance to determine unified norms and standards for the production of seeds for the whole country. But in order to achieve this, it requires fiscalization to guide producers and applying penalties when necessary. Furthermore, producers must act with enough responsibility in management and control of Plant Health. He observes Brazil is searching for varieties with better culinary aptitude to increase consumption and improve the profitability of producers, but wonders where Brazil will plant to produce healthy seeds. And he is afraid of the diseases and pests that are spread across the country. Another important point regarding the new varieties is the payment of royalties The obligation of which is sometimes not understood by the local farmer. For this reason, HZPC for example, started to change the royalty calculation from tons of seeds produced to hectares planted. Producers blame problems to financial impossibilities and bad market conditions, but forget to face problems like low productivity related to poor quality seed, infected soils and low package technology. Not only national seeds but also a lot of imported material is of poor quality. Everyone is responsible for changing this situation, government, producers, importers associations, laboratories, research.
Table 13: Bottlenecks in the Brazilian Potato Seed Production Bottleneck Description Legislation Lack of legislation, fiscalization and borders Quality Lack of Producers’ responsibility on quality of the seed Bacteria Bacterial wilt common scab, silver scurf, powdery scab, nematodes and many others are disabling large and important areas of national production, even more knowing that the boundaries for production in Brazil almost ended Transport Problems with transport of seed potatoes and planting varieties with short dormancy that fit in all producing regions of the country are factors that spread disease and pests Source: Agrivalue based on interviews with local references
The market for seed potatoes for processing crisps and palha is very dynamic because of the presence of many independent crisps factories and two or three bigger processors. The seed market for these varieties will probably be very low generation because of disease pressure locally.
Interviews with local farmers and visit reports of foreign seed associations indicate that many large growers use facilities to produce their own Mini-tubers and grow seed for only 1 to 3 generations. Disease resistant varieties like Agata can be regrown for more years, but varieties like Atlantic get infected fast. Atlantic is the leading variety for chip- stock, but fields of G1 Atlantics can be observed full of virus contamination impacting negatively on yields. Therefor growers express they would like to have alternative high- yield varieties less susceptible to disease.
In vitro labs seam few and the only way to control a variety seems to work with these labs. The seed import market seems to be only mini-tubers and nuclear to G1 seed (for further information on seed potato categories see following page).
In Brazil a variety needs to undergo several years of trials in multiple areas before its registered. The registration process is set up to favour private companies so public breeder organizations face increased bureaucratic problems. Registering a variety is expensive and should only be done with varieties with potential. Local expertise in seed growing leads to sales of seed at very low generation, but very high local virus disease pressure ensure that new seed will always be needed.
Gitah 2015; Opportunities in the potato sector Brazil 25
4.2.3 Brazilian Seed Potato Categories6
Table 14: The current proposal of categories for production of potato-seed is as follows7: Cat. Name Description 1. Genetic material of reproduction under the responsibility and straight control of its acquirer or introducer; 2. Basic G0 seedling, in-vitro plant and mini-tuber 3. Basic G1 First harvest in the field 4. Basic G2 Second harvest in the field; 5. Basic G3 Third harvest in the field 6. Certified first generation Fourth harvest in the field 7. Certified second generation Fifth harvest in the field Source: Valmir Duarte, Janine Palma e Aícha Daniela Ribas,UFRGS Cultivar Hortaliças e Frutas (2005)
The equivalence of seed potato categories between Brazilian and Dutch seed, is established by IN No. 9 (04/29/14) by the Minister of Agriculture, Fisheries and Food supply, in exercise of the powers conferred by article. 87, sole paragraph, item II, of the Constitution, in view of the provisions of Law 10.711, of August 5, 2003, in Decree 5153 of July 23, 2004, Normative Instruction 32, November 20 2012, and the provisions of Procedure on 21000.009569 / 2013-33. These norms confirmed in April 2014 equivalences the categories of seed potatoes produced in the Netherlands and Brazil, as follows:……………………………………………………………………………………….
Table 15: Confirmed norms Article Description Art. 1 Establish the equivalence of categories of seed potatoes produced in the Netherlands and Brazil: Seed potatoes produced in the Netherlands Seed Produced in Brazil Grades "S", "SE" and "E" equals Basic category G1 Class "A” equals Certified category C1 Art. 2 The seed potatoes produced and certified in the Netherlands are exempt from prior evaluation for equivalence of category and Appraisal Report Equivalence specified in § 3 of art. 6 Normative Instruction No. 32, dated November 20, 2012. Art. 3 Results of the Analysis of Potato Propagation Material, referring to the official sample of the imported potato material, prevails further distribution when divergence appears between these results and the equivalence of the category established under art 1. Art. 4 This Instruction shall enter into force on the date of its publication. Source; Min Agric&Food, 20
Table 16: Benchmark Tolerances field inspection Netherlands
Source: WUR/PPO
6 Ministro De Estado Da Agricultura, Pecuária E Abastecimento, NERI GELLER, 30/04/2014 N°: 638/14 26 7 Valmir Duarte, Janine Palma e Aícha Daniela Ribas,UFRGS Cultivar Hortaliças e Frutas (2005) Gitah 2015; Opportunities in the potato sector Brazil
Table 17: Benchmark Lot inspection tolerances Netherlands and EU
Source: WUR/PPO
4.2.4 Brazilian Seed Potato market 2013
Since June 2013 cultivation of the winter crop is limited due to low availability of seed potatoes in the country. According to industry players, this will also have an impact on the expansion of the area for the 2013/14 wet crop. However, this is most likely a result of the ’Agata’ seed availability cycles when seeds are sold as ware in a year the potatoes are expensive.
Producers from different regions that grow crops in the dry winter have had difficulty finding inputs (seeds). This scenario is due to high potato prices since the beginning of the year, since most of the production would be allocated in the fresh market, a strategy used by producers to increase profitability after two years of negative results.
Furthermore, frosts in the South caused losses of seed growing area, more specifically in Paraná, increasing the shortage of the seeds available. Inventories were below normal, which is reflected in increased imports of certified seed. 4.2.5 Phyto-sanitary requirements
The phyto-sanitary demands that are essential for the protection of vegetable life are standards and measures established by the Ministry of the Agriculture8 and international regulations, which protect the productive chain and avoid the contamination and dissemination of pests and diseases in the national territory. They contribute to preservation of the human health and of the flocks. In the Ministry of the Agriculture, the sanitary vigilance is in charge of the Department of Vegetable Health (DSV), which also does analyses of the risks of nuisances and rules for the traffic and the quarantine of vegetables.
The production of certified potato-seed is regulated by specific standards of the Ministry of Agriculture, Cattle-raising and Supply, taking as principal objectives the preservation of the genetic identity, the production of material with low level of infection of virus, bacteria, nematodes and other pathogens able to reduce, under Brazilian conditions, its potential of production and / or multiplication. 4.2.6 Conditions for the export of seed potatoes to Brazil
From January to October 2013 Brazil imported 5,782 tons, 129% more than in the same period the year before. The main exporter of seed to Brazil is the European Union, mainly the Netherlands, responsible for 2.389 tons. Main imported varieties are: Agatha, Cupido, Asterix, Atlantic and Markies. Mercosur exported to Brazil in the first ten months of 2013, 1.175 tons of seed. The low volume of potato seed confirms that non-certified or lower quality potatoes are also planted, which can compromise the productivity of the tubers that are to be harvested in the rainy season 2013/14.
8 [email protected] 27
Gitah 2015; Opportunities in the potato sector Brazil
Table 18: Brazil Seed Potatoes Phyto-sanitary Requirements9 Requirement Description Tolerances PCN testing A consignment test for potato cyst nematode (Globodera rostochiensis and G. pallida) is required before export. Growing crop Inspector's instructions BZ/2008/01 apply. Class tolerances apply, tolerances except if the tolerances below are stricter: Potato mop top virus (PMTV) Nil Tomato black ring virus (TBRV Nil Tuber tolerances Minimum tolerances for seed export apply, except for: Gangrene ( Phoma foveata) Nil Pink rot ( Phytophthora erythyroseptica) Nil Skin spot ( Polyscytalum pustulans) Nil Spraing (PMTV and TRV) Nil Tomato black ring virus (TBRV) Nil Adhering soil NIL (brushing req.) Powdery scab ( Spongospo.subterranean) 0% Shrivelled or dehydrated tubers 0% Loose soil 0.2% Common scab (Streptom. scabies) and Black scurf (Rhizoctonia) Surface area Tolerance by weight less than 1/16th surface area affected no more than 30% 1/8th to 1/16th surface area affected no more than 20% more than 1/8th surface area affected no more than 1.5% Silver scurf ( Helminthosporium solani) Surface area Tolerance by weight less than 1/16th surface area affected no more than 30% 1/8th to 1/16th surface area affected no more than 20% more than 1/8th surface area affected no more than 2% of which dehydrated or shrivelled 0% Source: \\scotland.gov.uk\dc2\FS2_Home\u206163\Brazil Additional Seed Cert - 2014.pdf [PDF, 21.2 kb: 14 Feb 2014]
Table 19: Other Phyto-sanitary requirements Characteristic Requirement Import permit: Required. Varieties: only varieties registered in Brazil accepted, unless they are for trials. Varietal purity: lots have to be 100% pure. Size: sprouting should not be excessive. Treatment: all tubers should be brushed. Chemicals: tubers can be treated with an approved fungicide to control gangrene but no symptoms of gangrene should be present in the stock at inspection. Labelling: a label in Portuguese must be attached to each bag stating all information also given on the official Scottish label. If wood packaging is used (e.g. boxes, pallets), this should be treated Packaging: and certified. Wood material should comply with International Standards for Phytosanitary Measures (ISPM 15) on wood packaging materials. Laboratory Samples from each consignment may be laboratory tested by the test: Brazilian authorities for (latent) infection with viruses, fungi and nematodes. The following tolerances are applied for virus infection: PVA, PMTV, TRV, TBRV Nil PVX, PVS and PLRV 2.0% each PVY 3.0% Total PVX, PVY, PVS and PLRV 4.0% Source: \\scotland.gov.uk\dc2\FS2_Home\u206163\Brazil Additional Seed Cert - 2014.pdf [PDF, 21.2 kb: 14 Feb 2014] Additional advice: The Brazilian authorities check imported lots for the presence of free-living nematodes (Pratylenchus spp.) and other common soil-borne organisms. All lots for Brazil should be brushed and (practically) free from soil. No assurance can be given that a consignment which complies with Brazil's tolerance for silver scurf at inspection at country of origin will pass import inspection in Brazil. The disease can develop very rapidly across the tuber surface if environmental conditions are favourable for its development. Exporters should be aware of these commercial risks when exporting to Brazil.
9 \\scotland.gov.uk\dc2\FS2_Home\u206163\Brazil Additional Seed Cert - 2014.pdf [PDF, 21.2 kb: 14 Feb 2014] 28 Gitah 2015; Opportunities in the potato sector Brazil
4.2.7 Current structure
All interviewed growers buy small volumes of (certified) seed and multiplied the seed during two – three generations within their own company. The interviewed growers all planted more than 1.500 ha altogether and in total planted almost 35.000 ha (27% of total national acreage). They have laboratory and screen-house facilities to produce disease free plantlets and mini tubers. Multiplication in the field to produce G1 and G2 (and sometimes G3). By producing seed for their own use, certification by RENASEM is not obligatory. A company that wants to sell certified seed needs to be certified by RENASAM and be registered as a seed producer. Only a small number (2-3) of commercial seed producers is producing certified seed (e.g. Nascente, Cooperbatata) for sale.
Basic seed is imported from Europe, Argentina and Chile. IPM (Irish Potato Marketing) is investigating the possibilities for their varieties in Brazil. Embrapa has a breeding program to develop varieties better adapted to the Brazilian conditions. They have developed 3 varieties: BRS Clara, BRS Ana and BRSIPR Bel. Some private companies also have breeding programs.
In Brazil there are no specific areas designated for seed production. Seed is therefore produced in the same areas as where the ware potatoes are produced. The planting and harvesting dates are presented in Table 23: Planting and harvesting periods in different regions +yield indications of some varieties in paragraph 4.3. From the total potato production, 9% is destined to seed potatoes, and from this amount only 15% is certified. Activities of international seed potato companies were not mentioned during the interviews.
4.2.8 Legislation
RENASAM (Registro Nacional de Sementese Mudas) is responsible for the certification process of seed potatoes that are sold on the market. No specific isolated seed production areas are present in Brazil. Legal texts regulating seed production are available at www.planalto.gov.br Agata (main (95%) variety for fresh) and Atlantic (main variety for crisps) can be multiplied without paying royalties. Varieties have to be officially registered in Brazil but after 10 years royalties no longer have to be paid.
4.2.9 Cultivation practices
Disease free plantlets are produced in the lab, mini tubers (G0) are produced in screen houses. G1 and G2 generations are produced in the field and sometimes also a G3 generation. Seed potatoes are graded in 5 categories and sometimes treated with thiophanate-methyl to prevent storage diseases. Farmers plant whole seed. They abandoned cutting seed more than 10 years ago after very bad experiences of spreading bacteria from affected- to healthy tubers. Because of the climate change a sufficient amount of rain during the growing season is not guaranteed: therefore most growers have the possibility to irrigate.
4.2.10 Diseases, pests and fertilisation
In all areas the aphid (Myzus persicae) pressure is very high. Erwinia (black leg) and Ralstonia solanacearum (brown rot) are mentioned as important problems in seed- (and thus ware potato) production. Costs of crop protection and fertilizer were not specified for the production of seed potatoes.
Gitah 2015; Opportunities in the potato sector Brazil 29
4.2.11 Storage
Figure 8: Seed storage in pallet boxes, forced ventilation
Seed is stored at 3-4 ºC in small plastic crates (30 kg) or wooden pallet boxes (> 1.000 kg). Most stores do not have a forced ventilation system. Seed is stored up to 7 months. The storage regime is not variety specific and only differing per market destination
4.2.12 Quality
Figure 9: Four sizes of potato seed Seed potatoes are graded in 5 categories. Seed is not cut to avoid the transmission of bacteria. Seed quality is not consistent. Field crops were not inspected during this visit. Based on interviews with growers the main problems are bacteria (Erwinia, Ralstonia) and viruses. Management of wound healing at store loading and condensation during off-loading were factors mentioned that negatively influenced the seed quality
4.2.13 Problems and bottlenecks according to the growers
RENASEM qualified seed is only available in small quantities, is expensive and quality is not always good; A multi-purpose variety that is well adapted to Brazilian conditions is still not available; Seed storage management regarding loading (wound healing) and off-loading (condensation) has to be improved;
Gitah 2015; Opportunities in the potato sector Brazil 30
4.2.14 Economic analysis / Production cost structure seed potatoes
CEPEA (Centro de Estudos Avançados em Economia Aplicada) publishes costs of potato production every year in the magazine Hortifruti (http://www.cepea.esalq.usp.br/hfbrasil/). The seed potato costs for the production of 1 hectare ware potatoes in Minas Gerais and Vargem Grande do Sul (SP) in 2012/13 were RS 4.200/ha ~ € 1.386 (15,95 % and exchange rate May 2014)) and RS 5,625/ha ~ € 1.856 (exchange rate May 2014) (20,9 %), respectively. These cost calculations are an average of the regions in which Agata is the most important variety grown (75 %). These costs are in line with the costs of most growers although some state their costs are lower.
4.2.15 SWOT
Table 20: Strengths & Weaknesses of the actors in seed chain (Internal factors) Actor Strengths Weaknesses Growers Growers with large acreages of A similar cost structure system potatoes are well aware of the needs to be adapted as field gate importance of using good seed. They costs show poor comparison and have effectively organized seed supply unclear variation due to lack of Growers realize that relative cost structuring advantages of potato production during A transparent cost structure will the winter season: higher yields, support the introduction of winter reduced disease and pests incidence, cropping and summer storage lower production costs per ton. The practice. summer cropping confronts them with too low yields and increased field disease and pests pressure. Growers are aware to focus on winter cropping and invest in refrigerated storage for summer period Growers are aware of the relevance of producing at low field gate costs in relation to competitively of imported frozen French fries. Growers realize the relevance of quality of raw material supply; but need to be paid for quality supply. Inspection Productivity and quality of RENASEM has to be improved; breeders Varieties adapted to local Brazilian conditions are not available. A Brazilian based potato breeding program is a poor substitute for a system of testing imported germ plasm; A joint varietal testing program is yet to be developed. processors The processing companies need to compensate on storage investments at farm level through paying part of the storage costs. Processing companies are to introduce payment on quality raw material. chain A knowledge dissemination structure for the potato chain is yet to be developed and maintained.
Table 21: Opportunities and threats of the actors in seed chain (External factors) Actor Opportunities Threats growers Growers that grow their own seed Low priority of to invest in the supply can increase/improve their improvement of the certified seed production and sell (certified) seed to system other growers.
Gitah 2015; Opportunities in the potato sector Brazil 31
4.3 WARE POTATO PRODUCTION (TABLE PLUS PROCESSING)
According to the ABBA, potato production takes place in 7 states (Bahia, GO, Minas Gerais, São Pablo, Parana, SC and RS) on approximately 130.000 hectares result in a total annual Brazilian potato production of about 3,6 million tons. 70% heading towards the fresh market, 300.000 ton for crisps production and 200.000 for French fries production and 80.000 ton for palha production (some 20% of the total area is for industry purposes) and the remaining (10%) is for seed production and losses10.
Half of the processing potatoes go to crisps processors, a quarter to the country's two French fry plants and the remainder to plants producing “palha,” a string-like fry product11. Currently this is 50%, 33%, 17% respectively.
Table 22: Brazilian Planted area, harvested area and production Season 2013-2014 Item Harvest Year Product units Total Hectares 128.432 Potato “Batata inglesa” (1st crop ) 64.285 Season 2013 Potato (2nd crop) 41.391 Planted Area Potato (3rd crop) 22.756 (Hectares) Total Hectares 130.738 Potato “Batata inglesa” (1st crop ) 68.137 Season 2014 Potato (2nd crop) 41.181 Potato (3rd crop) 21.420 Total Tons 3.570.351 Potato “Batata inglesa” (1st crop ) 1.683.614 Season 2013 Potato (2nd crop) 1.126.872 Production Potato (3rd crop) 759.865 (tons) Total Tons 3.675.611 Potato “Batata inglesa” (1st crop ) 1.806.308 Season 2014 Potato (2nd crop) 1.138.905 Potato (3rd crop) 730.398 Source: Cepea, statistics
According to the publication “The cultivation of the potato in Brazil” by the Federal University of Uberlândia (UFU), in partnership with the Brazilian Potato Association (ABBA), in Brazil the variety Agata represents more than 70% of the national production, reaching yields of more than 50 tons per hectare.
4.3.1 Current structure
Fresh: Main variety is Agata (about 90% to 95 % market share). Agata is a single- purpose variety. No royalties have to be paid. Agata is popular with the growers because it has a very short dormancy period of 20-30 days. This variety is very popular with the consumers because it has a very smooth skin after washing. Fresh potatoes are always washed. The fresh potato market is very speculative and Agata is the prefect variety to supply this market. Some growers plant Agata by hand to prevent breaking the sprouts when planting has to be delayed because of rain and to prevent entry ports for Erwinia. Most growers harvest Agata by hand to prevent small wounds and deliver a better skin quality. Other varieties grown for the fresh market are Cupido (Meijer), Caesar (HZPC), Monalisa (HZPC) and Orchestra (Meijer).
Crisps: Main variety is Atlantic. No royalties have to be paid. Atlantic has a low multiplication factor (4-5x) and is difficult to store. Advantage is that it does not germinate very quickly due to its long dormancy period: one can leave it in the field for
10 Natalino Shimoyama, ABBATATA July 2014 32 11 Argenpapa. Brasil . 03-05-2010.
Gitah 2015; Opportunities in the potato sector Brazil
60 days (cheap storage). Atlantic always fries well. Atlantic is a very stable variety regarding production and frying. Atlantic only shows Tomato Spotted Wilt Virus symptoms in canopy not in tubers. Other varieties (in testing phase) are Taurus (HZPC), Royal (Danespo), Megachip, FL 2221, FL 1867 (increasing) & FL 2027 (decreasing). Chips production is about 75.000 tons per year (requiring about 300.000 tons raw material). 300.000 tons of raw material is the equivalent of 8.500 hectares with an average yield of 35 ton per hectare.
French fries: Main varieties are Asterix (HZPC) and Markies (Agrico). Markies produces robust in all months. Asterix has problems with warm weather, produces off- shaped tubers. In good weather it produces higher yields than Markies. Other varieties are Innovator (HZPC), Miranda (Den Hartigh), Russet Burbank, Shepody, Challenger (HZPC) and Ranger Russet. Innovator is susceptible for heat, develops internal brown spots in the tuber.
Deep frozen French fry imports into Brazil were 282.000 tons (2013) from Argentina, Belgium and the Netherlands. 282.000 tons represent about 560.000 tons of raw material which is the equivalent of 16.000 hectares with an average yield of 35 ton per hectare. The latter may be a challenge for the Brazilian potato industry: entering into a competition with imports.
Table 23: Planting and harvesting periods in different regions +yield indications of some varieties MG MG Castro North Parana Sao Paulo winter summer plant harvest plant harvest plant harvest plant harvest plant harvest January February March April May June July August September October November December Yield (kg/ha) Agata 50-53 30-38 48 Atlantic 40-50 30-40 28-30 38 Asterix 40-45 30-35 40 Markies 35 Source: interviews with growers in May 2014.
4.3.2 Cultivation practices
Spacing between rows is 75- 80 cm. No beds. Variety dependent distance within the row; wider spacing in summer crop versus winter crop (i.e: 32 cm versus 24 cm); as a wider spacing allows for quicker drying of the foliage. Crops are desiccated after 90 days and harvested 25 days later to allow for a good skin set. Growers claim that longer than 90 days is not possible due to Alternaria problems at the end of the season. Crop rotation is 1:4. Potatoes are grown on the same field every 2 years but this includes a crop rotation consisting of four crops: Potato-Corn-Wheat-Corn-Potato. Almost all fields have the possibility for irrigation. The average yield level for Brazil is 28,4 tonnes/ha.
The small farmers plant and harvest the potatoes by hand. Agata is almost always planted by hand to prevent breaking the sprouts when planting has to be delayed because of rain and to prevent entry ports for Erwinia. All growers harvest Agata by hand to prevent small wounds and deliver a better skin quality. Larger growers that produce potatoes for processing have mechanized the planting and harvesting operations. Potatoes for the fresh market are always washed and mostly packed in 50 kg bags.
Gitah 2015; Opportunities in the potato sector Brazil 33
4.3.3 Diseases, pests and fertilisation
Main disease problems causing damage on tubers are common scab (Streptomyces species) and black scurf (Rhizoctonia solani). Also nematodes (Melodoigyne incognita, M. japonica and Pratylenchus spp.) can cause problems. Alternaria solani (early blight) is a problem in the dry season, late blight (Phytophthora infestans), black leg (Erwinia spp.) and bacterial wilt (Ralstonia solanacearum) in the wet season. Important pests are white fly (Bemisia tabaci), leaf miner (Liriomyza huidobrensis), potato tuber moth (Phthorimaea operculella), caterpillars, Brazilian beetle (Diabrotica speciosa) (causes small holes in tubers) and thrips (Thrips palmi: vector of Tomato Spotted Wilt Virus). Associação Brasileira da Batata (ABBA) coordinates a RS 500,000 research program on white fly. Crops are sprayed with insecticides and fungicides by tractor-mounted sprayer or airplane. The costs of the crop protection products and the spraying operation is presented in paragraph 4.3.7.
Some growers monitor the number of insects and then decide to spray (IPM-MIP). Fertilisation varies considerably: 64-250 kg/ha N, 450-850 kg/ha P2O5, 240-450 kg/ha K2O. Some growers indicated that their fertilizer rates were the result of experiments on their farm. Some growers take soil samples before planting and adjust the amount of N applied during the growing season by using the petiole test. Paraná has short days which results in a short growing cycle. Lengthening the growing period by applying additional N (splitting N during crop season) was not very successful. Paraná soil contains a lot of organic matter and with a lot of rain and high temperatures this results in release of N during cropping season leading to a dense canopy and too much black leg. In Minas Gerais the weather conditions during the growing season are much drier and with pivots the irrigation of the crop can be regulated. In Minas Gerais lengthening the growing period by splitting N has been successful and resulted in higher yields. The costs of the fertilizers is presented in paragraph 4.3.7. Using crop monitoring- and management systems could optimise the use of fertilizers and crop protection chemicals resulting in a combination of reduced costs and/or increased yields.
4.3.4 Storage
Present potato production practice consists of two growing seasons; a ‘cool’ winter crop and a ‘warm’ summer crop. Presently fresh produce is fed into the fresh markets and into the processing factories. Progressive growers consider to make a choice and to focus on the cool winter cropping period and to invest into refrigerated storage for the remaining part of the year. The latter, recommended, practice is expected to lead to lower field gate costs but additional storage costs. Most growers do not have a store for ware potatoes although a number of them are considering to invest in such a store in the near future. Only one grower stored the ware potatoes for processing at 6-8 ºC for 4 months maximum. The sprout inhibitor CIPC is not yet registered in Brazil. Regular procedure for registration will take 4-5 years, but a quick procedure is also possible. ABBA is discussing with government to realise a quick registration procedure of CIPC and other sprout inhibitors. Maleic Hydrazide is registered as a crop spray but sprout inhibiting efficacy is very unreliable. Lady Clair and Verdi can be stored at 4 ºC without sugar problems (for these varieties CIPC is not needed for short term storage).
4.3.5 Quality
Fresh: tubers have to be undamaged and washed before marketing. Crisps: quality characteristics will change when not all potatoes will be delivered fresh to the factory but also after storage. All potatoes have to be washed prior to supplying to processing factory. Quality requirements are under discussion. French fries: Asterix and Markies are expected to have problems with reducing sugars in storage! BEM-Brasil has up to now no raw material quality requirements!
Gitah 2015; Opportunities in the potato sector Brazil 34
4.3.6 Problems and bottlenecks according to the growers
Summer crop is more problematic due to higher temperatures, more precipitation and increased pressure of disease (black leg, late blight, bacterial wilt) and pests (white fly, caterpillars); Sprout inhibitors are not registered in Brazil; Insufficient level land available at high altitude to grow am mechanised crop in the summer(= wet) season; There is no independent (government) research institute working on potatoes;
4.3.7 Economic analysis / Production cost structure ware potatoes
CEPEA (Centro de Estudos Avançados em Economia Aplicada) publishes costs of potato production every year in the magazine Hortifruti (http://www.cepea.esalq.usp.br/hfbrasil/). The total cost of production for Vargem Grande do Sol (SP) and Minas Gerais (MG) in 2012/2013 were RS 26.911 ~ € 8.885 and RS 26.331 ~ € 8.694 (exchange rate May 2014) respectively. These cost calculations are an average of the regions in which Agata is the most important variety grown (75 %). These costs are in line with the costs of most growers although some state their costs are lower.
4.3.8 SWOT On the primary production
Table 24: Strengths & Weaknesses of the actors in seed chain (Internal factors) Actor Strengths Weaknesses Growers Production of wet season is more difficult to store mainly because of bacteria and late blight; Whether Brazilian farmers will keep on growing potatoes will depend on the political situation; Production costs are higher compared to Argentina and Europe Processors Processing will increase and also the production in the good = dry (winter) season and store to deliver in the factory in the difficult = wet (summer) season. Winter crops offer a more secure supply, more secure quality level for processing and lower production cost per tonne/ potatoes at factory gate. Chain Lack of any structured R&D program. Lack of any structured knowledge dissemination program.
Table 25: Opportunities and threats of the actors in seed chain (External factors) Actor Opportunities Threats Growers Progressive growers consider to Whether Brazilian farmers will keep focus on production of raw on growing potatoes will depend on material for French fries in the the political situation; cool winter cropping period and to invest into refrigerated storage for the remaining part of the year. This will lead to lower field gate costs and a better competitiveness with imported French fries.
Gitah 2015; Opportunities in the potato sector Brazil 35
5 INFRASTRUCTURE
5.1 CROP PROTECTION AND FERTILIZERS
Phyto-sanitary status of Brazilian potato sector.
ABBA considers that Brazil has serious inconveniences regarding their phyto-sanitary status of the potato sector, amongst other reasons due to the fact that: - some farmers use ware potatoes like potato seed - new plagues have appeared (concomitant adjacent plants - soya, beans, cotton, tomato, etc.) such as white fly, trips, etc. - soil is contaminated due to rotation of crops (Spodoptera, Pratylenchus) - and rotation of farmers (Ralstonia, Spongospora, Phytium ) - and there is no new potato production areas
Table 26: Phyto-sanitary status Item 1980 2012 Plagues Aphids, Lyriomiza, Phthorimae, Lyriomiza, Phthorimae, Bemisia, Diabrotica Diabrotica, Pseudoplusia, Trips, Percevejos, Fungus Alternaria, Phytophtora, Alternaria, A. grandis, Phytophtora, Rizoctonia, Rizoctonia, Phytium, Helminthosporium, Bacteria Ralstonia, Erwinia, Ralstonia, Pectobacterium, Streptomices, Cilindrocladium, Virus Virus Y, PLRV, Virus Y, Virus Yntn, Nematodes Meloidogyne, Pratylenchus, Meloidogyne, Pratylenchus, Others Spongospora, Trilha Source: ABBA
The official plant health diagnostic laboratory UFRGS, is accredited by the Ministry of Agriculture, Livestock and Food Supply, provides services to the community in general, to diagnose diseases and plant pests.
The main companies and manufacturers of chemicals are present in Brazil and have crop protection chemicals available.
5.1.1 Crop management systems
In Brazil farmers make use of government data published by Inmet (the National Meteorological Institute of the Brazilian Ministry of agriculture - http://www.inmet.gov.br/ ) to determine how to program their irrigation strategy. Data on yield improvement directly linked to the use of crop management systems is not available. Specific further research on this subject would be useful.
An example of a local private company offering support is Irriger based in Uberaba-MG. Irriger is specialized in engineering and irrigation management, monitoring and customizing all stages of the process. Founded in 2005 in Viçosa-MG, currently it is the market leader in the segment in which it operates. In 2011 Irriger formed a joint venture with Valmont. It currently works with over 60 consultants across 20 offices located in major irrigation centers in Brazil. Simultaneously serves more than 340 farms, totaling more than 240.000 ha and 2.300 center pivots monitored over 30 commercial crops.
Another example of a supplier of crop management system is the Dutch company Dacom. Dacom is an innovative high-tech company that develops and supplies specialized hardware, software and online advisory services to arable farms and the agribusiness around the world.
The AYM system developed by Dacom provides growers and the agribusiness around the world with practical solutions for profitable and sustainable agriculture. By combining sensor technology, internet and scientific knowledge, growers can continuously monitor and fine-tune their production process throughout the growing season and crop Gitah 2015; Opportunities in the potato sector Brazil 36
information is easily sharable with the surrounding partners. The agribusiness can continuously anticipate and optimize raw material supply through the consultation of field data and smart modules. This results in the maximum yield achievable through the economically sound and responsible use of agri-inputs like chemicals, water and nutrients. Additional research on the efficiency improvements is recommended.
5.2 MECHANISATION
5.2.1 History of Mechanization in Brazil
In the magazine “Batata show” of 2011 an article about mechanization describes the upcoming of mechanization within the Brazilian potato industry. In the Seventies12 mechanization of potato production in Brazil included 4 implements: marker, manure applicator, belt and disc-harvesters both of 1-row, fabricated by the local companies J. Kobara and Agromec de Braganca Paulista. Also there were the pulverisers of Hatsuta. At the end of the seventies, the company Perreto e Cia Ltda. initiated the production of planters based on the former Cramer planter from German origin (today known as Wifo planters from the Netherlands, sold in Brazil through the APH Group).
In this period the first 1-row harvesters (German brand Grimme) were imported by seed potato producers from the region Canoinhas in Santa Catarina. In 1976 Mr Hitoshi Watanabe started the production of a first 2-row windrow harvester, followed by Mr J. Kobara at the end of the seventies.
In 1988 Watanabe started production of the first planters with fertilizer and chemical application and insecticide embedded, so planting could be done in just one operation. In 1992 the rotary cultivators for ridging between the lines after planting were introduced on the Brazilian market. The rotary ridger enabled additional fertilizers like nitrogen and potassium to be applied in this operation and also the soil insecticide could be incorporated.
In 1997, Watanabe began representing the company Grimme Germany and this partnership has contributed to the mechanization of potato in Brazil, because Grimme has a record of 150 years in this area and a lot of technology and experience embedded in the machines it produces.
In 2003, Watanabe ended this partnership to produce their own harvester (2004) and some units were sold. However, due to the crisis in the potato sector in the years following its completion, production of this harvester was interrupted.
Currently the mechanization of the potato crop is gaining importance as the finding labour is becoming difficult and high labour costs are an incentive to mechanization. Also the potato growers for both the fresh market but also for the industry are increasing in size and therefore need the latest technology to keep operating costs low and calculated risks acceptable. Because of this and additionally the favourable exchange rates lately, several imported machines of mainly Grimme, AVR and Dewulf entered Brazil and performed very well. Watanabe is currently making harvesters of national brands.
In October 2013 in the Hortifruti magazine Mr João Paulo Bernardes Deleo wrote an article about mechanization. Due to the growing Brazilian economy during the last years, cost of rural labour is increasing and availability of workforce is getting scarcer in the field. This scenery took producers to study alternatives for the activity focusing on mechanization to reduce the dependence of labour during the harvest, the period that requires most manual labour. For the time being, most of the producers choose for the
12 Importância da Mecanização Batatashow 2011 by Milton Kaoru Watanabe 37
Gitah 2015; Opportunities in the potato sector Brazil
semi-mechanized system. They make use of windrow harvesters followed by manual lifting of the potatoes and filling the bags by hand.
The form of conditioning (bags or big bags) differs from producer to producer. Many choose to condition the potato in bags of 50 kilograms in the field. In this system, loading in the field and unloading in the washing machine are done manually. Amongst the farmers that use big bags (500 kilograms), loading and unloading of the potatoes is done mechanically through winches. Labour demanded for the semi- mechanized system is variable: the conditioning for 50 kilogram bags demands more workers than the use of big bags.
In the regions of the South of Minas Gerais and Vargem Grande do Sul (SP), the system of semi-mechanized harvest it is predominant. The difference between these regions is the loading in the field and the unloading of the potatoes in the washing line. In the South of Minas Gerais it is done by hand, while in Vargem Grande do Sul it is mechanized.
The use of the mechanization in all the stages of harvest – from potato lifting and selection on the field, loading at the field and unloading at the washing line – is still little used by producers, although interest is increasing.
According to Terra Viva, the enormous difficulties to respond to demands of the labour legislation in combination with the availability and cost of labour during harvest are forcing producers to mechanize more and more. While on the other hand, the farmers fear for mechanized harvesting because of the high investment costs involved to acquire the machinery and because of the impact it has on their production systems.
5.2.2 Availability and Suppliers of Mechanization Technology
As mentioned above, during the last decade many suppliers of mechanization technology have found the Brazilian market. Mainly thanks to the installation of McCain and Farm Frites in Argentina and later PepsiCo in both Argentina and Brazil followed by the installation of BEM Brazil mechanization technology has had a boost. These processors requested mechanization and storage of their suppliers, and in many cases where the first ones to introduce these (mostly European) technologies to their farmers (often paid with potatoes).
In the following table an overview is given of the main suppliers present in the Brazilian market (some established like APH Group and Pivot, others supplying from abroad in coordinated form like Mexport).
Table 27: Available Mechanization technology in Brazil, origin and suppliers Mechanization Suppliers – Importers – Dealers Origen of Local Technology (brands) technology presence Soil - APH Group (Baselier) NL Yes preparation - Mexport (Struik) NL No - Hennipman BRA Yes - Wattanabe BRA Yes - Pivot (Grimme) GER Yes - Canuelas ARG No Post- - APH Group (Bijlsma Hercules) NL Yes harvesting - Mexport (Miedema) NL No - Pivot (Grimme) GER Yes - Mainly local suppliers BRA Yes Harvesters - APH Group (Dewulf) NL Yes - IMAC ITA No - Mexport (AVR) NL Yes - Pivot (Grimme) ALE Yes - Hennipman (windrow harvester) BRA Yes - Wattanabe BRA No Packing - APH Group (Manter) NL Yes technology - Albion ARG No
Gitah 2015; Opportunities in the potato sector Brazil 38
- Prodol ARG No - Propak NL No - Small local suppliers BRA Yes Storage - APH Group (Omnivent) NL Yes Technology - Mexport (Tolsma) NL No - IVI USA No - Wemar ARG No - Refmar ARG No - Coiron ARG No Washing lines - APH Group (Tummers) NL Yes - Allround NL Yes - Albion ARG No Planters - APH Group (Wifo) NL Yes - Mexport (AVR) BE No - Pivot (Grimme) GER Yes - Hennipman BRA Yes - Wattanabe BRA Yes Source: Agrivalue SA (situation beginning 2014
5.2.3 Service network for machines
It is of upmost importance for suppliers of technology to offer a good after-sales service network. Both Hennipman and Wattanabe count with their own factories and offer after- sales from there, while foreign suppliers have different ways of offering service to their clients. Some make use of their clients’ facilities or their dealer network’s facilities, while others have contracted directly local technical service. There are also suppliers that work in combination with a local workplace.
5.2.4 Price levels of mechanization technology
When observing price levels in Brazil it can be stated that the local factories are utilizing a similar price list as their European competitors. There are two reasons for this, first their sales market is more limited; where their European competitors like Grimme, AVR, and Dewulf supply their harvesters all over the world, the local suppliers such as Wattanabe is limited to the Brazilian market. Therefore cost of Research and Development are absorbed in a disadvantageous way. Secondly the local suppliers speculate with the high import duties that have to be paid for import of foreign technology that has also local suppliers (can be more than 50% of the ex-works value of the technology involved).
Conclusion; price levels do not differ too much on ex-works level, but do differ enormously on farm-gate level. Nevertheless the modern potato farmers and almost all industry farmers are aware of technology differences and therefore willing to invest in technology from abroad.
5.2.5 Special demands – opportunities
Opportunities for technology suppliers: Due to labour laws, activities where labour can be replaced by machines. are few alternatives available in the Brazilian industry, offering a great opportunity for foreign suppliers It is important to think about local construction or assembly in Brazil instead of importing, due to the high import duties Demand for mechanization is urgent Storage (bot for seed, fresh and industry) Harvesting (for small areas 10 hectares 100 and large scale producers) Processing potato – washing, selection and weighing (5 to 20 kg) Source: Agrivalue SA based on interviews with sector references 2014
Gitah 2015; Opportunities in the potato sector Brazil 39
5.3 STORAGE
Most growers do not have a store for ware potatoes although a number of them are considering to invest in such a store in the near future. Only one grower stored the ware potatoes for processing at 6-8 ºC for 4 months maximum. See also 4.3.4.
5.4 IRRIGATION
Empraba published a research about irrigation within the Brazilian potato sector13. In December 2013. They came to the conclusion that irrigation in potato production in Brazil is almost completely carried out by sprinkler systems. The systems of furrow irrigation is hardly being used by the Brazilian producers, since this requires level lands, soils that are not too permeable and demand much labour, are low in water-use efficiency and favour some soil diseases. The principal limitations for the use of drip irrigation are the high cost, the difficulty of its adaptation and use in other cultures in succession and / or rotation to the potato and the technical complexity of its installation and disarming of its components for installation in new potato fields.
With the exception of the states of the South region, especially Rio Grande do Sul and Santa Catarina, the cultivation of the potato in Brazil is irrigated. The adoption of the irrigation, even in plantings in the rainy period in the South region of the country, makes it possible to increase yields up to 50 %, besides getting bigger tubers with better physical aspect. Such advantages, associated to reduced risk of production losses due to drought have been responsible for the quick adaptation of irrigation in the country.
In Brazil traditionally, the methods most used for irrigation of potatoes are conventional sprinkler installations, self-propelled cannons and center pivots (CP). Conventional- and auto propelled are mainly used in the South regions of Brazil, the State of São Paulo and the Southern part of Minas Gerais region. Center pivots are very much employed by large scale potato farmers in Minas Gerais, Goiás and Bahia.
In the conventional sprinkler system, three types are in use, a portable-, semi-fixed and fixed system. In the portable system, all the components are moved manually inside the area to be irrigated. The initial cost of acquisition of the system is relatively low (R$2.000-4.500/ha), but it requires intensive use of labour to change the position of the components. In the fixed system no repositioning of none of the components is necessary, which reduces expressively the labour use, but it is a more expensive system (R$7.000- 15.000/ha). In the semiportable system, the side lines and the sprinklers are moved manually, while the rest of the components remain fixed (R$3.000- 5.500/ha).
Table 28: Cost of irrigation systems in Brazil per hectare Irrigation system Cost per ha (R$) Conventional Sprinkler system - Fixed R$ 7.000-15.000 - Semi-fixed R$ 3.000 - 5.000 - portable R$ 2.000 - 4.500 Center Pivots R$ 4.500 - 9.000 self-propelled irrigation units R$ 4.000 - 6.500 Source: Agrivalue SA based on Empraba information (2013) 14
In some regions it is required to have permits and the farmers have to pay for using irrigation water. For more information we refer to the ABID, association for irrigation and drainage15. Suppliers of Irrigation technology in Brazil are amongst others, Valley, Netafim, Rainbird and Lindsay.
13 Embrapa Hortaliças, Circular Técnica, 128 “Irrigação na cultura da batata” by Waldir Aparecido Marouelli , Marcos Brandão 40 Braga and Tadeu Graciolli Guimarães 14 http://www.agencia.cnptia.embrapa.br 15 http://www.abid.org.br/abid_default.asp
Gitah 2015; Opportunities in the potato sector Brazil
5.5 LABOUR
In May 2014 the Ministry of Agriculture published the Technical Specific Standards for Integrated Production on farm level16, covering all processes conducted in agricultural production, harvest, post-harvest and processing of tubers.
With the publication of the regulations, the Ministry will adopt an action plan that will rely on management, training, environmental management, integrated pest management, environmental education and public policy for potato production. Producers, technicians and auditors, especially of the southern parts of Minas Gerais, where there is the highest concentration of the potato in Brazil, should receive training and capacity building so that they can be certified.
Integrated Production should promote the traceability of potato, controlled pesticide use and production with respect for the environment, since producers must adopt Good Agricultural Practices (GAP). The law will benefit about 300 small farmers in the southern region of Minas that sell the product through Ceasas and major supermarket chains.
The Integrated Production for products and producers brings credibility, providing more quality to the product, profitability for producers, market preference and ensuring labour laws.
As in other regions in Latin America, lack of availability of labour, power of unions, government politics and demands as well as cost of labour are resulting in an increased demand for mechanization. A land worker costs about 20 to 30 U$S per day in Brazil. One of the issues to improve is the weight of the bags the workers have to handle. In September 2012 stakeholders of the potato chain (farmers, packing suppliers, wholesalers and retailers amongst others) joint at CEAGESP17 to discuss about the new legislation about packing labels and maximum weights (30kg). But no legislation is currently in place. The idea is to change from 50 kg bags to 20 or 25 kg and improve label information and its position on the bag. The main packing material suppliers (nylon, clone and jute) are Castanhal, Novaplast, EPT Tatuí, and Procópio. These companies produce 40 million bags per year; 95% of 50 kg and 5% of 25 kg. One person approximately can harvest 100 bags of 50 kg per day in Brazil.
5.6 LOGISTICS
Transport infrastructure In general roads and highways are regular in Brazil, roads are simple and in general have an excess of vehicles. Distances are large.
Costs per 100km and additional costs Cost of transport in Brazil are high from R$ 1, 00 to R$ 1,50 per 100 kilometre.
Type of transport In principle transport of potatoes is done by trucks of 15 to 30 tons in 25 and 50 kg bags, plastic boxes or big bags (700 kg). No refrigeration is used as buyers are not willing to pay the additional costs this brings. Only potatoes north-bound from MG are send in refrigerated trucks.
Reliability of transport Besides traffic jams, Brazil does not suffer too many strikes or other inconveniences in their transport system
16 http://www.jusbrasil.com.br/diarios/70047381/dou-secao-1-09-05-2014-pg-8 41 17 Anita de Souza Dias Gutierrez and Cláudio Inforzato Fanale Horticultural Quality Center of CEAGESP Gitah 2015; Opportunities in the potato sector Brazil
6 VALUE CHAINS
6.1 GENERAL
Most of Brazil’s population of 192 million, is concentrated in the large cities along the coastline, especially in the southeast. The largest cities are São Paulo (11 million) and Rio de Janeiro (6 million) but there are another 150 metropolitan areas with over 100.000 inhabitants.
Graph 8: Growing upper- (AB) and middle income (C) classes 120% growing upper- and middle income The past decade, Brazil has seen an 100% classes 8% 9% 12% enormous social transformation whereby millions have moved out of 33% 80% poverty, becoming part of the 38% 45% emerging middle class (C). 60% 51% Between 2003 and 2013 the middle class has grown from 40% 38% to 51% of the population, a 58% trend still continuing with predictions 54% 46% of a fast growing upper income class 20% 37% (AB) as well. The middle class 9% currently comprises close to 100 0% million people with a family income in 2003 2006 2013 2023 the range of R$ 1.100 to R$ 2.750. As growth has slowed down in 2014, AB = upper income class the 2023 figure may be too optimistic. However, upper- and C = middle income class middle class percentage will continue to grow.
Source: Agriment. Elaborated data from www.fgb.br and cepea (2014)
Economic growth has decelerated considerably in 2014. Brazil has been beset with inflation, currency depreciation, some social unrest and business pessimism. The central bank has tightened monetary policy in order to slow inflation. Consequently, the short-term outlook is not very good. In the longer term, Brazil has many favourable attributes including good demographics (Global Powers of Retailing 2014, Deloite).
Key Market Divers (1) The growing middle- and upper class with an increased spending power, is a main driver for growth in processed food, including processed potatoes, which is a very promising segment in Brazil that has grown significantly over the past years. The county’s growth potential for processed food consumption is much larger when considering demographics. By 2030 the highest level of Economically Active Population will be reached. (2) The number of single households increases. Especially in metropolitan areas like São Paulo where single households account for 12 percent of all households already. This group of consumers looks for convenience in food consumption and spend significantly less time in meal preparation then family households. This kind of consumer looks for pre-prepared food in small quantities explaining high growth numbers in this market segment. (3) Another driver for growth is the inclusion of women in the labour market, making the lifestyle of Brazilian families change greatly during recent years. More families need to cater for themselves and the demand for convenience food is increasing. This growth influences both, the retail and the foodservice sectors. (4) Brazilian consumers become more concerned with health and wellness. A study by FIESP (Federation of Industries in the state of São Paulo) revealed that 23% of people interviewed attempt to include healthy food in their diet.
Gitah 2015; Opportunities in the potato sector Brazil 42
Annual per capita consumption of table potatoes (13,1 kg) and processed potato products (1,9 kg) in Brazil is relatively low compared to Europe or North America. Consumption of processed convenience products like French fries as well as peeled and dehydrated potato products sees substantial increases whereas at the same time the consumption of table potatoes decreases. This is especially the case in foodservice where table potatoes are being replaced by pre-fried frozen potato products, vacuum packed peeled and cut potatoes and lately also by flakes-based products like pure.
6.2 FRESH MARKET
The fresh market for table potatoes in Brazil is really a fresh market. No storage takes place and consumers are used to have freshly harvested potatoes on offer, washed and almost without skin. This makes the product not very durable though. Contrary to most other markets, the fresh potatoes in the Brazilian market need to be sold and consumed within days. The fresh market consists basically of a retail chain and a foodservice chain, whereby sometimes these chains run parallel. Approximately 70% of the total potato production of 3,4 to 3,7 million tons are destined for fresh consumption. This corresponds with a per capita annual consumption of almost 14 kg. It should be noted that, as (1) the processing industry’s capacity is fixed, (2) the total production country-wide varies somewhat from year to year and (3) the fact that hardly import or export of fresh potatoes occurs, the changes in annual production fully need to be absorbed by the fresh market. This has an influence on annual per capita consumption and on price levels.
Due to traditional eating habits, the consumption of fresh (table) potatoes is not expected to increase. It even decreases somewhat. Field research learned that in retail markets, the turnover in table potatoes is more or less stable, but processed potatoes are added to the range. In foodservice, the use of fresh table potatoes decreases significantly due to replacement by more convenient processed potato products like pre- fried frozen French fries and recently also from flakes-based products like puree and croquets as well as vacuum packed hygienised peeled potatoes.
Export of table potatoes is negligible. Import was 23.000 tons (2013). (Source: UN Comtrade statistics)
6.2.1 Varieties and size
According to ABBA (Associação Brasileira da Batata) Brazilian consumers have a preference for multi-purpose, medium sized, oval shaped potatoes, 80% yellow skin and 20% red skin (e.g. variety Markies). Yet, 90% of packed table potatoes are single- purpose Agata (cooking) and 10% is Single-purpose Asterix (frying). Field research learned that there are significant differences between the various states whereby the red-skin varieties are only accepted in the market in the southern states next to the white-skin. Or if marketed as a frying variety. Generally, a large white potato is preferred, calibrated as first grade in the sizes 45-60 mm (sometimes there are 2 sizes within the first grade calibration; 45-55 and 55-60 mm like demanded by Pão de Açucar supermarkets). On wholesale markets, even the 70/80 mm potatoes of 250 grams are preferred. Approximately 10% of the retail market seeks potatoes for frying, 90% is for cooking. They are presented to the consumers according to their use. Varieties for fresh market most sold (Ceasa, Campinas) are: Agata (by far the most sold), Monalisa, Asterix, Cupido, Atlantic and Cesar.
A shift in power concentration has taken place on the market side where a limited number of big retail chains/groups play an important role. These purchase mainly from a limited number of producer/packers that act as a direct chain partner. The logistics circumvent the wholesale markets as products are supplied directly to the Distribution Centres (DC’S). In the segment of the middle-sized supermarkets that are supplied via wholesale markets, it can be noted that pools of purchase are being formed, strengthening the negotiating power of this group.
Gitah 2015; Opportunities in the potato sector Brazil 43
On the production side, the number of potato farmers has decreased from 30.000 in 1995 to less than 5.000 in 2014. Less producers but more production per farmer. Total 136.000 hectare potatoes are grown in Brazil (FAO 2012) of which almost 100.000 hectare for the fresh market. However, some farmers produce for both, fresh market and processing, depending on the calibration. For example, the variety Agata, (Agrico) is very suitable for the Vargem Grande do Sul, area. It can be used for fresh table potato, but also to process into Cozida Vapor (Steamed, vacuum packed) or to process into dehydrated /puree products. Also in French fries production, yellow skin varieties are sorted out. The first quality, nice looking potatoes are destined for the fresh market, whereas the rest is for processing (BEM in Perdizes). This double use should only be practiced when the potatoes are suitable for multi-purpose use.
6.2.2 Wholesale
Wholesale markets play an important role in the distribution of table potatoes in Brazil. Approximately 85% of all table potatoes pass through the wholesale markets. The wholesale markets supply the foodservice segment as well as the retail segment but of the latter, only the smaller shops and middle sized supermarkets.
The position of the wholesale markets is under some pressure however. On the one hand there is a tendency of increased market share for smaller neighbourhood supermarkets at the expense of hypermarkets (see 6.2.3). This is positive for table potato turnover. However, 15% of table potatoes destined for the hypermarket chains already circumvent the wholesale market and are supplied by producers directly to DC’s of supermarket chains/groups. A second tendency is the significant decrease of table potatoes sales in the important foodservice segment. Here the competition for the wholesale markets comes from the processing industries that offer processed potato products like French fries. That reach the consumers via different distribution channels. Overall the turnover in table potatoes decreases. The number of traders in table potatoes (and fruits & vegetables in general) is declining and there is a big competition between them. There are fewer traders than before, but their size is bigger. Due to the fierce competition, traders try to improve their service and /or efficiency. They have some potatoes in own storage to overcome a few days of shortages in the market. Some are integrating forward in the chain by offering logistical services to clients (distribution). Some big producers are integrating forward by having an own sales outlet on a wholesale market. There are no dirty potatoes on the market. All produce is washed. Damages would be easily noticed and therefor have been sorted out. 90% of the potatoes are offered in 50kg bags which is a custom that is difficult to change. These 50kg bags are regarded as a constraint. They are a heavy load for labourers.
Wholesale packing: Packing occurs almost exclusively fresh, within hours after harvest. This means that the offer of potatoes differs somewhat and comes from different areas in different times of the year. Especially during rainy days when harvest is not possible, the packers may run out of product almost immediately because they have no buffer. Because of consumer demand for white potatoes, they are all washed and then packed. For the marketing via wholesale markets, all potatoes are washed and 90% is packed in 50 kg bags, 10% is packed in 25 kg bags and almost zero is packed in consumer packages. Packing is done by hand whereby an empty bag is placed on a scale at the end of a belt and closed by hand. Due to the freshness of the potatoes, they are harvested rather early. Producers indicate that they are reluctant to harvest mechanically because of possible mechanical damage. However, 10% of the table potatoes are already machine-harvested and this percentage will soon go up significantly as the potential for machine harvest is expected to be at 80%. Some 20% of the machine harvested potatoes has skin damage and suffers a price reduction due to that.
Gitah 2015; Opportunities in the potato sector Brazil 44
If Brazilian consumers would accept fresh potatoes with some skin like in almost all markets, it would help the sector significantly. - It would reduce fluctuations in availability - It would make logistical management for all chain partners easier. - It would reduce price fluctuations - It would make export easier - It would make mechanisation easier - It would have a positive effect on quality, especially a few days after purchase. It would take many years though before consumers are expected to accept this.
Figure 10: 15 kg potatoes per plastic crate plus 50 kg polypropylene bags
6.2.3 Retail sector
The share of the main regions in overall retail sales in Brazil is indicated in Figure 11 52% of the retail turnover is realised in southeast. 18% in northeast 17% in south 8% in centre west 5% in north The current situation does not differ much from the figures from 2009 as it is strongly connected to inhabitants per region .
Figure 11: Retail turnover share by region (2009) and population density
North 5%
Northeast 18% Centrewest 8%
Southeast 52% South 17%
Source: Deloitte Brazil, www.deloitte.com.br
The top three supermarket chains are foreign owned and had a joint market share in retail sales of 43% in 2010 and enlarged their share to 47% in 2012. The rest of the retail market is in the hands of other chains with less than 2% make share and independent retailers / small shops.
Gitah 2015; Opportunities in the potato sector Brazil 45
Table 29: Top-five supermarket chains company origin brands No Market Revenues in 2010 stores share (R$ million) Cia Brasileira de France Extra 626 18% 36.144 Distribucao (CBD) Pão de Açucar (Casino) Assai Carrefour France Carrefour 500 14.4% 29.000 Dia% Atacadão Walmart USA Walmart 479 11.1% 22.334 Sam’s Club Bom Preço Big Mercadorama Maxxi G Barbosa Chile G Barbosa 149 1,7% 3.501 Bretas Zaffari Brazil Zaffari 24 1,2% 2.490 Bourbon Source: Brazilian Supermarket Organisation (ABRAS) www. Abrasnet.com.br
The sales of table potatoes in retail has a tendency to decrease somewhat. Recently here has been a clear shift form hypermarket to the smaller supermarket outlets in residential areas. The big supermarket chains focus therefore more on their smaller residential formulas. The same tendency can be noticed in for example UK where also the hypermarket formula is losing market share and consumers buy more often and closer to their home. The fact that turnover in hypermarkets in general is down, compared to some years ago is of big influence on fruit & vegetable sales, including potatoes. Consumers used to come 1 x per 2 weeks to a hypermarket to buy relative cheap and avoid inflation by making big purchases as soon as they had money. Nowadays there is little inflation and too much traffic. This is seen as the main reason why consumers tend to prefer smaller supermarket outlets in residential areas. Consumers go there on average twice per week. This different visit pattern has a big influence on the turnover in F&V (including table potatoes) which are purchased for consumption within several days. The neighbourhood supermarkets have an extensive offer of fresh fruits & vegetables therefor, both in square meters and in assortment. Supermarkets in Europe and the US regard their F&V departments as a ‘visit card’. This is generally also the case in Brazil. A fresh, clean and good looking F&V department is important for the perception of the general quality by customers.
The big supermarket chains/ groups are being supplied via their own Distribution Centres (DC’s) that supply all the stores of the different formulas belonging to the chain or group. A team of staff checks quality of all fresh products that arrive at the DC, based on a nationally recognised quality checking system. The results are put online and suppliers have access to the results of the checks of the products they supplied. One of the main quality criteria for potatoes is the size. Sometimes the sizes are too small (due to drought). Other criteria concern visible defections or malformations.
The most progressive supermarket chains cooperate with their chain partners to develop new products, new types of packing etc. Also in potatoes. The wholesale markets are mostly circumvented by the big supermarket chains/ groups and supply chains are shortened.
6.2.4 The main constraints in this sector
There are worries about the bacterial contamination via the washing (notably the use of dirty wash water). Sometimes availability is short and prices fluctuate then. When rainy weather, Erwinia and late blight are a problem. Potatoes that arrive looking normal, become green once in the store (after several days). Some stores cover their potatoes at night to limit exposure to light. Gitah 2015; Opportunities in the potato sector Brazil 46
A stable supply during rainy season would be welcome. This could be arranged via a week buffer in storage at farms. The general impression is however that consumers will not accept a peel on the potato. Some producers will invest in a small buffer storage (several days) though. They need to do so in order to be able to efficiently run their pack stations and to optimally make use of harvesting machines once they invest in these. Currently only 10% of the table potatoes are being harvested mechanically but as labour is getting scarce and expensive and because potatoes are often produced by large farmers, the percentage of 10% is expected to increase significantly. When this happens, the supply will become better. Long term storage (3 months) is not to be expected in the table potatoes segment due to consumer demand for no-peel. For peeled- and otherwise processed potatoes, some skin formation during storage is no issue because the product is being peeled anyway. For this segment investments in storage are to be expected in order to avoid producing in summer at relative high production costs, higher disease pressure and lower quality.
Wholesale markets Wholesale markets like CEASA play an important role in the distribution of table potatoes. They sell foodservice street markets, supermarkets and small sellers. Not to supermarket chains and processors. The smaller, independent supermarkets are the most interesting clients at wholesale markets because of slight increased turnover in this segment whereas the sales in the foodservice segment decrease. Overall the turnover of table potatoes decreases. The number of traders in general is declining as well. There is big competition between them. There are fewer traders than before but they are stronger. Some traders distribute the products they sell but most customers come personally to the WSM to purchase and take the product with them.
100% of potatoes are washed. 90% packed in 50kg. 10% in 25 kg bags. Consumer packages hardly pass by the wholesale market. Potatoes are being supplied from 150 to 900 km distance.
For potato producers, the wholesale market has an advantage of being able to sell big quantities. Apart from that, everything they send gets sold. But the prices are lower than when supplying DC’s of Supermarket chains that demand the best quality only and send back 1 in 30 trucks for not complying with the quality standards. Constraints: The 50 kg packing is regarded a bottleneck. Apart from being a heavy load for labourers, it unnecessarily damages the product because the bags are difficult to handle and make a hard bump when loaded on a truck. Part of the potatoes are for this reason packed 20 kg in a 30 kg plastic crate. But this is more expensive in transport. The weather is another bottleneck. Or rather the lack of buffer. When it rains too hard, harvest is not possible and directly this can be noticed in (lack of) supply and its influence on price. Because the consumer wants freshly harvested potatoes, skin damage by mechanical harvesting is an issue. The distance from where potatoes are being supplied is 150 to 900 km. Cooled transport is not being used except for unusually long trips to the North and interior. By harvesting in the morning and transporting at knight, the temperature of the product is tried to keep within limits. However, the temperature of the product sometimes is a constraint for quality.
Most traders are commissioners, some buy and sell. It also happens that big producers have their own sales outlet on a wholesale market. The commission usually varies between 5% and 10%. This depends on the availability, price, payment conditions, and strength of the buyer and size of the transaction. Some traders have some potatoes in stock on the WSM to overcome a few days’ shortages in supply. Some traders calibrate the potatoes themselves on the WSM. The preferred potato is ‘blanca’ 70/80 mm
Gitah 2015; Opportunities in the potato sector Brazil 47
Retail packing: Only very few packers (3) exist that pack in consumer packages. This is only done for the larger supermarket chains/groups. The most advanced in offering consumer packed potatoes is Pão de Açucar that sells approximately 20% of its table potatoes in consumer packages of 2 kg under private label (Qualita) and 1½ kg in cheaper click mesh with label attached. Walmart also sells some pre-packed potatoes but significantly less. The main part of potatoes is being sold loose, either stacked on a table or in plastic crates. The packing is done by a packer in the producer area after calibrating and sorting the potatoes. The packing material that is being used is rather expensive and needs to be imported from Spain or Italy. There is however quite a big price difference between 1st and 2nd grade potatoes, 1st grade being twice the price.
Before the supermarkets used to pack fruits and vegetables themselves, including potatoes in foil-wrapped trays. This still occurs, for example at Cenaurão fresh stores. The bigger chains like Pão de Açucar (Casino) prefer to be supplied with already packed products however. A differentiation in specific potato use (frying or cooking) is already communicated to the consumer, either by means of signs or indicated on the package.
Figure 12: Packed in PS-trays, potatoes for cooking, potatoes for frying
Figure 13: Promotion of packed product and loose product
6.2.5 Foodservice
Foodservice is the market that involves the entire chain of production and distribution of food, supplies, equipment and services geared to meet the establishments that prepare and provide meals outside the home. The foodservice includes normal restaurants, fast food, diners, canteens, bakeries, bars etc. as indicated in Graph 9. Within the group ‘others’ are schools, hospitals, army etc.
The size of the foodservice market in Brazil was R$ 89 billion in 2011 and is estimated to reach R$ 100 billion in 2014. (Source: Brazil’s Food and Beverage Market). The sector shows two digit growth rates since several years. Expenditures with food service (eating out) represents 31% of total consumer expenses on food. The foodservice sector accounts for 80% of the pre-fried frozen potatoes sales of which 25% is realised in the fast-food segment and 75% in the rest of the foodservice sector.
Gitah 2015; Opportunities in the potato sector Brazil 48
Graph 9: Composition of foodservice sales, Brazil
Others Restaurant Catering s Hotels Restaurants 23% Cafetarias Bakeries 15% & Bars 13% Canteens Fast-food 12% Diners 11% Bakeries Cafeterias &Canteens 7% Diners Hotels 4% Catering 2% Others 13% Fast-food Bars
Source: Brazilian Association of Food Industries (Abia)
The average Paulistano spends R$ 27 per day on eating out.
Table potatoes as well as other vegetables, are supplied to the foodservice sector via wholesale markets. Some clients come to the wholesale market themselves, Most are being supplied by traders / distributors. Paying conditions of 30 to 45 days are common. However, as stated before, in this sector, the use of table potatoes is under heavy pressure by processed potato products. 100% of the potatoes are washed and sorted. 90% is packed in 50kg bags, 10% in 25kg bags.
The processed potatoes like frozen French fries do not pass-by the wholesale market but are supplied via distributors along with other products. São Paulo for example has 13.000 restaurants and 15.000 bars. Efficiency in distribution is therefore very important. In the fast-food sector which makes up approximately 12% of the food sector, a small number of companies dominate the sector, accounting for more than 50% of the sales. Most of these serve pre-fried frozen potatoes. They are present all over Brazil, mainly in cities with over 100.000 inhabitants.
The fast-food franchise chains are very demanding regarding quality and consistency in quality throughout the year and in each restaurant belonging to the group. They communicate with their suppliers and are actively involved in monitoring the quality demands in the production chain.
Table 30: Main fast food chains in Brazil Company / Brand name Number of restaurants McDonald’s (Arcos Dorados) 677 Subway 600 Bob’s and Pizza Hut (BFFC) 500 Habib’s / Ragazzo (Saraiva) 340 Giraffas 305 Burger King (3G Capital) 140 Intern. Meal Co (Viena Frango, Assado, Brunella) 98 Source: OSEC, 2012
Growth rates in foodservice were high in the period 2006 to 2011 (horizontal axis) (e.g. restaurants 7% to 8%) and will remain substantial in the period 2011 – 2016 (vertical axis) (e.g. restaurants 4% - 5%). Graph 10 shows the differentiation between the different sub-sectors within foodservice.
Gitah 2015; Opportunities in the potato sector Brazil 49
Graph 10: Compound Annual Growth Rate Brazilian Foodservice: Dynamics by channel 2006-2016
Source: The future of Foodservice in Brazil (foodmarkets.worldpress.com) 2012
Graph 10 also shows the size of the subsectors within foodservice by the size of the bubbles.
6.3 INDUSTRIAL PROCESSING
An estimated 20% of domestic potato production in Brazil is being used for processing into products like pre-fried frozen potatoes (French fries), potato chips (crisps), steamed and peeled, vacuum packed and dehydrated potato products like potato flakes and puree. This is considerably lower than in the US where companies allocate 70% of whole potatoes produced for processing, largely into French fries. However, increased consumption does not mean that also production increases. For crisps this is the case because the crisps on the market are 100% produced locally. For peeled and steamed potatoes this is likely to be the case as well. For frozen French fries however, local production is only 25% compared to 75% import. It is mostly the cost price of the raw material and the transport costs of the products that determine the competitiveness of local production versus import. Due to changing consumption patterns, the percentage of processed potato products is already increasing rapidly in Brazil and the trend is that this percentage will further increase significantly in the coming years. In most of the developed world, the consumption of processed potato products has surpassed the consumption of fresh potatoes and this trend still continues. General expectation is that within 10 years, the consumption of processed potatoes surpasses the consumption of fresh table potatoes in Brazil.
Tendencies for the industrial potato chain in Brazil are following: Greater use of contracts to reduce business risk; Increased professionalization of producers Attention to the laws in force, in particular the labour and environmental; Constant search for productivity and efficiency through partnerships and use of new technologies; Storage Development of specific varieties; The need for certification of the production system;
6.3.1 Processed Consumption
Processed potatoes are increasingly taking the place of fresh potatoes in Brazil, reaching sales for more than R$ 1.4 billion per year
Based on data published by the IBGE, one can observe that consumption of fresh potatoes per capita in Brazil in 2009 decreased with almost 25% compared to the year
Gitah 2015; Opportunities in the potato sector Brazil 50
2002, while at the same time the consumption of processed potatoes increased with more than 40% during the same period.
Although in weight, French fries consumption is five times higher than crisps and palha (1.9 kg versus 375 gram and 100 gram respectively) in value the Crisps and palha are more important as shown in the next table.
Table 31: Processed Potato Sales in Brazil 2010 Product Invoicing Million R$ (2010) Increase 2009-2010 (%) Wavy potato chips: 551 11% Smooth potato chips: 222 19% Potato Straws (Palha) 334 12% Pre-fried frozen French Fries 338 36% Source: Agrivalue based on information by Hortifrut magazine
6.3.2 French fries
Potatoes for the local pre-frozen French Fries production facilities are heading to BEM Brasil and Hortus Industrial, main varieties are Markies en Asterix.
Main suppliers of the BEM facility is Grupo Rocheto, of the brothers Celso, José Paulo and João Emilio Rochet whom in December 2007 inaugurated BEM Brazil in Araxá. BEM Brazil has a processing capacity of 100.000 tons of final product and Grupo Rocheto supplies about 60% of the raw material need of the facility.
One of the main suppliers of the Hortus facility is Grupo Nacente.
The use of Frozen French fries (Batata Palito Congelada) started in Brazil in 1992, based on imports from Canada, the US and Europe. Between 1992 and 1997, per capita consumption of frozen potatoes went from zero to 0,3 kg. Since 1995, import from Argentina started, arriving at lower cost. In 2007 per capita consumption reached 0,7 kg and in 2012 this was 1,9 kg. Still far from the 7 kg in Holland and Belgium or the 13 to 15 kg in UK and US, but increasing. Other than fresh potato, the pre-fried frozen potatoes fit in the changing lifestyle pattern of the growing middle class as it is convenience food and fits in fast food consumption patterns. At the same time, the rest of the foodservice segment also prefers to use pre-fried frozen potatoes for convenience reasons. Until 2006 an estimated 98% of the frozen potato products consumed in Brazil corresponded to imported product. With the establishment of Bem Brazil in November 2006 in Araxá (MG) and Hortus in Bahia in 2007, the locally produced percentage increased. In 2012 approximately 26% of all frozen potato products consumed in Brazil have been produced locally, in large part by Bem Brasil (82.000 tons processed potato) and Hortus (13.500 tons). At a conversion rate of approximately 2:1, this means that 200.000 tons raw material is being grown locally for processing into French fries.
Table 32: Total Import of frozen prepared potato in US$ and in weight. Period Trade Flow Reporter Partner Code Trade value Net weight (kg) 2009 Import Brazil World 200410 $124,414,911 151,237,796 2010 Import Brazil World 200410 $191,793,389 242,503,711 2011 Import Brazil World 200410 $215,743,803 232,129,494 2012 Import Brazil World 200410 $205,822,821 232,265,613 2013 Import Brazil World 200410 $338,862,957 282,094,010
Table 33: Of which from Argentina in US$ and in weight. Period Trade Flow Reporter Partner Code Trade value Net weight (kg) 2009 Import Brazil Argentina 200410 $82,075,970 94,108,064 2010 Import Brazil Argentina 200410 $104,866,894 117,600,582 2011 Import Brazil Argentina 200410 $130,297,942 126,511,108 2012 Import Brazil Argentina 200410 $101,611,986 91,949,309 2013 Import Brazil Argentina 200410 $213,594,265 142,072,351 Source: UNcomtrade, www, comtrade.un.org
Gitah 2015; Opportunities in the potato sector Brazil 51
In 2012, the Brazilian market for frozen pre-fried potatoes reached 320.000 tonnes in sales, an increase of nearly 7 % over 300.000 tons in 2011. The market is expected to reach 450.000 tonnes in 2017 (source DataMark) (2013: 342.000, 2014: 366.000, 2015: 392.000, 2016: 420.000. 2017: 450.000 a continued 7% annual growth)
As can be seen from Table 32, in 2012 the total import was 232.000 ton. The total market was 320.000 ton. This means a local production of 88.000 ton in 2012. Currently it has increase to 100.000 ton.
Bem Brasil has announced to double its production capacity from 100.000 ton to 200.000 tons during the next years. Bem has 2 production lines in Araxá. They will build a third line at the Rocheto farm in Perdizes in 2018. They already own 10 potato storages of 5.000 ton each at this location and plan to construct an additional 60 ones saving on transport costs (57 km from Perdizes to Araxá). However, it seems that sometimes the price of imported French fries is lower than the production costs locally. This puts the industry in a difficult position as supply of raw material continues, the factory needs to run and clients need to be served below cost price. Part of the raw material destined for processing may be sold on the open market as table potato. But the main factor for managing this problem is in high yields, low cost price and no production of raw material during the difficult summer months.
Graph 11: Origin of imported frozen potato products in Brazil in % ORIGIN OF IMPORTED FROZEN POTATO PRODUCTS 2012 3% 2% Gemany Other 18% Netherlands
52% Argentina
25% Belgium
Folha de S.Paulo, 19.09.2013
The processing of potatoes in Brazil into French fries still is not significant when compared to other countries. In Brazil approximately 200.000 tons of potatoes are being processed into 100.000 ton French fries (conversion 2:1). This corresponds with 6% of the volume of potatoes produced. The demand for frozen pre-fried potatoes is growing in the local market, resulting in an increase in import mainly from Argentina, Belgium and the Netherlands.
Currently an estimated 80% of the pre-fried frozen potatoes available on the market, is being used by the food service segment. Taken into account that consumers eat more and more outside the home, the tendency is that this percentage may further increase.
Consumer research by the company Agrobeloni showed that rich- and upper middle class stopped frying at home. Only 5 to 10 % of consumers fry at home. The rest of consumes cooks potatoes at home. This explains why only 10% of the packed table potatoes in retail is Asterix (frying) and 90% is Agata (cooking). This is also in line with the retail sales of pre-fried frozen potato products that are nation-wide only at 5% of fresh table potato sales in retail. Because the processing industry is in competition for Asterix as raw material, the price of this variety is up to 30% higher than a cooking potato like Agata.
Gitah 2015; Opportunities in the potato sector Brazil 52
The fastest growing market segment for pre-fried frozen potato products is foodservice. Within foodservice 25% is fast food and 75% other. Overall, the market for pre-fried frozen potato products is 20% Fast food, 20% retail, 60% rest of the foodservice/ meals outside the home (bars, restaurants, diners, canteens etc.).
Regarding price, the average price for European pre-fried frozen potatoes imported to Brazil was R$ 1,43 (FOB in origin). For import from Mercosur (Argentina), the price was R$ 2,15 per kg. In October 2012 the import tax for processed potatoes from EU was increased from 14% to 25%. This rate was in place during the period of one year and returned to 14% in late 2013. The import tariffs increase are favouring trade with Mercosur and also stimulate local production. It should also be mentioned however that general trade negotiations between EU and Mercosur are currently underway, the outcome of which could influence the trade patterns.
Apart from Bem Brasil and Hortus, McCain is considering the possibility to open a processing factory in Brazil as reported in the national press. For this, it is already testing cultivars different regions of Brazil. Also Farm Frites is testing yield potentials for raw material in Brazil.
In October 2012, McCain announced the purchase of the Lutosa, the potato division of potatoes Belgian Pinguin-Lutosa group, for US$ 290 million. Lutosa currently has a 5% market share in Brazil but plans to increase to 10% by 2017. This way McCain tries to strengthen its position in the import market.
Graph 12: Price levels EU and Mercosur pre-fried frozen potatoes (FOB in origin) FOB prices frozen French fries in R$ in origen 2,50
2,00
1,50
1,00
0,50
0,00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
mercosur EU
Source: MDIC/Secex, Hortifriti Brasil 2013
The production of pre-fried frozen potatoes is a very competitive business. Since approximately 45% of the cost of French fries concerns the raw potato, the cost price of this raw material is a very significant factor. A competitive industry needs relative low cost potatoes. Optimum, high yields are required in primary production in order for producers to be able to supply the processors at competitive prices. Especially because the pre-fried frozen French fries is a commodity that needs to compete with suppliers from different countries and continents. As the processing industry needs to be supplied throughout the year, consistency in quality, availability and prices is required. This is being influenced by production seasons and (different) yields per season, production areas, transport costs, storage availability and costs and quality losses during storage.
McCain started to supply the Brazilian market with pre-fried frozen French fries in 1992. First client of the company was McDonalds and later retail and fast food chains followed. In 20 years, according to McCain both the distribution chain and the consumer changed considerably, therefore the goals of the company are 5 times higher than 10 years ago. McCain estimates that 80% of the population consumes French fries at least for 1 time per week.
Gitah 2015; Opportunities in the potato sector Brazil 53
In 1992 McCain supplied the Brazilian market from Canada, Europe and the USA. In 1995 they invested 160 million in a facility in Balcarse Argentina to supply the Mercosur. In 2000 they incorporated a “palha” production line. Today the Argentine processing plant’s production capacity is heading for 65% to the Brazilian market and the rest has as destination Paraguay, Argentina, Uruguay, Chile, Venezuela, Colombia, Bolivia and Peru. Seven years ago McCain also included a modern line for specialty producs.
Farm Frites started in 1971 in Oudenhoorn and today is one of the main potato processors in the world. In Argentina Farm Frites has a big processing facility in Munro, Buenos Aires Province. Farm Frites arrived to Argentina in 1996 buying 50% of the shares of the local firm "Alimentos Modernos", later in 2000 they bought the complete share package and in 2014 they sold 60% to a local investment group from La Plata.
The company supplies retail (super and hypermarkets) and food services (hotels, catering, restaurants, etc.). Farm Frites supplies also the main fast food chains such as McDonald’s and Burger King. Their Argentina subsidiary is exporting about 70% of its final product to neighbouring Mercosur countries. New developments in this sector are the oven fries and other flakes-based potato products.
Oven fries (forno) see a significant increase in sales in retail. They fit in a health awareness trend whereby fried potatoes are perceived to be less healthy than non-fried. Croquettes and other flakes-based potato products are since recently available in retail. Sales go well according to several supermarket managers. Before, these type of products were only available in foodservice, a segment that still sees increased use as well.
Until the arrival of the first processing facility in Brazil in 2005 about 98% of the frozen French fries were imported and the other 2% corresponded to low volume and low quality home made products.
According to studies by Agriculture & Development Board horticulture, productivity average in Belgium and the Netherlands in 2010 was 55 tons/ hectare. To effect comparison, the same study found that in France, Germany and Britain, productivity hardly exceeded 48 t / ha. In Brazil, according information collected by Hortifruti staff / Cepea, potato producers to the industry rarely harvest more than 40 t / ha.
Costs per hectare without considering productivity and destinations of production, also Show higher in Brazil.
The scale at which large producers and exporters of frozen potato act, makes their manufacturing cost lower than in for processors Brazil, that besides this, also face other typical challenges. Thus, for Brazilian processors to increase their market share, it does not only require a raise in tariff barriers. It takes greater technological innovation, in the field and industry, enabling the reduction of costs, that is, providing effective increase national competitiveness.
6.3.3 Bem Brasil
BEM Brasil Alimentos, is an enterprise of 100 % Brazilian capital specialized in the production of pre-fried frozen French fries and flakes. BEM entered the market in the November of 2006 with the objective to conquer the consumers with the quality and differentials of his products.
BEM Brasil is the result of an investment of R$ 50 million by Montesa and Rocheto. Their objective was differentiate by looking for the best production technology in the international market and use high quality raw materials. BEM Brasil incorporated Dutch- and North American technology in their production line, to assure precision and quality guarantee of its two products.
Gitah 2015; Opportunities in the potato sector Brazil 54
Their factory began production in November of 2006, in Araxá Minas Gerais, offering mix of products for several segments.
Today the company operates a single production facility where they process over 100.000 tons of French Fries each year. In its modern processing facility they even reached 110 thousand tons of pre-fried frozen fries and 2.000 tons of dehydrated flakes a year, produced in an area of 327.000 m2 with 260 employees.
Between 2011 and 2012, while Brazil’s economy grew 0.9%, BEM realized an expansion of 42% and conquered 25% of the local market, which is still dominated by international suppliers. In total BEM realized sales for 200 million real in 2012 and their aim for 2013 was 250 million real, to be reached by using full capacity.
BEM Brasil packs for six private labels and 80% for own brand. The company grew serving restaurants and retail and started in 2012 with for the first time, supplying the fast.food.chains.
Figure 14: BEM processing facilities
Source: BEM Brasil website
6.3.4 Hortus Agroindustrial
In 2007 Hortus was initiated in Chapada Diamantina in the heart of the state of Bahia with the objective to process and freeze potato products, such as French fries and specialty pre-cooked potatoes (potato slices and noisette). They focus on the most exigent gourmets. Hortus is a 100% Brazilian company with capital investors Agroinvest Kayatani and investment fund Nordeste I, administrated by Rio Bravo Investimentos.
6.3.5 Crisps
In Brazil the production of Crisps is dominated by Elma chips Frito-Lay (50%) and Yoki (33%). Various small processing facilities, together make up for the remaining 17% of production. The industry of potato chips in Brazil is presenting strong growth in the last years. It is important to recognize that there is a formal and a more informal market, with both its own characteristics:
Suppliers of potatoes for the Crisps industry mainly use Atlantic en Caruso and Taurus. Also some tests with new potato cultivars suited for industrial processing are taking place (BRS IPR-Bel and BRS Ana)., these were officially presented in Castro, in Brazil's southern Paraná state, agricultural research company Embrapa.
Suppliers of the Crisps industry are amongst others Cooperative Castrolanda and Agrosolanum (they supply the whole year round), Schoenmaker, Montesa, Nacente and Wehrmann, who supplies high quantities but during a shorter period of 4 months approximately.
Gitah 2015; Opportunities in the potato sector Brazil 55
Table 34: Characteristics of Potato chips producers Characteristics Description Scale Medium to large sized operations Technology level in the field High level of mechanization Relation between producer and industry Formal Product portfolio Diverse Type of farmer Agricultural Businessmen Source: Agrivalue SA based on interviews 2014
In 2012 the annual per capita consumption of crisps was 375 gram. The total consumption nation-wide was 75.000 ton of crisps according to ABBA (Revista Globo Rural, October 2012) Conversion from raw material to crisps in the production process is roughly 4:1 meaning that to produce 75.000 crisps, 300.000 ton raw material is needed. Just about all crisps are produced locally. There are several local producers, including PepsiCo/Frito-Lay that uses 150.000 tons annually and therewith has 50% of the market (brands: Lays and Ruffles and Elma) Yoki Alimentos (purchased by General Mills in august 2012) uses another 100.000 tons raw material (25.000 ton crisps). Other local producers jointly use approximately 50.000 tons (12.500 ton crisps)
Procter & Gamble (Pringles) is a third big supplier of the market. However, the Pringles are made of potato flakes whereas the crisps/ chips are made of whole potato.
The sector is preparing investments in storage of the raw material for a 3-month period during summer in order to be able to produce in winter at a lower cost price and in order to have sufficient buffer to guarantee the production process in the factory. Especially important is preventing sprouting without using anti-sprouting chemicals as these are not allowed by the processing industry. Equally important is preventing starch being converted into sugar inside the potatoes during storage because this makes them unsuitable for processing into crisps.
Frito-Lay has a market share of 50% in crisps in Brazil. It uses own FL varieties for half of its raw material and ‘Atlantic’ (a free variety) for the other half. The other 50% of the Brazilian crisps market makes fully use of the variety ‘Atlantic’ as raw material for its processing activities.
The total area planted with potatoes to be used for processing into crisps consists therefore for approximately 75% of the variety ‘Atlantic’. Crisps are available in all supermarkets and take a prominent share off the available shelf space, an indication for its turnover and profitability within the retail.
Table 35: Formal – versus informal market Formal market Informal Market - Focus on year round operation - Operate opportunistically when raw material is available - Local or regional industries - Small and local industries - They establish purchase agreements - They have no purchase agreements - Own marks or for third parties - Own marks or without marks Source: Agrivalue SA based on PepsiCo interview and presentation by Mr Yorinori
Many small local brands are present in the different states in Brazil as shown in the figure below presented by Mr Newton Yorinori, former agro-director at Elma Chips during ALAP in 2012.
Gitah 2015; Opportunities in the potato sector Brazil 56
Figure 15: Crisps brands in Brazil
Source: PepsiCo at ALAP 2012
6.3.6 PepsiCo
In Brazil, PepsiCo, the main snack producer in the world of American origin has a snack division called Elma Chips that produces the potato snack brands Ruffles and Sensações.
Ruffles was created in 1958 in the United States and arrived in Brazil in 1986. In the snacks market, it is the national preference. Currently, the company, which had global sales of $ 114 billion in 2010, acquires 5% of the Brazilian production of potatoes, 2.5 million tons. Brazil is PepsiCo’s fourth largest market, preceded by the United States, Mexico and the UK.
The importance of the processing industry for the optimization of the Brazilian potato production sector is shown by an example of the main crisp producer in Brazil, Elma Chips of PepsiCo. They invested in 14 year time more than 320 million real in an Agricultural Program to improve the production of its suppliers18 of Ruffles, one of the snack brand they sell in Brazil.
It enabled them to develop a team of specialist in potatoes to develop action plans to approach the ideal product for the company. PepsiCo wanted to get rid of adventurers' that were entering the market of potatoes in times of high prices. Instead the enterprise looked for long term relationships.
Apparently, it had effect as in 1997 PepsiCo was buying from 60 producers, that supplied 55 thousand tons a year. In 2011, PepsiCo received a volume of 140 thousand tons of potatoes originating from 16 cooperatives of São Paulo, Paraná, Saint Catarina, Rio Grande do Sul, Minas Gerais and of Goiás.
One of their suppliers is Montesa of Mr Marcelo Balerini. Montesa is located in Serra do Salitre (MG) and provides about 50% of its production of 45.000 tons to PepsiCo. Mr Montesa indicated that for many suppliers it was difficult to maintain a steady harvest, this changed becoming a supplier of PepsiCo. With the inclusion of more technology and improved varieties of the crop farmers gained more productivity, improved production and reduced losses to almost zero. PepsiCo started with suppliers’ yields of 18 tons per hectare, while today an average production is at least 30 tons per hectare.
18 Magazine Dinheiro Rural October 2011 “Va plantar batatas” by Alécia Bridges 57
Gitah 2015; Opportunities in the potato sector Brazil
Table 36: PepsiCo production in Brazil
PepsiCo 1997 2011 Number of farmers 60 16 cooperatives Production in (tons raw material) 55.000 140.000 Number of factories 5 in Itu, Curitiba and Sete Lagoas Source: Agrivalue SA based on PepsiCo data
Figure 16: PepsiCo Potato Processing Plants
Source: PepsiCo at ALAP 2012
According to PepsiCo the challenges for the crisp industry in Brazil are the following: Increased use of contracts for reduction of risk of the business; Further professionalization of the producers; Specific attention to legislation, especially the labour and environmental laws Constant search for productivity and efficiency, through partnerships and use of new technologies; Development of specific varieties Need of certification of the system of production
6.3.7 Yoki
Founded in 1960, Yoki is a family-owned Brazilian company whose Yoki and Kitano branded products hold leading market positions in several food categories, including popcorn and snack nuts, side dishes, dry soups, grains and beans, and seasonings. The company has more than 5,000 employees and posted sales of approximately $527 million in 2011.
In 2012 General Mills, Inc. signed an agreement to acquire Yoki Alimentos S.A., a privately-held food company headquartered in São Bernardo do Campo, Brazil. The transaction in Brazil is expected to close during the first half of General Mills’ 2013 fiscal year. The acquisitions of Parampara Foods and Yoki are part of a rapidly growing international business at General Mills. The company has said fiscal 2012 international segment net sales are expected to exceed $4 billion, including sales from the Yoplait International yogurt business acquired July 1, 2011. The addition of Yoki will more than double General Mills’ annual sales in Latin America to nearly $1 billion.
Gitah 2015; Opportunities in the potato sector Brazil 58
6.3.8 Cooperative Castrolanda
Castrolanda started its own processing facility and is supplied by 8 associates that cultivate potatoes for the cooperative. Their own brand was launched in 2003. Today, the unit works with big production volumes. However the priority remains the production for third parties.
The capacity of Crips production is 90 tons per month.
The average potato yield by Castrolanda members reaches 27.5 tons per hectare. The annual production, according to data of the Cooperative, reaches 34,5 thousand hectares.
6.3.9 Other small crisps factories
As mentioned before, there are many more small crisps factories, such as; Fhom, with head office in São Caetano do Sul, launched in August 2014 under the brand name “Bem Orgânico” the first organic French Fries / Crisps of Brazil. Their clients are mainly concentrated in the regions South and South East but they are looking to further penetrate the local market.
The crisps are sold in three types; waved, smooth and palha (or Palito) (straw) version and are certified by the SVB a local certifier of organic food. Supermarkets such as GPA (Grupo Pão de Açúcar), Coop – Cooperativa de Consumo (SP), Angeloni (SC), Zaffari (RS), Verdemar and Super Nosso (MG), Festival, Casa Viscardi and Casa Fiesta (PR) and Big-Lar (MT), plus Santa Luzia, St Marché and Santa Maria (SP) are selling this organic product.
6.3.10 Other
Several producers of table potatoes are aware of the fact that the market for table potatoes is decreasing and that the market for processed potato products increases. Additionally, there is awareness that processing adds value. Additional advantage is the fact that processing makes it easier to invest in harvesting equipment and storage as some skin or damages disappear during processing anyway. This increased efficiency in primary production for potatoes destined to be processed.
Some processed potato products demand big investments to start up the business, due to the minimum scale that is required for a profitable business or due to the very demanding segment in which the products are to be sold or due to the possibilities to compete with imported products. This is for example the case with Frozen French fries, flakes or starch, all products that are being produced at relative low cost by multi- nationally operating companies in countries with the most favourable production circumstances (low cost raw material)
Other products, have a big volume compared to their weight (like crisps), or have a short shelf-life (like vacuum packed peeled potatoes) and the cost price of the raw material is less important in competing with imported products. In this case local production can more easily compete. Additionally, the minimum scale of operation is less and therefore market entry is easier. This explains to a large extend why a large portion of the frozen pre-fried French fries is being imported and why crisps are almost exclusively being produced locally. It also explains the number and size of the companies involved in local potato processing. If market demand is bigger than local production capacity, products will be imported opening the way for local production to take over in the case production can be realized at a competitive cost price and meet minimum quality standards.
Gitah 2015; Opportunities in the potato sector Brazil 59
6.3.10.1 Batata palha
For palha production mainly Atlantic is used, in general low quality, but in case there are surplus in production also better quality.
‘Batata palha’ is a typical Brazilian product (very fine fried potato straw, especially used in Brazil with Beef Stroganoff dishes). Batata palha is made from ‘Atlantic’ and the production is expected to grow further. There are many small independent producers. But also Frito-Lay produces it (Elma).
Today palha is found in any corner of the market but 20 years ago it was not. The first factory, Crac, was founded in 1985 in São Gonçalo. Today it has 130 employees and a monthly production of palha of around 200 tons (12% market share)
According to the Brazilian Potato Association (ABBA), the per capita consumption of palha is 100 grams (Revista Globo Rural, October 2012). This results in 20.000 ton per year. All is produced locally and 1 kg raw material results in 250 grams ready product. This means that 80.000 tons of raw material is used for the production of Palha.
Figure 17: Batata palha production
Source: http://oglobo.globo.com/
6.3.10.2 Peeled potatoes
Fresh, crude, peeled and vacuum packed potatoes (hygienised) are available for food service as well as for retail. Several new companies are entering the market with this product (Trevisian Group in Divinolandia) or are preparing to do so (Cooperbatata). This product is available in big packages for foodservice as well as in small consumer packages. In cubes, whole potatoes or fresh fries as well as in mixes with carrot. Agata is a variety that is being used (Asterix for the frying).
‘Cozida a Vapor’ (steamed), either in cubes or whole, natural or flavoured, is being produced locally (e.g. Vapza) and already on the market. Other companies (Cooperbatata) are planning to enter the market. The big producers notice a decrease in fresh consumption and are looking for ways to add value to their products by relative easy products. A big advantage is that since the products are being peeled, they can produce in the winter at a lower cost and store for several months.
Import of prepared/preserved (not frozen) potato products was 5.154 ton in 2013 (source: UN comtrade)
Gitah 2015; Opportunities in the potato sector Brazil 60
Figure 18: Steamed whole potatoes, vacuum and peeled crude potatoes
Figure 19: Peeled potato chunks, fresh fries and vacuum mix of potato and carrot
6.3.10.3 Dehydrated potato products / flakes/ granules
Potato flakes are a half-fabricate that is being used for the production of a wide range of products; as a base for instant soups, puree, potato croquettes, Pringle- or oven fried crisps, potato pasta products like gnocchi (advertised as gluten free) and snacks. There is some local production of potato flakes (BEM). Import was 9.236 ton in 2013 (UN comtrade statistics) mostly being used as a half-fabricate by the local processing industry.
Before, potato puree and flakes-based frozen type of products were only available in foodservice. Since recently they are also available in retail.
Figure 20: Potato purée, retail pack and retail packing of frozen pre-fried potato products
Grupo Pão de Açucar informs that since the introduction of oven fries (forno) in retail, sales go very well and are increasing. The explanation must be sought in the pre- occupation of many Brazilian consumers with health issues of which obesities, cholesterol and high blood pressure are the main issues of pre-occupation. The oven fries have a better image then conventional fries due to the fact they need not to be fried in oil. Purée is mostly available in the food service market and only starts to be available in retail since recently.
Export of dehydrated potato products is with 10 tons in 2013, negligible. Import was 9.236 tons in 2013 (UN comtrade statistics)
Gitah 2015; Opportunities in the potato sector Brazil 61
6.3.10.4 Consumer information
Potatoes are perceived by a large part of the consumers as a product that makes them gain weight. In this light, it is of importance to understand consumer information sources and behaviour. Approximately half of the consumers read labels on the package (see Graph 13: Frequency of labels being read). When doing so, they are mainly interested in calories (see Graph 15: Main sources of information for consumers about food). Higher income- and education groups as well as women look more than average for calorie information. However, media have by far the main influence on health perception of products as for only one percent of consumers reading the label is the main information source about food products.
Graph 13: Frequency of labels being read
Always reads -23% Sometimes reads – 30% Rarely reads – 16% Never reads – 30% No answer – 1%
Source: FIESP: Brazil food trends 2020
Graph 14: Label information most looked for Calories Fat
Cholesterol Sugar Proteíns Preservatives
Carcohydrates Glúten Sodium
Source: FIESP: Brazil food trends 2020
Graph 15: Main sources of information for consumers about food Television Doctors or nutritionists Internet Friends Newsapers Family members Magazines Advertising Radio School or university Produc lables Books Doesn’t look for
Source: FIESP: Brazil food trends 2020 Gitah 2015; Opportunities in the potato sector Brazil 62
6.3.10.5 Starch and flour
Starch is being used as an additive in many food products (noodles, wine gums, soups and sauces. It is also being used for industrial production (glue, paper, carton etc.) Brazil is a big producer of starch but this concerns almost exclusively Tapioca (cassava) starch.
Export is of potato starch is with 112 tons in 2013, negligible. Import was 1.400 tons in 2013 (UN comtrade statistics)
Potato flour import is with 151 ton in 2013, negligible.
6.3.11 EU-Mercosur free trade agreement
The EU is currently negotiating a trade agreement with Mercosur. These negotiations with Mercosur were officially re-launched at the EU-Mercosur summit in Madrid on 17 May 2010. he objective is to negotiate a comprehensive trade agreement, covering not only trade in industrial and agricultural goods but also services, improvement of rules on government procurement, intellectual property, customs and trade facilitation, technical barriers to trade.
As stipulated in paragraph 6.3.1 the import tariff on frozen pre-fried potatoes is of great importance for the competitiveness of Brazilian local production of these products compared to imports from EU. The development of this subject within EU-Mercosur negotiations are of significant importance in this respect. The Brazilian market is relatively highly protected with an applied customs tariff of 13,5%. The EU therefore consistently encourages Brazil to reduce tariff and non-tariff barriers and to maintain a stable regulatory environment for European investors and traders. These negotiations and a trade agreement (although not expected to be in place soon), are of influence for the development of a local potato processing industry as the local production costs (especially the production costs of the raw material) need to be able to compete with imported produce. Especially for French fries and potato starch, this is the case because of the fact that the cost of these products are to a large extend determined by the cost of the raw material.
6.4 SWOT
Table 37: Strengths & Weaknesses of the actors (Internal factors) Actor Strengths Weaknesses Pre-fried Increased middle class and Primary production costs of raw frozen spending power material / yield level processing Convenience in foodservice Availability of enough relative flat Strong fast food sector land in MG Availability of storage capacity Depreciation of storage based on 3 months use per year Image of French fries making thick Flakes / Increased middle class and Granules spending power processing Convenience in foodservice Better image than fried potatoes Use as a half-fabricate Crisps Stable market Primary production costs of raw processing material / yield level Storage capacity of raw material Not much growth expected anymore in this market sector. Peeled / Product can be stored = lower vacuum cost price for primary product packed Gitah 2015; Opportunities in the potato sector Brazil 63
Relatively easy to start processing Table Year-round availability Consumer accepts no table potato potatoes of few months old Price increase when rains hamper harvest High cost price in winter season Rather long distance from field to consumer areas No cooled transport Little mechanisation of the harvest (10%) Producers need to supply, sometimes even when the crop is too young to give optimum yield.
Table 38: Opportunities and threats of the actors (External factors) Actor Opportunities Threats Pre-fried Local production to replace Irrigation water availability frozen import processing Autonomous growth of foodservice and fast food sector Flakes / Marketing of new product forms Granules Frozen ready products processing Puree Convenience in foodservice Gluten free potato pasta products Crisps Peeled / Mixes with other vegetables Competition from frozen vacuum Ingredients for ready meals vegetable mixes packed Table Demand for consumer packing Table potato consumption in potatoes likely to increase as this is fully general is declining accepted in citrus for example
Gitah 2015; Opportunities in the potato sector Brazil 64
7 INFORMATION FOR THE SECTOR
In Brazil there are not many sources of information that are specifically aimed at potato production and processing. However there are some fairs that attack the attention of the sector, such as amongst others Hortitec, ALAP, Agrishow and various events organized by ABBATA. In 2012 the following companies’ active within the Brazilian potato sector participated at the ALAP event:
Table 39: Companies active in mechanization Activity Company Mechanization technology APH Group, Hennipman, Juma Agro, Mexport, Pivot (Grimme), Via Agrícola, Double L, Watanabe Irrigation Technology Zimmatic by Lindsay, Pivot (Valley), Netafim, Rainbird Fertilizers, insecticides, Arysta Life Science, Basf, Bayer Crop Science , Dow Agro herbicides and other Sciences chemical suppliers Du Pont, Fertilizantes Heringer, Syngenta,Crosslink, Dioxide/Supra, FMC, Força Agrícola, Green Mix, Ihara, Inquima, Juma Agro, Via Agricola, Procópio, Timac Packing technology Manter, Embalagens Tatuí, Castanhal (packaging) Seed suppliers HZPC, Margossian Sementes, Potatoes Canada Industry Bem Brazil Alimentos Storage technology Omnivent, Tolsma, IVI, Tecnofrio Knowledge / governmental ABBATATA, Febrpdp (no tillage organization) institutes / Research centres EMBRAPA, ABH (Brasilian Horticulture Assoc.), / Associations CIP (International Potato Center), UFU (universidad federal Uberlandia, USPB (US Potato Board), IPM (Irish Potato Marketing Limited), ABBVGS (Potato Farmers Assoc.) Magazines / Information Hortifruti Brazil Suppliers Grupo Cultivar Batata Show (Abba magazine) Transport Minaseg Source: Agrivalue SA
Abba has its own magazine called Batata Show in which representatives of the sector publish investigations, technical information. Until 2013 Abba published the months of planting and the quantities harvested, but currently this is not done anymore.
Gitah 2015; Opportunities in the potato sector Brazil 65
8 SECTOR REPRESENTATION
Study Groups / Lobby Groups Interviewing several players in the sector it appears that study group initiatives have been taken in the past. In 2013 a group of farmers including Mr Balarini and Mr Schoenmaker initiated a study group focused on the crisp industry
Abba is an association that unites potato farmers that jointly represent about 40.000 hectares of potato production:
Table 40: ABBA members Destination Area (hectares) Fresh market 23.000 Industry 12.000 Seed 5.000 Total 40.000 Source: Agrivalue SA
Gitah 2015; Opportunities in the potato sector Brazil 66
9 EDUCATION AND RESEARCH
EMBRAPA is a company of technological innovation linked to the Ministry of Agriculture, Livestock and Food Supply (Mapa). Our focus is on generating knowledge and technology to Brazilian agriculture. They provide solutions for research, development and innovation for sustainability of agriculture for the benefit of Brazilian society. EMBRAPA has a breeding program for potato. This program produced the varieties BRSIPR Bel, BRS Clara, BRS Ana. Also the Agricultural Research Institute of Parana (IAPAR) has a research program on the development of new potato varieties.
In Brazil 17 universities have an agricultural faculty. A specific potato curriculum is not present. Some researchers investigate specific topics in potato (diseases, viruses). - Universidade de São Paulo in Piracicaba, São Paulo - Universidade Estadual de Santa Catarina, in Lages, Santa Catarina - Universidade Estadual do Norte Fluminense, in Campos dos Goytacazes, (RJ) - Universidade Estadual Paulista "Júlio de Mesquita Filho" in Botucatu, São Paulo - Universidade Federal de Lavras in Lavras, Minas Gerais - Universidade Federal de Minas Gerais in Montes Claros, Minas Gerais - Universidade Federal de Pelotas, in Pelotas, Rio Grande do Sul - Universidade Federal de Santa Catarina, in Florianópolis, Santa Catarina - Universidade Federal de Santa Maria, in Santa Maria, Rio Grande do Sul - Universidade Federal de São Carlos, in Araras, São Paulo - Universidade Federal de Viçosa in Florestal, Minas Gerais - Universidade Federal de Viçosa in Rio Paranaíba, Minas Gerais - Universidade Federal de Viçosa in Viçosa, Minas Gerais - Universidade Federal do Paraná in Curitiba, Paraná - Universidade Federal do Rio Grande do Sul, in Porto Alegre, Rio Grande do Sul - Universidade Federal Rural do Rio de Janeiro in Seropédica, Rio de Janeiro - Universidade Federal Rural de Pernambuco in Recife, Pernambuco
In agricultural (vocational) schools potato is also not included in the curriculum.
The mission of the Associação Brasileira da Batata (ABBA) is to defend the Brazilian Potato Chain and they aim at producing healthy food, preserve the environment, guarantee continuity for future generations of producers, business partners and employees. The objective of ABBA is to adapt and modernize and increase the competitiveness of the Brazilian Potato Chain. 120 farmers are member and these are producing 50% of Brazilian production. ABBA coordinates activities, initiates research, publishes a magazine “Batata Show”, and is a member of ALAP. In 2012 they organized the 2-yearly ALAP conference in Brazil.
A website www.batatas.com.br provides information on all aspects of growing potatoes. Preparation of the soil, irrigation, varieties, spraying, harvest, transport et
Gitah 2015; Opportunities in the potato sector Brazil 67
10 GENERAL LEGISLATION
10.1 BRAZILIAN PRODUCT CODE AND CLASSIFICATION
Brazil use a system called "Mercosur Common Nomenclature" known as NCM to classify import duty and taxation on products imported to the country. NCM 0701.10.00 are related to the "Harmonized Commodity Description and Coding System" known as HS as following:
10.2 BRAZILIAN IMPORT DUTY AND TAXES
Import duties and taxes are updated $every weekday from the Brazilian Ministry of Development, Industry, and Foreign Trade. The last update of import taxes was done February 10, 2014. Current data in this database was published by the Brazilian Ministry of Development, Industry, and Foreign Trade on January 30, 2014.
The ICMS rate vary depending on the destination state in Brazil of the imported product, in this case São Paulo state for ICMS.
Table 41: Tax overview Tax Name Rate Import Duty 0.00 % IPI 0.00 % ICMS1 18.00 % PIS 1.65 % COFINS 7.60 %
1: Due to lack of ICMS exceptions this product we use the base rate for São Paulo state. However ICMS rates does not exactly follow the NCM classification system. To calculate the total tax burden you cannot sum the import duty and taxes to get the added cost of importing "edible vegetables and certain roots and tubers" to Brazil. These rates are only for "edible vegetables and certain roots and tubers", to find import duty and taxes for other products, please visit our Tax Index.
There are established special ICMS Exemptions for partners and suppliers of FIFA and IOC related to FIFA World Cup 2014 and Olympic Games 2016.
10.2.1 Edible vegetables, certain roots and tubers
Roots and Tubers are categorized under "Mercosur Common Nomenclature" known as NCM code 0700.00.00.
Potatoes, fresh or chilled: - 0701.10.00 – Seed - 0701.90.00 - Other - 0710.10.00 - Potatoes
10.2.2 Frozen French Fries: Tariff (Import Policies)
On October 1, 2012, Brazil unilaterally increased its applied tariff on frozen French fries to 25%, which is below the country’s bound rate of 35%. The new rate is supposed to be valid for one year but it could be extended until the end of 2014. Brazil was the only MERCOSUR country to increase the tariff. Frozen French fries from the other MERCOSUR countries (Argentina, Paraguay, Uruguay and Venezuela) still enter Brazil duty-free.
Gitah 2015; Opportunities in the potato sector Brazil 68
11 CONCLUSIONS AND RECOMMENDATIONS
11.1 GENERAL CONCLUSIONS
The number of potato producers reduces significantly and also the number of hectares under potato production reduces. Production in tonnes increase however. This means that fewer growers grow more hectares and obtain higher yields. As farms become bigger, and labour more difficult to get, mechanisation of the primary production (that recently started), is bound to continue at an even higher pace.
Year round production is possible but there are significant differences in yield and production costs between summer and winter crop. Especially producers of potatoes destined for industrial processing it seems feasible to produce in the winter season and store during 3 months to cover the summer season. The additional storage costs are compensated by the lower ex-field production costs of the potatoes. The formation of a peel on the tubers is no problem in this segment but sprouting must be prevented as well as the transformation of starch into sugar. Additional testing is required per variety on these issues.
For the fresh market, storage is more difficult as consumers are used to potatoes with no (or hardly any) peel (skin). Strong price fluctuations may occur in this segment when rains prevent farmers from harvesting. Especially the packers need to have a continues supply of potatoes in order to keep their business running. This can be obtained by investing in short term- storage (one week) and in harvesting machines in order to increase the capacity to harvest when the weather permits this.
The Brazilian upper- and middle classes are growing fast, as is their pending power. Apart from that, the number of single households and the number of women included in the labour force increase. These developments are key market drivers for growth in processed- and convenience food. The consumption of fresh table potatoes decreases somewhat, especially in the foodservice segment, while in retail, the sales of consumer packed potatoes passed the 20% in the stores of the major retail chains.
Processed potatoes increasingly popular. But the possibility for local production differs per product. The market for frozen French fries continues to increase significantly. Also local production increases but it has difficulties competing with imported product due to the relative high production cost price of the raw material in Brazil. For the fast food and other foodservice sectors, traditional French fries remain popular. In the retail sector that sells 20% of the pre-fried frozen potatoes, oven fries and other potato products based on flakes, are gaining market share as perceived healthier.
Crisps is all produced local but production is concentrated with only a few players. The market continues to grow and the sector has no competition from import due to the high transport costs of the ready product. Palha is a typical Brazilian product, produced locally by many relative small producers.
Peeled potatoes, whole or cut in cubes or fries shape, sometimes mixed with other vegetables and packed in vacuum or even pre-cooked, is a market segment that is growing and offers opportunities for local production. It has market possibilities as a convenient product in the retail as well as in the foodservice segment.
Mechanisation of primary production has started and will continue. Especially the growers for industry need to mechanise. But also fresh market growers will need to mechanise. Producers for industry need to invest in storage capacity for 3 to 3½ months. To a lesser extent, fresh market producers need to invest in short term storage (a few weeks) Packing fresh table potatoes in 25kg and small consumer packages continue to increase.
Gitah 2015; Opportunities in the potato sector Brazil 69
11.2 ISSUES TO ADDRESS AND RECOMMENDATIONS
Issues to address in order for Brazilian farmers to improve their efficiency and profitability can be classified in under 4 main themes: - Seeds - Irrigation and efficiency improvement - Storage and Seasonal availability - Quality
On 19 November a 1-day round table meeting was organised at Golden Park Viracopos in Campina during which these issues have been discussed. In this paragraph the main comments, resulting from this round table meeting are described.
Workshop Seeds 1. There is not so much a lack of potato seeds but rather a lack of good/ certified seeds. If the price for ware potatoes is high (Agata), Much of the seed crop is being sold as ware potato. This results in shortage in seeds (Agata) in the next season. Only 5% of the seeds that are used are certified. Big potato producing companies produce their own seeds. Small companies cannot produce own seeds and depend on market. The problem concerns therefor mainly the smaller producers. As long as ‘Agata’ is a widely used variety, this problem remains because it can be sold as ware potato as well as seed potato. Lack of good and certified seeds concerns only fresh market. Growers that produce for the Industry produce their own seeds and in the quantity that is required. Apart from that, the seeds for industry varieties cannot be sold as ware potatoes. 2. The quality of the seeds the big potato producers use is okay. Bad quality seeds in the market is especially the case when ware potatoes are expensive. The bad quality potatoes that cannot be sold as ware potato remains and is sold as seeds (of which there is also a shortage in this case) 3. Not only the local seeds are of poor quality, also the quality of imported seeds is questionable. According to experience of the members of the round-table, this is not an issue related to one specific region or country. It concerns the quality of the seeds imported from any county. 4. The period from December to March is the most difficult season (wet) to produce seeds. This results in seeds shortage from end of May (Agata). The problem with the variety ‘Agata’ is that it is difficult to store (not more than 3 months) because it has a very short dormancy period. ‘Agata’ has 80% of fresh market. ‘Asterix’ and ‘Cupido’ the remaining 20%. Supermarkets in general like the variety ‘Agata’ because it looks nice. It is therefore expected that this variety will remain having a large market share in the fresh market 5. The round table agrees to the fact that certification needs to be stricter organised. It is of upmost importance to determine unified norms and standards for the production of seeds for the whole country. In order to achieve this, it requires fiscalization to guide producers and applying penalties when necessary. 6. Furthermore, producers must act with enough responsibility in management and control of Plant Health 7. Brazil needs new potato varieties but the introduction of these is partly blocked by the current seed potato importers because these cannot make money on local multiplication of new varieties. Relations with National Potato boards of Ireland (IPM) and France exist. With the Netherlands these relations are not currently active (NIVAP and NAO). 8. 25 years ago there were specific seed production regions in Brazil. Currently this is no longer the case. Seed potato growers do check field history when looking for fields for seed production in relation to soil borne pathogens. Special seed production areas would be impractical in Brazil due to the white fly. This pests comes from soya and transfers virus from crops like tomato, peppers etc. Special zones for seed production maybe possible but then only in the southern states and only in some periods during the year. 9. New varieties: HZPC just sent a mail (November 2015) in which it informs the change of royalties calculation from tons of seeds produced to basing it on hectares planted. This is being done in order to easier control the payment of royalties.
Gitah 2015; Opportunities in the potato sector Brazil 70
10. The reference to the low cultivation of the winter crop should be seen in the context of the ‘Agata’ seed availability cycles (fresh market potato) as describes in point 1 and is not a structural phenomenon occurring each year. 11 Sometimes producers find it difficult to find seeds for the winter crop. this should be seen in the context of the ‘Agata’ seed availability cycles as mentioned under dot 1. 12 The principle challenge of local seed multiplication is the rapid virus accumulation in seed lots through each generation, whether disease free seed stocks are imported or started from tissue culture locally. Pressure of aphids (many species) and viruses (mainly PVY and PLRV) are high throughout the year. The value of disease free seed for seed production leads seed producers to voluntarily seek Agronomic Institute of Campinas (IAC) ELISA services before deciding to sell their production either as seed or consumption (> 75%). Small producers do not check for virus before planting the seeds. They complain afterwards when it becomes clear that the seed they used was not good. However when seeds were bought without documentation. It is not possible to reclaim.
Workshop irrigation & efficiency improvement 1. Draughts and potential lack of rains during the growing season are considered a risk by growers. There is a tendency among potato growers to go to areas where irrigation is available. Only in summer cultivation without irrigation is possible without serious risks for losses. It can take 5 years to get a permit to irrigate. In case of draught, even with a permit, a restriction on irrigation may be imposed. 2. The quantity of water used needs to be reduced. (crop management systems are needed) In some areas, the soil is very diverse though. (more sensors needed per pivot). Investment in technology to reduce water use is a better option than keep moving to other areas. Only investing in technology is not enough tough! Also Knowledge transfer is required! There is a lack of operators (People that know how to operate water management systems, GPS Systems, machine adjustments etc.). There is not enough practical training available in this field. Technical implementation of irrigation equipment is important (drop size, duration of irrigation etc.). Also potato varieties that need less water would be welcome. The use of water in washing potatoes is significant. There are 200 washers operational in Brazil that use much water. Government started to develop legislation regarding basins and recycling of washwater. There are two types of contamination: (1) use of contaminated water by the washers and (2) the washers contaminate the surface water. Availability of water is bad in Bahia, Triangulo Minero and South of MG. Some farmers did change the cultivation location due to changing availability of irrigation water. (eg. Agrosolanum ) Water use per ha is not the only way to look at it. Better to look to the use of water per ton potatoes produced (including factors of yield level, disease prevention etc.) 3. The cost of labour is not considered a major problem! 4. The problem related to labour is twofold: (1) Very strict labour laws (working hours, worker age, working outside normal working hours etc.). This limits the flexibility of producers to work at irregular hours or meet clients expectations to supply products at short notice. (2) Also not enough workers available and not at the time they need them. 5. Fertilizers and chemicals are expensive (US$ based). Apart from that, they are expensive due to high taxation). 6. It is in general not difficult to rent land but competition with other crops occurs. The rent of land is based on the soya price. Land for rent is available in sufficient amounts but sometimes it is expensive. More than 50% of the potato fields are rented. 7. Diseases and pests are widespread. There is a rotation of farmers renting specific fields, not a rotation of crops. The rotation scheme for potatoes is not always implemented well, causing extra disease pressure from infected soils. A main factor is also the absence of winter, causing pests to remain. When hiring fields, farmers look for field history, ‘common scab’ and ‘bacterial wilt’ risks, weeds pressure and nematodes. 8. There are indeed limited level fields available at high altitudes. 9. On average, a low technology level is true. A substantial group of professional producers does however use a high technology input.
Gitah 2015; Opportunities in the potato sector Brazil 71
10. Due to the required freshness of the potatoes for the fresh market, the crop is harvested directly after killing the crop. This is contrary to the practise in most other countries where the crop is left in the soil for a few weeks after killing the leaves in order to allow a skin to develop. This has no influence on yield though. 20% of potatoes in Brazil are harvested mechanically. Potentially 80% can be harvested mechanically! 11. Packing potatoes in 20kg-crates is hardly done (99% is packed in 50kg bags. Within 2 days after harvest the potato is in the Supermarket. Damages on the product become clear after a week when product has already been sold to consumer. Often it has already been consumed by then. 12. Rules for certification are difficult to implement because the legislation in Brazil is very strict. This makes certification difficult. For the next decade certification is not expected to be an issue for the local market (nobody asks for it either). 13. Further professionalization of the producers is indeed needed
Workshop storage and seasonal availability 1. In Brazil weather conditions also have a strong influence on prices and may increase or decrease the volume available in the domestic market. Industry pays less for stored potatoes but on the other hand they need consistency in supply and are very interested in stored potatoes. For fresh market no storage is required. For industry 3 to 4 months storage is required. There is a need for better varieties for storage (‘Asterix’ max. 3 months) (‘Markies’ max. 4 months). 2. Sometimes availability of fresh market potatoes is small and prices fluctuate then. 3. There is a lack of buffer. When it rains too hard, harvest is not possible and directly this can be noticed in (lack of) supply and its influence on price. The same is the case when the weather is too hot to harvest. 4. The non-availability of anti-sprouting chemicals is a limiting factor for storage of industrial potatoes. The anti-sprouting chemicals are not restricted by the processing industry. Anti-sprouting chemicals are not allowed by the local legislation. These chemicals are not registered and therefore not allowed. The agrochemical industry is not interested to register them because the costs are too high and the market to small. 5. Starch conversion into sugar is a problem with the current potato varieties and storage facilities. The development of potato storage is being hampered by the lack of storable potato varieties. 6. During the last 2 years there have been severe problems now contract obligations not being respected by the industry. This year less contracts are expected. And also contracts are signed later this year than usual. Somehow this balance of power will come to a calm as both sides have an interest in risk reduction (supply and price). 7. Early planting to limit draught risks is not really an issue. It is in most cases not possible and hardly done. Therefor this does not result in earlier harvests and does not bring the potato supply out of balance.
Workshop Quality 1. Smaller bags than the usual 50kg will not be handled more carefully. They are a heavy load for workers though. 2. Potatoes for the fresh market are harvested very early, before they develop any skin. 3. It takes one week for a potato to turn green. Nobody in the retail chain covers the product to avoid this (expect for an occasional supermarket that covers them at night). (green led-light would also prevent the potato to get green) 4. Erwinia and late blight are a problem indeed when the weather is rainy. This is directly noted by the quality managers inspecting the supplied potatoes on arrival in the DC. (Wash-water could also be a risk factor in this regard) 5. Skin damage as a direct result of mechanical harvest is estimated at 20% in general. (these potatoes are being sold but at a reduced price) Soil moisture is a very important factor in the reduction of damages in mechanical harvesting) 20% of the potatoes are mechanically harvested. 80% is the potential 6. The distance from where potatoes are being supplied is 150 to 900 km. Cooled transport is not being used except for unusually long trips to the North and interior. To the north of Brazil cooled transport is used. To the south this is not needed. 7. Quality improvement is the responsibility of each link of the value chain.
Gitah 2015; Opportunities in the potato sector Brazil 72
Note: If Brazilian consumers would accept fresh potatoes with some skin like in almost all markets, it would help the sector significantly. - It would reduce fluctuations in availability - It would make logistical management for all chain partners easier. - It would reduce price fluctuations - It would make export easier - It would make mechanisation easier - It would have a positive effect on quality, especially a few days after purchase.
However, introducing potatoes with skin for the consumer market could work but would require maybe more than 25 years.
Gitah 2015; Opportunities in the potato sector Brazil 73
12 INTERVIEWS AND REFERENCES
12.1 INTERVIEWS
- CEASA, Campinas: Fransico Homero Marcondes, Market advisor horticultural farms (RO) - Campo Vitória Campinas: Ronaldo Rodrigues Vale, trader at Ceasa (RO) - CR. Campinas: Marcos D. Rossi, trader at Ceasa (RO) - Cooperbatata, Vargem Grande do Sul: Rene Garcia Duarte, general manager (RO) - Trevisan Group, Divinolandia: José Carlos Trevisan, grower/ packer / processor (RO) - Bergamasco, Perdizes: Eduardo Bergamasco, grower/ packer (RO) - Rocheto, Perdizes: Cristiano, manager pack station (RO) - Agro Beloni, Patrocínio: Fernando Nogues Beloni, grower/packer (RO) - Cenourão, Ribeirão Preto: José Izaias, store manager (RO) - Cepea, Piracicaba: João Paulo B. Deleo, market analyst (RO) - Cepea, Piracicaba: Renata Pozelli Sabiao, market analyst (RO) - Grupo Pão de Açúcar: Juliana Brito, head of quality control at DC (RO) - Grupo Pão de Açúcar: Crys Rodrigues Ribeiro, Commercial development manager (RO) - Diniscor Agribusiness, Ribeirão Preto: Mr Robison Scorselini agricultural consultant (RO) - Wehrmann, Cristalina: Rodrigo Ribeiro, agronomist (RW, HS, JvdR) - Igarashi, Cristalina: Mario Munaro, agronomist (RW, HS, JvdR) - Rocheto, BEM-Brazil, Jean Paulo Rocheto, agronomist (RW, HS) - Montesa, Marcello Ballerini and Edu Marcello Spinace, grower & agronomist (RW, HS) - Terra Viva, Sacromento, Klaas Schoenmaker and Patrick de Block, growers (RW, HS) - Associacao Brasileira da Batata, Natalino Shimoyama, Gerente General (RW, HS, JvdR) - ABVGS, Paulo Martins and Marcelo Cazarotto: secretary & chairman/grower (RW, HS, JvdR) - Pedro Hayashi, Sola Vita: breeder (RW, HS, JvdR) - Castrolanda, Bernard van de Riet and Cleudiney Iank: grower (RW, HS) - AgroSolanum BV. Richard Borg: grower (RW, HS)
12.2 REFERENCES
- Brazil food trends 2020; FIESP/ITAL 2010 (RO) - Brazil’s Food and Beverage Market, May 2012, OSEC (RO) - The future of Foodservice in Brazil (foodmarkets.worldpress.com) 2012 (RO) - ALAP; Brasil Cadena da batata, 2012 (RO) - PepsiCo; Newton Yorinori: panorama de industria de batata chips no Brasil e no mundo (RO) - Deloitte Brazil, www, deloitte.com.br (RO) Global powers of retailing 2014 - Brazilian Supermarket Organisation (ABRAS) www. Abrasnet.com.br (RO) - UNcomtrade, www.comtrade.un.org (import/export statistics) (RO) - Folha de S.Paulo, 19.09.2013; (RO) - Faostat International year of the potato (RO) - Hortifruti Brasil: Cepea –ESALQ/USP Abril 2013, potencial para expander an industria Nacional (RO) - IBGE, Instituto Brasileiro de Geografia e Estatistica (Adapted, 2012) - www.planalto.gov.br - CEPEA (Centro de Estudos Avançados em Economia Aplicada) publishes costs of potato production every year in the magazine Hortifruti (http://www.cepea.esalq.usp.br/hfbrasil/).
http://www.abbabatatabrasileira.com.br/2008/revista.asp?id_REVCAT=32&id_REVCON=708 IBGE, 2006 WREGE, M.S.; HERTER, F.G.; PEREIRA, A. da S.; CARAMORI, P.H.; GONÇALVES, S.L.; BRAGA, H.J.; PANDOLFO, C.; MATZENAUER, R.; CAMARGO, M.B.P. de; BRUNINI, O.; STEINMETZ, S.; REISSER JUNIOR, C.; FERREIRA, J.S. de A.; SANS, L.M. de AGUIAR. Caracterização climática das regiões produtoras de batata no Brasil. Pelotas: Embrapa Clima Temperado, 2004. 35 p. (Embrapa Clima Temperado. Documentos, 133). Jan Engwerda August 2013 Cepea - Centro de Estudos Avançados em Economía Aplicada Hortifruti BRAZIL - April 2013 http://www.cepea.esalq.usp.br/hfbrasil/edicoes/130/batata.pdf by Izabela da Silveira Cardoso, Rodrigo Moreira Ramos e Amanda Rodrigues da Silva são analistas do mercado de batata. HORTIFRUTI BRASIL – January 2014) Cepea - Centro de Estudos Avançados em Economía Aplicada Hortifruti BRAZIL - April 2013 http://www.cepea.esalq.usp.br/hfbrasil/edicoes/130/batata.pdf by Izabela da Silveira Cardoso, Rodrigo Moreira Ramos e Amanda Rodrigues da Silva são analistas do mercado de batata. HORTIFRUTI BRASIL – January 2014)
Gitah 2015; Opportunities in the potato sector Brazil 74
POTATO SHOW (2010) Ministro De Estado Da Agricultura, Pecuária E Abastecimento, NERI GELLER, 30/04/2014 N°: 638/14 Valmir Duarte, Janine Palma e Aícha Daniela Ribas,UFRGS Cultivar Hortaliças e Frutas (2005) [email protected] \\scotland.gov.uk\dc2\FS2_Home\u206163\Brazil Additional Seed Cert - 2014.pdf [PDF, 21.2 kb: 14 Feb 2014] Natalino Shimoyama, ABBATATA July 2014 Argenpapa. Brasil . 03-05-2010. Importância da Mecanização Batatashow 2011 by Milton Kaoru Watanabe Embrapa Hortaliças, Circular Técnica, 128 “Irrigação na cultura da batata” by Waldir Aparecido Marouelli , Marcos Brandão Braga and Tadeu Graciolli Guimarães http://www.agencia.cnptia.embrapa.br http://www.abid.org.br/abid_default.asp http://www.jusbrasil.com.br/diarios/70047381/dou-secao-1-09-05-2014-pg-8 Anita de Souza Dias Gutierrez and Cláudio Inforzato Fanale Horticultural Quality Center of CEAGESP Magazine Dinheiro Rural October 2011 “Va plantar batatas” by Alécia Bridges
Gitah 2015; Opportunities in the potato sector Brazil 75
Annex 1 Laboratories for potato seed control:
LASO/UFC Universidade Federal do Ceará Centro de Ciências Agrárias - Departamento de Fitotecnia Campus Boci Fone: (85) 3288-9500 CEP: 60056-001 - Fortaleza/CE
LASO/DF EMBRAPA Fone: (61) 3218-2482 Fax: (61) 3225-5528 CEP: 70043-900 - Brasília/DF
LASO/LANAGRO/GO End.: Rua da Divisa, s/nº, Setor Jaó Phone/Fax: (62) 3232-7204 Fax: (62) 3232-7203 CEP.: 74674-025 - Goiânia/GO
LASO/Secretaria de Agricultura/GO Rodovia GO 05, Km 02, Jardim Bela Vista Caixa Postal: 77 Fone: (62) 3249-1519 CEP: 74000-000 - Goiânia/GO
LASO “Guilherme de Abreu Lima”/INDEA/MT Avenida “B” – Edifício Ceres – 2º andar – CPA Fone/Fax: (65) 3653-2600 CEP: 78050-970 – Cuiabá/MT
LASO/IAGRO Avenida Senador Filinto Muller, 1146 – Bairro Universitário Fone: (67) 3346-2788 Fax: (67) 3346-4420 CEP: 79074-902 – Campo Grande/MS
LASO/IAGRO Núcleo Experimental de Ciências Agrárias – NCA Universidade Federal de Mato Grosso do Sul – UFMS, BR 463, Km 10 Fone: (67) 3422-3888 Fax: (67) 3421-4910 CEP: 79800- - Dourados/MS
LASO/LANAGRO/MG Avenida Raja Gabaglia, 245, Cidade Jardim Fone: (31) 3250-0370 Fax: (31) 3250-0377 CEP: 30380-090 – Belo Horizonte/MG
LASO/IMA BR 040, Km 527 Caixa Postal 1279 Fone: (31) 3394-2466 Fax: (31) 3394-1902 CEP: 32145-900 – Contagem/MG
LASO/LANAGRO/PA Avenida Almirante Barroso, 5384 – Souza Fone: (91) 3214-8649 CEP: 66610-000 – Belém/PA
LASO/PB BR 230, Km 14 – Cabedelo Fone: (83) 3246-1235 Fax: (83) 3246-2535 CEP: 58310-000 – João Pessoa/PB
Gitah 2015; Opportunities in the potato sector Brazil 76
LASO/CLASPAR/Curitiba Rua João Américo de Oliveira, nº 330 Anexo ao TECPAR – Bairro Cabral Fone/Fax: (41) 3254-6444 CEP: 80035-060 – Curitiba/PR
LASO/CLASPAR/Maringá Avenida Colombo, 1346 Fone: (44) 3228-5040 Fax: (44) 3223-6321 CEP: 87045-000 Maringá/PR
LASO/CLASPAR/Francisco Beltrão Rua Tenente Camargo, 1312 Fone: (46) 523-3510 CEP: 85605-090 – Francisco Beltrão/PR
LASO/LANAGRO/PE Avenida General San Martín, 1000 – Bonji Fone: (81) 3236-8592 Fax: (81) 3441-6477 CEP: 50630-060 – Recife/PE
LASO/SFA/PI Rua Taumaturgo de Azevedo, 2315 Fone: (86) 3222-4326 CEP: 64001-340 – Terezina/PI
LASO/SFA/RN Avenida Duque de Caxias, 101 – Ribeira Fone: (84) 3221-1741 CEP: 59010-200 – Natal/RN
LASO/LANAGRO/RS Avenida Farrapos, 285 - 8º andar Fone/Fax: (51) 3286-6399 CEP: 90220-004 – Porto Alegre/RS
LASO/CPACT/EMBRAPA Centro de Pesquisa Agropecuária de Clima Temperado Avenida Eliseu Maciel – Campus Universitário Caixa Postal 403 Fone: (53) 3221-0933 Ramal 130 Fax: (53) 3221-1248 CEP: 96001-970 - Pelotas/RS
LASO/CNPT/EMBRAPA Centro Nacional de Pesquisa de Trigo BR 285, Km 174 - Caixa Postal: 569 Fone: (54) 3312-3111 CEP: 99100-000 – Passo Fundo/RS
LASO/IRGA Avenida Bonifácio Carvalhos Bernardes, 1494 Fone: (51) 3270-1577 CEP: 94900-000 -Cachoeirinha/RS
LASO/FEPAGRO Rua Gonçalves Dias, 570 - Bairro Menino Deus Fone: (51) 3233-5411 Fax: (51) 3 233-7607 CEP: 90130-060 – Porto Alegre/RS
LASO/CATI/Campinas Gitah 2015; Opportunities in the potato sector Brazil 77
Avenida Brasil, 2340 – Jardim Chapadão - Caixa Postal: 1291 Fone: (19) 3241-3900 Ramal 451 Fax: (19) 3242-2158 CEP: 13073-001 – Campinas/SP
LASO/CATI/Presidente Prudente Avenida Brasil, 1339 – Vila São Jorge - Caixa Postal: 268 Fone: (18) 3222-4177 Fax: (18) 3222-4099 CEP: 19013-000 – Presidente Prudente/SP
LASO/CATI/Araçatuba Rua Regente Feijó, 10 – Bairro Industrial - Caixa Postal: 228 Fone: (18) 3623-7378 Fax: (18) 3623-8280 CEP: 16010-540 – Araçatuba/SP
LASO/CATI/Taubate Avenida Monteiro Lobato, 15 - Caixa Postal 266 Fone: (12) 3232-0622 Fax: (12) 3232-0867 CEP: 12050-730 – Taubaté/SP
LASO/CATI/Avaré Rua Anápolis, 901 – Parque Jurumirim - Caixa Postal 28 Fone: (14) 3721-1052 Fax: (14) 3721-1962 CEP: 18704-000 – Avaré/SP
LASO/CATI/São José do Rio Preto Avenida Dr. Cenobelino de Barros Serra, 1480 - Parque Industrial - Caixa Postal 278 Fone: (17) 3232-5611 Fax: (17) 3232- 5997 CEP: 15030-000 – São José do Rio Preto/SP
LASO/CATI/Bauru Praça Washington Luiz, 450 – Centro - Caixa Postal 323 Fone: (14) 3222-3850 Fax: (14) 3232-2555 CEP: 17010-210 – Bauru/SP
LASO/CATI/Ribeirão Preto Rua Peru, 1472 – Vila Carvalho - Caixa Postal: 162 Fone: (16) 3626-0235 Fax: (16) 3626-2659 CEP: 14075-310 – Ribeirão Preto/SP
LASO/CATI/Marília Avenida Nelson Spielmann, 1175 Caixa Postal: 252 Fone: (14) 3433-4188 Fax: (14) 3433-4118 CEP: 17509-002 – Marília/SP
Gitah 2015; Opportunities in the potato sector Brazil 78
ANNEX 2: Participants round table meeting
Participants in this round table meeting at 19 November in Campinas where: Sub-sector Name Company Ware potato prod. Edu Marcelo Spinacé Montesa (Minas Gerais) Seed and ware production Shizuo Hayashi Hayasi batatas (Goias and Bahia) Seed Inspection Satoru Ogawa AGROSEM translations Gabriela Ribeiro Teresani GT Farmer representation Mr. Natalino Shimoyama Associao Brasileira da Batata (ABBA) Input supply machinery Harco Christiaens APH-group Netherlands Input supply machinery Marcelo Takeshi Matsubara APH-group Brazil Research Lillian Pereira IAC Education Sicko de Vries Aeres Research Huub Schepers WUR PPO Research Samanta Zanotta Instituto Biologico Seed potato producer Edson Asano ‘Marijke’ Consultancy Rene Oostewechel Agriment The issues have separately also been discussed with Mr. Peter Elshof of Agrosolanum as he could only attend in the evening after the round-table.
Gitah 2015; Opportunities in the potato sector Brazil 79
ANNEX 3: PRODUCTION BRAZIL JULY 2014
Tabela 1618 - Área plantada, área colhida e produção, por ano da safra e produto Mês = julho 2014 Brasil, Grande Ano da Região e Variável Produto safra Unidade da Federação Total 73.212.198 Batata - inglesa (1ª Safra) 64.285 Safra 2013 Batata - inglesa (2ª Safra) 41.391 Área plantada Batata - inglesa (3ª Safra) 22.756 (Hectares) Total 76.076.271 Batata - inglesa (1ª Safra) 68.137 Safra 2014 Batata - inglesa (2ª Safra) 41.181 Batata - inglesa (3ª Safra) 21.420 Total 70.131.052 Batata - inglesa (1ª Safra) 64.285 Safra 2013 Batata - inglesa (2ª Safra) 41.391 Área colhida Batata - inglesa (3ª Safra) 22.756 (Hectares) Total 73.600.066 Batata - inglesa (1ª Safra) 68.129 Safra 2014 Brazil Batata - inglesa (2ª Safra) 41.181 Batata - inglesa (3ª Safra) 21.420 Total - Batata - inglesa (1ª Safra) 1.683.614 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 1.126.872 (Toneladas) Batata - inglesa (3ª Safra) 759.865 (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 1.806.308 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 1.138.905 (Toneladas) Batata - inglesa (3ª Safra) 730.398 (Toneladas) Total 3.204.199 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 3.305.356 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Norte Batata - inglesa (3ª Safra) - Total 2.700.354 Batata - inglesa (1ª Safra) - Safra 2013 Área colhida Batata - inglesa (2ª Safra) - (Hectares) Batata - inglesa (3ª Safra) - Total 2.812.479 Safra 2014 Batata - inglesa (1ª Safra) -
Gitah 2015; Opportunities in the potato sector Brazil 80
Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 11.494.776 Batata - inglesa (1ª Safra) 2.360 Safra 2013 Batata - inglesa (2ª Safra) 2.215 Área plantada Batata - inglesa (3ª Safra) 1.743 (Hectares) Total 12.788.298 Batata - inglesa (1ª Safra) 1.720 Safra 2014 Batata - inglesa (2ª Safra) 1.570 Batata - inglesa (3ª Safra) 1.200 Total 10.437.559 Batata - inglesa (1ª Safra) 2.360 Safra 2013 Batata - inglesa (2ª Safra) 2.215 Área colhida Batata - inglesa (3ª Safra) 1.743 (Hectares) Total 12.020.896 Batata - inglesa (1ª Safra) 1.720 Safra 2014 Nordeste Batata - inglesa (2ª Safra) 1.570 Batata - inglesa (3ª Safra) 1.200 Total - Batata - inglesa (1ª Safra) 94.400 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 82.259 (Toneladas) Batata - inglesa (3ª Safra) 68.520 (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 71.240 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 54.202 (Toneladas) Batata - inglesa (3ª Safra) 48.000 (Toneladas) Total 14.873.866 Batata - inglesa (1ª Safra) 26.680 Safra 2013 Batata - inglesa (2ª Safra) 22.286 Área plantada Batata - inglesa (3ª Safra) 15.792 Sudeste (Hectares) Total 14.664.215 Batata - inglesa (1ª Safra) 30.679 Safra 2014 Batata - inglesa (2ª Safra) 21.658 Batata - inglesa (3ª Safra) 15.020
Gitah 2015; Opportunities in the potato sector Brazil 81
Total 13.607.865 Batata - inglesa (1ª Safra) 26.680 Safra 2013 Batata - inglesa (2ª Safra) 22.286 Área colhida Batata - inglesa (3ª Safra) 15.792 (Hectares) Total 13.663.095 Batata - inglesa (1ª Safra) 30.679 Safra 2014 Batata - inglesa (2ª Safra) 21.658 Batata - inglesa (3ª Safra) 15.020 Total - Batata - inglesa (1ª Safra) 761.133 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 662.505 (Toneladas) Batata - inglesa (3ª Safra) 489.130 (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 848.605 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 642.365 (Toneladas) Batata - inglesa (3ª Safra) 474.398 (Toneladas) Total 20.661.964 Batata - inglesa (1ª Safra) 35.245 Safra 2013 Batata - inglesa (2ª Safra) 16.819 Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 21.143.717 Batata - inglesa (1ª Safra) 35.738 Safra 2014 Batata - inglesa (2ª Safra) 17.882 Batata - inglesa (3ª Safra) - Total 20.605.648 Batata - inglesa (1ª Safra) 35.245 Safra 2013 Batata - inglesa (2ª Safra) 16.819 Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 21.123.614 Batata - inglesa (1ª Safra) 35.730 Safra 2014 Sul Batata - inglesa (2ª Safra) 17.882 Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) 828.081 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 379.344 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 886.463 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 439.574 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Centro- Área plantada Total 22.977.393 Safra 2013 Oeste (Hectares) Batata - inglesa (1ª Safra) -
Gitah 2015; Opportunities in the potato sector Brazil 82
Batata - inglesa (2ª Safra) 71 Batata - inglesa (3ª Safra) 5.221 Total 24.174.685 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) 71 Batata - inglesa (3ª Safra) 5.200 Total 22.779.626 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) 71 Área colhida Batata - inglesa (3ª Safra) 5.221 (Hectares) Total 23.979.982 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) 71 Batata - inglesa (3ª Safra) 5.200 Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 2.764 (Toneladas) Batata - inglesa (3ª Safra) 202.215 (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 2.764 (Toneladas) Batata - inglesa (3ª Safra) 208.000 (Toneladas) Total 619.001 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 471.541 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 559.454 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Rondônia Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 453.341 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) Produção - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Safra 2014 Total -
Gitah 2015; Opportunities in the potato sector Brazil 83
Batata - inglesa (1ª Safra) - (Toneladas) Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 124.776 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 123.805 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 121.856 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 121.984 Batata - inglesa (1ª Safra) - Acre Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 164.270 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 170.309 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Amazonas Total 144.215 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 155.953 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Produção Safra 2013 Total -
Gitah 2015; Opportunities in the potato sector Brazil 84
Batata - inglesa (1ª Safra) - (Toneladas) Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 52.554 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 48.756 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 48.302 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 45.483 Batata - inglesa (1ª Safra) - Safra 2014 Roraima Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 1.453.107 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 1.547.311 Pará Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 1.059.686 Área colhida Safra 2013 Batata - inglesa (1ª Safra) - (Hectares) Batata - inglesa (2ª Safra) -
Gitah 2015; Opportunities in the potato sector Brazil 85
Batata - inglesa (3ª Safra) - Total 1.111.480 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 23.484 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 25.126 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 22.305 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 25.126 Batata - inglesa (1ª Safra) - Safra 2014 Amapá Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 767.007 Batata - inglesa (1ª Safra) - Área plantada Safra 2013 Tocantins Batata - inglesa (2ª Safra) - (Hectares) Batata - inglesa (3ª Safra) - Safra 2014 Total 918.508
Gitah 2015; Opportunities in the potato sector Brazil 86
Batata - inglesa (1ª Safra) - Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 744.536 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 899.112 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 1.856.132 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 2.003.150 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 1.856.132 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 2.003.150 Maranhão Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) Produção - (Toneladas) Total - Batata - inglesa (1ª Safra) - Safra 2014 (Toneladas) Batata - inglesa (2ª Safra) - (Toneladas)
Gitah 2015; Opportunities in the potato sector Brazil 87
Batata - inglesa (3ª Safra) - (Toneladas) Total 1.535.832 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 1.574.024 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 1.306.241 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 1.492.056 Batata - inglesa (1ª Safra) - Safra 2014 Piauí Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 1.391.050 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 1.625.826 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 1.317.487 Batata - inglesa (1ª Safra) - Safra 2013 Ceará Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 1.552.027 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - Produção Safra 2013 (Toneladas) Batata - inglesa (2ª Safra) - (Toneladas)
Gitah 2015; Opportunities in the potato sector Brazil 88
Batata - inglesa (3ª Safra) - (Toneladas) Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 320.605 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 336.459 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 249.112 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 313.849 Batata - inglesa (1ª Safra) - Rio Grande Safra 2014 do Norte Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 327.982 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) 121 Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 435.297 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) 264 Paraíba Batata - inglesa (3ª Safra) - Total 277.430 Batata - inglesa (1ª Safra) - Safra 2013 Área colhida Batata - inglesa (2ª Safra) 121 (Hectares) Batata - inglesa (3ª Safra) - Total 399.512 Safra 2014 Batata - inglesa (1ª Safra) -
Gitah 2015; Opportunities in the potato sector Brazil 89
Batata - inglesa (2ª Safra) 264 Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 1.009 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 2.112 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 585.785 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 833.182 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 514.999 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 725.789 Batata - inglesa (1ª Safra) - Safra 2014 Pernambuco Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 646.297 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - Alagoas (Hectares) Total 635.645 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) -
Gitah 2015; Opportunities in the potato sector Brazil 90
Total 547.818 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 567.487 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 408.599 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 420.454 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 350.607 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 384.653 Batata - inglesa (1ª Safra) - Safra 2014 Sergipe Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Área plantada Total 4.422.494 Bahia Safra 2013 (Hectares) Batata - inglesa (1ª Safra) 2.360
Gitah 2015; Opportunities in the potato sector Brazil 91
Batata - inglesa (2ª Safra) 2.094 Batata - inglesa (3ª Safra) 1.743 Total 4.924.261 Batata - inglesa (1ª Safra) 1.720 Safra 2014 Batata - inglesa (2ª Safra) 1.306 Batata - inglesa (3ª Safra) 1.200 Total 4.017.733 Batata - inglesa (1ª Safra) 2.360 Safra 2013 Batata - inglesa (2ª Safra) 2.094 Área colhida Batata - inglesa (3ª Safra) 1.743 (Hectares) Total 4.582.373 Batata - inglesa (1ª Safra) 1.720 Safra 2014 Batata - inglesa (2ª Safra) 1.306 Batata - inglesa (3ª Safra) 1.200 Total - Batata - inglesa (1ª Safra) 94.400 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 81.250 (Toneladas) Batata - inglesa (3ª Safra) 68.520 (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 71.240 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 52.090 (Toneladas) Batata - inglesa (3ª Safra) 48.000 (Toneladas) Total 5.578.818 Batata - inglesa (1ª Safra) 17.848 Safra 2013 Batata - inglesa (2ª Safra) 13.362 Área plantada Batata - inglesa (3ª Safra) 8.785 (Hectares) Total 5.846.741 Batata - inglesa (1ª Safra) 16.729 Safra 2014 Batata - inglesa (2ª Safra) 12.746 Batata - inglesa (3ª Safra) 8.653 Total 5.141.955 Batata - inglesa (1ª Safra) 17.848 Safra 2013 Batata - inglesa (2ª Safra) 13.362 Minas Gerais Área colhida Batata - inglesa (3ª Safra) 8.785 (Hectares) Total 5.338.366 Batata - inglesa (1ª Safra) 16.729 Safra 2014 Batata - inglesa (2ª Safra) 12.746 Batata - inglesa (3ª Safra) 8.653 Total - Batata - inglesa (1ª Safra) 540.572 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) Produção 419.843 (Toneladas) Batata - inglesa (3ª Safra) 297.047 (Toneladas) Safra 2014 Total -
Gitah 2015; Opportunities in the potato sector Brazil 92
Batata - inglesa (1ª Safra) 493.839 (Toneladas) Batata - inglesa (2ª Safra) 399.832 (Toneladas) Batata - inglesa (3ª Safra) 289.588 (Toneladas) Total 732.100 Batata - inglesa (1ª Safra) 279 Safra 2013 Batata - inglesa (2ª Safra) 184 Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 717.638 Batata - inglesa (1ª Safra) 320 Safra 2014 Batata - inglesa (2ª Safra) 172 Batata - inglesa (3ª Safra) - Total 651.596 Batata - inglesa (1ª Safra) 279 Safra 2013 Batata - inglesa (2ª Safra) 184 Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 634.675 Batata - inglesa (1ª Safra) 320 Espírito Safra 2014 Santo Batata - inglesa (2ª Safra) 172 Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) 5.128 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 3.612 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 5.920 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 3.485 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 189.119 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 178.166 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Rio de Total 181.681 Janeiro Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 169.999 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Produção Safra 2013 Total -
Gitah 2015; Opportunities in the potato sector Brazil 93
Batata - inglesa (1ª Safra) - (Toneladas) Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 8.373.829 Batata - inglesa (1ª Safra) 8.553 Safra 2013 Batata - inglesa (2ª Safra) 8.740 Área plantada Batata - inglesa (3ª Safra) 7.007 (Hectares) Total 7.921.670 Batata - inglesa (1ª Safra) 13.630 Safra 2014 Batata - inglesa (2ª Safra) 8.740 Batata - inglesa (3ª Safra) 6.367 Total 7.632.633 Batata - inglesa (1ª Safra) 8.553 Safra 2013 Batata - inglesa (2ª Safra) 8.740 Área colhida Batata - inglesa (3ª Safra) 7.007 (Hectares) Total 7.520.055 Batata - inglesa (1ª Safra) 13.630 Safra 2014 São Paulo Batata - inglesa (2ª Safra) 8.740 Batata - inglesa (3ª Safra) 6.367 Total - Batata - inglesa (1ª Safra) 215.433 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 239.050 (Toneladas) Batata - inglesa (3ª Safra) 192.083 (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 348.846 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 239.048 (Toneladas) Batata - inglesa (3ª Safra) 184.810 (Toneladas) Total 10.469.329 Batata - inglesa (1ª Safra) 15.576 Safra 2013 Batata - inglesa (2ª Safra) 12.164 Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 10.658.726 Paraná Batata - inglesa (1ª Safra) 16.869 Safra 2014 Batata - inglesa (2ª Safra) 13.170 Batata - inglesa (3ª Safra) - Total 10.469.329 Área colhida Safra 2013 Batata - inglesa (1ª Safra) 15.576 (Hectares) Batata - inglesa (2ª Safra) 12.164
Gitah 2015; Opportunities in the potato sector Brazil 94
Batata - inglesa (3ª Safra) - Total 10.658.726 Batata - inglesa (1ª Safra) 16.869 Safra 2014 Batata - inglesa (2ª Safra) 13.170 Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) 432.738 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 301.120 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 496.464 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 355.425 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 1.560.112 Batata - inglesa (1ª Safra) 4.340 Safra 2013 Batata - inglesa (2ª Safra) 984 Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 1.567.098 Batata - inglesa (1ª Safra) 4.361 Safra 2014 Batata - inglesa (2ª Safra) 987 Batata - inglesa (3ª Safra) - Total 1.543.175 Batata - inglesa (1ª Safra) 4.340 Safra 2013 Batata - inglesa (2ª Safra) 984 Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 1.555.713 Batata - inglesa (1ª Safra) 4.361 Santa Safra 2014 Catarina Batata - inglesa (2ª Safra) 987 Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) 94.768 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 21.156 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 94.552 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 21.232 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 8.632.523 Batata - inglesa (1ª Safra) 15.329 Rio Grande Área plantada Safra 2013 Batata - inglesa (2ª Safra) 3.671 do Sul (Hectares) Batata - inglesa (3ª Safra) - Safra 2014 Total 8.917.893
Gitah 2015; Opportunities in the potato sector Brazil 95
Batata - inglesa (1ª Safra) 14.508 Batata - inglesa (2ª Safra) 3.725 Batata - inglesa (3ª Safra) - Total 8.593.144 Batata - inglesa (1ª Safra) 15.329 Safra 2013 Batata - inglesa (2ª Safra) 3.671 Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 8.909.175 Batata - inglesa (1ª Safra) 14.500 Safra 2014 Batata - inglesa (2ª Safra) 3.725 Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) 300.575 (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 57.068 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) 295.447 (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 62.917 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 4.311.662 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 4.455.577 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 4.303.501 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 4.454.212 Mato Grosso do Sul Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) Produção - (Toneladas) Total - Batata - inglesa (1ª Safra) - Safra 2014 (Toneladas) Batata - inglesa (2ª Safra) - (Toneladas)
Gitah 2015; Opportunities in the potato sector Brazil 96
Batata - inglesa (3ª Safra) - (Toneladas) Total 12.769.701 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 13.559.804 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total 12.730.883 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 13.507.343 Batata - inglesa (1ª Safra) - Safra 2014 Mato Grosso Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Total 5.760.743 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) - Área plantada Batata - inglesa (3ª Safra) 5.221 (Hectares) Total 5.969.669 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) 5.200 Total 5.610.292 Batata - inglesa (1ª Safra) - Safra 2013 Goiás Batata - inglesa (2ª Safra) - Área colhida Batata - inglesa (3ª Safra) 5.221 (Hectares) Total 5.828.794 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) - Batata - inglesa (3ª Safra) 5.200 Total - Batata - inglesa (1ª Safra) - Produção Safra 2013 (Toneladas) Batata - inglesa (2ª Safra) - (Toneladas)
Gitah 2015; Opportunities in the potato sector Brazil 97
Batata - inglesa (3ª Safra) 202.215 (Toneladas) Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) - (Toneladas) Batata - inglesa (3ª Safra) 208.000 (Toneladas) Total 135.287 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) 71 Área plantada Batata - inglesa (3ª Safra) - (Hectares) Total 189.635 Batata - inglesa (1ª Safra) - Safra 2014 Batata - inglesa (2ª Safra) 71 Batata - inglesa (3ª Safra) - Total 134.950 Batata - inglesa (1ª Safra) - Safra 2013 Batata - inglesa (2ª Safra) 71 Área colhida Batata - inglesa (3ª Safra) - (Hectares) Total 189.633 Batata - inglesa (1ª Safra) - Distrito Safra 2014 Federal Batata - inglesa (2ª Safra) 71 Batata - inglesa (3ª Safra) - Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2013 Batata - inglesa (2ª Safra) 2.764 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Produção Total - Batata - inglesa (1ª Safra) - (Toneladas) Safra 2014 Batata - inglesa (2ª Safra) 2.764 (Toneladas) Batata - inglesa (3ª Safra) - (Toneladas) Source: IBGE - Levantamento Sistemático da Produção Agrícola Nota:
Gitah 2015; Opportunities in the potato sector Brazil 98