Fresh produce and CEAGESP Companhia de Entrepostos e Armazéns Gerais de São Paulo Anita de Souza Dias Gutierrez Summary 1. Fresh produce consumption evolution 2. Brazilian agriculture 3. Fresh produce value chain 4. CEAGESP Food and fresh produce − Food – First pleasure at birth – Satisfy hunger – Source of joy, pleasure, delight, happiness • The #1 reason for food purchase − Fresh fruits and vegetables − − – – – Symbol of health, disease prevention, fitness, beauty, freshness Symbol of Nature, free from food industry and its ingredientes Consumer’s reason for supermarket choice Mistery to buy: Is it good to eat? Best quality at harvest Food habits are changing • Consumption of fresh and healthy food grows with GNP per capita in the world and with income level in Brasil Fresh produce domestic consumption (kg per capita) at different income levels in Brasil Income - R$ Fruits Vegetables Fresh produce 400 16 11 27 400 to 600 14 22 36 600 a 1000 19 26 45 1000 a 1600 24 31 55 1600 a 3000 33 36 69 More than 3000 45 42 87 IBGE Dr. Manfred Kern - 2006 David Bowers ilustration Vegetarian cow: symbol of eating behaviour changing tendency Brasil is a big country – GDP R$ 2,9 trillions – Agriculture R$ 163,5 billions – Indústria R$ 682,5 billions – Serviços R$1.595 billions – GDP per capita US$ 20.000 in 2010 – 2007 - US$ 6.940,00 – 5th largest area – – – – – 850 millions hectares 47% of South America area 115 millions hectares – Environmental conservation 109 millions hectares – indian reservation 62 millions hectares with agricultural crops - 7% total area – Fruits and Vegetables – 26% of agricultural area Brazilian population – Age – – – – 0 to 15 years – 32% 15 to 29 years – 28% 30 a 59 years – 33% 60 years to – 7% – Population growth rate is falling – Concentration – 18 metropolitan regions – 70 millions (37%) – 2 big metropolitan regions – 31 millions (16%) – 5.564 municipalities – 26 estates e one fedeal district (Brazilia) – Urbanization – 20% in Brasil e 7% in São Paulo – Rural area – 5.204.130 farmers – 18 millions workers O AGRONEGÓCIO É O NEGÓCIO DO BRASIL 1970 to 2010 Area growth – 27% Production growth – 213% Confidencial THE AGRIBUSINESS IS THE BUSINESS OF BRAZIL. Fresh produce is unique – – – – – – – High valuation of freshness, appearance and flavour Perishability Small, specialized farmers Specialized whosalers Seasonal, fragmented production Farmer´s marketing high fragility Retail and food service needs fresh and a mix of products every day – A logistic center for reception, consolidation and distribution is indispensable Brazilian fruits origin - IBRAF Common knowledge − The best quality is at harvest. − It is only possible to mantain quality after harvest, not to improve it. − The production of quality is the most difficult task of the fresh produce value chain. − Brasil has conditions to produce during all the year in different places and seasons Lettuce near São Paulo city – 70 km Atemoya – North of Minas Gerais – 1190 km Banana – Vale do Ribeira - SP – 191 km Cashew – Piauí – 2.634 km Apple – Santa Catarina – 695 km Mamão – Espírito Santo – 1.200 km Mango – Juazeiro – 2.185 km Passion fruit – Bahia – 1.979 km Passion fruit Melon – Rio Grande do Norte – 2.891 km Strawberry – Rio Grande do Sul – 1.104 km Cucumber – São Paulo – 320 km Table grape – Petrolina – 2.191 km Packer-shipper Dealer Farmer Consumer Whosaler Retailer Freight Food Service Fresh produce value chain Food retail – Supermarkets – – – – – – – GDP – R$ 160 billions 75.725 stores 185.889 check-outs 61% até 7 check-outs 876.916 employees 80% of food marketing Five biggest – 41% of GDP – Fresh fruit and vegetable – 9% of total food value – 19% of perishable food value – Supermarket choice – Fresh fruit and vegetable mix, every day Food service – 15% growth each year since 2004 – 25% of food expenses – Fresh fruit and vegetable mix, every day – Food service companies – 8,9 milllions of meals each day – 19% of the expense is fresh fruit and vegetables – Potential market – 40 milllions of meals per day – School Food Programa – 47 millions of children per day Fresh produce terminal markets – CEAGESP – 1969 – State of Sâo Paulo – SINAC – COBAL – Nacional system – 21 terminal markets – 1972 a 1988 – 34 terminal markets – biggest brazilian cities – Most state management not federal – 50% of fresh fruit and vegetable production CEAGESP - State company - federal government - Fresh produce terminal markets and grain warehouses Volume and value Tons R$ Fruits 1,70 millions 2,26 billions Vegetables 1,34 millions 3,71 billions Flowers 52 thousand 212,1 millions Fishes 48 thousand 221,3 millions Total 3,85 millions 4,74 billions São Paulo Terminal Market • • • • • 700.000 m2 10.000 tons per day 50.000 persons 2.500 whosalers: 1.190 fruits and vegetables Origin – – – – 1.500 brazilian municipalities 25 of the 27 brazilian states 25.000 growers 12 countries • 74 fresh fruits and 95 fresh vegetables • 50% of all brazilian terminal markets • Destination – number of buyers – São Paulo Metropolitan Region –76% – São Paulo State interior – 15% – Other 11 brazilian states – 6% CEAGESP - Services Everyday market information Volume and origin Price Pesticides’ residue monitoring Research and development Partneship with universities and research centers Development of fruits and vegetables’ quality standards Variety guide HortiEscolha – decision tool for food service Flavour school – child nutrition education Minimal handling – retail orientation Training agents of the value chain CEAGESP – The fresh produce value chain needs logistic centers for reception, consolidation and distribution – Growing production of fresh fruits and vegetables – Growing demand for volume and quality – Growing value differentiation for quality – Facing big challenges – – – – Infrastructure Logistic Hygiene Etc.. Fresh produce value chain A world full of challenges and opportunities Anita de Souza Dias Gutierrez 551136433825 551136433890 cqh@ceagesp.gov.br