Brazilian Fruit Exports Expected to Grow at a CARG of 3.2% Until 2025

Published 2022년 6월 15일

Brazil has been growing its fruit production and exports due to higher global demand and local investments. In 2021, Brazil reached an export value of over USD 1.21B, signifying a 20.4% YoY increase. In the first quarter of 2022, the Brazilian fruit export volume reached 250K tons, representing a 2% YoY increase in volume and recording a revenue of USD 196M. For the rest of 2022, Brazilian fruit exports will continue to increase by 2-3%, and it is forecasted that fruit and vegetable production will grow at a CARG of 3.2% until 2025, which will allow for export growth.

In 2014, the Brazilian government and the Brazilian Agency for the Promotion of Exports and Investments (APEX-Brasil) established a project called “Frutas do Brasil” to promote the exports of Brazilian fruits. The Brazilian fruit industry has been growing due to increasing demand. Since the pandemic started, the global demand for fruits and vegetables increased due to the change in consumer habits and a rise in the consumption of products that boost the immune system. In addition, the demand for Brazilian fruits increased due to better product quality and growing supply.

In 2021, there was an increase in the production and quality of Brazilian fruits due to favorable weather. The supply growth allowed Brazil to reach a fruit export value of over USD 1.21B in 2021, signifying a 20.4% YoY increase. The total export volume for Brazilian fruit in 2021 reached 1.24M tons, representing an 18.13% increase from 2020. In 2021, the main export destinations for Brazilian fruit were the European Union (48% market share), the United States (16% market share), the United Kingdom (14% market share), Argentina (4% market share), and Canada (3% market share).

Source: Government of Brazil

So far, Brazilian fruit exports have shown a positive trend in 2022. Despite complications, during the first quarter of 2022, the Brazilian fruit export volume reached 250K tons, representing a 2% YoY increase in volume and recording a revenue of USD 196M.

Brazilian fruit exports were led by melons, lemons, and mangoes in Q1 2022. Melons registered a 4% YoY export increase, reaching an export volume of 76K tons and an export value of USD 47.1M. Lemon exports increased by 20% YoY, reaching an export volume of 37K tons. Mangoes were the most exported Brazilian fruit in 2021, and from January to April 2022 registered a 9% YoY increase in the export volume but an 8% decrease in the export value due to lower quality fruits from increased rain. Heavy rains also affected grape exports, resulting in a 59% YoY drop in the export volume and a 61% decrease in the export value during Q1 2022. Apple exports also decreased by 52% in volume and 56% in value due to a drought in the apple-producing regions, reducing the supply.

Surging demand due to decreased supplies in other markets like Mexico, Colombia, and Guatemala has helped the growth of Brazilian fruit exports, as well as Brazil opening new markets for fruit exports. Despite increased demand, however, Brazil is facing many complications in the agricultural industry. The logistics complications caused by the Russia/Ukraine war have become obstacles to exports due to increased fuel and fertilizer prices increasing production and freight costs. The issues Brazil is facing is creating an upward price trend in the price of fruits and vegetables. The price increase is also affected by high local inflation, which is forecasted to reach 8.8% in 2022.

Despite complications, the Brazilian fruit industry will continue to surge. The Ministry of Foreign Affairs is looking to sign free trade agreements with the European Union and Asian markets to promote further growth in fruit exports. With potentially new FTAs, the import duties for Brazilian fruits will drop, and the demand will increase. The government is investing in the agricultural sector and implementing new technologies to advance agriculture nationally. Precision agriculture has also been adopted in Brazil, which helps the industry improve its supply and quality. For the rest of 2022, Brazilian fruit exports will continue to increase by 2-3%. Brazilian fruit exports will have the opportunity to keep rising in future seasons as fruit and vegetable production is forecasted to grow at a CARG of 3.2% until 2025.