Market Trends of Brazil Fruits And Vegetables Industry
Domestic Demand for Vegetables in Brazil
- Brazil boasts a diverse agricultural sector, producing a wide variety of vegetables. The country's major vegetable crops include tomatoes, potatoes, onions, carrots, lettuce, and garlic. Key production regions are São Paulo, Minas Gerais, and Paraná. Brazil's favorable climate enables year-round vegetable cultivation, meeting domestic demand and creating export opportunities. The vegetable market in Brazil is characterized by a mix of large-scale producers and small family-owned farms. Distribution primarily occurs through supermarkets and open-air markets. While the growth of supermarkets has influenced vegetable distribution, traditional markets remain important, particularly in rural areas and smaller towns.
- Despite being largely self-sufficient in vegetable production, Brazil imports certain products to supplement domestic supply, especially during off-seasons or production shortfalls. Garlic is a significant import, primarily sourced from China and Argentina, due to insufficient domestic production. In 2023, garlic imports constituted 30.9% of total vegetable import value, according to ITC Trade Map data. Recent years have also seen a notable increase in onion imports, mainly from Argentina and the Netherlands. Onion imports rose by 14.7%, from 116,963 metric tons in 2021 to 134,109 metric tons in 2023. The growing demand for vegetables in Brazil is driven by increasing health awareness and evolving dietary preferences, reflecting a broader shift towards healthier lifestyles.
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Brazil is the Largest Producer of Orange in the World
- The orange industry is vital to Brazil's agricultural sector, significantly affecting the economy and international trade. According to the USDA, in 2023, Brazil was among the top global orange producers, with a production of 15.5 million metric tons. However, this represented an 8.6% decrease from the previous year's 16.9 million metric tons. The decline was due to several factors, including an accelerated harvesting pace to reduce fruit drop and production losses, although the fruit drop rate remained above historical averages. A major contributing factor to the decreased production was a shift in weather patterns during the growing season. The first half of 2023 experienced abundant rainfall, followed by a lack of precipitation in the next six months, which continued until the end of the season in 2024. The altered weather conditions, along with the aggravation of citrus greening disease and hastened harvest pace, reduced the growth period for oranges. For instance, the country is set to have its worst harvest in 36 years after a heat wave severely hurt crops, according to research group Fundecitrus.
- The primary orange varieties produced in Brazil include Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, BRS Alvorada, Pera Rio (pear orange), Valencia, "Folha Murcha" Valencia, and Natal. Brazil's orange value chain is highly industrialized. In recent years, Brazilian producers have seen an increased rate of orange production, which has prevented a significant decline despite reduced acreage. According to the United States Department of Agriculture, approximately 30% of Brazil's orange output is allocated for the fresh market, while 70% is processed into juice each year. With a total of 5,134 orange grove properties, predominantly large-scale producers with high yields, Brazil's orange industry continues to be pivotal to the national economy and the international orange juice market, demonstrating the sector's resilience and adaptability to market demands and environmental challenges.
