What makes Brazil an excellent exporter?

Over the past years Brazil has been showing itself as an excellent exporter. On April, 2016 Forbes magazine 2015 Global 2000 rankings  published that exports from Brazil amounted to US$191.1 billion in 2015 and represented 6.2% of the total Brazilian economic output.

Most of the Brazilian exports are delivered to Asian and European importers. The country also sells a great amount of goods to Latin America (excluding Mexico), to Caribbean nations and to African and North American continents.

Brazil’s Top 10 Exports:

1. Oil seed
2. Ores, slag, ash
3. Oil
4. Meat
5. Machines, engines, pumps
6. Vehicles
7. Iron and steel
8. Sugar
9. Food waste, animal fodder
10. Coffee, tea and spices

The most recent Intercâmbio Comercial do Agronegócio (Ministério da Agricultura) reinforced that Brazil is already seen worldwide as an excellent exporter and pointed out that, currently, the country’s strongest competitive advantages are on the international trade field known as Agribusiness.

Agribusiness in Brazil:

The Agribusiness plays an expressive role in Brazil’s economy. The country occupies remarkable positions on the global agroindustry rank:

Number 1 – global producer of coffee, sugar and orange

Number 1- sugarcane producer and leader on the sugar and ethanol global exports

Number 1- poultry and meat exporter

Number 2 – soybeans producer          

Brazil is a country with natural vocation for agribusiness due to its characteristics and diversities. With its 8.5 million kilometers, Brazil has potential for expanding its agricultural capacity without harming the environment.

 

Favorable attributes:

  • Availability of agricultural land
  • Water abundance
  • Cutting-edge technology
  • High level of natural brightness
  • Favorable weather
  • Land relief characteristics

Challenges to be beaten:

  • Logistic and infrastructure issues
  • Complexity of The Brazilian Tax Legislation
  • Lack of financial resources
  • Business management deficiencies
  • Unprepared labor

 

Brazilian Exclusivities:

Fruits

Brazil is one of the top fruit producers in the world. It is estimated that there are, at least, 300 kinds of fruits in Brazil. Besides its exotic exclusively native fruits, such as Guaraná and Açaí, which grow only in the Amazon region and are exported to the rest of the planet, there is a wide variety of fruits, for example oranges and kiwi, that are not native to Brazil but have been introduced to the country as they grow in greater abundance in Brazilian soil.

Cachaça

Cachaça is a distilled beverage made from the fresh-pressed juice of sugarcane. Also known as aguardentebranquinhacaninha and some other ‘nicknames’, it is Brazil’s national (alcoholic) spirit.

According to the Instituto Brasileiro da Cachaça (IBRAC), cachaça is officially recognized as a distinctive product of Brazil and one of the export products promoted by the Brazilian government’s economic growth initiative. The ‘Brazilian Spirit’ is the leader of Brazil’s exports in this product category, but, unfortunately, at present, only 1% of all the cachaça produced in Brazil is exported.

The country intends to raise this volume to 10% until 2018 though.

Havaianas

Havaianas is a brand of flip-flop sandals owned by the Brazilian manufacturing company Alpargatas. It became a global brand and achieved the position of the most popular flip-flops in the world, producing 150 million pairs every year.

Nowadays considered a fashion item (adopted even by international celebrities), Havaianas flip-flips are very present in overseas markets.  The brand exports 10% of its Havaianas production (about 162 million pairs/ year) to more than 80 countries from the five continents of the world.

Natural Cosmetics

Brazil is not only a significant exporter of agricultural products but also an important supplier of raw materials for cosmetics. International brands that produce certified nature-based cosmetics have been experiencing a growing demand lately.

Some Italian, Russian and French brands have famous formulations that are manufactured using Brazilian raw materials. The abundance of natural raw material in Brazil has even led some of these companies to move their basis to the country.

The Brazilian market for controlled ‘natural cosmetics’ and ‘nature-based cosmetics’ represents a share of 18% of the worldwide turnover (about US$ 29.5bn).

It is clear that Brazil has a formidable growth potential to become an excellent exporter in lots of areas that the country does not focus on. Given the size of the country, its economic and business potential, Brazil has most of what is necessary to make a difference in this ‘new world’.

Read more at: http://www.doracorp.com/

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