São Paulo – Brazilian cooperatives want to expand their operation in the domestic market. But not forgetting good opportunities on the international market, as is the case with sales to the Arab countries, new trade partners for Cocamar Cooperativa Industrial, in Paraná, one of the five largest in the sector in the country. Considered demanding and with specific criteria, the buyers from the Middle East are welcome. In the opinion of the Business superintendant at Cocamar, José Cícero Aderaldo, the lack of planning and preparation for exports is one of the deficiencies of Brazilian cooperatives. A point to be worked. “National cooperatives produce well, but not always do they know how to reach the foreign market in an assertive manner,” he says.
While waiting to expand sales abroad, Cocamar, which had revenues of 1.3 billion Brazilian reals (US$ 731 million) and shared profits of 13.5 million reals (US$ 7.6 million) among the members of the cooperative in 2009, investing mainly in two product lines: beverages (fruit juice and versions based on soy) and oils. Both started gaining space in states like Minas Gerais and Rio de Janeiro, in the Southeast, as well as good sales in the Southern Region, and in strong markets, like the interior of the state of São Paulo, where the largest part of the population of Brazil is located. For 2010, the objective is to end the year with revenues of 1.4 billion with forecasted investment of 45 million reals (US$ 25.3 million). "The beverages have risen 18% a year in recent years, a percentage 12% higher than in oils,” he explained.
Last year, just 3% of revenues came from exports. The cooperative exported US$ 54 million in 2009 and hopes to reach US$ 77 million in 2010. In the interview below, Aderaldo speaks about cooperatives, targets and Arab buyers.
How do you evaluate the situation of Brazilian cooperatives in exports?
National cooperatives produce well, but not always do they know how to reach the foreign market in an assertive manner. As sales within Brazil are strong, adequate planning for sales abroad does not take place. To trade things abroad, nothing can be done without previous preparation of six or eight months.
How is Cocamar inserted within this context?
Our differential is diversification. We work with more industrialized products than most Brazilian cooperatives, we have four brands and items like juice, coffee, grain, oil and sauces in our line. That is not to mention the control of all phases of production: from the country to consumer tables.
To what countries does the cooperative currently export?
Germany, France, England, Japan and South Africa, among others. Our main bottlenecks are the high tariff barriers imposed by specific markets, like Europe. For this reason, many times it is worth selling more concentrated juice for hydration and completion abroad, more than selling the finished product, under the brand.
How about the Arab nations?
We have deals closed in Saudi Arabia, the United Arab Emirates and Libya. The Arab countries are among the priorities.
What are Arab buyers of Cocamar products like? What demands do they make?
They are careful. Mainly with regard to classification and composition of products, and they want to know everything in the formula. We have even received specialists from the Arab countries to view our industrial unit and production method.
And what do the clients appreciate most?
Mainly the healthy products, which include proteins and calcium, in the case of juices, for example. With regard to the flavour, their taste is very close to ours, the appreciation for a strong fruity taste.
What are the cooperatives main bets for 2010?
Our focus is on the foreign market, but that does not mean that we are not preparing a strong export network. Our bets are mainly on the lines of beverages and oils. With regards to beverages, we are already the second most sold brand among the soy varieties. Among the oils, our participation reaches 4% of the national market. Apart from that, we have just released new products, like Purity brand fruit juices in varieties orange with Brazil cherry and white grape, the first with these flavours to be released in the country.
*Translated by Mark Ament
