São Paulo – Ornamental plant farmers in the state of Ceará are preparing to compete in the foreign market. The Flower Farming Production Chain Sector Chamber, linked to the government of the state, established an agreement with the Ministry of Agriculture, Livestock and Supply with the objective of bringing farmers interested in foreign sales together in a consortium and providing them with export-oriented training.
Ceará already ranks second on the list of flower and ornamental plant exports in Brazil, after the state of São Paulo alone, and is the first in the ranking of exports of roses, but according to the Sector Chamber’s chairman, Gilson Gondim, out of 200-plus farmers in the state, less than 10 operate in the foreign market. “Only a few larger companies do export,” he said.
He stated that despite being very strong in the agricultural sector, Brazil retains a small share of international flower trade. According to Gondim, last year, the ornamental plants sector generated a worldwide turnover of approximately US$ 15 billion, whereas Brazilian exports totalled only US$ 37 million, of which Ceará accounted for US$ 5 million.
Just to give an idea, he said that much smaller Latin American countries, such as Costa Rica and Ecuador, exported the equivalent of US$ 250 million and US$ 400 million, respectively, in 2008.
By means of the project promoted in partnership with the Ministry of Agriculture, the aim is to increase the number of exporters in the state starting in February. The agreement provides for consultancy services to be supplied to farmers, so as to train them to export, and for the establishing of the consortium, which will lead to increased production scale. Despite the low foreign sales, the sector generates considerable domestic market revenues, at around US$ 3 billion per year.
The consortium, according to Gondim, is also going to seek new markets. Currently, Brazil basically exports plants to the Netherlands and the United States. The intention is to develop markets such as Italy, Spain, France and the United Kingdom. “The UK is now the market that grows the most in the sector,” stated the executive.
The Netherlands, which receives roughly 60% of Brazilian exports, is a traditional re-export hub for flowers, and supplies to a large portion of Europe and other destinations around the world. Through the project, farmers from Ceará intend to avoid middlemen and seek final destination markets directly.
According to Gondim, a market in which the sector intends to invest in the future is the Middle East’s. “We have got much affinity with the Middle Eastern countries,” he claimed.
He added that the state of Ceará has a series of differentials that ensure its competitiveness. The first one is sunshine all year round. “The sun is what makes a plant grow, and we have it as our ally,” he declared.
Besides, the executive underscored that Ceará has daily direct flights to the United States and Europe, plus the Port of Pecém, which counts on a cold box for plant storage. Gondim also claimed that the production cost for plants is low in all of the Northeast Region.
Through promotion actions, he believes that it is possible to add another US$ 1.5 million to exports in Ceará as early as 2010, and attain a twofold increase in revenues within five years.
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*Translated by Gabriel Pomerancblum
