Bright Business Consulting LLP

Saturday, August 18, 2018

Agriculture and Food Industry in Brazil

Brazil is one of the largest Countries in the world, what strikes more is its immensity and multiplicity of different factors especially linked to the climate, to the landscape, to the economic and  social development, to the population. the main indicators place Brazil in the International scenery as the main "Emerging Market" of Central and South America. In transition from a mainly agricultural past to a future more and more industrialized it I becoming so important in the sphere of the "Agriculture and Food Industry" Market, that it may affect the positions of the global economy, along with Countries like China and India.

The growth process of Brazil does not stop, it is not destined to slow down in the next 20/30 years, it is moving at a fast pace that cannot be imagined under an European point of view in the second millennium; only with suitable acquaintances and being present on the territory you can observe, catch and verify certain dynamics.

The Government has recently estimated both a demographic increase of 35% in the next decade, and also a consequent rise of food consumes, about the double if compared with the current one. This is one of the reasons that pushed the "Country" towards the beginning of an important structural path, already started in 2010.

GDP (PIL - Gross Internal Load) and therefore the domestic consumptions grow in the same percentage of those of the United States in the thirties and with it, every kind of demand that by nature causes a constant and exponential rise of the food requirements. The future of the Country is somehow already arranged. The development perspective of "PIL or GDP" in the next 5/7 years (until 2018/20) is expected between 4% and 6% per year, second one after China. If compared to China Brazil enjoys a definite average situation regarding wages. Such an element allows the Country to be firm about its fabric of society. There won’t by any risks consumes fluctuations, that as a consequence of the gradient of satisfaction of welfare and of the capacity of expenses in continuous growth brings about stability. These elements and very easy non fluctuating allow to frame reliable statistics.

Until today, in 2013, Brazil, despite its peculiar and wide resources, purchases about 50% of food products from other Countries. There are States within the Country that purchase 80% of their requirements from other States or Countries, in spite of it Brazil is unable to satisfy the real demand. Within the country are missing companies and entrepreneurs able to industrialize their productions.

The "Country" has clearly stated they wanted to reverse its own position as regards the sector "Agriculture and Food Industry”" As evidence of this matter of fact, in a short period it has passed laws and with attached incentives that will allow to achieve quickly the result (by contacting us and requiring specific information). The programmes expect in short times to satisfy with effectiveness the request of domestic requirements ( often the European entrepreneur that doesn’t know the Country tends not to consider that aspect), while in the middle period it allows to side the aspect of export to the consolidation of the capacity to satisfy the domestic requirements.

On this point two aspects need to be highlighted:

  1. Brazil nowadays is the second producer of soya in the world after the USA, without having its industrial ability. Within the structural plan passed by the Government resides the will of becoming the first Country in the world, both for the production of this cereal and for its storage, see following “point II").
  2. again within the structural plan passed by the Government, discoverable with inspections, the "Country" started a strong implementation and organization of the networks of international connectivity, especially with a great attention on port activities.

With these considerations, some points need to be pointed out:

  • The measureless land extensions not yet overbuilt.
  • The tropical and/or equatorial climate with variable features among the several States in the Country.
  • The favourable weather conditions.
  • The big water resources.
  • The longitudinal and latitudinal extension of the Brazilian territory.

These elements allow the Country to fully answer to the needs required by the cultivations and to the development of the "Agriculture and Food Industry".

Not only the natural perspectives make Brazil interesting in the background of the "Agriculture and food industry" development, but also other factors contribute to define the reasons. You can’t list all of them, but some of them are essential. As quotation it is possible to list the great sensitiveness of the domestic consumers in the Country and also in other Countries, and also the demographic rise with a very high percentage of youth population, that therefore causes a more and more demanding and selective request of consumption.

The qualitative features of food products, authenticity, uniqueness, genuineness and so on, are further elements that Brazil and its country offers.

As border and in conclusion of this introductory overall view of the development "Agriculture and food industry" it important to point out the strategic and developed process of modernization of the infrastructure network, by building modern roads and effective railways, as well as the development of Harbour logistics, with related first rate centres of storage.

Given that Bright Business Consulting LLP does not carry distribution business, or proposes as a distributor or agent representative, it supports companies to access the Brazilian market through consolidated and calcified synergies in the "PEE Project".

TO HIGHLIGHT

In order to operate successfully, today and in the future, in the growing sector of food products in Brazil is absolutely advisable to have a local commercial presence also in order to access both to the  expected contributions and to the tax concessions in this case. To this purpose a  Brazilian corporate body  with appropriate accreditations is advisable, so Bright Business Consulting LLP is the ideal partner to achieve what has been mentioned.

Company Formations In Brazil

Practices For Visa Permanent

Deposit & Trademark Registration In Brazil

Emerging Markets

bannermap

Park European Excellence - PEE

JOIN OUR MAILING LIST

CONTACT DETAILS

Bright Business Consulting LLP
58/60 - Kensington Church Street
LONDON - UK - W8 4DB 

CONTACT US FOR FREE   

fb   linkedin   twitter  

COMPANY PROFILE

Scroll to Top