Brazil’s grapes battle drought and a shortage of workers

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The wine market has had an unpredictable behavior over the last few times. “Last year we experienced record prices, however the weather has impacted the production. Brazilian production enjoys the benefit of an incredibly flexible harvest, thanks to the climate and unique geography of the Petrolina region. These conditions allow us to provide grapes all through the year. But the beginning half of the year can be difficult because the region frequently gets wet, which can limit the production of grapes and may affect exports,” stated Jerry Ito Director and producer of Coana.

Logistics issues are a significant element in Brazil’s vineyard industry. “Petrolina the main one, which is our largest zone of cultivation, lies between 500 and 1,000 km from the port. That means land transportation costs between $1500 and $1600 for a container. Another obstacle to exports is the space available for shipping as well as changes to costs for ocean freight,” Ito stated.

However, Brazil has a unique advantages in competition: its massive domestic market. “We are only exporting 10% of output and the rest remains within Brazil which is a country with more than 220 million residents. Due to the domestic demand producers can absorb the changes in the international market and lessen their dependence on exports” Ito stressed.

“Coana exports about 700 gallons of grapes each year. In the second part in the calendar year we sell more than 450 containers. These are mostly of Cotton Candy, Arra Sweets, Timpson, Sugar Crisp Candy Snaps Autumn Crispy, and Cherry Crunch kinds,” Jerry Ito said.

One of the most significant issues facing the industry is the absence of qualified labor. “In Brazil, subsidies have promoted informal employment and a lot of companies choose not to sign up for official registration. This creates a challenge for companies that are certified, such as Coana that must adhere to strict international norms. Employers cannot be employed with no formal registration since our certifications demand compliance to strict regulations regarding labor. Furthermore, Brazil’s geographical position makes it hard to attract foreign workers since the distances to other countries like Colombia as well as Peru are far too long to guarantee a steady circulation of labour,” he added.

“We have implemented steps to reduce the impact of climate change and increase efficiency in the use of resources. Each of our farms has system for grape protection and we also have the facilities for packaging ourselves to assure the highest quality product right from the moment of harvest until export,” he stated.

More information is available here:

Jerry Ito

Coana

Brazil

Tel: +55 87 3986 1542 /+55 87 98822 3780

Email: [email protected]

www.coanabr.com.br

Renato Alves

Coana

Tel: +55 87 3986 1542 / +55 87 9919816467

Email: [email protected]

www.coanabr.com.br

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Source: The Plantations International Agroforestry Group of Companies