Sweet Brasil
05/29/2018 Industry

Brazil’s peanut industry increases its international market share

Brazil’s peanut industry increases its international market share

Higher quality Brazilian peanuts and a rise in the international market price have boosted growth

 

 

Peanut exports from Brazil have grown significantly in recent years - in 2017 alone exports increased in value by 61.7%, reaching US$ 195 million. These noticeable results have been achieved thanks to an increase in domestic production, together with further investment to produce high quality peanuts with an elevated level of oleic acid. In addition, there has been a consistent rise in value of the product in the international market.

 

The global market share of Brazilian peanuts has grown, on average, by 40% per year over the past four years, and in 2017 it reached 8%. To help maximize the results of the sector, the Brazilian Cocoa, Chocolates, Peanuts, Candies and Byproducts Industry Association (ABICAB) has been supporting national companies to grow their slice of the market, by highlighting business opportunities and supporting their participation in international events with the Brasil Sweets and Snacks Project, a partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil).

 

“Some of our companies work exclusively with high-oleic peanuts, which have greater health benefits and shelf life, and this has contributed to the success of our national product abroad”, says Ubiracy Fonseca, President of ABICAB.

 

In April, with the help of the Brasil Sweets and Snacks Project, four companies (Coplana, Jazam, Brumau/Ostinato and Sementes Esperança) participated in the International Peanut Forum (IPF), the largest global event dedicated to peanuts, organised every two years. IPF is a networking opportunity as it unites everyone who operates within the sector, including farmers, exporters, buyers from the largest snack companies, brokers, machinery and equipment suppliers, as well as nutrition laboratories and professionals.

 

Results

 

These four companies made 72 contacts at IPF, held from 11th-13th April in Athens, and closed US$ 1.2 million in business. “We can see that Brazilian peanuts are regarded as a high quality product”, affirms Rodrigo Francfort, from Francfort Trade.

 

The main objective of participating in the forum was to attract the attention of the main players within the market regarding the quality of Brazilian peanuts, as well as the increase in production and exports in recent years.

 

“Participating in this type of event positively contributed to creating brand awareness for Brazil, even more so in this moment in which we’re increasing market share in the global supply chain”, says Elaine Guerra, Sales and marketing Manager at Ostinato.

 

Another advantage of participating in international events is identifying market trends and demands of the main buyer markets.

 

“The focus is on nutraceuticals and functional foods, as seen in the lectures and presentations about superfood”, observes Elaine Guerra.

 

Cutting edge equipment

 

The primary market for Brazilian peanuts is Europe, including countries both in the European Union (EU) and outside. Last year, the equivalent of US$ 71.7 million of peanuts were exported to the EU, an increase of 108% in comparison to 2016.

 

“The quality of Brazilian peanuts is high, our industry invests in cutting edge equipment and certifications, such as BRC and SEDEX, which Europeans request”, says Mr Fonseca.

 

With an increase in production in recent years, today, Brazil is the 6th largest exporter of raw peanuts and the 16th largest of processed peanuts. It has the potential to grow production to 4.2 million tons per harvest, becoming the largest peanut producer in the world (Dinheiro Rural Magazine - Aug/2016 - Year 12 - No. 139).

 

One ton of raw peanuts, which was worth around US$ 700 in the 1990’s, has in recent years risen to around US$ 2,500 (Dinheiro Rural Magazine- Aug/2016 - Year 12 - No. 139). This price appreciation is one of the reasons for the growth in production and exportation of Brazilian peanuts.

 

 

ABOUT ABICAB –The Brazilian Cocoa, Chocolates, Peanuts, Candies and Byproducts Industry Association was founded in 1957 and represents the national confectionery industry in public and private spheres in Brazil and abroad. The national confectionery industry represents $ 8.4 billion in retail value, employs more than 34,000 workers, is considered one of the major producers in the world and is widely recognized by the quality and safety of its products. ABICAB exists to develop, protect and promote the confectionery industry, aiming to stimulate a responsible consumption. Currently, ABICAB encompasses the Brazilian production chain, representing 93% of the chocolate market, 92% of the candy and confections market and 63% of the peanut market.

 

ABOUT BRASIL SWEETS AND SNACKS – The Brasil Sweets and Snacks Project has been developed to strengthen and advance the sector and it is among ABICAB´s main activities. The Project was created in partnership with Apex-Brasil, in March 1998, aiming to promote Brazilian products in the international market, and currently supports 39 companies that export to over 140 countries. www.brasilsns.org.br

 

ABOUT APEX-BRASIL - The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) works to promote Brazilian products and services abroad, and to attract foreign investment to strategic sectors of the Brazilian economy. Apex-Brasil organizes several initiatives aiming to promote Brazilian exports abroad. The Agency´s efforts comprise trade and prospective missions, business rounds, support for the participation of Brazilian companies in major international trade fairs, arrangement of technical visits of foreign buyers and opinion makers to learn about the Brazilian productive structure, and other select activities designed to strengthen the country’s branding abroad. Apex-Brasil also plays a leading role in attracting foreign direct investment (FDI) to Brazil, by working to identify business opportunities, promoting strategic events and lending support to foreign investors willing to allocate resources in Brazil. www.apexbrasil.com.br/en/home

 

For further information, please contact ABICAB in Brasil

Paulo Pilon: comunicar@abicab.org.br

 

or:

 

Marcio Damasceno (Berlin): +49 179 8759154– damasceno@ajasolutions.co.uk

Maria Luiza Abbott (London): +44 772 0297199 – cuca@ajasolutions.co.uk