News in Brief:
– Persistent heavy rains severely reduce Brazil’s table grape exports from the San Francisco River Valley by up to 80%.
– COANA pivots towards local markets amidst weather-related export challenges, emphasising resilience and strategic growth in both domestic and international sectors.
Persistent heavy rains have dealt a severe blow to Brazil’s table grape exports from the San Francisco River Valley, reducing volumes by up to 80% since the year’s outset. This setback has forced producers to pivot towards local markets to mitigate losses.
Renato Alves, commercial director of COANA, a prominent grape producers’ cooperative, laments the challenges posed by the inclement weather, during an interview with a media outlet. “Heavy rains this semester have rendered exporting unfeasible,” he states, highlighting the immediate impact on local farmers dependent on international markets. The potential compromise of the upcoming harvest looms, further exacerbating concerns among growers.
Shifting market dynamics and operational insights
Over recent years, COANA has witnessed a surge in domestic demand alongside steady growth in the US market, albeit with stagnant growth in the UK. Positive strides were made with the opening of markets in France and Spain, expanding their footprint in continental Europe.
The producer operates over 400 hectares across Petrolina and Curaçá, focusing primarily on export-oriented production. They cultivate 13 grape varieties, catering to diverse global markets. In 2023 alone, the company exported 651 containers totaling 13,500 tons of grapes, solidifying their position as Brazil’s second-largest grape exporter.
Despite setbacks, COANA remains optimistic about future expansion, aiming to ramp up production to 20,000 tons within five years. This growth strategy targets both domestic and export markets, leveraging established footholds in South America, the USA, Europe, and the UK.
Alves emphasises the resilience of the Brazilian domestic market, which absorbs 33% of COANA’s production. “We provide 6,000 tons annually to eight states,” he notes, underscoring the market’s pivotal role during challenging weather cycles. Strategic investments in branding and market segmentation further bolster their domestic market presence.
