Fresh produce and CEAGESP

1. Fresh produce and CEAGESP Companhia de Entrepostos e Armazéns Gerais de São Paulo Anita de Souza Dias Gutierrez

2. Summary • Fresh produce consumption evolution • Brazilian agriculture • Fresh produce value chain • CEAGESP

3. Foodandfreshproduce • Food • Firstpleasureatbirth • Satisfyhunger • Source ofjoy, pleasure, delight, happiness • The #1 reason for foodpurchase • Freshfruitsandvegetables • Symbolofhealth, diseaseprevention, fitness, beauty, freshness • SymbolofNature, freefromfoodindustryand its ingredientes • Consumer’s reason for supermarket choice • Mistery to buy: Is it good to eat? • Best qualityatharvest

4. Food habits are changing • Consumption of fresh and healthy food grows with GNP per capita in the world and with income level in Brasil

5. Dr. Manfred Kern - 2006

6. Vegetariancow: symbolofeatingbehaviourchangingtendency David Bowers ilustration

7. Brasil is a big country • GDP R$ 2,9 trillions • Agriculture R$ 163,5 billions • Indústria R$ 682,5 billions • Serviços R$1.595 billions • GDP per capita US$ 20.000 in 2010 • 2007 - US$ 6.940,00 • 5th largest area • 850 millions hectares • 47% of South America area • 115 millions hectares – Environmental conservation • 109 millions hectares – indian reservation • 62 millions hectares with agricultural crops - 7% total area • Fruits and Vegetables – 26% of agricultural area

8. Brazilianpopulation • Age • 0 to 15 years – 32% • 15 to 29 years – 28% • 30 a 59 years – 33% • 60 years to – 7% • Population growth rate is falling • Concentration • 18 metropolitan regions – 70 millions (37%) • 2 big metropolitan regions – 31 millions (16%) • 5.564 municipalities • 26 estates e one fedeal district (Brazilia) • Urbanization – 20% in Brasil e 7% in São Paulo • Rural area • 5.204.130 farmers • 18 millions workers

10. O AGRONEGÓCIO É O NEGÓCIO DO BRASIL 1970 to 2010 Area growth – 27% Production growth – 213% THE AGRIBUSINESS IS THE BUSINESS OF BRAZIL. Confidencial

11. Fresh produce is unique • High valuation of freshness, appearance and flavour • Perishability • Small, specialized farmers • Specialized whosalers • Seasonal, fragmented production • Farmer´s marketing high fragility • Retail and food service needs fresh and a mix of products every day • A logistic center for reception, consolidation and distribution is indispensable

12. Brazilian fruits origin - IBRAF

13. Common knowledge • Thebestquality is atharvest. • It is onlypossible to mantainqualityafterharvest, not to improve it. • Theproductionofquality is themostdifficulttaskofthefreshproducevaluechain. • Brasil hasconditions to produceduringalltheyear in differentplacesandseasons

14. Lettuce near São Paulo city – 70 km

15. Atemoya – North of Minas Gerais – 1190 km

16. Banana – Vale do Ribeira - SP – 191 km

17. Cashew – Piauí – 2.634 km

18. Apple – Santa Catarina – 695 km

19. Mamão – Espírito Santo – 1.200 km

20. Mango – Juazeiro – 2.185 km

21. Passion fruit – Bahia – 1.979 km

22. Passionfruit

23. Melon – Rio Grande do Norte – 2.891 km

24. Strawberry – Rio Grande do Sul – 1.104 km

25. Cucumber – São Paulo – 320 km

26. Table grape – Petrolina – 2.191 km

27. Packer-shipper Dealer Farmer Consumer Whosaler Retailer Food Service Freight Fresh produce value chain

29. Food retail • Supermarkets • GDP – R$ 160 billions • 75.725 stores • 185.889 check-outs • 61% até 7 check-outs • 876.916 employees • 80% of food marketing • Five biggest – 41% of GDP • Fresh fruit and vegetable • 9% of total food value • 19% of perishable food value • Supermarket choice • Fresh fruit and vegetable mix, every day

30. Food service • 15% growth each year since 2004 • 25% of food expenses • Fresh fruit and vegetable mix, every day • Food service companies • 8,9 milllions of meals each day • 19% of the expense is fresh fruit and vegetables • Potential market – 40 milllions of meals per day • School Food Programa • 47 millions of children per day

31. Fresh produce terminal markets • CEAGESP – 1969 • State of Sâo Paulo • SINAC – COBAL • Nacional system • 21 terminal markets • 1972 a 1988 • 34 terminal markets – biggest brazilian cities • Most state management not federal • 50% of fresh fruit and vegetable production

32. CEAGESP - State company - federal government - Fresh produce terminal markets and grain warehouses

33. São Paulo Terminal Market

34. 700.000 m2 • 10.000 tons per day • 50.000 persons • 2.500 whosalers: 1.190 fruits and vegetables • Origin • 1.500 brazilian municipalities • 25 of the 27 brazilian states • 25.000 growers • 12 countries • 74 fresh fruits and 95 fresh vegetables • 50% of all brazilian terminal markets • Destination – number of buyers • São Paulo Metropolitan Region –76% • São Paulo State interior – 15% • Other 11 brazilian states – 6%

35. CEAGESP - Services • Everyday market information • Volume and origin • Price • Pesticides’ residue monitoring • Research and development • Partneship with universities and research centers • Development of fruits and vegetables’ quality standards • Variety guide • HortiEscolha – decision tool for food service • Flavour school – child nutrition education • Minimal handling – retail orientation • Training agents of the value chain

36. CEAGESP • The fresh produce value chain needs logistic centers for reception, consolidation and distribution • Growing production of fresh fruits and vegetables • Growing demand for volume and quality • Growing value differentiation for quality • Facing big challenges • Infrastructure • Logistic • Hygiene • Etc..

37. Anita de Souza Dias Gutierrez551136433825551136433890cqh@ceagesp.gov.br Fresh produce value chain A world full of challenges and opportunities