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

2. Summary 1.Fresh produce consumption evolution 2.Brazilian agriculture 3.Fresh produce value chain 4.CEAGESP

3. Food and fresh produce −Food – First pleasure at birth – Satisfy hunger – Source of joy, pleasure, delight, happiness The #1 reason for food purchase −Fresh fruits and vegetables −Symbol of health, disease prevention, fitness, beauty, freshness −Symbol of Nature, free from food industry and its ingredientes – Consumer’s reason for supermarket choice – Mistery to buy: Is it good to eat? – Best quality at harvest

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 Fresh produce domestic consumption (kg per capita) at different income levels in Brasil

5. Dr. Manfred Kern - 2006

6. Vegetarian cow: symbol of eating behaviour changing tendency 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 – 5 th 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. Brazilian population –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. Confidencial O AGRONEGÓCIO É O NEGÓCIO DO BRASIL THE AGRIBUSINESS IS THE BUSINESS OF BRAZIL. 1970 to 2010 Area growth – 27% Production growth – 213%

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. −The best quality is at harvest. − It is only possible to mantain quality after harvest, not to improve it. −The production of quality is the most difficult task of the fresh produce value chain. −Brasil has conditions to produce during all the year in different places and seasons Common knowledge

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. Passion fruit

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. Farmer Consumer Retailer Food Service Whosaler Dealer Packer-shipper 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 Volume and value TonsR$ Fruits1,70 millions2,26 billions Vegetables1,34 millions3,71 billions Flowers52 thousand212,1 millions Fishes48 thousand221,3 millions Total3,85 millions4,74 billions

33. São Paulo Terminal Market

34. 700.000 m 2 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 Gutierrez 551136433825 551136433890 cqh@ceagesp.gov.br Fresh produce value chain A world full of challenges and opportunities