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What
are the bottlenecks in the development of the organic chain in
Brazil?
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Bottlenecks do exist and differ greatly from
one region to another.I will naturally address the situation in
the North-East, which has huge potential and which I know well.
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At present, the IBD has only 14
certified projects between the States of Pará and Bahia. That’s
very little, and it’s due to many reasons. The first is the
small number of consultants available, and consequently the high
cost of visits, due especially to transport expenses. The second
is the poor dissemination of organic farming, affecting both
potential producers and the market, which hardly exists in the
North-East. The third is, no doubt, the difficulty in obtaining
financing from the official banks.There are still no specific
funding lines and the red tape is enormous. In
the South of Brazil, growth is higher due to Banco do Brasil’s
activity, very positive and constructive. It is noticeable that there is demand for many products,
especially fruit and vegetables, and that distribution is very
well organized.
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And
with regard to the marketing of organic products in Brazil, what
is your point of view?
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What
is also lacking is a real national marketing network for organic
products, which would provide a good channel to sell the output
and ensure that the producers get fair prices. Unfortunately, we
know that the marketing of organic products is not always carried
out in this way, and that there are associations and profiteering
middlemen that exploit the producers. Setting up processing or
sales centers, operating with prices reflecting the market and in
a transparent environment, will favor growth in production. |
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Large-scale
organic production is a fact and exportation is the result …
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Thanks to our packing-house we have been able
to show that exportation is not a fantasy or a dream, but a
reality; and we have several producers that are preparing to start
conversion or to establish new organic areas in the sertão of
Paraíba. Just like when I set up BioCrush in Bolivia: to produce
organic soybeans in Santa Cruz was the simple effect of tremendous
idealism, but of doubtful profitability because of the difficulty
in selling the product. After the installation of this crushing
plant with IBD certification – to which the producers were
affiliated, selling soybean oil and exporting soybean meal for use
as animal fodder in Europe – we have been recruiting new
producers year after year. |
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Fazenda
Tamanduá's packing-house |
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However,
one thing that concerns me is that we are producing for the export
market, and not for the health of our fellow citizens ... |
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Organic
production is growing by leaps and bounds. The rationalization of
production seems inevitable. Has what some people call the "industrialization"
of organic agriculture started already? Is this route inevitable? |
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Yes, industrialization has started, especially
in the USA, and this is very worrying. It has not reached Brazil
yet, but it is arriving and we are running the risk of losing part
of our ideals and ethics in this process, and our "virginity".
Just like conventional farming, organic farming
will change little by little into intensive, aggressive farming.
Due to greater supply, its prices, which are rewarding at present,
will drop drastically and competition will get stronger and
stronger. Salaries will drop, the farmers’ incomes will shrink,
and we may see an organic farming proletariat arising. A nightmare
...
We must pay special attention to this
development, in order to solve the social problem. It is possible
that only a Max Havelaar type of certification will survive, which,
supported by conscientious consumers with good purchasing power,
will permit higher prices and salaries to be maintained, thus
protecting our farming and our idealism. |
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Moving
on from the general (Brazilian organic production) to the specific,
what is Tamanduá Farm’s current output?
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With
27 hectares planted, at present, Tamanduá Farm produces 250 tons
of organic mangoes with IBD certification, mainly of the Tommy
Atkins variety, and Keitt at the end of the year. Thanks to our
packing house installed in the area, we pack mangoes in boxes and
pallets right here for export to the European market via Natal, in
the State of Rio Grande do Norte. The inspection is carried out on
the spot by the Ministry of Agriculture Representative in the
State of Paraíba. Discarded fruit is dried at the Farm, at a
plant registered and supervised by the Ministry of Health. For the
time being, this product is sold only in São Paulo.The other
product line is organic cheeses, of three different types: two are
European matured types, Saint Paulin and Reblochon, and another is
typical of the North-East – Queijo de Coalho. Production
is close to 35 tons a year. Our São Paulo branch sells most of
the European-type cheeses. |
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The
coalho cheese is better accepted in our own region, where
demand is very high. Our cheese, in addition to having the IBD
certification, is inspected by the Ministry of Agriculture’s SIF
(Federal Inspection Service), which I think is still the only case
in Brazil. |
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And
what has demand for Tamanduá Farm cheese been like?
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The
demand for organic European-type cheeses is still relatively low,
due to the fact that the market for organic dairy products is
almost non-existent. It is not yet part of the national culture,
and those who consume "sophisticated" cheeses think it
is better to buy imported cheese than that made from organic milk.
The launching of coalho cheese, recently approved by the
Ministry of Agriculture, was a great success, due more to its
packaging, hygiene and quality than because of the organic appeal.
Demand has been greater, in fact, than our output! |
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Fazenda Tamanduá's
cheese |
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What
are your expectations in relation to the Brazilian Organic
Livestock Association, to which you belong?
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As
I said before, we are pioneers in the raising of organic dairy
cattle in Brazil, and ours is the only farm to have obtained
registration by the Federal Inspection Service. We are, in fact,
maintaining an excellent relationship and dialogue with all the
authorities in that body. |
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When
Homero Figliolini, an old friend of mine, recently founded the
Brazilian Organic Livestock Association, he invited me to take the
post of vice-president. I was moved by the invitation but had to
decline, due to the fact that my activities as CEO of AxialPar, in
São Paulo, and family ties in Europe, as well as my far-away home,
would not allow me sufficient scope for action. I ended up being
nominated and elected a member of the Deliberative Board, in which
I intend to play a serious role. The market for this type of
activity is huge. In Europe, the market for dairy products is
booming and demand for organic meat is starting to grow. I even
have Swiss friends who are seeking this type of product, which has
high added value. Now, for a breeder like me, placed right in the
heart of the sertão, with my cows producing exclusively
because of the systematic planting of drought-resistant grasses
and leguminous plants for the artificial improvement of
pasture-land, making silage and hay in order to face the dry
months, irrigating mowing-grass with scarce water, this story of
"green cattle" raised on natural pasture-land, in the
immense reaches of the Mato Grosso Pantanal region, sounds like a
dream (or cowardice!). |
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But
seriously now, the great challenge for organic beef-cattle raisers
will be to persuade the meat-packers to pass on a price reflecting
the market reality. I don’t think that the 10% to 12% extra
price currently paid is sufficient to maintain a perfect animal
tracking system. The great thing is not to be afraid of challenges,
and that, I assure you, I’m not! |
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And
how do you reconcile the organic producer and the AxialPar
investor? |
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Unlike
traditional investors, I am also a producer, which enables me to
experience both sides. This gives me greater feeling and broader
perception, which ensures the firms that receive investments extra
care and attention. But that is another story … |
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