What are the bottlenecks in the development of the organic chain in Brazil?

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.

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.

And with regard to the marketing of organic products in Brazil, what is your point of view?

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.

Large-scale organic production is a fact and exportation is the result

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.

Fazenda Tamanduá's packing-house 

However, one thing that concerns me is that we are producing for the export market, and not for the health of our fellow citizens ...

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?

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.

Moving on from the general (Brazilian organic production) to the specific, what is Tamanduá Farm’s current output?

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. 

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.

And what has demand for Tamanduá Farm cheese been like?

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!

Fazenda Tamanduá's cheese

What are your expectations in relation to the Brazilian Organic Livestock Association, to which you belong?

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.

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!). 

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!

And how do you reconcile the organic producer and the AxialPar investor?

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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