The trend is for growth in these specialised dairy farms and a fall in the informal market as co-operatives and the industry work with dairy producers to improve hygiene, refrigeration, transportation and livestock health.
Prominent agritech products and services imports include:
- bovine semen
- milking machinery, parts and accessories
- irrigation machinery.
Getting your product into market
Market size and growth prospects create a favourable scenario for New Zealand exporters.
In general, farmers are friendly and receptive. They usually like to purchase recognised products with a tradition and history and a solid name in the market.
They like products that are simple to operate, effective and with a service guarantee.
Regulations
The Common External Tariff, applied by Brazil and its Southern Common Market partners (Argentina, Paraguay and Uruguay), is full of exceptions.
Import duties are levied on top of cost, insurance and freight (CIF) prices. On top of the CIF and import duty, a manufactured products tax is applied, usually zero to 15 percent. On top again, there’s a state value-added tax, usually 18 percent for imported goods.
Other costs imported products usually incur include:
- a Merchant Marine Tax (25 percent of international freight)
- a compulsory contribution to the Customs Brokers Union and
- a fee for the government-controlled import control system.
These costs usually amount to approximately 3 percent of the CIF price.
Imported products need to bear a Portuguese translation of information on a product’s price, quality, guarantees, shelf life, origin, composition and risks.
Many processed foods are also required to have labels approved by the Brazilian Ministry of Agriculture. The specifications for these labels change frequently.
Barriers to agricultural products are mainly sanitary and phytosanitary measures.
Opportunities
The main opportunities exist in artificial insemination, pasture management, packinghouses, fruit selection and sorting, environmental cloth and agricultural equipment for small farmers. Particular opportunities include:
- the expected growth in specialised dairy farms (and the associated greater focus on hygiene, refrigeration, transportation and livestock health) presents opportunities for consultancy services in pastoral farming improvement techniques. Change is also driving investment in yield- enhancing machinery and technology.
- government programmes targeting the agricultural sector are encouraging agritech investment. Strong prospects include innovative, high-tech, high-efficiency machinery such as post-harvest machinery, field refrigeration units and cleaning and grading machinery.
- there is a market for a robust rye grass adapted to the hot climate.
Challenges
- Brazil’s size usually requires exporters to develop a regional strategy.
- There are additional ‘Brazil costs’. Poor infrastructure and complex tariffs make it necessary to carefully check all logistics issues.
- Financing packages for large contracts are an important factor as local interest rates are extremely high and most competitors from abroad include financing options in their proposals.
- Customs clearance in Brazil can be time consuming, even compared with other Latin American countries,
