Imports have increased consistently over the last five years. New Zealand`s participation is minor, but grew 60 percent in the period 2005 to 2009, and there is opportunity to grow further if the full service concept is developed.
The image of New Zealand genetics products for beef in Brazil is weak. Dairy farmers, however, usually think New Zealand genetics products are good quality at a low price.
Getting your products into the market
Since Brazil needs to increase productivity in cattle, there is an opportunity to create a service company, perhaps a joint venture with interested suppliers from New Zealand. This company would do the following “matching process”:
- Offer a package of New Zealand solutions to farmers (technologies and services).
- Offer the New Zealand system to an investor who will produce milk at the Pontal Project in Brazil, starting in 2011 (see www.pontal.org).
Large international companies lead the AI market in Brazil, with 23 percent of market share divided among several local companies. There is an opportunity to buy a small Brazilian company to enable them to enter the market with a complete line (Brazilian breeds, and breeds in New Zealand).
A New Zealand company investing in the Brazilian market needs to offer a full portfolio that meets the needs of the most popular breeds in the country, such as Nellore, Angus and Red Angus for beef, and Holstein, Gir and Jersey for dairy.
Regulations and taxes
Regulations and taxes include:
- A goods and services tax (ICMS) of between17-19 percent applied to the Cost, Insurance and Freight (CIF) value of imported goods, plus corresponding duties.
- Genetics imports are subject to concurrence of the Ministry of Development, Industry and Foreign Trade (MAPA) - Normative statement 40 – 09/04/2007 (amended by the normative statement 47 – 10/23/2007).
- An import permit is required for the exportation of bovine and buffalo semen to Brazil.
- An official veterinarian authorised by New Zealand Ministry of Agriculture and Forestry must certify, after due enquiry, a number of conditions. (see the report for a list of the conditions.)
