Monday, April 16, 2018

Grow organic food supply in the country

Despite the organic food market is still a niche in Brazil, the offer has grown significantly in the Country. From small manufacturers to global industry giants are betting the trend.
The founder and Director of Puravida, Flávio Steps, says that the production cost is the greatest challenge to the expansion of organic foods in the country. "I would say that this is still a niche market mainly by Brazil cost, what makes these little accessible products."
Second Steps, the company's portfolio to exceed 100 items this year, ranging from food to add-ons, which about 30% are related to the organic segment. "Some of our products are certified only abroad, because we're still working on the process of ' nationalization ' of the organic label," he explains.
The President of WNutritional, Daniel Feferbaum, reports that another major problem of the segment is to guarantee continuous supply of certified raw material – with quality control. "In other countries, large retailers are working with organic, which encourages producers to invest in the business. In Brazil is more difficult, "he explains.
The company has a line of ready-to-drink organic teas, which represent, today, about 15% of the revenues of WNutritional. The forecast, according to Feferbaum, is to launch new product flavors and fruit-based drinks.
However, he points out the rigidity of the rules governing the segment in the country. "The demand lies not only in the fact that 95% of raw materials need to be organic, but in control of production processes. There can be cross-contamination ".
In addition, draws attention to the cost of Feferbaum logistics in organic chain. "The big challenge is to form the distribution channel. The conventional market foods works with volumes, but this is not our case. We need specialized transportation companies in our business and it also makes the product ", explains.
Mass production
According to consulting firm Euromonitor, the organic segment made $ $87 million in 2017 (including fresh food). And the growth of this market in Brazil and in the world already drew attention to food industry giants. The French, in addition to specific initiatives Nestle in the segment, recently announced the arrival of your first organic product, oats flakes and bran.
"The goal of Nestle with that bet is to contribute to the development of the organic chain as a whole in the country. We emphasize the fact that this segment is still little developed in Brazil, so that, to begin to develop a chain, of course we need to act on others and that takes time, "said DCI company.
Nestle points out that more than an expectation of sales or market share, the goal of the initiative is to meet a consumer desire. "In Brazil, this market is consolidating and we believe in your high potential for expansion. By the fact of being the largest food and beverage company in the world, we know that our entry into the organic segment tends to democratize the product, by making prices more affordable. "
The giant reports that, in addition to preparing news for the next two years in the segment, the company will include organic ingredients as raw material for other products.
Steps of Puravida, evaluates investments not only in the company of other players in the segment signals the potential of business in Brazil. "The organic market has a great future. However, the multiplication of quality for the large population depends on closely in the interest of our culture to invest in the development of technologies ".
In the first quarter, the Puravida recorded growth of 50% compared to the previous year and the projection is closing the year with revenues of approximately R $30 million. "It makes perfect sense to feed with quality and purity. Any culture recognizes that, "he says.
WNutritional already this year, intends to quadruple sales of organic line about 2017.
"The production process of organic is more expensive because it costs more to adapt to the rules. But if there is stimuli to the producer and retail education not to separate this product from other, surely the market will grow, "opines.
DCI - 16/04/2018
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