Brazil keeps its bets on Chinese market

Even amid a slower growth scenario and falling exports to China, Brazil's government keeps its bet on expanding commercial relations with the Asian country. A mission of Brazilian businesses in the food and beverage industry, coordinated by the Brazilian Trade and Investment Promotion Agency (APEX-Brasil) and the Ministry for Agriculture, Livestock and Supply, is in China this week to join business rounds in Guangzhou and exhibit its products at SIAL, a food, beverages, and hospitality trade show in Shanghai. They are seeking to close deals and prospect new customers for the F&B industry.

In 2014, China's GDP grew 7.4%, its lowest growth rate in 24 years. With less buoyant economy, the Chinese market, which used to be the main destination for Brazilian exports, was overtaken by the United States. According to the Ministry for Development, Industry and Foreign Trade (MDIC), exports to China dropped 35.4%, from $9.8 billion in the first quarter 2014 to $6.1 billion in the same period in 2015. In addition to China's slowing economy, Brazil's sales revenue has been shrinking as a result of falling commodity prices since 2014.

This scenario has led Brazil's government to seek closer relations with the US. But according to APEX Business Coordinator Rafael Prado, the Chinese market is still prominent in terms of business strategy. “[China] is still an important partner for our initiatives and we keep a very close relationship with them. APEX has an office there. It's a market of over one billion people,” he said.

According to Prado, there is growing concern about healthy eating among the Chinese. An APEX study identified sales potential in the Chinese market for meat, honey, premium coffee, and wine exports. And China's decision in 2014 to lift its 2012 ban on Brazilian beef makes it even more promising.

Among the businesses in the mission is honey maker Flora Néctar. “We are very optimistic. The Chinese are increasingly looking for certified organic products, such as our honey,” said the company's export manager Luiz Alberto Schuh. Flora Néctar exports 75% of its annual production to such destinations as North America and the European Union and is now turning to China as a potential market.

Translated by Mayra Borges