B as in Brazil, BRICs and business. Brazil is growing full steam ahead, and is ready to compensate for feeble demand in Europe to become an important objective for food and agriculture exports. It is enough to read the forecasts of the Brazilian Agricultural Industry Association (ABIA). Per capita consumption of food products is set to increase by 46% (both in real and nominal terms) over the next five years.
In 2011, total sales of foodstuffs increased by 7.1% (adjusted for inflation) and exports topped 32 billion euros (44bln USD). Internal demand has increased, with meat products leading the pack (21%), followed by sugar (11%), coffee, tea and cereals (11%), and finally dairy (10%). These figures correspond to increased spending power across a wide slice of the population, the so-called middle class, which is gaining propensity towards premium and high quality products.
Growth margins for food and agriculture exports are, on paper, enormous. Brazil holds one of the most relevant export shares towards the EU, while Europe and Italy export little to the South American country, 3.6% and 4% respectively.