Required Report - public distribution

**Date:** 9/17/2008

**GAIN Report Number:** BR8018

BR8018

**Brazil**

**Exporter Guide**

**.**

**2008**

**Approved by:**

![](media/image1.wmf)Morgan Perkins, ATO Director

U.S. Agricultural Trade Office

**Prepared by:**

Fabiana Fonseca, Agricultural Marketing Specialist

**Report Highlights:**

This report provides information on Brazilian import procedures for food
and beverage products. Although, the Brazilian importer is the key
player during this process, it is crucial for U.S. exporters to
understand the different steps in order to help make the process run
more efficiently.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Sao Paulo ATO \[BR3\]

\[BR\]

**I. Market Overview**

In 2007 Brazil's imports of consumer-oriented food products stood at 2
billion dollars. Compared to 2006, Brazilian imports of food and
beverage items rose by 22 percent. Due to a favorable exchange rate
(US\$1=R\$1.95, annual average) importers were more aggressive. Although
Brazilian food importers are generally biased toward EU products, the
U.S. Agriculture Trade Office in Sao Paulo noticed a significant
increase in demand for US products during 2007 which continued during
the first 3 quarters of 2008. US exports followed the overall sales
increase; exports of US products to Brazil increasing by 22 percent. The
positive atmosphere was especially beneficial to European exporters.
Imports of EU products registered a 32 percent increase compared to the
previous year, boosting the EU market share by 1.8 points (to 23.5%).

CONSUMER-ORIENTED AGRICULTURAL TOTAL (Millions of US Dollars)

  ---------- ---------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- -------
             **2002**    **%**   **2003**    **%**   **2004**   **%**    **2005**   **%**    **2006**   **%**    **2007**   **%**

  World      1,110.3    100      994.9      100      1,122.1    100      1,374.1    100      1,647.0    100      2,005.6    100

  Mercosul   649.7      58.5     602.9      60.6     644.1      57.4     703.3      51.2     829.7      50.4     961.7      48.0
  (4)                                                                                                                       

  EU (15)    232.7      21.0     205.1      20.6     231.7      20.6     283.7      20.6     357.3      21.7     470.9      23.5

  US         82.6       7.4      72.4       7.3      101.6      9.1      114.1      8.3      122.1      7.4      149.5      7.5

  Others     145.2      13.1     114.5      11.5     144.6      12.9     273.1      19.9     337.9      20.5     423.5      21.1
  ---------- ---------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- -------

Source: World Trade Data/Secretariat of Foreign Trade (Secex)

From January to August of 2008, imports of consumer-oriented products by
Brazil increased 34 percent compared to the same period of 2007.
However, the scenario for imported food items is suddenly uncertain. The
financial crisis has already been felt in the imported foods segment.
Import companies are being very cautious about volumes to be shipped
into Brazil during the last quarter of the year. In the past weeks the
exchange rate has oscillated significantly, from US\$1=R\$ 1.55 in
August to US\$1=R\$2.50 in October, before falling again. Under these
conditions it becomes extremely difficult to estimate final retail
prices and product competitivity, therefore import volumes are expected
to decrease as buyers become hesitant about profitability.

Currently, the general expectation for the Brazilian economy is that
tighter macroeconomic policies will be followed due to the worldwide
financial crisis. Interest rates are expected to trend higher and a
deceleration of domestic consumption is expected as credit availability
tightens. However, analysts are maintaining forecasts of modest
inflation and GDP is expected to grow 4.6 percent, sufficient to ensure
increases in real income.

ECONOMIC INDICATORS

  ------------------------- ------- ------- ------- ------- ------- --------
                            2003    2004    2005    2006    2007    2008\*

  GDP Growth (%)            -0.2    4.9     2.3     3.8     5.4     5.2

  Inflation-IPCA (%)        9.3     7.6     5.7     3.1     4.5     6.2

  Interest Rate-Selic (%)   16.5    18.75   18.0    13.25   11.25   14.75

  Trade Balance (US\$       24.8    33.7    44.8    46.1    40.9    23.9
  billion)                                                          

  Average Exchange Rate     2.90    2.93    2.43    2.10    1.95    1.85
  (R\$-US\$)                                                        
  ------------------------- ------- ------- ------- ------- ------- --------

Source: Brazilian Institute of Geography and Statistics (IBGE),
Brazilian Central Bank, Secretariat of Foreign Trade (SECEX), Getulio
Vargas Foundation (FGV), Research Institute for Applied Economics (IPEA)

\(1\) IPCA is calculated by the Brazilian Institute of Geography and
Statistics (IBGE). It is the Government of Brazil's target measure of
inflation and measures price variation for products and services
consumed by families with earnings from 1 to 40 minimum wage salaries in
metropolitan areas of Porto Alegre, Belo Horizonte, Recife, Sao Paulo,
Belem, Fortaleza, Salvador, Curitiba, Distrito Federal and Goiania.

\(2\) SELIC refers to the Brazilian Central Bank interest rate.

(\*) Forecast by leading economic publications

**II. Exporter Business Tips**

Oversight of imported food and beverage products is primarily the
responsibility of the Brazilian Ministry of Agriculture, Livestock and
Food Supply (MAPA) and the Ministry of Heath (MS), through the National
Agency of Sanitary Surveillance (ANVISA). These two government bodies
ensure the safety of the food supply, and enforcing regulations related
to food and beverage products throughout the supply chain.

MAPA and ANVISA jurisdiction follows:

+-----------------------------------+-----------------------------------+
| MAPA                              | ANVISA                            |
+-----------------------------------+-----------------------------------+
| Consumer-oriented products        | Consumer-oriented products        |
|                                   |                                   |
| *animal products*: red meat and   | *food*:all consumer-ready or      |
| by-products, poultry meat and     | processed products, (except those |
| by-products, fish, seafood        | under MAPA's authority)           |
| products, dairy products, and     |                                   |
| eggs;                             | *beverages*: energy drinks,       |
|                                   | hydroelectrolitic beverages and   |
| *beverages:* alcoholic and non    | soy beverages                     |
| alcoholic (except energy drinks,  |                                   |
| hydroelectrolitic beverages, soy  |                                   |
| beverages);                       |                                   |
|                                   |                                   |
| *fruits and vegetables*: dried,   |                                   |
| fresh and processed               |                                   |
+-----------------------------------+-----------------------------------+
| Intermediate products             | Intermediate products             |
|                                   |                                   |
| (wheat flour, planting seeds,     | (sugar, sweeteners, mineral       |
| etc)                              | water, flavored waters,           |
|                                   | additives, and other ingredients  |
|                                   | (excluding those under MAPA's     |
|                                   | authority).                       |
+-----------------------------------+-----------------------------------+
| Bulk commodities                  |                                   |
|                                   |                                   |
| (wheat, grains, rice, soybean,    |                                   |
| cotton, tobacco, pulses, peanuts, |                                   |
| flour, etc)                       |                                   |
+-----------------------------------+-----------------------------------+
| Pet food, feeds and fodders       |                                   |
+-----------------------------------+-----------------------------------+
| Plants and seeds                  |                                   |
+-----------------------------------+-----------------------------------+
| Animals, semen and embryos        |                                   |
+-----------------------------------+-----------------------------------+

Although the import process varies by product, entry procedures into
Brazil follow 3 major steps:

**Pre-shipment Procedures**

STEP I: MAPA and ANVISA

Brazilian legislation is "positive", which means that only products
(esp. additives, colorings, preservatives, etc) that are specifically
authorized by Brazilian regulations are allowed to enter the market.
Therefore, the importer must ensure the Brazilian Government (GoB)
permits the entry of their product. All ingredients contained in food or
beverage items should meet GoB specifications and tolerance levels. For
that, the Identity and Quality Standard (PIQ) established by MAPA and
ANVISA must be followed. Although not mandatory, it is common for
importers make use of a private regulatory affairs consultant in this
initial phase.

Importers will generally request that the exporter provide a list of all
ingredients (quantitative/qualitative characteristics) and additives,
artificial colors, etc, by chemical names and a description of the
ingredient's function(s). Products under ANVISA jurisdiction are
classified into 2 categories: 1) products exempt from registration and
2) products with mandatory registration.

Imported food products and packages [exempt]{.underline} from
registration

+-----------------------------------------------------------------------+
| Sugar and table top sweeteners                                        |
+-----------------------------------------------------------------------+
| Flavoring additives                                                   |
+-----------------------------------------------------------------------+
| Foods enriched with essential nutrients                               |
|                                                                       |
| (minerals and vitamins)                                               |
+-----------------------------------------------------------------------+
| Foods and beverages with complementary nutritional information        |
|                                                                       |
| (light, zero calories, free, low)                                     |
+-----------------------------------------------------------------------+
| Confectionary products                                                |
+-----------------------------------------------------------------------+
| Coffee, barley, tea, mate and instant products                        |
+-----------------------------------------------------------------------+
| Chocolates and cocoa products                                         |
+-----------------------------------------------------------------------+
| Packaging                                                             |
+-----------------------------------------------------------------------+
| Enzyme and enzyme preparations                                        |
+-----------------------------------------------------------------------+
| Seasonings, condiments and sauces                                     |
+-----------------------------------------------------------------------+
| Frozen products and preparations for frozen products                  |
+-----------------------------------------------------------------------+
| Ice                                                                   |
+-----------------------------------------------------------------------+
| Mixes for food preparation and ready for consumption products         |
+-----------------------------------------------------------------------+
| Vegetable oils, fats and vegetable cream                              |
+-----------------------------------------------------------------------+
| Cereals and derivatives                                               |
+-----------------------------------------------------------------------+
| Products containing protein of vegetable origin                       |
+-----------------------------------------------------------------------+
| Canned vegetable products (excl. heart of palm), fruit products and   |
| mushrooms                                                             |
+-----------------------------------------------------------------------+

Imported food products and packages with [mandatory]{.underline}
registration

  -----------------------------------------------------------------------
  Additives

  Dietetic sweeteners

  Waters containing salt

  Mineral water and natural water

  Functional foods or health claims

  Infant food

  Food for weight control

  Food with dietary restrictions of nutrients

  Foods for diets with controlled sweeteners

  Foods for special diets

  Foods for pregnant and lactating women

  Foods for elderly people

  Foods for sport activities

  Processing aids

  Packaging from new technologies (recycled, PET)

  Novel foods and/or novel food ingredients

  Salt

  Other salts

  Bioactive substances and probiotic isolates claiming functional and/or
  healthy attributes

  Vitamin and/or mineral supplements

  Canned vegetable (heart of palm)
  -----------------------------------------------------------------------

Products under MAPA's jurisdiction follow stricter rules. Processing
plants for meat, dairy and fish products must be pre-approved by MAPA in
order to export to Brazil. Registration must be initiated by USDA's
Foreign Agricultural Service (FAS) in Brasilia. Only processing plants
included in GoB approved plants list are able to export to Brazil.

MAPA also has a list of approved horticulture products. Prior to
importing into Brazil, the importer must consult the appropriate
department within MAPA to make sure that their fruits and/or vegetable
products are authorized to enter the country, and under what conditions.

MAPA has the regulatory authority to enforce laws regulating alcoholic
and non-alcoholic beverages. Products under these categories do not need
to have their establishments registered, with the exception of wineries.
However, the process of registering the winery is simplified, and does
not require FAS involvement.

STEP II: MAPA and ANVISA

Labeling of food and beverage products must be in accordance with GoB
regulations. The requirements are also found on the specific PIQ. Again,
regulatory affairs consultants may be of great assistance. The exporter
should forward a sample of the package to the importer to facilitate
label development. Legislation requires the following information on
labels:

Front panel

-   technical name (according to MAPA/ANVISA classification)

-   brand

-   quantity indication

For all products:

  ------------------------------------- ---------------------------------
  Liquid content (grams or milliliters) Minimum font height (mm)

  below or equal 50                     20

  above 50 and below or equal 200       30

  above 200 and below or equal 1000     40

  above 1000                            60
  ------------------------------------- ---------------------------------

For alcohol contents:

  ------------------------------------- ---------------------------------
  Liquid content in milliliters         Minimum font height (mm)

  up to 600                             15

  above 600 and up to 1,000             20

  above 1,000 and up to 2,500           30

  above 2,500 and up to 4,000           40

  above 4,000                           60
  ------------------------------------- ---------------------------------

Side panel

-   list of ingredients

-   country of origin

-   contact information for the processing company

-   contact information for the importer

-   expiration date

-   lot number

-   care and handling information

-   instructions for product use (if necessary)

-   claim "contains gluten" "does not contain gluten"

-   \% alcohol content (for alcoholic beverages)

-   notice "evite o consumo excessivo de alcool", which translates to
    "avoid excessive consumption of alcohol" (for alcoholic beverages)

-   nutritional information

+------------------------------------+---------------------------------+
| **Nutritional Fact**               | **(g/100g of product)**         |
+------------------------------------+---------------------------------+
| Carbohydrates                      | (g/100g)                        |
+------------------------------------+---------------------------------+
| Protein                            | (g /100g)                       |
+------------------------------------+---------------------------------+
| Total Fat                          | (g/100g)                        |
|                                    |                                 |
| *Saturated Fat*                    | *(g/100g)*                      |
|                                    |                                 |
| *Trans Fat*                        | *(g/100g)*                      |
+------------------------------------+---------------------------------+
| Dietary Fiber                      | (g/100g)                        |
+------------------------------------+---------------------------------+
| Sodium                             | (g/100g)                        |
+------------------------------------+---------------------------------+
| Vitamins/Minerals                  | (mg or μg/100g) - when applied  |
+------------------------------------+---------------------------------+

Note: based on a daily diet of 2,000kcal or 8,400 kj)

STEP III: MAPA AND ANVISA

Before shipment, a *pro forma* invoice must be sent to the Brazilian
importer, as this document starts the import clearance process. The *pro
forma* invoice must be filled out properly; otherwise the importer will
not be able to file an import application. Note that delays in
transaction approval are very common as a result of
inadequate/inaccurate information being reported on the *pro forma*
invoice.

STEP IV: MAPA AND ANVISA

The administrative process starts. All import and export approval
operations occur through the automated SISCOMEX system. The importer
requests an import permit, also called Import License (LI), which must
be obtained before shipment. All food and beverage products fall under
the "non-automatic clearance" category. In the case of agricultural
products under ANVISA, approval must be released by the Ministry of
Health prior to shipment. In general the authorization is granted within
a week.

## Shipment Procedures 

STEP V: MAPA AND ANVISA

Following embarkation, the exporter must send all of the documentation
that will be required for product release. Documentation required
includes:

-   shipping information (bill of lading or AWB)

-   commercial invoice (which must match the *pro-forma invoice* and
    include details of agreed payment terms)

-   certificate of origin (if required by Brazilian authorities)

-   lab certificate

-   phytosanitary certificate for wood pallets, or exemption for pallets
    approved the Food and Agriculture Organization (FAO)

## Clearance Procedures 

STEP VI: MAPA AND ANVISA

When goods arrive in Brazil, the importer (or a customs broker
representing the importer), must prepare the Import Declaration (DI).
The necessary documentation for filling out the Import Declaration
includes:

-   commercial invoice

```{=html}
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```
-   shipping information

-   Import License

-   receipt for payment of Import Tax (II)

-   receipt for payment of Tax on Industrial Products (IPI)

-   other documents may be required depending on the specific product
    and/or transaction type

Mercosul countries (including Brazil, Argentina, Paraguay and Uruguay),
have adopted the Mercosul Common Nomenclature (NCM) system for product
classification. The NCM is based on the international methodology of the
Harmonized Commodity Description and Coding System or simple Harmonized
System (HS). The NCM is formed by 8 digits, the first 6 digits follows
the HS codes while the seventh and eight digits correspond to Mercosul
specifications. Through the NCM the amount of taxes to be paid are
defined. Importers may present a single invoice for different NCMs,
however, a separate LI is required for each NCM code.

STEP VII: MAPA and ANVISA

The clearance process starts when the product arrives in Brazil. The
importer (or a customs broker, officially representing the importer)
initiates clearance procedures. Customs officials will authorize the
release of goods to the importer after verification of product
classification and tax payments. After the reception of documents, the
system will automatically select inspection/verification method to be
applied. They are:

-   GREEN: customs clearance authorization is automatically issued.

-   YELLOW: mandatory inspection of documentation is required and, if no
    evidence of irregularities is found, customs clearance is issued.

-   RED: mandatory inspection of documentation and of goods is required
    before customs clearance authorization is issued.

-   GRAY: mandatory inspection of documents, merchandise, and
    recalculation of import taxes applied.

Except for the green option, all documents including the Import
Declaration, the receipt generated by SISCOMEX and the Value Added Tax
(ICMS) payment receipt (or waiver) must be presented to the Secretariat
of Federal Revenue (SRF). For goods assigned the gray option, a
Declaration of Customs Value (DVA) must be made and transmitted via
SISCOMEX to justify the product price and commercial aspects of the
transaction. Any correction to the information presented must be carried
out in accordance with SISCOMEX procedures. After registering customs
clearance the fiscal authority - the Secretariat of Federal Revenue -
will release an Import Confirmation (CI), approving customs clearance
and the entry of goods.

ANVISA also participate in the clearance process. The documents to be
presented to the health authorities are:

-   lab/ phytosanitary certificate

-   certificate of origin

-   control analysis (to be conducted *in loco* if requested by
    authorities)

Although, the scheme above presents a general structure for imports of
food and beverage in Brazil, importers/exporters must note other
Ministries, besides MAPA and ANVISA, share jurisdiction for ensuring the
safety of the Brazilian food supply and for regulating imports of
agricultural commodities and foods. The most updated set of rules each
administrative agency releases must be observed prior shipments as it
direct impacts the access for foreign goods into Brazil.

**III. Market Sector Structure and Trends**

Gross sales in the processed food sector reached R\$230.6 billion
(U\$118.3 billion applying the 2007 average exchange rate of
R\$1=US\$1.95). This result represents a 2.9 percent increase in real
terms compared to the previous year. Food products represented 85
percent of total sales while beverage, items accounted for 15 percent.
According to the Brazilian Food Processors' Association (ABIA) during
the January-June period of 2008, revenues reached for R\$268 billion
(U\$157.6 billion applying the 2008 average exchange rate of
R\$1=US\$1.70), which represented a 16 percent increase compared to the
same period of 2007.

FOOD INDUSTRY GROSS SALES

![](media/image2.wmf){width="4.083333333333333in"
height="2.627083333333333in"}

Source: Brazilian Food Processors' Association (ABIA).

\* Forecast

In 2007 retail sector revenues totaled R\$136.3 billions (U\$69.9
billions), a 6 percent increase compared to 2006, which represents the
best result in the last 10 years. In Brazil, Carrefour, Cia. Brasileira
de Distribuicao (also known as Pao de Acucar Group) and Wal-Mart are
responsible for 39 percent of sector revenue. Although, this does not
reflect a very high level of concentration, it does demonstrates the
power these companies hold.

TOP 10 BRAZILIAN RETAILERS

+----+---------------------+-------------+-----------+---------------+
| ** | **Company**         | **Gross     | **Market  | **Number of   |
| Ra |                     | sales**     | share**   | stores**      |
| nk |                     |             |           |               |
| ** |                     | **(R\$      | **(%)**   |               |
|    |                     | million)**  |           |               |
+----+---------------------+-------------+-----------+---------------+
| 1  | Carrefour           | 19,257.3    | 14.13     | 510           |
+----+---------------------+-------------+-----------+---------------+
| 2  | Cia. Brasileira de  | 18,762.2    | 13.77     | 575           |
|    | Distribuicao        |             |           |               |
+----+---------------------+-------------+-----------+---------------+
| 3  | Wal-Mart            | 15,002.4    | 11.01     | 313           |
+----+---------------------+-------------+-----------+---------------+
| 4  | G. Barbosa          | 1,898.6     | 1.39      | 42            |
+----+---------------------+-------------+-----------+---------------+
| 5  | Cia. Zaffari        | 1,607.3     | 1.18      | 27            |
+----+---------------------+-------------+-----------+---------------+
|    | **TOTAL (5)**       | *           | **41.47** | **1,467**     |
|    |                     | *56,527.8** |           |               |
+----+---------------------+-------------+-----------+---------------+
| 6  | DMA Distribuidora   | 1,541.0     | 1.13      | 85            |
+----+---------------------+-------------+-----------+---------------+
| 7  | Irmaos Bretas       | 1,537.5     | 1.13      | 51            |
+----+---------------------+-------------+-----------+---------------+
| 8  | Prezunic            | 1,476.3     | 1.08      | 28            |
+----+---------------------+-------------+-----------+---------------+
| 9  | A. Angeloni         | 1,187.0     | 0.87      | 19            |
+----+---------------------+-------------+-----------+---------------+
| 10 | Irmaos Muffato &    | 1,148.0     | 0.84      | 21            |
|    | Cia.                |             |           |               |
+----+---------------------+-------------+-----------+---------------+
|    | **TOTAL (10)**      | *           | **46.5**  | **1,671**     |
|    |                     | *63,417.7** |           |               |
+----+---------------------+-------------+-----------+---------------+
|    | **TOTAL SECTOR**    | **          | *         | **74,602**    |
|    |                     | 136,300.0** | *100.00** |               |
+----+---------------------+-------------+-----------+---------------+

Source: ABRAS

ABIA indicates that consumption standards have changed in the past
decade as the average consumer trades up. Consequently, the demand for
healthier and functional products has been rising consistently. Since
2001 this segment has grown 20 percent a year, which has a direct impact
on the demand for high value ingredients. Although, multinational
companies are the major processors of functional products, industry
analysts indicate that Brazilian companies are investing significantly
to gain market share in this segment. As the development of these
products requires more technology, the importation of ingredients
becomes necessary. In 2007, imports of ingredients by food and beverage
processors increased 33.6 percent in value and 15 percent in volume. The
total value and volume imported by local processors amounted R\$4.8
billion and 2 million tons, respectively. For 2008, food industry
executives forecast an increase of 15 to 20 percent on imports; however,
this estimate may be outdated due to the current financial market
crisis.

On the retail side, food and beverage products corresponded to 61.4
percent of total sales. According to the Brazilian Retail Association
(ABRAS) the share of food items increased 4.4 percent, from 57 percent
to 61.4 percent. Multiple factors led to this result, such as, rising
prices of food products; higher incomes; and, credit facilities. When
analyzing sales of food items alone, retailers highlight an increasing
demand for perishable products, reflecting the shift towards healthier
consumption patterns. The presence of imported food and beverage
products has also increased. As the Real depreciated against the Dollar,
the offer of foreign products increased in the past year. While in 2006
imported items represented 3.1 percent of total revenues, in 2007 they
reached 4.8 percent.

Imports of food and beverage, ingredients or consumer-ready, may occur
directly or indirectly. As food ingredients sold to the processing
industry follow specific criteria to ensure productive parameters, the
operation tends to be done directly. However, if the importing company
is a small or medium size company, the import process is conducted by a
specialized importer or a trading company. For retailers, import volume
is the critical factor. Regardless of whether the company is a large
size or not, if the volume to be imported does not justify the
operation, retailers will prefer to purchase imported items from a
distributor.

**IV. Best High-Value Product Prospects**

A. Products present in the market, which have good sales potential

Importers are generally looking for well-known brands and high-end
products. In addition Brazilian importers/distributors usually prefer
products with six months shelf life or more. In addition to the product
itself, packaging, status and level of innovation are important
attributes. Products that combine these characteristics are more likely
to successfully enter the market.

B. Products not present in significant quantity but which have good
sales potential

Health foods, especially natural and organic products, have a limited
presence in the Brazilian market.

The Brazilian food industry has not directed consistent efforts to
develop these segments, as the consumer base is restricted to a
\[quickly growing\] slice of the Brazilian population. There are limited
numbers of suppliers in the market for these products and consequently
prices are high.

C. Product not present because face they significant trade barriers

Brazilian legislation requires all food items to be approved by Ministry
of Health (MS) or Ministry of Agriculture, Livestock, and Food Supply
(MAPA) prior to shipment. Currently, poultry and beef imports are banned
and considerable restrictions exist for products containing ingredients
derived from biotech commodities.

IMPORTS FROM UNITED STATES BY PERIOD (Millions of US Dollars)

  ----------------------------------- ------------------ ------------ ---------------- ------------
                                      January-December                January-August   

                                      2006               2007         2007             2008

  Snack Foods                         42.99              41.81        27.43            **35.84**

  Breakfast cereals % Pancake         0.39               0.28         0.21             **0.56**

  Red Meats, Fresh/Chilled/Frozen     11.43              8.26         6.23             4.04

  Red Meats, Prepared/Preserved       0.29               0.17         0.14             0.13

  Dairy Products                      10.01              **12.29**    7.34             **17.20**

  Eggs & Products                     12.79              **15.92**    11.28            **11.49**

  Fresh Fruit                         6.33               **11.91**    1.58             **3.80**

  Fresh Vegetables                    0.10               0.34         0.20             **0.31**

  Processed Fruit & Vegetables        45.17              **47.05**    30.71            **41.73**

  Fruit & Vegetable Juices            44.97              **45.41**    29.61            **34.08**

  Tree Nuts                           4.28               **4.79**     1.60             **6.04**

  Wine and Beer                       0.58               0.69         0.42             **0.68**

  Nursery Products                    0.00               0.03         0.00             **0.02**

  Pet Food (Dog & Cat Food)           17.73              **29.00**    18.09            15.10

  Other Consumer Oriented             50.33              **51.87**    35.10            **42.11**

  **Consumer-Oriented Total**         121.871            **149.19**   88.85            **121.34**
  ----------------------------------- ------------------ ------------ ---------------- ------------

Source: World Trade Data/Secretariat of Foreign Trade (Secex)

**V. Post Contact and Further Information**

Please do not hesitate to contact the offices below for questions or
comments regarding this report or require assistance to export processed
food products into Brazil:

U.S. Agricultural Trade Office (ATO) Office of Agricultural Affairs
(OAA)\
U.S. Consulate General U.S. Embassy

Rua Henri Dunant, 700 Av. das Nacoes, quadra 801, lote 3\
04709-110 Sao Paulo -- SP 70403-900 Brasilia - DF\
Tel: (55 11) 5186-7400 Tel: (55 61) 3312-7000\
Fax: (55 11) 5186-7499 Fax: (55 61) 3312-7659\
E-mail: atosaopaulo@usda.gov E-mail: agbrasilia@usda.gov

atobrazil@usdabrazil.org.br

**APPENDIX I. STATISTICS**

**TABLE A. Key Trade & Demographic Information**

  ----------------------------------------------------- --------- -------
  Agricultural Imports From All Countries (\$Mil) /     6,346 /   
  U.S. Market Share (%)                                 6.25 %    
                                                        ^1^       

  Consumer Food Imports From All Countries (\$Mil) /    2,005 /   
  U.S. Market Share (%)                                 7.45 %    
                                                        ^1^       

  Edible Fishery Imports From All Countries (\$Mil) /   410 /     
  U.S. Market Share (%)                                 1.38 %    
                                                        ^1^       

  Total Population (Mil) / Annual Growth Rate (%)^3^    189/ 1.2  
                                                        % ^3^     

  Urban Population (Mil) / Annual Growth Rate (%)^3^    95 / NA   
                                                        ^3^       

  Number of Major Metropolitan Areas ^2^                18 ^4^    

  Size of the Middle Class (Mil) / Growth Rate (%) ^5^  67/NA     
                                                        ^2&5^     

  2007 Per Capita Gross Domestic Product (U.S. Dollars) 5.829 ^3^ 
  ^3^                                                             

  Unemployment Rate (%) ^2^                             9.3% ^2^  

  Per Capita Food Expenditures (U.S. Dollars) ^2^       543 ^2^   

  Percent of Female Population Employed ^2^             35.8% ^2^ 

  2008 Exchange Rate (US\$1=R\$ local currency) ^6^     1.85      

  ^1^ Source: Word Trade Atlas                                    

  ^2^ Source: Brazilian Geography and Statistics                  
  Institutes (IBGE)                                               

  ^3^ Source: The World Bank Group                                

  ^4^ Metropolitan areas with at least 1.000.000                  
  inhabitants                                                     

  ^5^ Middle class considered to represent families               
  with income between R\$ 1,000 and R\$ 5,000 per month           

  ^6^ Source: Brazilian Central Bank                              

                                                                  

                                                                  
  ----------------------------------------------------- --------- -------

## Table B. Consumer Food & Edible Fishery Products Imports

  ----------------------------- --------- --------- --------- --------- -------- ---------
                                Imports                       Imports            
                                from                          from US            
                                World                                            

                                2005      2006      2007      2005      2006     2007

  CONSUMER-ORIENTED             1374.19   1647.00   2005.66   40.82     122.09   149.451
  AGRICULTURAL TOTAL                                                             

  Snack Foods                   179.51    234.66    331.34    114.12    42.99    41.81

  Breakfast cereals % Pancake   45.44     41.87     4.01      35.09     0.39     0.28

  Red Meats,                    132.63    127.02    178.11    0.09      11.43    8.26
  Fresh/Chilled/Frozen                                                           

  Red Meats, Prepared/Preserved 2.49      2.44      3.40      16.04     0.29     0.17

  Poultry Meat                  1.04      0.95      1.62      0.00      0.00     0.00

  Dairy Products                183.56    224.85    227.05    0.32      10.01    12.29

  Eggs & Products               19.17     19.42     22.51     0.28      12.79    15.92

  Fresh Fruit                   125.88    179.87    212.57    10.91     6.33     11.91

  Fresh Vegetables              100.41    116.46    141.40    4.05      0.10     0.34

  Processed Fruit & Vegetables  298.40    361.27    452.35    0.16      45.17    47.05

  Fruit & Vegetable Juices      83.04     110.61    137.08    35.88     44.97    45.41

  Tree Nuts                     53.82     57.21     64.40     36.04     4.28     4.79

  Wine and Beer                 103.14    144.08    183.33    4.52      0.58     0.69

  Nursery Products              5.62      8.76      8.92      0.47      0.00     0.03

  Pet Food (Dog & Cat Food)     80.43     99.15     133.63    0.09      17.73    29.00

  Other Consumer Oriented       199.38    238.22    304.43    20.27     50.33    51.87

                                                                                 

  FISH & SEAPRODUCTS, EDIBLE    297.88    445.63    410.75    0.66      0.90     5.68

  Salmon, Whole or Eviscerated  38.14     70.33     86.87     0.00      0.17     0.06

  Salmon, Canned                0.00      0.00      0.00      0.00      0.00     0.00

  Crab & Crabmeat               0.17      0.09      0.32      0.00      0.00     0.00

  Surimi                        5.03      6.82      0.20      0.00      0.00     0.00

  Roe & Urschin (Fish Eggs)     0.23      0.38      0.47      0.04      0.14     0.22

  Other Edible Fish & Seafood   296.96    442.47    407.58    0.62      0.59     5.40

                                                                                 

                                                                                 

  AGRICULTURAL PRODUCTS TOTAL   3747.16   4831.97   6346.64   217.58    268.75   396.82

  AGRICULTURAL, FISH & FORESTRY 4124.28   5387.73   6890.94   222.89    276.51   410.49
  TOTAL                                                                          
  ----------------------------- --------- --------- --------- --------- -------- ---------

Source: Worde Trade Atlas

## Table C. Suppliers of Consumer Food & Edible Fishery Products

  -------------------------- --------- -------- ------ --------- --- ------------------------- ------- -------- --------
  **Brazil - Top 15                                                                                             
  Suppliers**                                                                                                   

  **CONSUMER-ORIENTED                                                **FISH & SEAFOOD PRODUCTS                  
  AGRICULTURAL IMPORTS**                                             IMPORTS**                                  

  (1000\$)                   2005      2006            2007          (1000\$)                  2005    2006     2007

  Argentina                  543.53    646.48          711.66        Norway                    119     150.92   175.05

  Chile                      92.8      122.36          153.98        Chile                     53.1    98.29    94.75

  Paraguay                   81.61     88.79           150.76        Portugal                  21.1    35.28    43.57

  United States              114.12    122.09          149.45        Uruguay                   8.25    18.58    24.68

  Uruguay                    76.65     93.02           98.17         Morocco                   0.57    21.34    17.67

  China                      56.13     71.06           85.29         Argentina                 63.9    89.74    12.71

  Netherlands                44.68     52.12           81.23         Ecuador                   2.72    6.57     7.3

  France                     43.96     61.67           73.31         Russia                    0.26    3.64     7.09

  Germany                    20.03     37.38           70.11         United States             0.66    0.9      5.68

  Italy                      45.22     55.92           65.63         Spain                     3.23    1.82     5.48

  Portugal                   24.31     33.18           43.64         Peru                      2.1     7.28     5.39

  Turkey                     27.46     33.07           40.77         China                     0.26    0.48     2.6

  Belgium                    28.6      32.58           34.76         Iceland                   0.46    1.42     2.48

  Spain                      35.77     38.43           34.64         Taiwan                    2.39    2.5      1.94

  Austria                    14.55     18.46           23.71         Canada                    0.91    0.72     1.53

  Rest of World              124.77    140.39          188.56        Rest of World             18.7    6.16     2.85

  World                      1374.19   1647            2005.66       World                     298     445.63   410.75
  -------------------------- --------- -------- ------ --------- --- ------------------------- ------- -------- --------

Source: Worde Trade Atlas