Design and Implementation of Flower Export Consortium in Ceará State, Brazil

Abstract

The Brazilian presence in international commerce, despite the regional leadership in Latin America and the global importance of Brazil as an emerging economy, is quite limited, reaching only 1% of the world’s total trade. Nevertheless, the agribusiness sector is responsible for half of the country’s export and Brazil is the world leader in sugar, coffee, orange juice, tobacco, soybean and beef export. Export growth is considered to be a key factor for the economic development of the country and many governmental programs are being carried out. The Ministry of Agriculture, Livestock and Food Supply (MAPA), through its Cooperative Department (DENACOOP), has joined these efforts. The DENACOOP export consortia program is focused on building strategic alliance in agribusiness production chain. After successful experiences in implementing in grain and honey sector, an applied research project was set up focusing on a flower production chain in Northeast of Brazil, which has the potential to improve socio-economic indicators of a low income region. To carry out the project the Federal University of Viçosa research team has developed a design and implemen-tation procedure, which was based on structuring and translating the requirements of organizations and producers into contract’s clause. The consortium main clauses established that all the purchase and sale of agricultural inputs, the internal and external seedling market, roses, ornamental and vase flowers will be done together. The commercialization and the post-harvest activities will be done through the creation of a distribution center. Recently flower producers have signed the export consortium contract. The consortium is expected to improve the competitiveness of the flower production chain in the state of Ceará and increase the current minor importance of Brazil in the international flower trade.