A group of 71 small farmers from the city of Três de Maio, in the southernmost Brazilian state of Rio Grande do Sul, are going to harvest their seventh crop of organic products this year. They produce soy, maize, rye, wheat, vegetables, fruit, milk and brown sugar, controlled by Cotrimaio. The cooperative was a pioneer in incentives to organic production in the country and exports to France, Germany and the United States.
São Paulo - Small farmers form a city in the interior of the southernmost Brazilian state of Rio Grande do Sul, Três de Maio, are winning fame on the foreign market as producers of organic foods. The associates of the Cooperativa Agropecuária Alto Uruguai, the Cotrimaio, are going to harvest this year their seventh organic crop. They plant soy, maize, rye, wheat, vegetables, fruit, and also produce organic milk and sugar.
The group is made up of 71 farmers, most of them small, with properties that range from 10 to 20 hectares. The cooperative plans, however, to increase the number up to 2006. Cotrimaio has a total of 12,144 associates.
“There is market for organic products. Our problem is the dispute with technology and the production of genetically modified products,” stated the president of Cotrimaio, Antônio Wünsch. According to him, the cooperative was a pioneer in incentives to organic production in the country and the level of quality that has been reached may be measured by the visits of foreigners that take place regularly.
“Organic products have brought us greater visibility both in the country and on the foreign market and the reflexes of this may be noticed in the demand by foreign organizations that are interested in further information regarding the program for organic products,” stated Wünsch.
Organic products are one of the Brazilian bets for greater exports. The worldwide organic product market brings revenues of US$ 30 billion to Brazil every year. Today, Brazil has 7,100 certified organic product farmers and a cropland of 170,000 hectares. There is space for production of organic products, however, on six million hectares.
According to the Economic Research Institute Foundation (Fipe), Brazilian producers of organic products have revenues of US$ 250 million a year. Up to 2010, however, Brazil may have 10% of the world market of organic products, around US$ 3 billion.
Awareness
So as to inform and guide farmers regarding the benefits of cultivation of organic products, Cotrimaio organizes meetings, seminars, training and technical visits to the properties. The cooperative is also responsible for the certification of organic products. “In the beginning we started using the stamp of a French certifier, Ecocert, considered one of the largest in Europe and present in over 50 countries,” stated the supervisor of Agroindustry, Nelson Hammes.
Ever since the Cotrimaio organic product program was created, in 1999, organic soy and soy chaff have already been exported to France, Germany and the United States. On the domestic market, organic products reach the shelves of the main supermarkets, throughout the country. The greatest buyers are in the states of Rio de Janeiro and São Paulo, in southeastern Brazil.
The cooperative also has an organic product store, at the organization’s head office, where they trade flours, juices, mate tea, wines and fruits and vegetables.
Drought affected production
In the 2004/2005 crop, due to a loss caused by the drought that affected the south of Brazil, a total of around 150 tonnes of organic soy were harvested in an area of 409 hectares, against 369 tonnes in an area of 572 hectares in the 2003/2004 crop.
The cooperative’s global revenues in 2004 totalled US$ 95.4 million. The net result was US$ 2.2 million. According to Wünsch, in the 2003/2004 crop, Cotrimaio received 2.5 million bags of soy, between organic and conventional, representing around 180,000 tonnes. In the 2004/2005 crop, due to the losses, only 40,000 tonnes of the product were harvested. The wheat harvest was also affected. It dropped from 1.2 million bags, 80,000 tonnes in the 2003/2004 crop, to 1 million bags, around 70,000 tonnes.
China is the main import market of soy produced in the city. Exports currently represent 20% of production and the tendency is to grow in years to come. “Our target is for exports to reach at least 30% of soy production next year,” guaranteed the president.
The cooperative
Cotrimaio was established in 1968 by 25 farmers. There are currently 12,200 associates, 96% of them having less than 50 hectares of land. The cooperative has the capacity for storage of approximately 5,900 bags of grain.
The cooperative is located in the northwest of the state of Rio Grande do Sul, with branches installed in the cities of Dr. Maurício Cardoso, Humaitá, Independência, Horizontina, São José do Inhacorá, Vila Cascata do Buricá, Alegria, Esquina Araújo, São Caetano, Boa Vista do Buricá, Sede Nova, Tiradentes do Sul, Crissiumal, Três de Maio, Cruz Alta, Pejuçara, Boa Vista do Incra, Boa Vista do Cadeado, Fortaleza dos Valos, Três Capões and Ponte Queimada.
The cooperative also has supermarkets, agricultural input stores, petrol stations and a company for fuel trade and transport, apart from industrializing and selling products under brand Raízes.
*Translated by Mark Ament
ANBA