Brazil Wine Market Report JBC EMP July 2011 - California Wine ...

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Brazilian Wine Market Report
Other trade organizations of which Brazil is a member include the Global System of Trade
Preferences among Developing Countries (GSTP), Multilateral Investment Guarantee Agency
(MIGA), and Organization for Economic Cooperation and Development (OECD).
Brazil’s trade policy drastically affects its wine imports and the potential for US wines. In
2006, Brazil and Chile signed an agreement to gradually eliminate import taxes reaching
zero percent by 2010. In exchange, Chile agreed to purchase Brazilian buses. As members
of MERCOSUR, Argentina and Brazil share zero percent import taxes. This explains the high
concentration of these wines in Brazil from previous sections of this report.
Trade Balance
Grape, Grape juice, wine and by-products exports and imports balance: amounts in
USD 1,000.00 (FOB) – Brazil 2008/2010
Product 2008 2009 2010
Quantity USD Quantity USD Quantity USD
Exports
Fresh grapes (t) 82,242 171,456 54,560 110,574 60,805 136,649
Grape juice (t) 6,623 15,174 5,860 12,621 3,098 8,048
Table wine (1,000 L) 10,346 7,118 25,514 8,941 10,067 5,297
Sparkling wine (1,000
L) 355 548 190 347 320 1,335
Total
194,296
132,483
151,329
Imports
Fresh grapes (t) 12,565 14,849 18,655 21,697 24,794 36,075
Raisins (t) 20,146 34,973 22,656 32,648 25,919 50,664
Table wine (1,000 L) 54,410 165,692 55,927 176,396 70,737 223,080
Sparkling wine (1,000
L) 3,502 20,144 3,200 19,473 4,314 27,961
Grape juice (t) 185 227 43 52 - -
Total
BALANCE
235,885
-41,589
Source: MDIC (Ministry of Development, Industry and Foreign Trade)
Created by: Loiva Maria Ribeiro de Mello - Embrapa Uva e Vinho (Grape and Wine)
250,266
-117,783
337,780
-186,451
Imported wine sales are higher than domestic sales by a large margin, proving Brazil to be a
targetable consumer market. In 2010, imported wine totaled $251.5 million. There was a
26.48 percent increase in wine imports quantity with an average price of USD 3.15 per liter.
The table above shows Brazil to hold a USD 186.451 million deficit due to an increase in
imports in all items and a reduction in exports.