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

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8<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

currently supplies much of the wine consumed within the country. The remainder is<br />

split between Chile and Argentina both enjoying trade tariff preferences and the<br />

European Union that subsidizes exports and production.<br />

c) Customs inconsistencies. As noted later in this report there are many border<br />

formalities necessary for the importation of goods. Those formalities are not<br />

consistently administered by the different ports of entry. It is recommended that an<br />

advanced ruling be requested from customs if the importer is not confident as to the<br />

classification, value and tax treatment of the wine.<br />

d) Other potential risks include current issues with contraband wine products that cross<br />

the border illegally, especially along the Southern border with Paraguay. These<br />

products reach the market at an unfair advantage; with costs lower than other<br />

importers can match.<br />

e) Potential new legislation to control alcohol abuse is also being considered.<br />

Geography and Domestic <strong>Wine</strong> Production<br />

Climate and Topography<br />

It is in the southern region of <strong>Brazil</strong>, with high temperatures during the day and cool low<br />

temperatures at night that is responsible for the quality and wide variety of grapes.<br />

Primarily, grape and wine production are centered in the Serra Gaucho Mountains located<br />

parallel 29° with average temperatures between 12°C in the winter months and 22°C during<br />

the summer. These mountains include the<br />

sub-region of Vale dos Vinhedos, <strong>Brazil</strong>’s first<br />

Geographical Indication. Production marches<br />

down from the mountains to the southern<br />

valleys. The southernmost state of Rio<br />

Grande do Sul produces over 55 percent of<br />

national grape production. Other well known<br />

wine producing regions of <strong>Brazil</strong> include the<br />

states of São Paulo, Paraná, Santa Catarina,<br />

Pernambuco and newly discovered Minas<br />

Gerais.<br />

<strong>Brazil</strong>ian <strong>Wine</strong>ry Miolo, photo by Lethaargic/Flickr<br />

Vale do São Francisco<br />

The tropical state of Vale do São Francisco<br />

resides at 9° south latitude and with its dry<br />

climate makes it the only wine producing region<br />

requiring irrigation. The alkaline soil along with<br />

the climate conditions produces low yield<br />

grapes with high sugar levels. Producers in this<br />

region can harvest grapes two times a year.

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