“the situation at Brazilian ports has caused delays in ship departures and arrivals. For perishable products, such as fruits, this is a critical issue…”
Carlo Porro is the founder and CEO of Agrícola Famosa, the largest melon producer and fruit exporter in Brazil, which has recently acquired the Spanish company El Abuelo.
AgriBrasilis – What factors limit Brazil’s fruit exports?
Carlo Porro – Labor shortages and logistics issues. Labor shortages are currently the main limiting factor for the growth of exports. The logistics aspect is not much of a problem for Agrícola Famosa because we have our own ships. However, the situation at Brazilian ports has caused delays in ship departures and arrivals. For perishable products, such as fruits, this is a critical issue. Delays in ship arrivals and disorganization, such as several ships arriving simultaneously, have significantly affected Brazilian exporters.
In addition to these two points, other factors involve compliance with international standards on pesticide use, obtaining certifications, and addressing social concerns. I wouldn’t call these limitations but rather specializations that farmers need to develop to export. The truly limiting factors are labor shortages and logistical issues.
“Labor shortages are currently the main limiting factor for the growth of exports…”
AgriBrasilis – What are the demands of importing markets?
Carlo Porro – Our main market is Europe, but each market has its own specifications and preferred varieties. For melons and watermelons, for instance, there are more than eight varieties. For watermelons alone, we work with four types. For melons, we have cantaloupe, yellow melon, American melon, among others. Each market has its preferences regarding varieties, sizes, etc. This is without mentioning the strict requirements in the sector today, such as residue limits for pesticides. All of this needs to be respected to access the desired markets.
AgriBrasilis – How can verticalization be effectively achieved in the fruit sector?
Carlo Porro – I believe in complete vertical integration. Verticalization is essential for controlling and managing every step of the process, from production to delivery to the client.
It starts with quality production. Quality is the key to exporting. To achieve this quality, you must produce yourself, which involves risks and investments, or partner with excellent farmers. Therefore, the first focus should be on production, understanding that without quality, good results won’t be achieved. From there, we “move up” the supply chain.
At Agrícola Famosa, for example, we have our own ships, justified by our volume. We started as small farmers without such access. Today, I produce 100% of what I export; almost 70% of it is shipped on our own vessels, and a significant portion of our sales is to our own companies in Europe. We have established operations in England, recently acquired El Abuelo in Spain, and are looking to set up a company in the Netherlands.
AgriBrasilis – What are the main challenges regarding ESG?
Carlo Porro – Today, a large part of our phytosanitary treatments is done through biological control. It is necessary to produce with minimal use of pesticides, relying on bio-inputs.
Additionally, there are considerations about farm hygiene, how employees are treated, etc. Certifications, both environmental and social, are just as important as pesticide residues. All these aspects form part of the same “ecosystem” and must be well-calibrated for a company to succeed in exporting.
AgriBrasilis – How can the shelf life of products be increased and logistics optimized?
Carlo Porro – Efficiency is needed at every step of the production process, from planting to delivery. This is how the shelf life of fruit can be increased. Harvesting earlier doesn’t help because the fruit won’t have the flavor and quality required. It must be harvested at the right stage, transported quickly to packing houses, the temperature reduced promptly, and the cold chain maintained. Efficient logistics for transportation, whether by ship or plane, is critical. This is why mastering the entire process is necessary to achieve efficiency.
AgriBrasilis – What are your expectations following the acquisition of El Abuelo?
Carlo Porro – This is part of a strategy to directly access consumer markets. El Abuelo is a very strong brand in Spain, arguably the most prestigious for Piel de Sapo melons. In addition to sourcing from Spanish producers, El Abuelo grows melons in Senegal, a production window that is very important for us.
Although Agrícola Famosa produces year-round, there are rainy periods in the Northeast when production gaps occur, and Senegal’s production can fill those gaps. This was a highly strategic acquisition.
AgriBrasilis – What technologies does Agrícola Famosa use to optimize production in semi-arid climates?
Carlo Porro – We employ many technologies, from irrigation to soil treatments and biological control. The semi-arid climate is ideal for production but challenging to manage. Precision and accuracy are essential.
For melons, for example, the time from planting to harvest is only 60 days—a very short cycle in extreme conditions. This is why we apply the best available technologies, from harvesting and packaging to water sourcing, ensuring every aspect is optimized.
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