Brazil Wants the World Drinking Cachaça

     Brazil Wants the World 
Drinking Cachaça

    At present, Brazil
    produces 1.3 billion liters of cachaça annually.
    But only 1 percent of that is exported. Cachaça, a sugarcane-
    based aqua vitae, is Brazil’s most popular distilled alcoholic
    beverage. One of the problems with cachaça production
    is that 90 percent of it is produced on a mom-and-pop scale.
    by: Fabiana
    Uchinaka

    The idea is to turn Brazil’s most popular distilled alcoholic beverage, a
    sugarcane-based aqua vitae known as cachaça, into a premium
    drink on world markets. The process is underway at the Brazil Cachaça
    2004 fair in São Paulo which opened yesterday.

    This is the second annual
    cachaça fair sponsored by the Apex (Agência de Promoção
    de Exportações—Export Promotion Agency), which is housed
    in the Ministry of Development, Industry and Foreign Trade, and the Association
    of Cachaça Producers.

    This year Apex has brought
    in buyers from the United States, Portugal, South Africa, Argentina and Russia.
    It is hoped that the fair will generate US$ 4 million (12 million reais) in
    new business.

    They will join already
    faithful aficionados of Brazilian cachaça from Germany (which
    is the most faithful foreign buyer; they sipped up 30 percent of all cachaça
    exports last year), France, Italy, Spain and England.

    At the moment, Brazil
    produces 1.3 billion liters of cachaça annually. But only 1
    percent of that is exported. One problem is that much of the production is
    on a very small scale, practically homemade manufacture.

    In fact, 90 percent of
    cachaça production is on a mom-and-pop scale run by people who are
    unable to get on international markets. So Apex has been working with the
    Sebrae (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas—Small
    Business Administration) to unite and organize them so they can start exporting.

    That effort has begun
    to bear fruit. In 2002, a total of 107 cachaça businesses exported
    US$ 10 million. This year the target is for cachaça exports
    to reach around US$ 15 million. Apex says it intends to reach that target
    by bringing another 146 cachaça manufacturers into the export
    sector by the end of this year.

    The biggest challenge
    the cachaça export sector faces on international markets is
    not tariffs, but the question of quality. That will require time and training,
    says Murilo Albernaz, who heads Fenaca (Federação Nacional das
    Associações dos Produtores de Cachaça de Alambique—National
    Association of Alembic Cachaça Producers Association), a cachaça
    manufacturer association.

    "It may take five
    or six years to reach top international quality standards, but we have great
    potential. By next year, our exports will begin to jump," he says. The
    organizers of the fair are meeting with producers, explaining the requirements
    of importers and the ropes of export markets.

    The fair ends on Sunday,
    July 25. A total of 25,000 visitors are expected to attend.

    The Brazilian Drink

    Last year, Brazil took
    a decisive step towards registering the name "cachaça" as
    a national trademark. A decree published on October 3, 2003, presented all
    the specifications of the beverage and defined the "caipirinha"
    (similar to a daiquiri, but with cachaça, Brazilian sugarcane
    spirits, instead of rum). An earlier decree was not clear on these points,
    and Brazil ended up exporting cachaça as rum or "other distilled
    beverages."

    According to Ricardo da
    Cunha Cavalcanti Júnior, coordinator of plant inspection in the Ministry
    of Agriculture, the Brazilian decision was communicated to the World Customs
    Organization (WCO) to the World Trade Organization (WTO).

    He also informed that
    Brazil produces 1.3 billion liters of cachaça per year, and
    less than 2 percent are exported, chiefly to Germany, France, Portugal, Japan,
    and the United States.

    For Cavalcanti Júnior,
    Brazil does not desire to stimulate the use of alcoholic beverages, "but
    to occupy a market niche for an eminently national product."

    Cachaça
    is a genuinely Brazilian drink which has become the third most consumed worldwide
    (behind vodka and soju).

    Pratini de Moraes, Minister
    of Agriculture of the Fernando Henrique Cardoso’s administration, had already
    ordered standards to be set for the registration of cachaça
    producers so as to make them more competitive domestically and on international
    markets.


    Fabiana Uchinaka works for Agência Brasil (AB), the official press
    agency of the Brazilian government. Comments are welcome at lia@radiobras.gov.br.

    Translated
    from the Portuguese by Allen Bennett.

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