Mercosur-EU agreement will benefit the cassava packaging sector
The agreement between Mercosur and the European Union could open a new window of opportunities for the Brazilian market for biodegradable cassava-based packaging.
The assessment is from Lorenz, a company in the GTF group and the largest cassava processor in Brazil, which sees the advancement of trade negotiations as a strategic factor to expand exports of sustainable solutions produced from vegetable starches.
According to the company's new business director, Aleksandro Siqueira, the international scenario has been favoring renewable and biodegradable products, especially in Europe, where the pressure to reduce the use of fossil derivatives is growing rapidly.
In this context, Brazilian cassava is gaining ground as a competitive alternative to replace chemical raw materials used in packaging, adhesives and industrial polymers.
"The market has been looking to replace the famous chemical glue with vegetable glue. Currently, you already have applications in packaging, supermarket bags, paper packaging and adhesives made from cassava. This is growing because there is an increasing demand for biodegradable and renewable products", said Siqueira.
The company's expectation is that the agreement between Mercosur and the European Union will mainly facilitate logistical and regulatory processes, reducing bureaucracy and accelerating the clearance of Brazilian cargo in European ports.
For Lorenz, this point could be as important as the tariff reduction itself.
"Europe is already an important destination for Brazil and for us. The biggest benefit of the agreement will be to make the flow faster and more competitive. Today the product is stopped for many days in inspection and clearance. When there is an agreement between countries, the expectation is that the processes will be more agile", highlighted the executive.
The company assesses that the gain in competitiveness could increase exports of biodegradable solutions developed from cassava, especially at a time when Europe is facing high energy and industrial production costs.
According to Siqueira, this scenario has reduced the competitiveness of European and Asian producers, opening up space for Brazilian suppliers.
"Europe is facing a major energy crisis and this makes local production more expensive. Furthermore, the logistics cost from Asia to Europe has also increased significantly. Brazil has become more competitive and Brazilian cassava has gained prominence", he said.
The executive also highlighted that the crisis in the Middle East and the impacts on oil also strengthen the global search for alternative materials to petrochemical derivatives.
For him, packaging produced with biodegradable cassava-based polymers tends to gain scale in the coming years.
"Today we already have biodegradable polymers made with cassava. There are already bags, packaging and industrial applications using vegetable starches. With more expensive oil and environmental pressures, this should grow a lot", he stated.
According to Lorenz, the global industry has been increasing the demand for plant-based inputs both for environmental and regulatory reasons. In several countries, industrial sectors began to be encouraged to replace chemical components with renewable raw materials, a trend that directly benefits the cassava derivatives market.
"The industry has been looking for biodegradable solutions because there is consumer pressure, environmental pressure and also regulations. Cassava is a renewable source and meets exactly this demand", explained Siqueira.
In addition to packaging, cassava derivatives have been used in vegetable adhesives for cardboard boxes, bags, industrial tubes, food packaging and even applications linked to the oil and gas sector.
According to the company, the replacement of chemical components with plant-based solutions has gained momentum following new international environmental requirements.
"The packaging, stationery and stickers market has been growing significantly. The industry seeks to replace chemical products with plant-based solutions because this improves sustainability, reduces environmental impact and meets new legislation," he said.
For Lorenz, the Mercosur-European Union agreement can accelerate this movement by making trade more fluid and reducing operational costs for Brazilian exporters.
The company believes that Brazil has the conditions to consolidate itself as one of the main global suppliers of biodegradable cassava-based solutions.
"Brazil can become a major global supplier in the plant-based and biodegradable products market. Many multinationals already look at the country in a different way because of this potential", said Siqueira.
The company also highlights that the international advancement of solutions made from cassava strengthens the entire national production chain, from family farmers to the processing industry.
According to the company, the growth in demand for sustainable products can boost investments, job creation and expansion of Brazilian production in the coming years.
"We need to transform cassava into a value-added product. When this happens, we are able to promote production in the field, generate employment in industry and bring sustainable solutions to the world", concluded the executive.
Low-carbon agriculture gains ground in Brazil
Source: CNN