Globalization of Fresh Fruit Products: The Role of Public Agencies and the Transformation of the Petrolina-Juazeiro Valley

Fresh fruits became one of the most globalized products within the agricultural sector. Different factors have contributed to propel this trend, such as cost reduction in transportation, improvement in cold chain facilities and changes in dietary habits. Production of fresh fruits for export has grown in Brazil, and it is present in over 30 production hubs. The Brazilian Northeast became one of those focal points, where its fruit production and exports come mainly from irrigated valleys, such as the Petrolina-Juazeiro one. Fruit exports have contributed to transform the Petrolina-Juazeiro valley: they have attracted producers, agribusiness firms, services companies, undergraduate schools, machinery and farm implement manufactures. Besides that, the job market has expanded in the export-oriented valley, as well as the diffusion of modern production technologies and marketing. However, the transformation of this area into a fresh fruit center can not be explained entirely by the globalization of the fresh fruit value chain. Although globalization facilitates market access for fresh fruit produce, this paper argues that the development of the Petrolina-Juazeiro valley is due to a long-standing government intervention through several public agencies that worked actively in these areas providing public goods.