A CONSULT has been following the OBAGAFRUIT in various investment projects within the Rural Development Program (PDR), It includes measures aimed at agricultural exploitation and the processing and marketing of agricultural products. More recently, it has supported the preparation of the application for recognition as a producer organization, currently under review.
In this interview, we spoke with Diogo Oliveira, founding partner of OBAGAFRUIT, On the origins of the company, the commitment to organic production of small fruits, the aggregation of supply in the Viseu region, and the challenges associated with growth, internationalization, and recognition as a producers' organization.
What led him to create the company and where does his connection to the world of small fruits come from?
It went around the year 2011 When the idea arose to make a profit from my parents' Quinta in Viseu, while studying for a degree in Management, I decided to carry out a study, and concluded that the culture of small fruits, namely the culture of blueberries, could be an extremely interesting business opportunity. 2013, I submitted an application for Young Farmer, This allowed me to prepare the Quinta for the planting of blueberries. It was then that I started producing and selling this small fruit; I began to feel the difficulties of establishing a new crop in Portugal, such as the lack of knowledge about it, and the lack of players in the market. The blueberry producers are, at their core, producers of small-scale production, and this is how the OBAGAFRUIT, which since its creation has as its main objective to aggregate the supply of blueberry in the Viseu region.
How did you discover the potential of the blueberry culture in that region? When we are young, we always have curiosity and initiative to take risks with something new and different. In the Viseu region, there is a well-rooted history of the vine and apple culture. To obtain an attractive profitability, and given the small size of my parents’ Quinta, it did not become very viable to invest in these two crops. That’s when the idea arose to start planting blueberry, which seemed very interesting to us and there was some demand for it. We were among the first to start planting organic-produced blueberries in Viseu.
What is the product range of OBAGAFRUIT?
We market small fruits, namely blueberry, raspberry, physalis, gooseberry and blackberry. Our main product is blueberry. However, the market for raspberries has expanded very rapidly in our region.
What was the motivation for investing in Biological Production ModeThe choice to bet on the organic production method for blueberries was made from the very beginning. Initially, consumers of organic food products were considered a niche market. However, consumers are becoming increasingly concerned and interested in purchasing food produced using certified production methods that are sustainable and respect the environment and the well-being of animals. OBAGAFRUIT They have been betting on increasing the amount of organic production, and a sure choice has been made.
A OBAGAFRUIT é a company A national passion born from a love of agriculture that has long been rooted in the family of its founders.
Although it was officially established in 2016, The adventure began in 2011, With the biological production of blueberries, the participation and help of friends and family are fundamental.
Currently, the main activity of OBAGAFRUIT consists in the commercialization of small fruits, namely blueberry, raspberry, fig, gooseberry and blackberry berries.
The company aims to produce and market berries of the highest quality, committing itself to its producers, its consumers and our planet.
What driving system do they use? Do they plan to change the current driving system in the future?
All our production is carried out in the field. At the moment, we are conducting pilot tests for a drip irrigation system for conventional agriculture orchards. These tests are being carried out by OBAGAFRUIT, These will then be passed on to the remaining producers and partners.
What are your main markets and what are the main difficulties in entering them?
We work with the national market and with some retailers, which have grown considerably over the last year. Given our size and the fact that they are highly sought-after fruits in the countries of central and northern Europe, we have started exporting, with our main markets being France, Poland, the Netherlands and the United Kingdom.
These markets practice policies of protection for their local producers, and this may mean that at some point, our purchases may be interrupted or minimized, by prioritizing local purchasing.
Last year, productions in Europe were advanced due to the heat.
Given this situation, we have experienced serious problems in the flow of production, which has led us to export to markets outside the European Union (EU). These markets have proved to be very interesting and we want to develop them as well.
With CONSULT they were submitted 3 applications within the framework of PDR, One of small investment in transformation and marketing (PDR, 10.2.1.2), an agriculturalist (PDR, 3.2.1) and another one for processing and marketing (PDR, 3.3.1To what extent have the projects been important in fostering the growth of the activity?
I have full confidence in CONSULT as a consulting entity, to assist in the implementation of these projects, as they have demonstrated a good level of service.
Agriculture is a very volatile economic activity. We can have both fabulous and very profitable years, but in the vast majority of cases they are average or weak years.
These financial support are essential for anyone who wants to invest in agriculture, as they help minimize the added risks.
For an ordinary producer, starting a project From zero starting point and with own capital, it is very arduous and challenging, particularly in the Viseu region, with steep slopes and some of the land completely abandoned.
These subsidies have helped to keep many businesses afloat.
Are the supports sufficient? What criticisms are being made?
After applying for some measures, the biggest criticism I have is the increase in the level of requirements in bureaucratic processes.
When submitting the project Young Farmer, By focusing on the project and the business, I was able to avoid being so focused on the “bureaucracies” as is currently the case. These requirements take a lot of time and sometimes involve many entities that are unable to respond in a timely manner, which ultimately delays the entire process.
I suggest simplifying this requirement; for example, the prosecutor could sign a liability agreement that guarantees compliance with all obligations and applicable legislation.
as well as fostering our relationship with producers. To achieve an excellent product, we also need to meet the needs and expectations of the producer, so that he or she can also feel our difficulties as a marketing entity.
Do you plan to carry out more projects in the future?
Assim que o reconhecimento de Organização de Produtores for aprovado, pretendemos avançar para a submissão do Operational Program.
We are growing very quickly, with a constant need to invest to meet the demand that has been established. We want to continue investing in agricultural exploitation and the processing and marketing of small fruits, in order to continue expanding.
After we stabilized and ensured that we were properly equipped to increase our product offering, we sought to increase scale as well as our client portfolio and to invest more consistently in internationalization.
that there be centralization of the decision-making entity, to ensure greater uniformity in the requirements.
What measures could stimulate and facilitate the aggregation and scale-up of production in Portugal?
It was important to have an aggregation, not only of producers, but also of the commercialization entities, to increase the value of Portuguese products. OBAGAFRUIT focus on satisfying the needs of its customers by offering a product of the highest quality. Portugal, as a “tiny” country, needs to differentiate its products, and I believe that this is only possible by offering an excellent and recognized product. I believe that in the category of fruits, vegetables and herbs, this could be our secret.
Marketing entities need to gather and establish requirements throughout the entire chain, such as ensuring that charge books are kept up to date, in order to achieve the desired quality.
What are the objectives for OBAGAFRUIT in the medium and long term?
We intend to continue investing in the quality of our products. What was the motivation for establishing a producer organization (OP)?
For a long time now, the OBAGAFRUIT it behaves like an unrecognised OP.
Initially, we started working with producers in a very rudimentary way. We have evolved, and at the moment we collaborate exclusively with about 60 small fruit producers, divided between organic and conventional production. A technical department was created to provide them with support at all stages of the cultivation process. This association allows them to increase the supply of small fruits in the region, as well as achieve the scale necessary to reach large markets.
At the moment, we are stabilizing our structure and production, and we are also focused on consolidating our relationship with producers, because we believe that our potential is very great.
Um November 2022, The process of recognition of Producer Organization was delivered.
What benefits and difficulties does one experience in a model based on the organization of production?
After the approval of the recognition, we intend to expand the number of producers, strengthen the technical monitoring, and increase the organization's negotiating capacity. Scale is essential to better value the product, ensure regular supply, and consolidate more stable commercial relationships.
As a proposal for improvement, he suggested that there should be centralization of the decision-making entity, to ensure greater uniformity in requirements and reduce delays associated with coordination between different agencies.