Brazil's improved performance will mean a dramatic increase – forecast by the USDA to reach 90 per cent – in exports after the 2001 crop harvest was hit by frost and rain.

The production increase of 20 per cent is due to good weather in the main growing region of Santa Caterina. However, hail has affected some orchards in the second largest production area of Rio Grande do Sul. Crop quality is reported to be good and about 25 per cent of the harvest is already in.

Volumes are still below the record crop of 1999-2000, which stood at 967,063t, but good product quality and favourable exchange rates this year should see the forecast rise in exports realised.

The EU is the main market for Brazil's apple crop with the UK taking a significant share: more than 10 per cent of total exports last season and 18 per cent in 2000.

Gala and Fuji still dominate production in Brazil with the harvest for Gala starting in January and Fuji in March. Picking will be complete by the end of April or early May.

This season will see Brazilian growers harvest a new local variety – Diane – developed by the research service in Santa Caterina. Picking begins this month. The variety is the first to benefit from new cultivar protection laws introduced in Brazil.

Brazilian growers are also investing in new varieties developed overseas, most notably production of Braeburn and Cripps Pink to be marketed as Pink Lady. Considerable investment has been made in production infrastructure totalling $200millon in recent years.

Producers in Santa Caterina, which accounts for 54 per cent of Brazilian production compared to Rio Grande do Sul's 43 per cent, stand to benefit from a regional government assistance programme. Under the scheme small producers will be provided with support to form producer co-ops to market their production as an alternative to the large companies which dominate the sector.

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