Itaueira Frutas, a leading Brazilian fruit exporter, has committed R$80 million (equivalent to $15.84 million) to resume melon and watermelon production in Ceará, marking a significant return to the export market after a nearly decade-long hiatus. The company suspended operations in the state in 2016 when the Castanhão reservoir, a critical water source, reached just 9% capacity, severely impacting agricultural output.

Resuming Production in Ceará

The investment includes the acquisition of a 1,150-hectare farm in Morada Nova, Ceará, which is now being used for melon and watermelon cultivation. This expansion has boosted total production in Ceará, Bahia, and Piauí to 85,000 tons. The first harvest at the new property was completed at the end of 2024, though the company has not yet reached full production capacity.

The first full harvest from the Ceará site is expected to significantly increase the company’s output and global reach. Itaueira now exports melons and watermelons to the European Union, the United Kingdom, the Middle East, and Canada, capitalizing on the European sales window from September to March. The state’s strategic logistical position, with access to major ports and efficient transport networks, supports these export efforts.

Challenges and Market Strategy

Chief Executive Officer Tom Prado described 2025 as one of the most challenging years for fruit exporters serving Europe, noting that global melon prices were below domestic levels. Despite this, he said the company received interest from both former and new buyers, prompting a reevaluation of its export strategy.

According to Prado, Itaueira’s revenue in 2025 exceeded R$500 million ($99 million), a slight increase from the R$481.5 million ($95.34 million) recorded in 2024. The company’s EBITDA in 2024 was above R$122 million ($24.16 million), with melons accounting for 80% of its revenue. The company is also considering an initial public offering (IPO) to further finance its expansion.

Prado explained that the investment was necessary to rebuild working capital and finance long-term projects. ‘We chose to raise funds at attractive rates to rebuild working capital and finance investments more comfortably,’ he said. ‘We plan to continue investing in asset modernization and in bringing new technologies to the field. That will make the company even more competitive.’

Overcoming Water Challenges

Itaueira’s decision to return to Ceará was driven by the need to ensure year-round production. The company now operates in three locations, spaced 800 kilometers apart, to minimize the risks associated with weather-related issues such as disease, pests, and irrigation problems.

‘Melon needs water, but not rain, which brings diseases, pests, and problems with fertigation,’ said the company’s chief operating officer. ‘To mitigate risks, we chose to operate in three locations, with 800 kilometers separating the farms, so we can supply consumers year-round. That’s why resuming operations in Ceará was so important.’

Currently, Itaueira operates across 22,000 hectares in four states, with half of the land designated for environmental preservation. This approach aligns with Brazil’s growing emphasis on sustainable agriculture and environmental stewardship.

The resumption of operations in Ceará is expected to have a ripple effect on local economies, providing employment opportunities and boosting regional agricultural output. With global demand for fresh produce increasing, Itaueira’s strategic investments could position Brazil as a more significant player in the international fruit market.

The company’s return to Ceará also highlights the broader challenges and opportunities in Brazilian agriculture, as climate change and water scarcity continue to impact production. Analysts say the success of Itaueira’s revival could influence other agribusinesses to adopt similar strategies to mitigate environmental risks.