Brazil’s orange juice exports plummet 20% amid agricultural and economic challenges

(Originally posted on : Invezz )

Brazil, known as the world’s largest producer and exporter of orange juice, has seen a major decline in exports.

Brazil’s orange juice exports dropped by 19.7% in the first half of the 2024/25 crop season compared to the same period last year, Reuter reported cited data from exporters’ group CitrusBR.

The country exported approximately 535,600 metric tons of orange juice during this period, CitrusBR, which represents Brazilian citrus juice exporters, reported on Wednesday.

The global context of Brazil’s citrus industry

Brazil is the world’s largest producer and supplier of orange juice, the reduction in exports is particularly concerning, especially as frozen concentrated orange juice prices in New York have reached a historic high.

This price increase is primarily driven by a reduced orange supply from both Brazil and Florida, two key orange production regions.

In recent years, the market, which has been operating under supply constraints, has seen the emergence of alternatives for consumers.

Pressures on production and disease outbreaks

The steep decline in Brazilian orange juice exports is directly related to several negative variables influencing agricultural production.

A key region, that is primarily responsible for producing oranges for Brazil, has been severely afflicted by erratic weather, with drought and excessive rain wreaking havoc on agricultural cultivation.

The situation was exacerbated by the outbreak of greening disease, which caused widespread damage to orange trees and resulted in a significant loss in production.

According to the most recent predictions from Fundecitrus, a prominent citriculture research institute, the present crop yield in key Brazilian regions is seen at its lowest level in nearly 30 years.

This circumstance jeopardizes Brazil’s citrus sector’s long-term sustainability and resilience.

Industry insights on current challenges

According to Reuters, CitrusBR’s executive director, Ibiapaba Netto, assessed the market’s critical condition from a different angle.

He stated that the significant rate of drop in exports is due to overall decreasing consumption.

“The sector faces five cycles of small and medium crops and, according to international references, an unprecedented price rise that shows that demand decline is inevitable”, emphasized Netto.

Trade dynamics and economic outlook

In contrast to the anticipated and actual challenges linked with the reduction in exports, there is now a mini success story in terms of financial performance.

Data from the government and received from CitrusBR shows a surprising 42.7% increase in orange juice income from July to December, totalling $1.88 billion.

However, the surge is most likely the result of international prices increasing as customers responded to the overwhelming impact of constrained supplies.

Furthermore, Brazil continues to rely on the European market as its primary importer of orange juice, accounting for 42.7% of the total volume sent during that period.

This significant concentration on European markets represents a clear potential for Brazil to strengthen its trade ties and address local production challenges more effectively.

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