Demand from the US for the brazilian juice underpins exports
The higher demand for orange juice from the United States raised the Brazilian exports of the commodity in the first two months of the 2023/24 exporting season (July and August). The average price paid for the national juice increased in that period too, influenced by low inventories …
The higher demand for orange juice from the United States raised the Brazilian exports of the commodity in the first two months of the 2023/24 exporting season (July and August). The average price paid for the national juice increased in that period too, influenced by low inventories and the lower output in Brazil. The higher volume exported and the valuation of the Brazilian juice abroad resulted in a significant increase in the revenue of exporters.
According to data from Secex (Foreign Trade Secretariat), Brazil exported 182.9 thousand tons of Frozen Concentrate Orange Juice (FCOJ) Equivalent in July and August, 4% more than the volume shipped in the same period of 2022. Revenue totaled USD 397.9 million, a staggering 20% up in the same comparison.
As for the types of juice exported, shipments of Not-From-Concentrate (NFC) orange juice increased 19 %, and revenue, 25 %; of FCOJ, the volume exported decreased 3 %, while the revenue rose 17 %. The different performances of the exports of these types of juice are linked to the higher demand from the US for NFC juice, whose volume sent to the North-American country rose a staggering 51 %.
The United States
For one more season, the US have been importing orange juice from Brazil. In the first two months of the current season (23/24), the US imported 50.5 thousand tons of FCOJ, an increase of 38 % compared to that in the same period of 2022/23. Revenue totaled USD 113.2 million, 57 % higher, in the same comparison.
Lower orange production in the US because of the 2022/23 crop of Florida – which has decreased 62 %, according to the USDA – and lower supply from Mexico, the second major supplier of orange juice to the US, led the country to raise imports from Brazil.
To the European Union, Brazil exported, in July and August, 112.6 thousand tons of orange juice, a slight 3 % up from that last season. Revenue totaled USD 241.9 million in the two first months of the season, 14 % higher, in the same comparison.
According to data released this week by Fundecitrus, the 2023/24 harvest in the citrus belt (São Paulo State + the Triângulo Mineiro) is expected at 309.34 million boxes of 40.8-kg each, stable compared to that estimated in May but 1.5 % lower than the output from last season. It is important to highlight that this volume is a lot lower than the industry’s needs to meet the demand from abroad and replenish inventories, which are currently very low.