Brazil: Citrus industry opens negotiations with offers below last season

The first indications of contracts and renegotiations for the 2026/27 orange season in the citrus belt of São Paulo and Triângulo Mineiro emerged shortly after Fundecitrus (Citrus Defense Fund) released its first estimate in May. However, no deals have been closed yet, indicating that the prices currently under discussion are initial attempts by the industry to establish a position for the new season. These prices, in turn, are lower than those observed last season.

Fundecitrus projects the 2026/27 orange crop at 255.2 million 40.8-kg boxes, down 13 % from the previous season. Under traditional market conditions, this reduction would support prices at high levels. However, the current environment continues to be strongly influenced by factors that have reduced producers’ bargaining power in relation to the industry.

One of these factors is the high global inventories of orange juice from the previous season (2025/26). Even after a smaller crop in the citrus belt, the international market continues to operate with weak demand, especially from the European Union. World consumption of OJ remains influenced by high prices for consumers in recent seasons. Thus, the industry’s urgent need to replenish inventories has decreased significantly compared to the previous season.

In the last season, contracts were closed at prices ranging from BRL 40 to BRL 55 per 40.8-kg box, depending on the negotiation period. According to market participants surveyed by Cepea offers currently range between BRL 35 and BRL 40 per box.

Players expect negotiations to progress gradually in the coming weeks, especially as mid-season fruits reach a better stage for harvesting and industrial activity picks up from the second half of June onward.