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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.

European Union

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.

Crop Estimates

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.

A survey carried out through independent auditing of each of the companies associated with CitrusBR and also consolidated by external auditing revealed that the total oranges processed in the Sao Paulo and Minas Gerais Citrus Belt in the 2022/23 season was estimated at 265,292,217 boxes of oranges of 40.8 kg of which 243,967,550 boxes were processed by CitrusBR members and close to 21.3 million boxes were processed by non-members.

With the final estimated juice yield on fruit of 280.58 boxes of oranges to produce one metric ton of FCOJ equivalent in aggregate for CitrusBR members and non-members, the final estimate for total orange juice production for the 2022/23 season was of 945,529 metric tons of FCOJ equivalent …

Please download the full report: www.citrusbr.com

The Brazilian orange crop for Marketing Year (MY) 2022/23 is forecast at 410.6 million 40.8-kg boxes (MBx) or 16.75 million metric tons (MMT), a slight decrease of 1.1 percent vis-à-vis the current season, with the resumption of the biennial crop cycle and consequently, a lower fruit load per tree. Meanwhile, orange weight at harvest is projected to increase 3.71 percent in relation previous crop, due to heavy rains throughout the citrus belt since October 2022. FCOJ 65 Brix equivalent production for MY 2022/23 is forecast at 1.125 million metric tons (MMT), a decrease of nine percent from the estimated orange juice production for MY 2021/22, which was revised upward to 1.135 MMT. A larger share will supply the U.S. market to compensate Florida’s juice production, which was damaged significantly by hurricane Ian. …

Please download the full report: https://apps.fas.usda.gov

The 2022-2023 Florida all orange forecast released by the USDA Agricultural Statistics Board is 15.9 million boxes. The total is comprised of 6.15 million boxes of non-Valencia oranges (early, mid-season, and Navel varieties), unchanged from the June forecast, and 9.70 million boxes of Valencia oranges, up 100,000 boxes from the June forecast. The forecast of all Florida grapefruit production is lowered 10,000 boxes to 1.81 million boxes. Of the total grapefruit forecast, 250,000 boxes are white, and 1.56 million boxes are the red varieties. The Florida all tangerine and tangelo forecast is now 480,000 boxes. …

Please download the full citrus crop production forecast: www.nass.usda.gov

Klaveness Digital announces its latest partnership with Citrosuco, a global leader in orange juice concentrate production, as the company adopts CargoValue to optimise supply chain operations. Citrosuco is the latest to join a growing community of industrial companies taking the lead in how they manage their seaborne supply chain.

In today’s highly competitive market, Citrosuco recognises the value of incorporating advanced technologies to support its standing in the global citrus industry. The company’s dedication to creating top-quality products and embracing environmentally responsible practices has encouraged its pursuit of innovative solutions for enhancing its supply chain.

With the adoption of CargoValue, Citrosuco can now efficiently plan and manage their entire shipping and inventory schedule in one solution with a single source of information, from planning to production, allowing the company to reduce risks and costs. Citrosuco currently has 5 marine terminals located in: Santos (BR), Wilmington (USA), Gent (Belgium), Toyohashi (Japan) and Newcastle (Australia), as well as 5 dedicated ships and 1 multi-cargo vessel.

According to Luiz Fernando Ragonha Jr, the Director of Supply Chain Planning at Citrosuco’s Santos Port Terminal, the adoption of CargoValue by Citrosuco reaffirms the company’s prominent position in the global citrus industry. By embracing this cutting-edge technology, Citrosuco demonstrates its unwavering commitment to keeping pace with the latest industry trends and advancements. The implementation of this solution not only enables Citrosuco to streamline its operations and decrease operating costs, but also plays a crucial role in reducing the company’s environmental impact. By identifying opportunities for more sustainable transportation and storage practices, Citrosuco actively contributes to its CO emission reduction targets, thereby aligning itself with a more environmentally conscious future.

Greater efficiency, cost savings, and sustainability in the supply chain

“By incorporating CargoValue into their operations, Citrosuco demonstrates their forward-thinking approach and commitment to excellence,” said Aleksander Stensby, CEO at Klaveness Digital AS. “We’re excited to partner with Citrosuco to help them achieve greater efficiency, cost savings, and sustainability in their global supply chain.”

2023 -2024 orange crop forecast

The 2023 – 2024 orange crop forecast for the São Paulo and West-Southwest Minas Gerais citrus beltby Fundecitrus in cooperation with Markestrat and full professors at FEA-RP/USP and FCAV/Unesp, is 309.34 million boxes (40.8 kg). Total orange production includes:

  • 56.11 million boxes of the Hamlin, Westin and Rubi varieties;
  • 18.22 million boxes of the Valencia Americana, Seleta, Pineapple and Alvorada;
  • 98.95 million boxes of the Pera Rio variety;
  • 105.23 million boxes of the Valencia and Valencia Folha Murcha varieties;
  • 30.83 million boxes of the Natal variety.

Approximately 27.02 million boxes are expected to be produced in the Triângulo Mineiro region.

The projected volume is lower only by 1.55 percent as compared to the previous crop, which totaled 314.21 million boxes. That minor difference maintains the production at the same level as in the previous crop season and within the average range for the last ten years, as shown in Graph 1. As compared to the average volume produced in the last decade, the current crop shows a slight increase of 1.04 percent

Please download the complete forecast under: www.fundecitrus.com.br/pdf

The Brazilian exports of orange juice are on the rise in the current season (2022/23). According to data from Secex (Foreign Trade Secretariat), between July/22 and Feb/23, Brazil exported 776.3 thousand tons of Frozen Concentrate Orange Juice (FCOJ) Equivalent, 14 % more than that shipped in the same period of the previous season. Revenue totaled USD 1.5 billion, 34 % higher, in the same comparison.

The higher increase in the revenue than in the volume exported highlights the higher average price paid for the commodity exported by Brazil. Data from Secex show that the quotations for the national FCOJ Equivalent rose 22 % between the last and the current seasons, and for Not-From-Concentrate juice, 7 %.

Exports to the European Union, the number one destination for the Brazilian orange juice, have decreased 2 % this season, while revenue has increased 16 % because of the recent valuations.

To the United States, exports are on the rise. In the current season, 240 thousand tons of the product have been shipped to this destination, a staggering 82 % up from that last season. Revenue more than doubled (+ 110 %), totaling USD 478.7 million. With shipments to the EU being stable and the increase to the USA, the share of the Brazilian juice in the total imported by the USA rose from 19 % in 2021/22 to 31 % in 2022/23.

It is important to mention that America’s high demand for the Brazilian juice is linked to the fact that the 2022/23 orange season in Florida has been compromised by the high incidence of greening and natural disasters, such as hurricanes and frosts.

Firmenich introduces Orange NextGen replacers and extenders, its natural alternative to FTNF (From The Named Fruit) orange oils, achieving identical orange flavours at significant economic benefit to customers and enabling sustained supply.

The global orange oil market has been under severe pressure and volatility in recent years due to crop shortages, poor fruit quality, climate-related challenges, and transportation instability. To address these supply disruptions and meet the growing demand for orange citrus oils, Firmenich has developed a range of natural, high-performing Orange WONF (With Other Natural Flavours) solutions, achieving taste profiles identical to orange oils.

“A fundamental part of our commitment to being our client’s unrivaled Citrus Partner means providing great taste and consistent quality, together with supply stability,” said Sonia Botta, Firmenich’s Global Citrus VP. “This is especially relevant in light of the continuing supply challenges facing the orange oil market. By leveraging our strong in-house citrus capabilities, advanced analytical expertise and deep understanding of natural molecules, our experienced Citrus Flavorists have masterfully created Orange NextGen replacers and extenders, allowing us to provide equivalent taste at cost competitiveness.”

For use in a wide variety of applications including waters, juices, alcoholic beverages, sweet goods and savory products, Firmenich’s Orange NextGen is designed to replace or extend orange oils, helping customers avoid product disruptions and delivering the same great flavour their consumers have grown to love.

The processing of the oranges from the 2022/23 crop is beginning to slow down in Brazil, but it is still higher than the usual for this time of the year. In February, five plants – of the large-sized processors – were operating, the same as that last year but much more than that in 2020 and in 2021, when only a single plant was processing oranges.

According to Cepea collaborators, last year, the orange harvest was delayed, which explained the higher volume being processed in February. However, in the 2022/23 season, late processing is due to rains, which are hampering crop activities – although workers manage to get into the groves to harvest oranges, transportation is being difficulted.

The end of processing is still uncertain. Agents from processors reported that planning has been postponed because of the difficulties in crop activities. So far, some plants are expected to continue to process oranges in March.

A frequent concern among agents from processors is the yield of the oranges being harvested, majorly in 2023. They reported that, with frequent rainfall, the quality of the fruits for juice production has decreased, raising the number of boxes needed to the produce a ton of concentrated juice – higher moisture raises water absorption by fruits.

As for prices in the spot market, they were up to BRL 38.00 per 40.8-kilo box (harvested and delivered to processor) in February, considering large-sized companies. At smaller-sized processors, the prices paid for pear and late oranges reached BRL 40.00/box.

For the new crop (2023/24), whose processing is expected to begin in May/June, bids from large-sized processors have been up to BRL 38.00/box. Agents from processors reported that, despite the increase compared to the first bids for the 2022/23 crop, farmers expected higher prices, and, thus, many of them postponed deals.

ORANGE JUICE – Despite the valuation of concentrated orange juice at ICE Futures in recent months, there have not been major reflexes on processors’ revenue. According to Cepea collaborators, most of the juice is being sold through contracts with fixed prices. Since Jan. 1st, the contract due in March has valued 19%%, closing at USD 3,543/ton on Feb. 23rd.

TAHITI LIME – Tahiti lime processing was high in February but is expected to slow down in March. The company that processes tahiti lime aims to receive lower volumes of the fruit in the coming weeks. In February, two plants were receiving tahiti lime, but from March onwards, only one of them is expected to keep activities going. The prices paid by large and small-sized processors for tahiti lime are between BRL 12 and BRL 14/box.

The demand for oranges in the in natura market has been increasing since mid-January. The supply, in turn, is low, especially for out of season pear oranges, which present higher quality compared to others. Therefore, pear orange prices are moving up, operating above BRL 50.00 per 40.8-kilo box (on tree). The average price for pear oranges was at BRL 47.59 per box (on tree) between Feb 13 and 16, for an increase of 3.4 % from that in the week before.

The supply of late fruits is also low, but slightly higher than that for pear oranges, and the ripening level is more advanced, which is leading some purchasers away from trades.

Concerning the tahiti lime, prices are at low levels and have not been enough to cover production costs for most citrus growers. However, in mid-February, players surveyed by Cepea reported a slight price rise because of the firm demand (as the carnaval period was close in Brazil, the demand to prepare drinks usually increases) and of the quality improvement in some areas – fruits that are close to the ideal standard have higher prices. In spite of that, tahiti prices may not recover significantly up to the end of February, since the supply is expected to continue high.

ORANGE JUICE EXPORTS – Brazilian shipments of orange juice continue to increase in the partial of the 2022/23 season (from July/22 to January/23). Secex data indicate that the volume totaled 707.7 thousand tons, 15% up compared to the same period in 2021/22. The revenue totaled USD 1.3 billion, for an increase of 35% in the same comparison.

Updated orange production1 forecast totals 316.23 million boxes

The third 2022-2023 orange crop forecast for the São Paulo and West-Southwest Minas Gerais citrus belt, published on February 10, 2023 by Fundecitrus in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp2 amounted to 316.23 million boxes of 40.8 kg each, a volume 0.7 % higher than the projected scenario in December 2022. This increase is mainly due to the production of the Pera Rio variety, whose harvest is close to the end with higher-than-expected yield. The heavy rains that occurred in the last two months could have further expanded the crop yield, since they contributed to the growth and weight increase of oranges. However, the highly frequent and intense rainfall (many in the form of storms), also significantly intensified the premature fruit drop, offsetting the positive effect of weight gain. This was especially true for the late varieties, as most of these cultivars had not been harvested when the heavy rains started …

Please download the complete forecast under: www.fundecitrus.com.br/pdf

1Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Alvorada, Pera Rio, Valencia, Valencia Folha Murcha and Natal.
2Department of math and science, FCAV/Unesp Jaboticabal Campus.

Flowers of the 2023/24 crop, verified in the second semester of 2022, were considered excellent in the citrus belt of São Paulo and Triângulo Mineiro, which resulted in expectations of a good harvest. However, the weather after flowers blossomed was not ideal in many areas. Therefore, the next season may register lower supply compared to the demand.

Areas that have irrigation system (44 % of the total is located in the north of São Paulo state) registered anticipated flowers (in mid-July), and the weather was good after the blossoming. In this case, the development is considered satisfactory.

In other areas, however, scenarios were very distinct, since the rainfall was irregular and at different volumes among the regions. In the southwest of SP, flowers blossomed in late September, while it occurred in mid-October in other areas. In this case, as flowers opened in the rainy season (September/October), there had been more cases of blossom-end rot (“estrelinha”), increasing flower abortion.

Another aspect that reinforced concerns of the citrus sector in Brazil is the below-average amount of rainfall in many regions during the flower-settlement (especially in November), and temperatures were high in some moments. Thus, fruitlets dropped. From mid-December until now, rains have been more frequent, which brings relief, but are not capable to revert the scenario of losses.

In general, players expected that the 2023/24 season would be higher than the current; however, after many difficulties, opinions have started to change. The USDA released a report in December indicating that the Brazilian production may total 305 million 40.8-kilo boxes, 1.9% less compared to the current crop. It is important to mention that a more accurate forecast for 2023/24 will be possible only in mid-February.

Therefore, the scenario of low inventories at the end of 2022/23 may not be reverted in the next season. CitrusBR says that the ending stocks by June/23 may total only 140 thousand tons, lower than the strategic level, of 250 thousand tons.

Cepea calculations indicate that, in order for the volume in stocks by the end of 2023/24 (in June/24) returns to the strategic level of 250 thousand tons, the orange processing in 2023/24 may be at roughly 300 million 40.8-kilo boxes, which is equivalent to a production in São Paulo state and in Triângulo Mineiro at 340 million boxes, higher than what the USDA forecast.

TAHITI LIME – The first two months of 2023 may register high supply in São Paulo state, due to the peak period, which can press down quotations. On the other hand, as the industry may intensify processing activities and exports tend to increase in this period, the volume available is expected to reduce in the domestic market.

In 2022, orange prices were similar to those in 2021 in the in natura market. Although the production had increased in the citrus belt in São Paulo and in Triângulo Mineiro, the supply was controlled, due to the fact that more fruits were sent to the industry. However, both the Brazilian economy and the weather were unstable, limiting the consumption in some periods. From January to November, the average price for pear oranges was at BRL 38.93 per 40.8-kilo box (on tree), 1.6 % down compared to the same period in 2021.

As for the industrial segment, values moved up from 2021 to 2022, despite the recovery in the orange production. Juice stocks closed the 2021/22 season at low levels, leading processors to increase the demand for the raw material. From July to November, the average price in the spot market was BRL 31.22 per 40.8-kilo box (harvested and delivered), 8% up in relation to the same period in 2021. It is worth noting that producers were expecting more significant price rises, due to the sharp increase of production costs.

The orange production in the 2022/23 season is likely to hit 314.11 million 40.8-kilo boxes in the citrus belt (SP and Triângulo Mineiro), for an increase of 19.5 % in relation to the crop before, according to that projected by Fundecitrus in December/22. This forecast is related to the favourable weather (regular rainfall). In spite of the recovery, the production may not be enough to have surplus, due to the high demand from the industry, since juice stocks are low.

According to CitrusBR, orange juice ending stocks in the 2021/22 crop (June/22) were confirmed at low levels, 143.1 thousand tons, downing almost 55 % compared to the season before.

Despite the increase in the 2022/23 orange production, the volume in stocks by the end of the crop may not recover. CitrusBR estimates that 2022/23 stocks, in June 2023, are likely to total 140 thousand tons. The industrial yield, in turn, may be lower than in the crop before, and exports are expected to increase, due to the higher juice demand from the US.

JUICE EXPORTS – Orange juice shipments decreased 3 % in the 2021/22 season (from July/21 to June/22) compared to the previous. Exports to all destinations totaled slightly more than 1 million tons, according to Secex. The revenue amounted USD 1.68 billion, 9 % up in the same comparison.

This is the second consecutive crop that shipments move down, and this may be related to the low orange production in São Paulo and Triângulo Mineiro over the last two crops (2020/21 and 2021/22). The revenue increase, in turn, is linked to the higher dollar prices, especially from March/22 onwards. In the partial of the current season (from July/22 to November/22), exports are moving up again, influenced by the firm demand from the United States.

The 2022/23 orange crop in Florida may be the lowest since 1936/37, with the impacts of greening reinforced by hurricanes Ian and Nicole. In December, the USDA updated its production estimate to only 20 million 40.8-kilo boxes, 29 % less compared to that forecast in October and 51 % below the previous season.

The UK Government has announced that it is suspending the tariffs imposed on a range of food and drink items, including orange juice (see the full list via this link).

Success on the latter product comes after the BSDA and the British Fruit Juice Association applied (in July 2021) to get the two commodity codes which make orange juice products more expensive suspended.

During the UK’s membership of the EU, Industry had to submit applications to the bloc to request suspensions, which then had to be assessed by all member states.

BSDA Director Gavin Partington, said: “We welcome the Government’s decision to suspend the tariffs placed on orange juice imports. This will ease some of the cost pressures faced by our members such as on fuel and transport. A 150 ml serving of orange juice counts as one of your 5 A Day and is a cost effective way of working towards the target which – according to NHS data – is currently being missed by all age groups.”

The tariff suspensions are expected to apply for a period from 1 January 2023 to 31 December 2024.

Louis Dreyfus Company B.V. announced the successful development of a new product made from not-from-concentrate (NFC) orange juice, presenting a 30 % reduction in natural sugar content and more than triple dietary fiber content, while preserving original taste (Brix value) and vitamin C level.

Further to a five-year research effort by the Group’s in-house R&D laboratory team of food engineers, chemists and biotechnologists in Bebedouro, São Paulo State, Brazil, LDC has developed a successful process to reduce sugar content in orange juice, in line with the company’s commitment to offer nutritious, high-quality juices that address growing consumer demand.

“Complementing our extensive portfolio of juices and ingredients from Brazilian-grown citrus fruits, this new product represents another positive step in LDC’s strategy to diversify revenue through value-added products, including specialty ingredients and products like this one,” said Juan José Blanchard, LDC’s Global Head of Juice. “Leveraging our global network and partnerships, LDC aims to bring this new product to the global market in collaboration with leading beverage industry players, contributing to the advent of healthy, nutritious juice product options that respond to consumer expectations, while continuing to invest in R&D activities targeting further reductions in sugar content.”

Although commercial roll-out is initially focused on Asia Pacific, with an initial launch planned in early 2023 in China, the new product is available to industry customers worldwide, including in Europe, North America and South America, where the Group sees growing consumer demand for healthy, nutritious, great-tasting diet options.

From now on, JuiSea Shipping will operate a regular shipping service from Ghent in North Sea Port for the export of orange juice to the United Kingdom. North Sea Port thus manages to strengthen its position as a foodport.

JuiSea Shipping is a collaboration of Refresco and Trilobes, both with headquarters in the Netherlands. The orange juice will be loaded on board the 89m vessel MV Marilie in Ghent at Louis Dreyfus Company and Citrosuco. Chartered by JuiSea Shipping, this vessel will sail between Ghent and the port of Portland, UK, 32 times a year, where it will be offloaded for Refresco’s Bridgwater plant. The vessel, sailing under the Finnish flag, will carry both concentrates of orange juice and fresh orange juice.

Global players

For the import and export of orange juice, North Sea Port is home to companies from all over the world. The Refresco Group is the world’s largest independent bottler of soft drinks and fruit juices. It operates with over 10,000 employees at more than 60 production sites in twelve countries. Trilobes specialises in tank construction, terminals and ship cargo systems for liquid bulk. It operates on all continents, for example in Brazil, Belgium and Japan.

Foodport

So from now on, orange juice will also be shipped to the United Kingdom from Ghent. This strengthens one of North Sea Port’s strategic pillars. Indeed, with this shipping service, the port is further developed as a foodport. Brazil and the United Kingdom are therefore of great importance here: in 2021 Brazil was the third most important trading partner for North Sea Port, the United Kingdom the fourth.

The 2022/23 orange crop from Florida is expected to total 28 million boxes of 40.8 kilograms each, the lowest since 1935/36 and 32 % down from that last season, according to the estimates from the USDA.

However, the damages caused by hurricane Ian have not been considered yet. Thus, the recent report has concerned the agents in the citrus sector. The USDA’s next estimates are supposed to be released on Nov. 9th, however, the damages caused by hurricane Ian are not expected to be considered in that report yet, which is supposed to happen in the December’s report.

Thus, local agents believe Florida’s production will be at least 40 % lower than that forecast by the USDA. In 2017/18, when Florida was last hit by a hurricane (Irma), production decreased by 34.6 %, and agents agree that Ian was more destructive than Irma. Besides the damages caused to crops, warehouses and equipment were destroyed too.

In this context, the United States’ necessity of importing orange juice – which was already growing up – is expected to increase even more, which may raise Brazilian juice exports to the country. However, it is important to consider that supply has been low in Brazil, where ending stocks are forecast to be lower than the strategic level (of 250 thousand tons). In August, CitrusBR estimated the ending stocks in the 2022/23 Brazilian season (by June 2023) to total 140 thousand tons, considering higher exports to the USA – however, this increase did not consider the effects of hurricane Ian on Florida crops and production.

So far, imports are following opposite trends in the US, depending on the type of juice: for Not From Concentrate juice (NFC), imports are rising, while for Frozen Concentrate Orange Juice (FCOJ), they are fading. According to Florida’s Citrus Department, from October/21 to August/22, the US imported 9 % less FCOJ than that in the same period of the previous season; however, the imports of NFC juice increased by 43.9 %. On the other hand, ending stocks of both types decreased: 39.5 % for FCOJ and 25.3 % for NFC juice.

Brazil is the US’s major juice supplier. Considering FCOJ, 50.1 % of the total imported by the US in 2021/22 came from Brazil, which was followed by Mexico (42.4 %). Considering NFC juice, 78.6 % of the total imported came from Brazil, against 20.5 % from Mexico.

BRAZILIAN MARKET – The demand for oranges was low in the Brazilian market in the first fortnight of October. According to Cepea collaborators, the unstable weather (with rains and periods of lower temperatures) and the holiday on October 12 constrained consumption. Still, prices remained firm, majorly underpinned by the supply in the in natura market, which is being controlled. For tahiti lime, values faded, due to lower demand. But still, they continued at high levels.

The first 2022-2023 orange crop forecast update for the São Paulo and West-Southwest Minas Gerais citrus belt published by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp1 –, is 314.09 million boxes of 40.8 kg each. That figure represents a decrease of 2.86 million boxes in relation to the initial estimate published in May this year and corresponds to -0.9 %. Approximately 22.97 million boxes of the total crop are expected to be produced in the Triângulo Mineiro

Please download the full orange crop forecast update under www.fundecitrus.com.

1Department of math and science, FCAV/Unesp Jaboticabal Campus.

The Brazilian exports of orange juice increased in the first months of the 2022/23 season (July and August 2022). According to data from Secex, Brazil exported 175.9 thousand tons of Frozen Concentrate Orange Juice (FCOJ) Equivalent in July/August, 8 % more than that in the same period last year. Revenue totaled USD 332.6 million, 32 % up in the same comparison.

The exports of non-concentrate juice (NCJ) have had the highest increase this season, totaling almost 292.7 thousand tons, with a revenue of USD 108.3 million, 14 % and 24 % up from that in July/August last year. On the other hand, the revenue from FCOJ exports rose higher than that for NCJ, by 36 %, totaling USD 224.3 million in the first two months of the current crop; the volume shipped increased by 6 %, totaling 122.7 thousand tons.

These increases were already expected for this season, considering that, in 2021/22, the Brazilian exports were limited by estimates for low stocks of orange juice.

In August, CitrusBR reported that, in June/22, only 143 thousand tons of FCOJ were stocked, a steep 55 % down from that in June/21. CitrusBR considered a possible increase in the exports to the USA because of the low orange production in Florida, due to the high incidence of greening.

DESTINATIONS – The European Union continues as the number one destination for the Brazilian orange juice, with a share of 62 % in the total exported – in the same period last season, its share was at 64 %. The second major destination for the national juice is the United States, with a share of 21 % in the total, against 25 % in 2021. The share of other destinations increased from 12 % last season to 17 % this season (considering the months of July and August).

The ending stocks of orange juice ended the 2021/22 season at low levels (on June 30th, 2022), according to data released this week by CitrusBR. And even if orange production increases in the 2022/23 season, the volume of juice stocked by the end of the crop is not expected to be high.

According to CitrusBR, the ending stocks of Frozen Concentrate Orange Juice (FCOJ) Equivalent totaled 143.1 thousand tons at the end of the 2021/22 season, almost 55 % lower than that in the previous crop and below the strategic level (250 thousand tons).

CitrusBR estimates juice stocks to total 140 thousand tons by the end of the 2022/23 crop, in June 2023. Despite the increase in the number of oranges allocated to the production of juice, industrial yield is expected to be lower than that last season – it is important to consider that, in the 2021/22 crop, rainfall was not that frequent, which favoured yield.

According to CitrusBR, the Brazilian exports of orange juice to the United States may increase, due to the low orange production in Florida, which is keeping low the American stocks of juice.

This scenario confirms the high industrial demand for oranges in the current season (2022/23). However, next season, the demand from juice processors is expected to continue high – to replenish stocks, at least partially. Thus, juice prices are on the rise abroad.

Cepea estimates that, for the volume stocked by the end of the 2023/24 season (in June 2024) to return to the strategic level of 250 thousand tons, orange processing during that season needs to be around 300 million boxes of 40.8 kilograms, which accounts for an output of 340 million boxes in São Paulo State + the Triângulo Mineiro. This calculation considers stable juice sales, of a million tons, and the average yield of the five previous crops.

However, since the beginning of Fundecitrus surveys, in 2015/16, orange production has surpassed 340 million boxes in only two seasons: 2017/18 and 2019/20. Since then, the area with orange groves has shrunk. On the other hand, groves were renewed in that period, which tends to favour productivity and production.

Orange Juice

Global orange juice production for 2021/22 is forecast 12 percent higher to 1.6 million tons (65 degrees brix). Higher production in Brazil and Mexico is expected to more than offset US and EU declines. Higher consumption will be supported in part by a drawdown of US stocks. Exports are forecast up with the higher production in Brazil and Mexico.

Please download the full report under https://apps.fas.usda.gov/psdonline/circulars/citrus.pdf

The saying ‘an apple a day keeps the doctor away’ is well known but is there any truth in it? There may be according to a major ‘super study’, published in the Journal of the American Heart Association1, which found that not only apples – but orange juice, onions, carrots, broccoli and cabbage – are associated with lower risk of heart disease and stroke.

Scientists at the University of Toronto sifted through more than 80 unique cohort studies which, overall, followed up 4,031,896 individuals for an average of 11 years. During that time, more than 125,000 cardiovascular events e.g. strokes and heart attacks were recorded.

Author, Professor John Sievenpiper, commented: “Public health policies discourage the consumption of certain fruit sources such as 100 % fruit juice, dried fruit, and tropical fruits because of their sugar content and promote vegetables before fruit. However, we found that that different sources of fruit, including 100 % fruit juice, were associated with comparable cardiovascular disease risk reduction as that of vegetables.

“Public health guidance to limit the intake of certain fruit sources because of concerns related to their contribution to sugars may have unintended harm in preventing people from meeting fruit and vegetable targets for cardiovascular disease risk reduction”.

Looking at the detail, the study found that drinking 100 % fruit juice lowered the relative risk of dying from a stroke by 33 percent while eating fruit in general lowered risk by 13 percent. Vegetables cut the risk of stroke deaths by 6 percent. For heart disease mortality, fruit, vegetables and fruit juices were similarly associated with a relative risk reduction of around 13 – 14 percent.

According to the authors, the most important individual fruits and vegetables for lowering the risk of developing cardiovascular disease were citrus fruits, 100 % fruit juices, apples, allium vegetables (garlic, onion, leeks, chives), carrots, cruciferous vegetables (broccoli, cabbage, sprouts) and green leafy vegetables (kale, spinach, watercress).

Professor Sievenpiper concluded: “Higher intakes of fruits and/or vegetables are associated with improvements in all cardiovascular disease outcomes, with fruit associated with the largest risk reductions.

“Greater benefits may be seen for some fruits and vegetables supporting recommendations for emphasizing specific fruit and vegetable sources in dietary guidelines. No fruit and vegetable sources were adversely associated with cardiovascular disease, including fruit sources of concern, such as 100 % fruit juice and dried fruit”.

1Zurbau A et al. (2020) Relation of different fruit and vegetable sources with incident cardiovascular outcomes: A systematic review and meta-analysis of prospective cohort studies. J Am Heart Assoc 9: e017728. DOI: 10.1161/JAHA.120.017728 https://www.ahajournals.org/doi/10.1161/JAHA.120.017728

The Brazilian orange crop for Marketing Year (MY) 2021/22 is forecast at 414.4 million 40.8-kg boxes (MBx) or 16.91 million metric tons (MMT), an increase of 15 percent vis-à-vis the current season, supported by good weather conditions as of October 2021. Production costs are estimated at over R$ 33,000 per hectare (ha) or US$6,600/ha, up 27 percent compared to the previous crop, supported by high fertiliser, ag chemicals, and diesel prices. Total Brazilian FCOJ 65 Brix equivalent exports for MY 2021/22 are forecast to be relatively stable at 1.04 million metric tons (MT), an increase of 30,000 MT vis-à-vis MY 2020/21

Please download the full report: https://apps.fas.usda.gov

Orange supply is expected to gradually increase in June, however, the demand for the fruit is also supposed to be higher, as orange processing rises. This scenario may limit devaluations in the in natura market.

Processing plants are expected to begin activities in June. So far, five plants of the large-sized processors have been operating in São Paulo State, and more plants are supposed to begin activities this month, majorly in the second fortnight.

In the spot market, values have been stable. The processors that are currently purchasing oranges in the spot have been paying from BRL 25 to BRL 27.00 per 40.8-kilo box (harvested and delivered at processor). As for contracts, quotations have hit BRL 32.00/box, however, not all plants are receiving fruits, and some of them have minimum quality requirements, mainly related to ratio.

The 2022-2023 orange crop forecast for the São Paulo and West-Southwest Minas Gerais citrus belt, published on May 26, 2022 by Fundecitrus in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp, is 316.95 million boxes (40.8 kg). Total orange production includes:

  • 59.48 million boxes of the Hamlin, Westin and Rubi varieties;
  • 17.52 million boxes of the Valencia Americana, Seleta, Pineapple and BRS Alvorada;
  • 93.95 million boxes of the Pera Rio variety;
  • 106.78 million boxes of the Valencia and Valencia Folha Murcha varieties;
  • 39.22 million boxes of the Natal variety.

Approximately 22.99 million boxes are expected to be produced in the Triângulo Mineiro.

The projected volume is 20.53 % higher than the previous crop that totaled 262.97 million boxes and represents an increase of 1.11 % in relation to last ten years’ average,

Please download the complete summary as pdf-file under www.fundecitrus.com.br/pdf

All Oranges 40.2 Million Boxes

The 2021-2022 Florida all orange forecast released today by the USDA Agricultural Statistics Board is raised 2.00 million boxes to 40.2 million boxes. If realized, this will be 24 percent less than last season’s revised final production. The forecast consists of 18.2 million boxes of non-Valencia oranges (early, mid-season, and Navel varieties) and 22.0 million boxes of Valencia oranges. …

Please download the full citrus crop production forecast: www.nass.usda.gov

The prices for Frozen Concentrate Orange Juice (FCOJ) Equivalent rose high at ICE Futures in the first fortnight of April, reflecting the current low world supply, majorly in Brazil and in Florida (USA). Between April 1st and 13, the May/22 contract for orange juice increased by 20 %, and in 2022, by more than 30 %, closing at USD 2,650/ton on April 13.

Indeed, orange production (and juice production) in the Brazilian citrus belt (São Paulo State and the Triângulo Mineiro) decreased in the 2021/22 crop, which is practically over. According to a report released by Fundecitrus in the first half of April, the Brazilian citrus belt is expected to harvest 262.97 million boxes (40.8-kilograms) of oranges, 10.6 % down from the first estimates (May/21) and 2.2 % lower than that in the previous season.

This context will influence the Brazilian supply of orange juice, since the citrus belt is the major orange-producing region in Brazil. In February, Citrus BR estimated that, by the end of the season (in June 2022), the national stocks of orange juice (forecast at 127 thousand tons) will not be enough to ensure the world supply until the new crop (2022/23) steps up.

The same scenario is observed in Florida, where production estimates were revised down by the USDA by 19 % compared to the expected in Oct/21, to 38.2 million boxes, 28 % lower than that last season.

Lower production in the current and in previous seasons is reflecting on local stocks. According to the Florida Department of Citrus, from the beginning of the 2021/22 crop, in Oct/21, to March 26, 2022, the stocks of FCOJ were 31 % lower than that in the same period of the previous season. For not-from-concentrate orange juice, stocks were 25 % lower.

In this context, although the United States did not increase imports of concentrated orange juice – which decreased by 4.6 % between Oct/21 and Jan/22, according to the Florida Department of Citrus –, they increased purchases of not-from-concentrate orange juice. Brazil supplied 85 % of all the not-from-concentrate orange juice and 71 % of the FCOJ imported by the USA.

These estimates for Brazil and the USA explain the recent valuations of orange juice at ICE Futures. In both countries, supply is not expected to recover in the coming season (2022/23).

In the Brazilian citrus belt, although orange production may increase slightly, a higher harvest would not be enough to raise stocks and ensure world supply, since the current volume stocked is very low. In Florida, with the high incidence of greening on orchards (which has been lowering the average productivity of orange trees) and the smaller area with orange orchards in the state in the last years, production is not expected to return to the levels observed in previous decades.

Orange production for the 2021-2022 crop season totaled 262.97 million boxes1

The 2021-2022 orange crop for the São Paulo and West-Southwest Minas Gerais citrus belt, published on April 11, 2022, by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp2 is 262.97 million boxes of 40.8 kg each. Approximately 23.35 million boxes were produced in West Minas Gerais.

This final figure was 10.61 % smaller than the initially expected volume published in May 2021, corresponding to a significant crop loss of 31.20 million boxes. Although this was an “on-year” for the alternate-bearing, when plants produced a larger amount of fruit, a sharp decrease in rainfall and more intense atypical frosts inhibited the growth of oranges and contributed to an increased early fruit drop, therefore reducing the number of oranges at harvest. Under those conditions, there was a yield loss in groves, which made the crop decrease 2.11 % as compared to the previous one, resulting in a small crop for the second consecutive year. Total orange production included:

  • 47.16 million boxes of the Hamlin, Westin and Rubi early-season varieties;
  • 14.85 million boxes of the Valencia Americana, Seleta and Pineapple early-season varieties;
  • 74.78 million boxes of the Pera Rio mid-season variety;
  • 96.59 million boxes of the Valencia and Valencia Folha Murcha late-season varieties;
  • 29.59 million boxes of the Natal late-season variety.

The May 2021 forecast considered that the yield of groves would be affected due to the lower rainfall volume that was already forecast for 2021. However, forecasts did not point to climate conditions as extreme as those observed, which brought greater than expected damage. The prolonged dry spell turned out to be the worst drought in almost a century, with water shortage in practically all regions of the citrus belt. That critical situation severely impacted rainfed groves, which encompass approximately 70 % of the total area and inevitably rely on rainfall. But even irrigated groves were affected by drought. In many locations, rivers and reservoirs reached the most critical levels ever recorded, restricting water use for irrigation. This crop’s most critical period was from May to September 2021, when accumulated rainfall was almost 70 % below historical average. The scenario started to improve in late September and early October when spring came

Please download the complete forecast under: www.fundecitrus.com.br/pdf

1Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha and Natal.
2Department of math and science, FCAV/Unesp Jaboticabal Campus.

The company will build new storage tanks for not-from-concentrate orange juice, supporting increased commercialization to European markets

Louis Dreyfus Company (LDC), a leading global merchant and processor of agricultural goods, announced the construction of new orange juice storage tanks in the city of Matão, located in Brazil’s largest citrus producing region, in the state of São Paulo. The project aims to increase the company’s production and storage capacity for not-from-concentrate (NFC) orange juice, a product with high added value for the consumer market.

The new investment in Matão, where LDC operates since 1988, will bring NFC storage capacity at the site to 30 million liters, and annual juice production capacity to 300 million liters.

“Increasing production and storage capacity for NFC will allow us to meet growing consumer demand for this high value-added product, especially in Europe, while reinforcing our position among the top three global processors and merchandizers of orange juice,” said Juan José Blanchard, Head of the LDC’s Juice Platform.

This project is the second phase in LDC’s plans to expand commercialization of NFC in Europe, North America and Asia. In 2020, the company announced a new, dedicated fleet for juice transportation that reduces fuel consumption by 40 % and sulfur emission levels by 85 % per ton of product. LDC also increased storage capacity by more than 50 %, and blending capacity by more than 20 %, at its port terminal and processing facility in Ghent, Belgium.

Brazil is the world’s largest exporter of orange juice, a business in which LDC has been active for over 30 years. The company’s operations in the country are fully integrated, comprising more than 25,000 hectares of sustainably grown citrus groves – strategically located in Brazil’s citrus belt – as well as three citrus juice processing plants and an export terminal in the Port of Santos (São Paulo state).

“This project also reinforces the company’s commitment to long-term investment in Brazil, a key origination market for over 80 years,” added Jorge Costa, Global Operations Director for LDC’s Juice Platform.

The new storage tanks are expected to be operational by the end of 2023.

About Louis Dreyfus Company
Louis Dreyfus Company is a leading merchant and processor of agricultural goods, founded in 1851. We leverage our global reach and extensive asset network to serve our customers and consumers around the world, delivering the right products to the right location, at the right time – safely, reliably and responsibly. Our activities span the entire value chain, from farm to fork, across a broad range of business lines (platforms) including Grains & Oilseeds, Coffee, Cotton, Juice, Rice, Sugar, Freight, Carbon Solutions and Global Markets. We help feed and clothe some 500 million people every year by originating, processing and transporting approximately 80 million tons of products. Structured as a matrix organization of six geographical regions and nine platforms, Louis Dreyfus Company is active in over 100 countries and employs approximately 17,000 people globally.

South-Central Florida experienced a bout of extremely cold weather during the last few days of January, resulting in frost and icing throughout many Floridian orange groves. In the immediate aftermath of this event, farmers initially reported that the damage to their groves was minimal. However, more recent estimations paint a clearer picture of the frost’s effects, with certain grove locations recording temperatures as low as ~20 degrees Fahrenheit lasting for upwards of two days. Such sustained conditions of frost have not been observed in Florida for over five years. Temperatures below 30 degrees often lead to bloom damage on citrus trees, which can drastically affect the quality of their subsequent harvests.

Fruit droppage rates also appear to be a major issue for many Florida citrus growers post-freeze. As temperatures drop for sustained periods of time, the juices contained within citrus fruits become frozen, resulting in premature fruits dropping from their branches. This can happen in as little as 6 hours after exposure to substantial freezing temperatures; Florida’s freeze lasted for two days. As such, it will be difficult for farmers to fully assess the damage dealt to their groves until temperatures warm up to regularity once again. Other conditions expected to affect citrus trees in the region are wood injury and external fruit damage, both of which will reduce harvest levels.

Florida has already weathered a challenging orange season up to this point, with fruit estimates falling from 47 million boxes to just 44.5 million midway through January. These shifting numbers represented a 13 % reduction in harvest size when compared to Florida’s previous orange season, and it seems as though the difference between the two will only continue to grow from the effects of the freeze.

The global orange market is quite volatile currently, with prices rising on a regular basis due to an ongoing drought in Mexico and a difficult growing season for Brazil (frost has also been an issue there). As such, it seems likely that orange oil and its derivatives will continue to rise in price as availability of new materials reduces.

The processing of the oranges from the 2021/22 season has been high in the major processors in São Paulo State. Although activities usually slow down in January, the orange harvesting is late in the current season – because of the higher share of fruits from the second, third and fourth flowerings.

In January, seven plants of the large-sized processors in SP were in operation, receiving majorly late varieties and early pear oranges. However, activities slowed down last month compared to that in December, due to the end of processing at the plant located in Uchôa. In February, the plant in Conchal is supposed to end activities for the season too – then, there will be only two plants of each one of the large-sized processors in operation.

Despite the fast processing pace, the quality of the oranges is below the expected. Industrial yield (number of orange boxes necessary to produce a ton of concentrated juice), which had been favoured by the lack of rains along the season, is now being reduced by excessive and frequent precipitation – higher moisture favours fruits growth, but raises the volume of water within the oranges, which is not desired by processors.

PRICES – Two large-sized processors purchased oranges in the Brazilian spot market in January, paying from BRL 28 to BRL 30.00 per 40.8-kilo box, harvested and delivered to processor. At smaller-sized processors, prices hit BRL 32/box. Some plants were also processing tahiti lime, paying from BRL 18 to BRL 21.00 per 27-kilo box.

In 2021, orange prices were high in São Paulo State (SP) and in the Triângulo Mineiro. In general, the industry in SP kept the demand high for fruits, and the low production limited the supply throughout the year. Although the remuneration (in BRL per box) had been higher, the profitability for many citrus growers was restricted, given that the limited productivity increased the cost of production per unit even more.

Fundecitrus (Citrus Defense Fund) indicated, in its estimate released in December/21, that the production in the citrus belt may reduce 1.7 % compared to 2020/21, totaling 264.14 million 40.8-boxes. Even with the positive biennial cycle in the 2021/22 season and the higher fruit load, oranges have presented a smaller size, which explains the lower production.

From May to August 2021, rainfall accounted for only 30 % of the regular volume for the period, according to data from Somar Meteorologia/Climatempo. Fundecitrus says that this scenario affected even irrigated orange groves (which correspond to 30 % of the citrus belt), due to the limited water supply in tanks. In some areas, frosts in July worsened the situation. Besides the small-sized oranges, the premature fruit drop was one of the worst in history.

Due to the low supply of fruits, orange juice processors boosted prices compared to the 2020/21 season. In the partial of the crop (from July to December/21), the average price in the spot market was 27.50 BRL/40.8-kilo box, harvested and delivered at the industry, for a nominal increase of 22.5 % in relation to the same period last year.

EXPORTS – As expected, orange juice (volume equivalent to concentrate juice) shipments finished the 2020/21 season with a 7 % decrease in relation to the previous (2019/20). From July/20 to June/21, shipments to all destinations totaled 1.03 million tons, according to data from Secex. The revenue, in turn, amounted 1.54 billion USD, 15 % down compared to the season before.

IN NATURA MARKET – Orange prices hit nominal records in most part of 2021. Increases are attributed to the limited supply in the 2021/22 crop, because of the low volume of rainfall and high temperatures in the second semester of 2020 and the low humidity in 2021. From the second semester of 2021 onwards, the low quality of fruits (due to a long period of dry weather and frosts in July) reinforced the upward trend. In the partial of the crop (from July to December/21), the average price for pear oranges (in natura) is at BRL 39.52/40.8-kilo box, on tree, 20 % up from the average in the same period in 2020, in nominal terms.

TAHITI – The price trend was atypical in 2021. Values were low in the first semester and in some periods of the second part of the year, and peak prices were less intense. From January to December, the average price for tahiti lime was at BRL 25.19/27-kilo box, harvested, 31.3 % lower compared to that in 2020.

Orange1 production forecast update totals 267.87 million boxes

The first 2021-2022 orange crop forecast update for the Sao Paulo and West-Southwest Minas Gerais citrus belt by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp2 – is 267.87 million boxes of 40.8 kg each, differently from the 294.17 million estimated in May this year. The reduction of 26.30 million in relation to the initial expectation corresponds to – 8.9 %. The main reason for this crop loss is the poorer rainfall regime constituting the most severe water crisis ever to hit Brazil for the last 91 years3. The combination of this drought never before experienced by citriculture and successive frosts in July culminated in a gradual crop decline that has been seen as harvests progress and disclose totally atypical figures. Field surveys also show results other than expected for this time of the year for orange planted areas yet to be harvested. In general, oranges are excessively small, and early fruit drop reaches one of its highest rates. These factors make production go back to the same levels of last crop season that totaled 268.63 million boxes, despite fruit load being 12.50 % larger since this is an “on” year. In view of this data and the perspective of climate conditions remaining adverse until harvests end, fruit should present the most critical size and drop rate in historical data. If this scenario is confirmed, there will no longer be an increase in this crop in relation to the previous season, estimated at 9.51 % in May, but rather a smaller volume than the production in the last season (- 0,28 %).

1Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha and Natal.
2Department of math and science, FCAV/Unesp Jaboticabal Campus.
3National operator of the energy system – ONS. Data for the Parana River basin, encompassing the states of São Paulo, Minas Gerais, Paraná, Santa Catarina, Rio Grande do Sul, Mato Grosso do Sul, Goiás and Distrito Federal.

Please download the complete forecast under: www.fundecitrus.com.br/pdf

Symrise has developed a special fragrance raw material from renewable sources: Lilybelle®, a lily of the valley fragrance ingredient with a refreshingly flowery note. It will provide perfumers with novel possibilities for the creation of scents for personal care products, cleaning products and laundry care products. Symrise manufactures Lilybelle® using byproducts from the orange juice industry, so that 83 percent of it is composed from renewable raw materials. The product is also readily biodegradable.

With Lilybelle®, Symrise is expanding its portfolio of special fragrance ingredients to include a sustainable, readily biodegradable fragrance ingredient. It emphasizes the flowery scent of lily of the valley in perfumes, providing ozonic green facets and lightly aqueous transparent accents.. All in all, Lilybelle® brings freshness and a certain lightness to fragrance creations. The scent of lily of the valley flowers has long played an important role in perfumery and is considered timeless due to its transparency, freshness and naturalness. It is used particularly often in men’s fragrances in combination with citrus notes.

Symrise uses byproducts from the orange juice industry

Lilybelle® impresses in two ways due to its scent and its sustainable qualities. In manufacturing it, Symrise uses D-limonene from renewable raw materials, which stems from byproducts of orange juice production. This means 83 percent of Lilybelle® comes from renewable sources, and it is readily biodegradable.

“We have integrated sustainability as a major component of our corporate strategy,” says Susanne Borchert, Senior Marketing Manager at Symrise. “With its high proportion of renewable raw materials, Lilybelle® provides an excellent example of the application of the 12 Principles of Green Chemistry. The increasing consumer demand for products that are manufactured in an environmentally friendly manner shows that we are on the right path.”

The Brazilian orange crop for Marketing Year (MY) 2020/21 is forecast at 390.8 million 40.8-kg boxes (MBx) or 15.94 million metric tons (mmt), an increase of seven percent relative to the current season. Although citrus trees are in the on-year of the production cycle, adverse weather notably affected the production potential for the upcoming season. Total Brazilian FCOJ 65 Brix equivalent exports for MY 2020/21 are forecast relatively stable at 1.050 million metric tons (mt), an increase of 18,000 mt vis-à- vis MY 2019/20

Please download the full report: www.nass.usda.gov

The Brazilian exports of Frozen Concentrate Orange Juice (FCOJ) equivalent are currently 17 % lower than that in the previous season, according to Secex. Between July 2020 and February 2021 (2020/21 season), shipments totaled 670.7 thousand tons. Revenue from these exports totaled 985.19 million USD, 27 % down from that in the same period last season.

Among the major purchasers of the Brazilian juice, the European Union was the one that most reduced purchases. From July/20 to Feb/21, shipments to the EU totaled 419.7 thousand tons, 22 % down from that in the previous season. Revenue totaled 626.44 million USD, 32 % down in the same comparison.

Exports to the United States have been more stable, totaling 135.83 thousand tons, very similar to that from the previous season. Revenue totaled 201.62 million USD, 8 % down in the period.

Updated orange1 crop forecast totals 269.01 million boxes

The 2020-2021 orange crop forecast update for the São Paulo and West-Southwest Minas Gerais citrus belt, published on February 10, 2021 by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp2 – is 269.01 million boxes of 40.8 kg each (90 lbs). Approximately 19.27 million boxes of the total crop should be produced in West Minas Gerais.

In this third update on a downward trend, the crop accumulates a decrease of 6.52 % in relation to the initial estimate. In comparison to the previous crop, the reduction is 30.45 %, the worst index of all years in which the crop also withstood the physiological effects of the negative biennial bearing. This crop loss, unprecedented in the history of citriculture, evidences the severity of climatic issues in this season, although production losses due to orange trees that died from drought before harvest have not yet been included. The number of dead trees and fruit unharvested is being determined by a sample survey encompassing 5 % of plots distributed throughout the citrus belt, aiming to update the tree inventory for the next crop season. The reduction in production of the 2020-2021 cycle, caused by this atypical tree mortality, will be presented on the final crop estimate of April 12, 2021. …

Please download the complete forecast under: www.fundecitrus.com.br/pdf

1Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha and Natal.
2Department of math and science, FCAV/Unesp Jaboticabal Campus.

In general, citrus prices were high in São Paulo State in 2020. With the lower orange production in the Brazilian citrus belt (São Paulo and the Triângulo Mineiro) in the 2020/21 season due to bad weather conditions, the demand from processors for fruits continued high along the year, which underpinned prices.

According to a report released by Fundecitrus on December 10, crop failure in the citrus belt (SP and the Triângulo Mineiro) should be the worst since 1988/1989, when the series began. In total, orange production should be 30 % lower in the 2020/21 season, totaling 269.36 million boxes of 40.8 kilos each.

INDUSTRIAL PRICES – Although processors began the 2020/21 season with high volumes of juice stocked – 471 thousand tons of Frozen Concentrate Orange Juice (FCOJ) Equivalent, according to CitrusBR –, low orange supply kept the demand for fruits high, which reflects on bidding prices.

On the average of the 2020/21 season, prices in the spot market between July and November closed at 23.51 BRL/box, 17.8 % up from that in the same period of 2019 and 7 % above that in the same period of 2018, in nominal terms.

IN NATURA MARKET – Higher demand from the industry lowered the availability of fruits in the in natura market, since some farmers who usually sell to the in natura market preferred to allocate their fruits to processors, due to the uncertainties caused by the covid-19 pandemic and the attractive prices bid by processors. This scenario added to the weather issues and high demand pushed up orange prices (in natura) all the year. For the variety pera rio, prices hit the highest level of the year in November, when the average was 43.35 BRL/box, on tree, 54.6 % up from that in Nov/19, in nominal terms.

All Oranges 56.0 Million Boxes

The 2020-2021 Florida all orange forecast released today by the USDA Agricultural Statistics Board is 56.0 million boxes, down 2 percent from the October forecast. If realized, this will be 17 percent less than last season’s final production. The forecast consists of 22.0 million boxes of the non-Valencia oranges (early, midseason, and Navel varieties) and 34.0 million boxes of the Valencia oranges. A 9-year regression was used for comparison purposes. All references to “average”, “minimum”, and “maximum” refer to the previous 10 seasons, excluding the 2017-2018 season, which was affected by Hurricane Irma. Average fruit per tree includes both regular bloom and the first late bloom. …

Please download the full citrus crop production forecast: www.nass.usda.gov

The European partners of the IFORED project have started to market the first pink-flesh apples of 2020 and Kissabel® Red will go on sale in October

The new European Kissabel® apple season has begun. The project partners in the UK, France and Switzerland started harvesting two coloured-flesh varieties: Kissabel® Orange and Kissabel® Yellow. The first variety features skin with an orange/pink pigmentation, intense pink flesh and a strongly flavoured, refreshing taste, while the second has a yellow skin, pink flesh and a balanced flavour.

With regard to the new season, the figures for the IFORED project’s partners are largely positive, both in terms of quality and interest from customers and consumers.

In the UK, the main feature of the new Kissabel® apples will be their increased sweetness. “The harvest started in mid-September. We are very excited and very positive about the new harvest,” reports Anna Coxe, Head of Technical and Quality at Greenyard. “Our orange and yellow Kissabel® varieties show a very good pigmentation and a very consistent internal colour. Their taste is excellent too, with a sweet, almost berry-type flavour. We had great feedback from retailers – they’ve never seen anything like Kissabel® before and they are looking forward to the new season”.

The Kissabel® season kicks off with the orange and yellow varieties: A high-quality harvest from France, UK and Switzerland
Kissabel® is the brand that identifies the different varieties of coloured-flesh apple – from pink to intense red (Photo: IFORED)

“We are expecting a great product – apples show overall good quality and are developing a good internal colour. We are expecting great taste too, with high brix levels,” says Hannah Martin, Commercial Director at World Wide Fruit. “Our Kissabel® apples will be available from October – we are enthusiastic about the season and about the project. Kissabel® are truly unique apples that deliver the ‘wow’ factor to consumers looking for something different”.

Similarly in France, the apples’ quality has lived up to expectations. “The new harvest shows continuity from last year – the apples look good on the outside and they have a nice pink colour inside. The taste is delightful too,” comments Marc Peyres, Export Sales Manager at Blue Whale. “Kissabel® are the first red-flesh apples sold in quantity with success – it’s a completely new thing and we are very happy to be part of the project. There are a lot of new varieties on the market, but Kissabel® apples are unique: amazing in the inside, new-looking and with an excellent taste too”.

“We are very positive about this season. Both the outside and inside colours are amazing, the quality is good and consistent with last year,” says François Mestre, co-manager at Mesfruits (France). “We already have big demand from retailers – clients who had Kissabel® apples last year can’t wait to have them again.”

More good news has come from the market in Switzerland. “The harvest seems to be excellent: the size of the fruits is very good and the external appearance is very nice,” reports Christian Bertholet, Category Manager Fruits at La Montagne – Union Fruits Fenaco (Switzerland). “With the beginning of the season, we are sending samples to all our customers and also presenting Kissabel® at an event with major Swiss cooking chefs”. There is huge interest in these new apples.”

After the Kissabel® Orange harvest in September, the first Kissabel® Red apples will arrive in Europe in October: red inside and outside, with an intense flavour and notes of red fruit, mainly grown in Italy and Germany.

Kissabel® is the brand that identifies the different varieties of coloured-flesh apple – from pink to intense red – developed by the IFORED project, an international partnership involving 14 of the world’s largest production and marketing companies.

While whole fruit consumption increased in children between 2003 and 2016, the intake of several important nutrients decreased over time, a new study shows. Adding 100 % orange juice to the diet could help address this shortfall and bolster intake of other key nutrients.

A cross sectional analysis using the nationally representative National Health and Nutrition Examination Survey (NHANES) data on children ages 2 to 18 found significantly higher intakes of whole fruit yet a significant decrease in the intake of folate, riboflavin, thiamin, vitamin C, vitamin D, sodium, potassium, iron and zinc over these time periods.

The FDOC-funded study published in the International Journal of Child Health and Nutrition in July, found that from 2003-2016, the amount of all 100 % fruit juice consumed decreased 44 percent while the percentage of total fruit consumed from whole fruit increased from about 45 percent in 2003 to 65 percent in 2016.

However, the intake of 100 % orange juice (and other 100 % fruit juices) was the likely food source(s) associated with increased consumption of calcium, potassium and phosphorus in certain populations at both time periods (2003 and 2016) and OJ consumers tended to have lower intakes of sugar-sweetened beverages.

The researchers suggest that a possible strategy to decrease inadequate intake of calcium, potassium, and phosphorus is to increase the consumption of 100 % orange juice and other 100 % fruit juice and decrease the consumption of sweetened beverages and coffee/tea.

“Potassium and calcium are under consumed by Americans and have been deemed nutrients of public health concern. These nutrients are important for growing children and 100 % orange juice, particularly calcium-fortified juice, can help enhance the intake of these and other key nutrients,” said Dr. Rosa Walsh, Director of Scientific Research for the Florida Department of Citrus.

Further, vitamin C intake in children has decreased over time and more children have inadequate intake levels. While not linked directly to the decreased consumption of 100 % fruit juice, the results suggest that the increased intake of whole fruit is not adequately addressing vitamin C shortfalls.

Adding 100 % orange juice to the diet, in appropriate amounts as outlined by the American Association of Pediatrics (AAP), can help address the shortfalls or gaps in the intakes of folate, thiamin, vitamin C, potassium and vitamin D in fortified juices. The AAP guidelines suggest limiting portions of 100 % fruit juice to 4 oz. a day for children 1 to 3, 4 to 6 oz. a day for children 4 to 6 and 8 oz. a day for children 7 to 18.

More research is needed to determine the best way to support childhood nutrition. FDOC’s Scientific Research Department has several ongoing projects with researchers to examine the role of 100 % orange juice in the diets of children and adolescents.

Better Juice plan to go full scale with industrial implementation of sugar-reduction tech within a year 

Better Juice, Ltd., the first foodTech startup to develop innovative technology to reduce all types of sugars in orange juice, announces its patent-pending technology is now scaling up. The startup is installing a semi-industrial pilot plant that also will be available for future testing at global partners’ plants. The pilot plant features the company’s sugar reduction process in a continuous flow technology that ensures a consistent, safe, and effective enzymatic process.

Putting the Squeeze on Fruit-juice Sugars is Scaling up
Pilot plant (Photo: Better Juice)

Better Juice developed an enzymatic technology that uses all-natural ingredients to convert fructose, glucose, and sucrose into prebiotic dietary fibers and other non-digestible molecules. Better Juice’s new pilot plant system marks a significant milestone in the startup’s commercial scale-up timeline. It is able to reduce up to 80 % of simple sugar in orange juice at a rate of up to 50 liters/hour. Better Juice’s non-GMO technology is designed to target the specific sugar composition in the orange juice to naturally create a low calorie reduced-sugar product that has a delicate sweetness. It is accomplished without using sweeteners or other additives to replace the sugars in the juice.

“We’ve signed collaboration agreements with several global juice producers so far,” reveals Eran Blachinsky, PhD, founder and CEO of Better Juice. “Our goal is to attain full industrial scale and supply to the market within a year. Soon, you will be able to see natural juice beverages with more favorable Nutri-Scores.” Nutri-Score is a new food label system that converts the nutritional value of products into a clear letter and color code on the packaging in Europe.

“Juice and beverage manufacturers are increasingly aware of the need to reduce the sugar levels in their products before new labeling initiative goes into action,” adds Blachinsky. “By using Better Juice technology, this will be easy to achieve.”

Maintaining juice quality through scaleup

The fruit juice industry, like any other, is constantly seeking ways to improve profitability. Adding a new procedure to the juice manufacturing by definition add costs. Better Juice uses a continuous flow technology that will only slightly influence the incremental costs to the overall price.

One of the major hurdles in continuous flow reduction of sugars in natural juices is keeping the process contamination-free even through large-scale production, without damaging the enzymatic activity. Better Juice developed a new device crafted from stainless steel, with aseptic fittings and welding, together with a unique process that guarantees a continuous, safe flow for its enzymatic sugar-reduction process for weeks at a time without interrupting the sterilization stage.

“The scale-up pilot plant is designed for smooth implementation into the standard procedures deployed by the juice industry,” explains Gali Yarom, Partner, COO, and VP of Business Development for Better Juice.

“Better Juice’s new tech process is cost-effective by virtue of its ability to maintain the continuous flow stage,” adds Yarom. “This is a key factor for beverage manufacturers seeking to affordably reduce sugars naturally while maintaining the juice quality and clean label attributes — a real game changer for the juice industry.”

A new study1 published in the Journal of Nutrition and Health Sciences reports that drinking 100 % orange juice following exercise contributes to hydration equally as well as water and sports drinks, positioning the beverage as a viable alternative for post-exercise recovery. The study, conducted by researchers at the University of Kansas and funded by the Florida Department of Citrus, found no differences between 100 % orange juice, sports drinks, or water with respect to taste preference, thirst level, hydration, or gastrointestinal distress following exercise.

Researchers conducted a five-day exercise study with 26 healthy young adults who were moderately trained for endurance exercise. Each day they cycled on a stationary bike for 80 minutes and then consumed approximately eight fluid ounces of commercially available 100 % orange juice, orange-flavored water, or an orange-flavored sports drink. Participants rated the taste of the beverages, thirst levels, and measures of gastrointestinal distress such as reflux or intestinal cramps immediately after the exercise, after drinking the beverages, and after one hour of rest. The researchers measured participants’ hydration status immediately after exercise and after a one-hour rest period.

These findings suggest that 100 % orange juice is a viable post-exercise rehydration strategy, with the beverage receiving positive palatability ratings from study participants when used as a post-exercise rehydration beverage. Additionally, 100 % orange juice was able to satisfy thirst while helping to achieve or maintain hydration following exercise without causing gastrointestinal distress.

“The study showed that people consuming 100 % orange juice were hydrated as well as the participants consuming a sports drink or water. There were no symptoms of serious GI distress with the orange juice despite the carbohydrate content and acidity of the beverage. The results indicate that people can drink orange juice to aid in their rehydration and recovery after exercise,” said Dr. Dawn Emerson, Assistant Professor at the University of Kansas and principal investigator on this study.

An eight-ounce serving of 100 % orange juice provides carbohydrates and is a good source of potassium, an electrolyte, that may provide rehydration and recovery benefits post-exercise. The naturally occurring sugar in 100 % orange juice keeps good company with these and other vitamins, minerals and the antioxidant properties that are all part of the nutrition package 100 % orange juice delivers.

According to the U.S. 2015-2020 Dietary Guidelines for Americans, one cup of 100 % orange juice counts as a fruit serving2 meaning the naturally sweet taste of 100 % orange juice can contribute to an overall healthy diet. Just one-in-ten Americans meet their daily fruit intake as recommended by the Dietary Guidelines, missing out on important nutrients.3 A glass of 100 % orange juice can help close that gap in a convenient, quick way, while also serving as a viable option for post-exercise rehydration.

1Kelly MR, Emerson DM, Landes EJ, Barnes ER, Gallagher PM (2020) Gastrointestinal Implications of Post-Exercise Orange Juice Consumption. J Nutr Health Sci 7(1): 101
2USDA/DHHS. 2015-2020 Dietary Guidelines for Americans. https://health.gov/dietaryguidelines/2015/guidelines
3CDC. Disparities in State-Specific Adult Fruit and Vegetable Consumption. 2015. https://www.cdc.gov/mmwr/volumes/66/wr/mm6645a1.htm?s_cid=mm6645a1_w

As orange production is higher this season (2019/20), orange juice inventories should increase again until the end of the crop. According to a report from CitrusBR (Brazilian Association of Citrus Exporters) released on February 18, ending stocks of Frozen Concentrate Orange Juice (FCOJ) equivalent should total 412.83 thousand tons at the processing plants from São Paulo by June 30, 2020. This is the highest volume registered in five seasons (since 2014/15), considering CitrusBR’s historical series.

If this volume is confirmed, it would account for a 63 % increase compared to that in the 2018/19 season (253.18 thousand tons). This scenario was already expected, since orange production in the citrus belt (São Paulo and the Triângulo Mineiro) increased 34.6 % between the last season and the current one, according to Fundecitrus (Citrus Defense Fund).

Of the total volume produced, still according to CitrusBR, 59.7 million boxes (40.8-kilo box) will be allocated to the in natura market and 325.17 million, to processing. The average crop yield is estimated at 270.1 boxes for a ton of FCOJ Equivalent, and the total juice production is forecast at 1.2 million tons.

In August/19, Cepea calculations had pointed to the possibility of inventories to increase at processors to levels similar to that estimated by CitrusBR, at 400 thousand tons.

REFLEXES IN 2020/21 – Although estimates point to a recovery in the volume stocked (the last four seasons closed with lower volumes), the effects on juice inventories in 2020/21 will depend on the amount to be produced in the coming season. However, since citrus growers expect next crop to be at least 30% smaller than the 2019/20, inventories should decrease to lower levels in June/21.

If production decreases, the prices paid to growers by the industry may rise, since demand should remain firm in this segment, despite the high inventories. In the in natura market, quotes may be favored by low supply, since processors should try to purchase the largest possible amount of fruits, to prevent inventories from decreasing to critical levels in June/2021.

MARKET IN FEBRUARY – Orange consumption decreased in the in natura market in the second fortnight of February, due to the rainy weather in some regions of São Paulo State and fruits’ lower quality. However, the low supply of higher quality pear oranges underpinned prices during the month. Between February 3 and 28, pear orange prices averaged 33.06 BRL per 40.8-kilo box, on tree, 8.3 % up compared to that in January.

TAHITI LIME – The harvesting pace for tahiti lime was fast in February in the major producing regions from São Paulo State. Supply, which has been increasing since December, hit its peak last month, and according to agents consulted by Cepea, it may continue high until late March.

Besides that, rains influenced the in natura market too, hampering activities in the field and lowering fruits quality. Moreover, the sales pace was slow in February, due to the carnival season in Brazil.

Thus, in February, tahiti lime quotes averaged 10.24 BRL per 27-kilo box, harvested, the lowest for the month since 2017, in nominal terms, and 14.9 % down compared to that in January.

Updated orange1 crop forecast totals 384.87 million boxes

The 2019/2020 orange crop forecast update for São Paulo and Triângulo Mineiro/Southwest Minas Gerais citrus belt, published by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp2 – is 384.87 million boxes of 40.8 kg each. This figure corresponds to a decrease of 0.11 % in relation to the previous forecast update published in December 2019 and is 1.03 % smaller as compared to the first crop forecast announced in May 2019. Approximately 26.85 million boxes of the total crop should be produced in the Triângulo Mineiro region.

Rainfall remained below normal for most of the citrus belt from May 2019 to January 2020, according to data from Somar Meteorologia. Accumulated rainfall in this period averaged 836 millimeters for all regions, which is 14% or 139 millimeters below the historical average of 975 millimeters (1981-2010). Rainfall shortage was more pronounced in the Central, South and Southwest sectors, including regions such as Limeira, where the accumulated amount was only 690 millimeters, that is, 33% or 341 millimeters below normal.

Please download the complete forecast under: www.fundecitrus.com.br/pdf

1 Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha and Natal.
2 Departament of Math and Science at FCAV/Unesp Campus Jaboticabal.

All Oranges 74.0 Million Boxes

The 2019-2020 Florida all orange forecast released by the USDA Agricultural Statistics Board is 74.0 million boxes, unchanged from the October forecast. If realized, this forecast will be 3 percent more than last season’s final production. The forecast consists of
32.0 million boxes of the non-Valencia oranges (early, midseason, and Navel varieties) and 42.0 million boxes of the Valencia oranges. A 9-year regression has been used for comparison purposes. All references to “average”, “minimum”, and “maximum” refer to the previous 10 seasons, excluding the 2017-2018 season, which was affected by Hurricane Irma. Average fruit per tree includes both regular and first late bloom.

Please download the full citrus crop production forecast: www.nass.usda.gov

Updated orange1 crop forecast totals 385.31 million boxes

The 2019-2020 orange crop forecast update for São Paulo and West-Southwest Minas Gerais citrus belt, published on December 10, 2019 by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp2 – is of 385.31 million boxes of 40.8 kg each. This figure corresponds to a decrease of 0.80 % in relation to the previous update published in September 2019, and of 0.92 % compared to the first estimate of the crop, disclosed in May 2019. Out of the total crop, about 26.88 million boxes are estimated for the Triângulo Mineiro region.

Heavy rains in November on virtually the entire citrus belt eased the drought, but since May total rainfall stood at 17 % below the historical average (1981-2010): 409 millimeters in the average across regions, while historical average is 495 millimeters, according to data from Somar Meteorologia. The driest period was at the beginning of the crop season, from May to August, when the negative deviation reached 32 % in relation to the climatological standard normal. Although rains resumed in the first week of September, this followed a two-week window of dry weather on most of the belt, which characterized the occurrence of an Indian summer. It was not until mid-October that the rainy season began to set in, although the monthly accumulated rainfall rate was still below average. In November, rainfall was abundant and well distributed throughout the month, with accumulations ranging from 95 to 265 millimeters among the citrus belt regions. …

Please download the complete forecast under: www.fundecitrus.com.br/pdf

1Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha and Natal.
2Departament of Math and Science at FCAV/Unesp Campus Jaboticabal

Brazilian exports of Frozen Concentrate Orange Juice (FCOJ) Equivalent increased in October for the fourth consecutive month. This season (July to October/19), Brazil has shipped 390.5 thousand tons of the product to all destinations, 19 % more than that exported in the same period last year, according to data from Secex. Revenue, in turn, rose 8 %, in the same comparison, totaling 672.27 million USD.

This result was already expected by agents from the sector, who were based on the needs of bottling plants from the European Union (number one destination for the Brazilian juice) to replenish inventories – it is worth to mention that, last season, national shipments to the EU decreased. This season (2019/20), exports to the EU have already reached 284.3 thousand tons, 25 % up compared to the volume shipped between July and October 2018.

Shipments to the United States continue to decrease – between July and October/19, Brazilian exports to the USA decreased 6 %, totaling only 53.5 thousand tons, still reflecting the 2018/19 harvest offset in Florida as well as perspectives for a positive scenario in the American state in 2019/20.

Brazilian juice exports should continue on the rise in the coming months, due to the higher orange production in the citrus belt (São Paulo and Triângulo Mineiro) and the needs of European bottling plants to replenish inventories. Shipments to the USA, in turn, will depend on the output from Florida (although greening has been controlled, it still damages local groves).

BRAZILIAN MARKET – The demand for oranges was firm in the in natura market in the first fortnight of November, according to Cepea collaborators, pushing up prices. As regards supply, the low availability of higher quality fruits and the reduction in the pear orange harvesting helped to underpin quotes. Between Nov. 1 and 14, pear orange quotes averaged 28.04 BRL per 40.8-kilo box, on tree, 31.1 % up compared to that in the first half of October.

As regards tahiti lime, the volume available in the in natura market of SP is increasing – although most are small-sized fruits, which are traded at lower prices. According to agents consulted by Cepea, the gradual supply increase tends to press down quotes from now onwards. Between Nov. 1 and 14, tahiti lime prices averaged 91.37 BRL per 27-kilo box, harvested, 14.3 % down compared to that in the first fortnight of October.

EXPORTS – Brazilian shipments of tahiti lime continue at record levels, both in terms of volume and revenue, favored by the higher supply between April and May. Between January and October/19, exports of lemon and lime totaled 93.3 thousand tons, 13.6 % up compared to that from the same period last year, according to Secex. Revenue, in turn, totaled 78.5 million USD, 3.2 % higher, in the same comparison. As supply increases in Brazil, which is expected between late November and early December, agents expect quotes to drop and shipments to increase, since lower prices favor the competitiveness of the Brazilian product in the international market.

The Brazilian exports of Frozen Concentrate Orange Juice (FCOJ) Equivalent have been increasing for two consecutive months. This season (July to August/19), Brazil has shipped 199.6 thousand tons of FCOJ Equivalent – to all destinations –, 19 % more than that from the same period last year, according to data from Secex. Revenue, in turn, rose 6 %, in the same comparison, totaling 336.64 million USD.

To the European Union, the number one destination for the Brazilian orange juice, national exports have totaled 140.3 thousand tons, 22 % up compared to that between July and August/18. To the United States, on the other hand, Brazilian shipments have decreased again, by 13 %, totaling only 32.8 thousand tons between July and August/19 – this result reflects the higher supply in Florida in the 2018/19 season and perspectives for a positive scenario in 2019/20.

PERSPECTIVES – Concerning production in Brazil, new estimates for the 2019/20 season released by Fundecitrus (Citrus Defense Fund) on September 10 indicate that the orange harvest in the citrus belt should total 388.42 million boxes (40.8 kilos each). This volume is only 0.12 % smaller than that reported in May, but 35.8 % higher than the amount harvested last season (2018/19).

According to Fundecitrus, lower estimates are based on the smaller rain amounts in São Paulo starting May, which reduced the average weight for the early varieties (hamlin, westin and rubi), from 138 to 136 grams, as well as the size, from 296 to 300 fruits per box.

Still according to the report from Fundecitrus, the harvesting of early oranges has totaled 96 %, against 23 % for pear oranges and 6 % for late oranges. So far, the total volume harvested in the 2019/20 season is at 35 %.

BRAZILIAN MARKET – Tahiti lime quotes increased in São Paulo State in the first fortnight of September, reflecting lower supply, since the fruits still on tree have not reached the ideal maturation and size to be harvested yet. Between September 2 and 13, tahiti lime prices averaged 47.48 BRL per 27-kilo box, harvested, 50.73 % up compared to that in the first half of August.

Tahiti lime exports have reached record volumes this year, largely favored by the higher supply in Brazil between April and May. From January to August/19, exports of lemon and lime totaled 83.1 thousand tons, 9.3 % up compared to that in the same period last year, according to Secex.

Concerning oranges, supply was still low in the in natura market, due to the fast crushing pace in the large sized processing plants from SP. In the in natura market, the demand for oranges was high in the first fortnight of the month. Thus, between Sept. 2 and 13, pear orange quotes averaged 18.99 BRL per 40.8-kilo box, on tree, 4.05 % up compared to that in the first half of August.

Updated orange1 crop forecast totals 388.42million boxes

The 2019-2020 orange crop forecast update for São Paulo and West-Southwest Minas Gerais citrus belt, published on September 10, 2019 by Fundecitrus – performed in cooperation with Markestrat, FEA-RP/USP and FCAV/Unesp2 – is of 388.42 million boxes of 40.8 kg each. This figure corresponds to a decrease of 0.12 % in relation to the estimate published in May/2019. Approximately 27,14 million boxes of the total crop should be produced in the Triângulo Mineiro region. …

Please download the complete forecast under: www.fundecitrus.com.br/pdf

1Hamlin, Westin, Rubi, Valencia Americana, Seleta, Pineapple, Pera Rio, Valencia, Valencia Folha Murcha andNatal.
2Departamentof Math and Science at FCAV/Unesp Campus Jaboticabal.