As processing companies reduced the pace of activities of oranges in early April, part of units was then focused on crushing the tahiti lime. According to players surveyed by Cepea, this scenario helps to flow non-standard fruits to processing activities, reducing the volume in the in natura market.
Due to the higher demand from the industry, quotations were firm. In the first three months of 2025, prices paid by the industry for the tahiti lime averaged BRL 25.06 per 40.8-kg box, 55 % above that in the same period last year and the highest considering the first quarter since 2019 (BRL 29.95/box), in real terms (IGP-DI March/25).
From April 7-10, the price average of the fruit delivered at the industry was at BRL 26.00 per box, upping 13.04 % compared to that verified in the last week of March. This scenario ends up keeping the price level close to BRL 30/box in the in natura market. Tahiti lime prices are at BRL 29.22 per 27.2-kg box between April 7 and 10, downing 2.2 % compared to the week before.
Fundecitrus (Citrus Defense Fund) released its report of the 2024/25 season on April 10, indicating that the citrus belt (São Paulo and Triângulo Mineiro) harvested 230.87 million 40.8-kg boxes, for a decrease of 0.65 % (or 1.51 million boxes) in relation to the first estimate (May/24), but upping 1.03 % (or 2.35 million boxes) compared to that projected in February/25. In relation to the previous crop, the decrease is by 24.85 %.
The result of orange juice shipments from Brazil in the 2024/25 season already reflects the lower supply of oranges and the limited stocks of the national OJ. According to data from Comex Stat, from July to December last year, Brazil exported 448.5 thousand tons of orange juice (converted into FCOJ 66 Brix), for a decrease of 23 % compared to that observed in the same period last year and the lowest amount of the Comex Stat series, which has started in 1997. The revenue obtained with sales, in turn, rose 37 % in the same comparison, hitting the record of USD 1.96 billion.
Calculations performed to obtain the total volume exported consider the sum of the three codes available in the Comex Stat system. Specifically about the code “20091200”, which includes non-concentrate types of juice, numbers were converted into FCOJ 66 Brix. Moreover, differently from the methodology used by CitrusBR (Brazilian Association of Citrus Exporters), all ports in Brazil were taken into account, not only Santos port.
Citrus BR indicates that the volume shipped in the first six months of 2025 (the last ones of the 2024/25 season) may register a lower performance compared to the year before due to the offseason in São Paulo, which limits the availability of juice. Moreover, the international demand is low because of high OJ prices in the international market.
As for destinations of total Brazilian exports, the European Union continues as the most important, participating with 55 % of the revenue obtained with sales in the second semester of 2024. The second major destination is the United States (35 %) – data from Comex Stat.
Between July and December 2024, NFC (not from concentrate) shipments to the US accounted for 62 % of the total, against 53 % in the same period of the year before. As for the European Union, FCOJ exports accounted for circa 70 %, and NFC shipments, 30 %.
Brazil
The fourth blossoming in the citrus belt in São Paulo slightly increased the supply in late January, despite the below-expected quality of the fruits. Low stocks of orange juice have been leading some companies to purchase as many fruits as they can in the spot market in an attempt to reduce the juice deficit. Fundecitrus indicates that the good development of this last blossoming of the 2024/25 season may bring a slightly higher supply for the citrus belt.
Orange prices hit records in 2024. Values of the 40.8 kg box were above BRL 100 in the in natura market. Increases are explained by the firm demand from part of the industry (since players have low orange juice stocks) and the restricted orange supply, because of the limited production.
The weather in the citrus belt was predominantly dry and with high temperatures during the development of the crop. Although prices allowed good profits to citrus growers, the low productivity boosted costs (which had already been high due to the citrus greening disease). Margins may be reduced in areas where the production dropped significantly, despite record prices of the fruit. As for the tahiti lime, quotations were at low levels in the first semester and increased in the second part of the year, because of the offseason period, which is a typical movement.
As a result, due to the limited orange supply and the high demand from the industry, values operated at record levels, in real terms (prices were deflated by the IGP-DI). In October, the price average paid by the industry surpassed BRL 90 per 40.8 kg box. It is worth noting that 2023/24 trades started early, in January, with quotations at around BRL 38 per box. Since inventories at the industry had been limited, the demand in the spot market increased, and prices hit records in real terms, surpassing BRL 100/box in November.
São Paulo state and Triângulo Mineiro are likely to harvest 223.14 million 40.8 kilo boxes of oranges in the 2024/25 season, for an increase of 7.36 million boxes (or + 3.4 %) compared to the last projection, released in September, but still 9.24 million boxes less (or – 4 %) in relation to the first estimate (May 2024). Therefore, the current season may be 27.4 % smaller than the previous (2023/24), when 307.22 million boxes were harvested – data from Fundecitrus.
The smaller production was already expected in 2024/25, due to unfavourable weather conditions and to the citrus greening disease.
The current scenario is: very limited orange juice stocks in Brazil. Thus, in order to guarantee the global OJ supply, the next production (2025/26) would need to increase in both Brazil and Florida.
As for the agreement between Mercosur and the European Union, it can favour shipments of lime, lemon and orange juice, but can also open a direct channel to receive these fruits from Spain. Still, the agreement is very important and brings good perspectives for the mid and long-terms.
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VOG Products guarantees certified organic apple products year-round thanks to its unique regional supply chain. The organic raw materials come directly from the producer organisation’s members, among which are some of the largest organic apple organisations in Europe.
Sustainable origin and processing
Established in 1967 by apple farmers, today VOG Products – the fruit processing company from South Tyrol (northern Italy) – is a key partner of the international food and beverage industry – especially in the organic sector. The raw material is exclusively procured from the Trentino-South Tyrol region, which ensures sustainable, regional processing.
Year-round availability and strict control
Alongside continuous product availability, VOG Products offers seamless traceability and strict quality controls. Coupled with the highest certification standards, these measures safeguard customer trust around the globe.
Christoph Tappeiner (Photo: VOG Products)
Direct procurement creates trust
“We procure organic raw material directly from our members – two producer organisations and 17 fruit cooperatives – to ensure maximum reliability in terms of the origin, traceability and identity of our products,” stated Christoph Tappeiner, CEO of VOG Products.
Diversity and quality in the organic range
The organic portfolio of VOG Products has constantly expanded. The company supplies high-quality products with the seal of the Bioland and Demeter organic farming associations and also has Bio Suisse and Naturland certifications. The guidelines of these associations go above and beyond those of the EU regulation and include specifications for social sustainability.
VOG Products processes between 300,000 and 400,000 tonnes of fruit every year – pears, apricots, peaches, kiwis and cherries in addition to apples. The raw material in certified organic quality is also available monovarietal in order to fulfil customer requirements.
Citrus flavours are beloved for their refreshing zest, versatility, and ability to invigorate the senses. Consumers are drawn to them not only for their familiar taste but also for their perceived health benefits, with rising demand for natural citrus flavours driven by the clean-label trend.
Orange continues to be one of the most widely consumed citrus flavours in the world, yet despite its popularity, the global orange oil market is facing significant supply challenges due to factors such as crop shortages, poor fruit quality, and climate-related disruptions.
As demand for natural products continues to grow, driven by widespread use in food and beverages, cosmetics, and cleaning products, orange oil prices are expected to increase over the next 3-5 years.
In response these challenges, Flavorchem, a global flavour and ingredient supplier, developed taste mod™ orange, an innovative line of orange oil replacers, offering the zesty taste of citrus at a more affordable price.
“Our sweet orange oil replacers have been applied in easy-to-use flavour forms specifically designed for beverages,” says Niki Hernandez, Senior Manager Flavour Development. “Available in extract, emulsion, and spray dry forms, it comes in both TYPE and WONF versions and meets specific regulatory requirements.”
Flavorchem’s expertly crafted sweet orange oil replacers offer the bright, refreshing flavours your products require, while ensuring consistency, cost-effectiveness, and sustainability that today’s market demands. Taste mod™ orange delivers an authentic, true-to-fruit Valencia Orange flavour, labeled as “natural flavour” and ideal for clean-label products. Perfect for a wide range of beverage applications, it provides a reliable, high-quality alternative to traditional orange oils.
Data released by the USDA in late July reinforced the scenario of limited world supply for the 2023/24 orange season (or 2024/25 in the Southern Hemisphere). Despite the slight increase in the production estimate compared to the crop before, the total volume may continue at historical low levels. Moreover, the decrease in Brazil, major global producer of both orange and juice, may not be counterbalanced by other suppliers.
The USDA indicates that the 2023/24 world crop is projected at 47.4 million tons, upping 1 % compared to the season before. In Brazil, the output may decrease 1.2 %, to 15.3 million tons – equivalent to 375 million 40.8-kg boxes. However, the decrease indicated by the USDA might be underestimated. In São Paulo and in Triângulo Mineiro, the production is likely to drop 24.4 %, according to Fundecitrus, and there are doubts whether a possible increase in other states would compensate the low volume produced in the citrus belt.
Orange juice
In spite of the slight rise in the global orange production, the orange juice output is projected at 1.5 million tons, 3 % down against the season before. The decrease is related to the lower availability of fruits to process in Brazil, which represents more than 70 % of the global OJ production.
The Brazilian output is calculated at 1.1 million tons, downing 9 %, and national exports are likely to decrease in the same intensity, since almost 100 % of the Brazilian production is sent to the international market.
Tahiti lime
The global production of lemons and limes in 2023/24 is estimated to move up 2 %, reaching 10.1 million tons, boosted by the higher output in the European Union and in Turkey.
It is worth noting that these numbers consider lemons (Sicilian, for instance) and limes (such as the tahiti lime). Among major producing countries, only Mexico produces significant volumes of tahiti lime (which is produced and exported by Brazil). Mexican shipments are likely to reduce 7.5 %, which can keep the focus of this country on supplying the US, opening more room for the Brazilian tahiti lime in the European market – Brazil has been hitting records in exports year after year.
Symrise is expanding its traditional citrus taste solution offer with increased sustainable and innovative solutions. Incorporating novel citrus taste ingredients contributes to an increased security of supply that also helps balance price fluctuations. With this, the company is diversifying its offer from other than citrus sources which maintains authentic taste profiles and strengthens its positioning in taste, nutrition, and health solutions.
Consumers are increasingly seeking ways to benefit nature and make a positive impact with their food and beverage choices. As one of the global leaders in taste solutions, Symrise innovates to address fluctuating quality and availabilities.
Innovative technologies for improved sustainable solutions
Symrise leverages technologies for example distillation, extraction, selective enrichment technologies (SET FlavorsTM), industrial and university partnerships, as well as sensory-guided analysis. This continuously evolves and develops its captive ingredients to create more sustainable citrus taste solutions. Also, it significantly contributes to the authentic aroma profile of the final product. Building on its comprehensive expertise in taste, Symrise offers versatile citrus taste solutions and tailors them to suit specific recipes across all applications. They cover beverages, baked goods, confectionery, dairy, and savory dishes.
A solution with versatile benefits
“Our citrus taste solutions offer improved reliability in terms of quality, and availability,” said Richard Hartfall, Citrus Platform Director at Symrise. “We are dedicating ourselves to supporting our customers navigate the challenges of price and supply fluctuations in the citrus market while providing sustainable and high-quality solutions.”
In total, the citrus taste solutions by Symrise offer the following key benefits:
A significant broader product palette for the industry in addition to traditional citrus ingredients with secure availability.
The use of Symrise captive ingredients creates a more unique, authentic, and outstanding true to nature taste character.
Provide a cushion against the volatile fluctuations inherent in agricultural crops
Solutions offering a longer-term price stability
Adaptable for a wide range of applications
“In a world where the price and availability of traditional citrus continue to fluctuate, Symrise’s Citrus Taste Solutions offer a practical, sustainable, and economically sound alternative,” Hartfall concludes. “We are dedicating ourselves to support our customers, maintain their competitive edge while contributing to a more sustainable future for the food and beverage industry.”
ADM, a global leader in sustainable agriculture supply chains, is advancing its commitment to fostering sustainable farming practices and enhancing community resilience through a strategic partnership with Swayam Shikshan Prayog (SSP), a non-governmental organisation dedicated to empowering women in low-income, climate-threatened communities. The core of this collaboration is SSP’s innovative Women-led Climate Resilient Farming (WCRF) model—an empowering force that enables women to act as influential change agents, driving the adoption of food-secure practices on their farms.
Funded by ADM, the project kicked off last December and is scheduled to run for a year, supporting some 1,500 women farmers across 30 villages in Maharashtra district. In the face of climate change in India, where erratic weather conditions have wiped out crops across an area of 9.4 million hectares in Maharashtra1, small farmers in the region, especially women, face struggles, including crop failures and limited resources. Yet even among adversity, women’s roles in agriculture remain crucial and transformative.
“While the WCRF model is centred on Marathwada in the Indian state of Maharashtra, we recognise the broader challenges across India and have incorporated our philosophy and practises into various corporate social responsibility programmes since 2019,” said Amrendra Mishra, Country Manager of India and Managing Director of Oilseeds at ADM. “Recognising the profound impact of climate change on the livelihoods of small and marginal farming households in the region, ADM is committed to driving positive change and resilience. Through comprehensive training and the promotion of economic and social resilience, we aspire to contribute to the enduring sustainability of women and their households. Our efforts focus on improving productivity, increasing income, enhancing family health and nutrition, and building resilience for a more robust and secure agrarian community.”
Through the WCRF model, ADM aims to equip women farmers with the necessary tools and knowledge for climate-resilient farming practices. The project not only addresses environmental concerns but also empowers communities from within, paving the way toward a sustainable and food-secure future for all involved. The WCRF model centers around four key components: empowerment, food security,
livelihoods, and natural resources.
To implement this model effectively, SSP has established a supportive network that involves collaboration with the government, agro-tech partners, training partners, and knowledge and resource partners. On the ground, Krishi Samvad Sahayak (KSS), an agriculture conversation facilitator, plays a pivotal role, serving as a bridge between the model’s network and women farmers by disseminating the model, ensuring constant communication, and providing support for the women farmers involved.
“SSP has been working closely with ADM for the past two years, and together we have embarked on meaningful initiatives that brought positive results,” said Mr. Upmanyu Patil, Director of Programs at SSP. “In our first year, we built 100 farm ponds in Dharashiv District and developed water conservation plans for 100 villages. In the current year, we are dedicated to promoting climate-smart agriculture reaching out to 30 villages and 1,500 farmers in the Marathwada region. Leveraging ADM’s ability to implement and scale as an industry leader, we believe that the potential for collaboration is vast. Collectively, we can support market linkages, ensure access to government schemes, and advance water-efficient irrigation practices and crops, supporting and empowering local female farmers to become change- makers in agriculture.”
1ISAS: The Climate Emergency Situation in Maharashtra: A Big Challenge for Uddhav Thackeray
FoodChain ID, a pioneer in global sustainability certification, and ReSeed, the first provider of full lifecycle carbon credit traceability, have announced a partnership to increase transparency in measurement and verification of sustainable practices in the agri-food supply chain. With the goal to support a healthy planet, the partnership will leverage each company’s unique, world-class expertise to incentivise, measure and verify the progress of carbon sequestration through regenerative agriculture practices under a new carbon credit verification standard.
The food and agriculture industry currently contributes over one-third of the total global greenhouse gas emissions, according to the United Nations. However, less than 1 % of carbon credits on the market are sourced from agriculture.1 As consumer awareness of the industry’s role in accelerating global warming has grown, food companies have responded with more sustainable products and product claims. In fact, on-pack carbon emission contribution claims for new products grew at 33 % CAGR between July 2018 and June 2023,2 making such claims one of the fastest growing sustainability claim categories in food and beverage. In response to the claim proliferation, the carbon credit verification partnership is designed to increase measurement transparency and accountability for sustainability progress and carbon credit offsets in the agri-food supply chain.
Additionally, the carbon credit verification partnership incentivises farmers to invest more in regenerative agriculture practices while complying with European Union deforestation-free regulatory requirements (EUDR). Finally, by combining the program with other farm-level audits, such as Organic (EU, USDA and others), GLOBALG.A.P., RTRS, RSPO, Bonsucro or ProTerra, the program offers efficiencies for farmers. The first joint programs have launched with close to a thousand farmers in Brazil to implement deforestation-free, regenerative practices.
ReSeed, with its AI-powered digital ledger transparency platform, will collect and process data for carbon credit measurement protocols to allow monetisation and incentivisation for farmers deploying sustainable practices in the field. ReSeed’s team will also leverage their legal and technical knowledge to validate carbon estimates under international standards and provide field technical assistance to sort eligible farmers based on sustainability standards for farming activities.
FoodChain ID, with over 25 years of experience in global sustainability certifications, will serve as the exclusive verifier for the carbon credit partnership under ISO 14065 accreditation. FoodChain ID’s independent technical experts will perform yearly audits of farm practices under international sustainability standards, adding third-party credibility to the measurement of carbon sequestration in soil.
1Ivy S. So, Barbara K. Haya, Micah Elias. May 2023. Voluntary Registry Offsets Database, Berkeley Carbon Trading Project, University of California, Berkeley. 2Innova Insights/Nutrition Insights, July 2018 to June 2023.
2023 was a very positive year for the citrus activity in São Paulo state and in Triângulo Mineiro concerning prices received by citrus farmers. Orange values were at firm levels during the year in both the in natura market and at the industry – in this segment, quotations hit record levels in real terms, allowing a year of good profitability.
This scenario is explained by the lower supply compared to the demand, despite the fact that the 2023/24 production is on average. Orange juice stocks started the season at low levels, and there was the need to purchase the raw material in order to prevent a significant decrease of stocks at the end of the current season. Moreover, the orange juice demand is firm in the international market, especially from the US, country that has been registering limited production for years due to greening (HLB) impacts.
In November, prices of orange to the industry hit real records, considering Cepea historical series, which has started in October 1994 (monthly values were deflated by IGP-DI October/23).
Orange production
The 2023/24 orange season in São Paulo state and in Triângulo Mineiro may decrease 2.2 % compared to the previous, according to Fundecitrus. The total volume is forecast at 307.22 million boxes, 0.7 % smaller in relation to the first estimate, released in May.
The decrease is related to above-average rains, which increased the incidence of blossom-end rot, to the negative biennial cycle (except in the north), the lower volume of flowers verified in some late variety trees and to the intensity of greening.
It is important to mention that this volume is below the need of the industry to meet the international demand and increase juice stocks, which are very low. According to CitrusBR, the volume in stocks hit the lowest level in 12 years, totaling only 84.745 thousand tons of volume equivalent to concentrate juice by the end of the 2022/23 season (June/23), downing 40.7 % compared to the previous crop. These critical numbers arise serious concerns about the global orange juice supply.
The combination of low orange supply and firm demand over the last weeks, due to high temperatures, has been keeping prices on the rise in both the in natura market and at the industry.
Orange prices have been hitting records in both segments – as for fruits to the industry, the current average is a real record, considering the Cepea series, which started in October 1994 (monthly prices were deflated by IGP-DI October). Even with an average crop, orange juice stocks at processing companies are low, resulting in a fruit supply that is lower than the demand.
In November, pear oranges are traded in the in natura market at BRL 58.90 per box, 45.9 % higher than in November last year (in real terms) and the highest of Cepea series, in nominal terms. In real terms, the current average is the highest since March 2019 and the fourth biggest considering the months of November.
Prices for pear orange and late varieties sent to the industry, in turn, have averaged BRL 49.04 per box in November, soaring 60.3 % compared to November/22, in real terms, and the highest of the series.
The supply in Brazil is expected to be lower than the demand at least until the end of the crop. The following season can still register a limited availability, considering that current OJ stocks may not recover at the end of the 2023/24 crop. In case the 2024/25 season continues on the average, stocks may present a new decrease. Therefore, if the crop is below-average, the situation can be critical.
Building upon the successful partnership established in 2022 (with the aim to produce the first heat exchanger made with fossil-free steel) Alfa Laval will now incorporate SSAB’s unique fossil carbon emission free and recycled steel (SSAB Zero™), into its heat exchangers. This represents an important milestone towards achieving a global carbon neutral supply chain.
Key highlights:
Tackling global carbon emissions: Steel production accounts for 7 percent of the world’s carbon emissions, making it a critical industry in the fight against climate change. The collaboration between Alfa Laval and SSAB aims to address this challenge, with emissions being predominantly generated from a limited number of locations.
Reducing carbon footprint: By integrating SSAB’s fossil carbon emission free, recycled steel, produced through renewable-based processes, into Alfa Laval’s heat exchangers, the collaboration takes an important step towards achieving a global carbon neutral supply chain.
Double impact on global emissions: Initially more than 100 heat exchangers will be delivered this year – and significantly more the coming years. These heat exchangers will be deployed to improve energy efficiency in numerous areas such as HVAC, marine, process and food industries.
“Alfa Laval’s commitment to sustainability is further strengthened through our collaboration with SSAB,” says Thomas Møller, President of the Energy Division at Alfa Laval. “By incorporating their recycled steel in our heat exchangers, we are not only reducing our own carbon footprint but also driving the entire value chain towards a cleaner and more sustainable future.”
”SSAB is really accelerating the roll-out of zero-emission steel with our newest product SSAB Zero,” says Thomas Hörnfeldt, Head of Sustainable Business at SSAB. “We are now expanding our partnership with Alfa Laval to include SSAB Zero, and can look forward to visible results already this year. This is great news, and also allows us to help mitigate climate change even faster.”
Tahiti lime prices have been firm in the citrus-producing regions in São Paulo State since mid-June. However, in the first fortnight of August, quotations skyrocketed. Supply has decreased even more steeply, while demand is beginning to warm up – it is important to consider that this year’s winter has been warmer than the average.
Between August 1st and 15th, the average price for tahiti lime closed at BRL 76.70 per 27-kg box (harvested) a staggering 111.87 % up from that in July and 106.85 % above the average in the first fortnight of August of 2022, in nominal terms.
Some growers managed to sell the box for BRL 100.00 in the first half of August. With prices at high levels, many growers harvested all the fruits they were able to, in order to ensure a good revenue, offsetting at least part of the financial losses from the peak of harvest, when quotations were lower than BRL 10/box.
Cepea, collaborators believe that prices will continue high for some time, since supply in SP is only expected to resume rising after the return of rains, which usually occurs in September.
According to Cepea collaborators, in general, fruits quality (peel, amount of juice and size) is considered good, being higher in irrigated orchards – where fruits are growing bigger.
EXPORT – Domestic valuations have influenced the export value for the Brazilian tahiti lime. However, agents believe shipments will decrease soon, since sales in Brazil are expected to get good remuneration and thus reduce the attractiveness of the international market.
It is important to mention that this year’s shipments are currently at record levels, at 103.4 thousand tons (lemons and limes), 0.7 % higher than that from the same period last year, according to data from Secex (Foreign Trade Secretariat). Revenue is at USD 99.25 million, 4.4 % higher, in the same comparison.
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 CO₂ 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.”
After fading for some weeks, tahiti lime prices increased in the second week of June, due to lower supply. Players surveyed by Cepea reported that farmers have reduced the harvesting pace, expecting higher prices in the coming weeks.
In that scenario, between June 12 – 15, the average price closed at BRL 17.96 (harvested), 33.8 % up compared to that in the previous week. This valuation brought some relief to farmers, since quotations had been low since mid-May and that some producers were working with negative margins.
Players surveyed by Cepea expect supply to decrease even more up until the end of June, which may boost values in the domestic market and export prices. However, weak demand may limit valuations, since the weather is cold, which usually discourages consumption. The weather has also been limiting the quality of tahiti lime.
INTERNATIONAL MARKET – The international demand for lemons and limes from Brazil has been increasing. May is not a month of significant shipments, but, this year, the performance was above-average. Secex indicates that Brazil exported almost 23.1 thousand tons in May, 42 % more than the volume shipped in April and 78 % up from that in May last year.
The orange output in the citrus belt in southeastern Brazil (São Paulo and the Triângulo Mineiro) in the 2023/24 season is estimated at 309.34 million boxes of 40.8 kg each, according to data from Fundecitrus (Citrus Defense Fund) released on May 10th. This volume is 1.5 % lower than that harvested last season.
According to Fundecitrus, the major reasons for the lower harvest are rains above the historical average (although they have favoured both the vigor of trees and fruits growth, rains raised flower rotten), the negative biennial cycle (except for northern SP, where productivity was lower last season), lower blooming for some late varieties (whose harvesting was delayed and/or production was high in 2022/23) and the higher incidence of greening, which is expected to raise the rate of fruit fall. On the other hand, high moisture may favour fruits weight, which may be the highest since 2017/18.
As for productivity, the average forecast for the citrus belt is at 918 boxes per hectare, a slight 0.6 % up from that in the 2022/23 season.
Although the harvest expected in the citrus belt is within the average of the last 10 years, the needs of juice processors in SP for oranges is very high. Inventories are low, and the number of oranges to be available is not expected to be enough for stocks to recover.
Indeed, according to a report from CitrusBR released this month, the volume of juice stocked by the processors in SP in Dec/22 was 14.5 % lower than that in the same period of 2021. If this percentage continues stable until the end of the 2022/23 season (on June 30, 2023), ending stocks may total 122.3 thousand tons (juice equivalent), very low – maybe even insufficient – to meet the markets’ demand until the new season steps up.
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.
Across all age groups, strawberry consistently ranks among the top fruits consumed around the world. It forms an ubiquitous ingredient in applications ranging from beverages, baked goods, cereals, confections, dairy foods, and plant-based products to consumer health products for sports nutrition and dietary supplementation. To help meet this demand, Symrise has developed a broad diana food™ portfolio of strawberry ingredients that includes powders, flakes, crunchies, and crunch’flakes.
To reliably deliver such a broad portfolio of high-quality strawberry ingredients, Symrise has built a worldwide network of sourcing capabilities. Today, the company responsibly sources strawberries from Chile, Morocco, Spain, and Italy. This global strategy enables Symrise to provide a broad range of strawberry ingredients meeting different features whether it relates to competitiveness, a specific quality such as Baby Food, a specific certification such as organic, a composition up to 100% from fruit or diverse organoleptic properties. It also ensures a reliable supply chain all year long. Our long-term relationships with farmers, supported by regular visits and audits from our in-house agronomists, guarantee the high quality of the selected fruit, the full traceability of agricultural practices, and the ability to supply certified ingredients that meet the client’s specific needs.
According to Aurélie Pellé, Global Fruit Product Line Director at Naturals Business Unit, Symrise Food & Beverage: “As a customer-driven organization, we offer the ideal solution with year-round availability whatever application and product form requirement our customers may address.”
To assist global customers in choosing the most appropriate strawberry reference for their application needs, Symrise has created a new product brochure for the diana food™ portfolio specifically designed to guide them through the company’s comprehensive strawberry offerings. With this resource, customers’ product development teams can more easily identify the strawberry ingredient that best suits their functional and sensorial requirements.
Tahiti lime prices faded in São Paulo State in the first fortnight of March. According to Cepea collaborators, the current hot weather in Brazil has been favoring consumption, however, supply is high, due to the peak of harvest. Thus, quotations were pressed down.
However, many farmers reported that supply is beginning to decrease. The harvesting, which has been in full swing since mid-January, is expected to slow down until the end of March.
During the peak of harvest in 2022 (January – March), the quotations for tahiti lime have been lower than that in the same period of 2021. From the beginning of the year until March 10th, the average price for this variety closed at BRL 21.92/box, harvested, 1.8 % down from that in the first quarter of 2021, in nominal terms. Only in January/22 prices were higher than that in Jan/21.
The lower volume to be harvested in the coming weeks is expected to limit processing. By the end of the first fortnight, four plants were operating in SP, paying from BRL 18 to BRL 20.00 per 27-kilo box, harvested and delivered to processors.
EXPORTS – Brazilian exports of lemon and lime have been high this year. According to Secex, in the first two months of 2022, Brazil shipped to all destinations 22 thousand tons of lemons and limes, 17.1 % up from that in the same period last year, only lower than that in the first bimester of 2020. Revenue total USD 17.3 million, 11.9 % up in the same comparison. Despite higher volume and revenue, the average price (in dollar) paid for the fruit is lower than that from the same period of 2021.
In February, exports performance was a record for the month, favored by high supply in SP and higher quality of the fruits (because of recent rainfall). According to Secex, Brazil shipped 11.8 thousand tons of lemon and lime in February, 13.4 % up from that in Feb/21. Revenue totaled USD 9.2 million, 9.5 % up, in the same comparison.
PepsiCo Beverages North America (PBNA) announced a USD1.5 million grant to the Water Replenishment District of Southern California (WRD), the largest groundwater agency in the state of California, to help manage and protect local groundwater resources to more than four million residents.
“Partnering with the Water Replenishment District of Southern California will not only help enable long-term, sustainable water security for local communities who depend on an accessible and reliable supply of clean, safe water,” said Johannes Evenblij, President of West Division at PepsiCo Beverages North America, “but it will also be critical in the advancement our pep+ (PepsiCo Positive) Net Water Positive ambition to reduce absolute water use and replenish back into the local watershed more than 100% of the water we use. As a food and beverage company, we’re acutely aware of the critical role water plays in the southern California ecosystem, and our community.”
The partnership will improve drought resiliency and pilot WRD’s first inland injection well for utilization of in-ground storage. When complete, the project will store an average of 325,851 gallons of water per year for municipal and indirect use, drought resiliency and mitigation.
“The Water Replenishment District is proud to be the first public agency to receive a water sustainability grant from PepsiCo,” said Water Replenishment District Board President John D.S. Allen. “This grant will help build our region’s drought resilience for years to come. The WRD Board of Directors commend and applaud PepsiCo for their commitment to protecting our watershed.”
PepsiCo is focused on improving water-use efficiency, local replenishment in water-scarce areas, public education, advocacy for smart water policies, and adoption of best practices with community partners. Example sustainable PepsiCo partnerships include:
Arbor Day Foundation: PBNA and PepsiCo Foods North America (PFNA) supported ADF’s replanting of two million trees in the burn scars of the Carr and Camp Fire wildfires that devastated Northern California in 2018.
California Water Action Collaborative: PBNA is part of CWAC, a coalition of industry, nonprofit, and governmental organizations investing in efforts throughout California that yield positive return for water quality and quantity.
The Nature Conservancy: PBNA collaborates with TNC as part of the Salt and Verde Alliance, a partnership that brings together companies, farmers, communities, and other organizations to help protect the Salt and Verde watersheds of the arid western United States.
Alfa Laval has signed a partner agreement with Wayout International, a Swedish innovation company, to develop micro-factories for local and sustainable production of water and other beverages. The micro-factories will use Alfa Laval technology and be built at the company’s site in Copenhagen, Denmark. The agreement covers the production of up to 100 micro-factories, and the partnership starts in 2022.
Today more than 2 billion people lack access to clean drinking water. Wayout’s micro-factories can treat all types of water and remineralize it to produce high quality drinking water. The fully automated plug-and-play system is powered by solar panels. Producing water locally addresses the challenges of bottling, logistics, and distribution, and reduces the generation of plastic waste.
The partner agreement includes the production of two different micro-factory concepts: one for drinking water and another for brewed beverages.
“This partnership combines Alfa Laval’s technological expertise with Wayout’s innovative processes to accelerate sustainable solutions,” says Nish Patel, President of the Food & Water Division. “It addresses a globally important issue – access to safe drinking water – and we are very pleased our technology is part of the solution.”
Did you know … One micro-factory can produce 70,000 litres of drinking water each month, preventing up to 200,000 plastic bottles and 8 tons of carbon dioxide from entering the eco system.
About Wayout Wayout was founded in Stockholm in 2018 by a group of entrepreneurs within process engineering, IT/IoT, and tech innovation. Their micro-factories are offered to organizations and entrepreneurs that see the opportunities in locally producing beverages with a minimal eco-footprint.
Orange juice (volume equivalent to concentrate juice) exports finished the 2020/21 season downing 7 % compared to the previous (2019/20). From July 2020 to June 2021, shipments to all destinations totaled 1.03 million tons, according to Secex. The revenue, in turn, amounted 1.54 billion USD, for a decrease of 15 % in relation to the season before.
The low performance is related to the smaller orange supply in the Brazilian citrus belt (São Paulo and Triângulo Mineiro), but players from the industry say that international prices (in USD) were not very high. On the average of the season, prices of the concentrate juice (which accounts for most of the revenue obtained) were 11 % lower, according to Secex. On the other hand, NFC (not-from-concentrate) values were 8 % higher in the same comparison. It is important to mention that the dollar valuation favored the revenue in Real (BRL).
The decrease was mostly influenced by the European Union, a major purchaser of the Brazilian product: it imported 649.95 thousand tons, 13 % down compared to the season before. The revenue was 982.86 million USD, for a decrease of 20 % in the same comparison.
Exports to the United States, in turn, increased. In general, besides consecutive reductions in the orange production in Florida (limiting local inventories), the pandemic scenario has favoured the demand in some periods, due to the healthy aspect of consuming the product. Shipments totaled 198.34 thousand tons in the 2020/21 season, 13 % up compared to the previous. The revenue rose 7 %, totaling 297.53 million USD.
As for the 2021/22 season, which starts in July, Brazilian exports may again be limited due to smaller orange production and low pace of consumption. However, the economic recovery is likely to favour sales.
Price averages of all orange varieties were firm in January in São Paulo state and may continue high in February. The lower production in the citrus belt (São Paulo and Triângulo Mineiro) in the 2020/21 season and difficulties to harvest in some areas, due to rains, underpinned values. Moreover, the supply of high-quality orange was low – most fruits available in January had characteristics unwanted by consumers, such as large size and thick peel.
In January/21, pera rio orange quotes averaged 39.06 BRL per 40.8-kilo box, on tree, 27.9 % up compared to January/20, but a decrease of 3.6 % in relation to December/20, in nominal terms. As for lima orange, the average was 73.85 BRL/box, 101 % up in the annual comparison, but 8.6 % lower in relation to December/20. Natal orange values averaged 35.07 BRL per box (+29.9 % in one year, but -3.4 % compared to the month before).
Values may continue at high levels to citrus growers in February, mainly for high-quality fruits in the in natura market. The loss of fruitlets and the low rate of established flowers last year that now result in a limited volume of out-of-season oranges favor this scenario. As for the demand, it can increase in February because of high temperatures.
As for the first oranges harvested in the 2021/22 season in Jales, where major flowerings are advanced, they can be available from March onwards. However, due to the dry weather in the second semester of 2020 and the consequent low rate of flowers established, the volume may not be very high.
TAHITI LIME – The peak season in São Paulo continued to press down tahiti lime prices in late January. However, producers reported problems brought by hot weather and rains, which can increase the allocation of fruits to crushing activities and limit the supply in the in natura market.
In April, the citrus growers from São Paulo State fastened the harvesting pace of the 2020/21 orange crop. Although supply was not high, the volume harvested was enough to press down citrus quotes in the in natura market during the month. Besides, the demand for oranges decreased in April, due to the social distancing advice – because of the coronavirus pandemic –, constraining fruits sales to restaurants and other food services. Supply should continue higher than demand in May, which has been concerning citrus growers about prices.
As regards early varieties (rubi, hamlin and western, for instance), deals have been closed since March. However, only in late April these fruits were near the ideal maturation stage, when baía oranges started to be supplied. Sales and the harvesting of these varieties should step up from May, but the crop peak should occur only in June, when crushing is supposed to start. In April, the average price for hamlin oranges was 25.02 BRL per 40.8-kilo box, on tree, 18.7% down compared to that from March.
For pear oranges, the gradual decrease in the demand pressed down quotes in April. Thus, the average price for this variety was 8.15% lower than that from March, closing at 32.47 BRL per 40.8-kilo box, on tree. According to Cepea collaborators, the harvesting of the first pear oranges in the 2020/21 crop should step up from the second fortnight of May, once crops development is late and phased. However, some growers preferred to anticipate the pear orange harvesting, aiming to take advantage of the price levels – these citrus growers fear that prices may drop sharply in May, due to forecasts for higher volumes of early oranges in the market.
As regards processors, although supply is forecast to increase in May, crushing should be lower early in the month. This scenario has led the early fruits to be exclusively allocated to the in natura market. On the other hand, late oranges harvesting (valencia, natal and folha murcha) should end in the coming weeks.
Orange supply should continue to increase in São Paulo State in April. Although some oranges among the early varieties were traded in March, this month, availability should grow, offsetting the low supply of pear oranges in the market. Still, supply should not be considered high, since flower settlement in the first flowerings was reduced.
Thus, the upward trend of orange prices, observed until March, has been interrupted. Demand, in turn, should be affected (positively and negatively) by the covid-19 pandemic – on the one hand, citrus fruits are supposed to strengthen immunity, on the other hand, the demand for school meals, company meals and from food services should continue low.
It is also important to mention that the oranges from SP should reach the ideal maturation stage this month, which may allow these fruits to stay longer on trees while demand is low. However, growers tend to opt for closing deals at this time of the year, before availability grows too much (possibly pressing down quotes), from May.
Besides, crushing is currently at a slow pace at the processing plants from SP, and should step up again only in May, when early varieties start to be crushed. Thus, this month, oranges should be allocated exclusively to the in natura market and small-sized processors. However, as the market has been oscillating and uncertain, due to the changes caused by the pandemic, orange prices may rise again, changing the scenario forecast by growers.
TAHITI LIME – As the fruits from the second flowering have ripened, supply should continue high between April and early May. Quality should be high, reflecting the regular rains in March. Still, it should be lower than that available in the first quarter of the year (crop peak period). In this scenario, a considerable supply with fruits within the required standard may continue to favor exports if international demand keeps firm.
In the first quarter of 2020, the Brazilian exports of lemon and lime were records for the period. According to data from Secex, Brazil shipped 34.7 thousand tons of these fruits, a staggering 46 % up compared to that in the same period last year. Revenue, in turn, totaled 25.9 million USD in January, February and March, 42 % higher in the same comparison.
Freshfel Europe is concerned over the increasing financial burden being carried by the European fresh fruit and vegetable sector as a result of the coronavirus crisis. Increasing costs associated with the implementation of necessary measures across the supply chain to cope with the COVID-19 pandemic as well as current and future non-harvesting of products if seasonal workers are not available are set to have considerable ramifications for the long-term stability of the sector. Freshfel Europe calls for new support measures to secure the supply of fresh produce to consumers over the coming summer months and into the latter half of 2020 and beyond.
Despite providing an uninterrupted supply of fresh, safe and high quality fresh produce to consumers throughout the COVID-19 pandemic so far, the European fresh fruit and vegetable sector is facing significant challenges. Although the sector is well organized and committed to its responsibility to provide fresh produce to consumers confined at home the effects of the pandemic are being felt by all actors in the supply chain. The availability of seasonal workers is still insufficient in many places. This workforce is key for planting, preparing orchards, preventing non-harvesting and picking quality products now and later in the year. Efficiency in orchards and pack houses has decreased due to social distancing rules and with the provision of safety equipment and new packing requirements other challenges are being encountered. Growers in particular are being confronted with a significant increase of new necessary costs, often by more than 10 %, which are not being entirely returned or compensated. Logistics costs in the chain have also increased by 20 – 30 % due to empty returns of trucks and longer journey times. Besides this, significant market loss is being experienced with the closure of the European food service industry and street markets, with wholesalers consequently also losing a significant amount of business. In total this market segment covers 25 % of fresh produce consumption and retail chains are not absorbing all of this volume. Retailers have also had to adapt stores with personal safety measures such as flexi-glass at cashiers and limiting shopper numbers in store. In addition, risks for products to be successfully exported globally are increasing and importers are experiencing high uncertainty in terms of delivery and time required for documentation checks. This increasing burden on the supply chain is set to have considerable ramifications for the long-term stability of the sector.
In light of mounting uncertainty about the future of the sector, Freshfel Europe calls for continued and new support measures to secure the supply of fresh fruit and vegetables to consumers over the coming summer months and into the latter half of 2020. At the start of April the European Commission secured an operation framework for intra-EU trade and measures for seasonal workers, however no further support has been granted under the Common Agricultural Policy (CAP) to producers and producer groups to reflect current increasing costs to guarantee the continued supply of fresh, safe and high quality products to consumers. More incentives through CAP instruments on top of those released by the European Commission on 6 April 2020 are needed for the sector, especially for growers, to cope with the current financial pressure. As an essential good, maintaining the long-term supply of healthy fresh fruit and vegetables to the European market is essential.
Amid the COVID-19 outbreak across Europe the European fresh fruit and vegetable sector has increased efforts to ensure a continuous and diverse supply of safe, high quality fresh fruit and vegetables for consumers in Europe and around the world. With at-home consumption increasing as the outbreak develops, ensuring consumers can maintain a healthy, balanced diet with access to fresh fruit and vegetables remains a top priority for the European fruit and vegetable sector.
Freshfel Europe together with its members has been closely monitoring the implications of the COVID0-19 outbreak for the fresh fruit and vegetable supply chain across Europe. Now officially declared a pandemic by the World Health Organisation (WHO), the closure of border crossings in Europe for people has delayed some operations in the fresh produce supply chain. However, all possible measures have been taken across the chain to maintain supply of high quality fresh produce. With the closure of restaurants and cafés in many Member States, consumers are increasingly reliant on the availability of fresh fruit and vegetables in retail outlets for at-home consumption. The fresh fruit and vegetable sector is holding discussions with public authorities to guarantee a ‘fresh corridor’ to fast-track trucks transporting highly perishable fresh fruit and vegetables to guarantee timely supply. This includes securing vehicles and drivers in a timely manner in the right locations and introducing protocols to ensure trade flows. Discussions are also being centred on securing resources for the upcoming picking season, such as having enough employees picking in orchards and working in packing stations and further down the supply chain.
Measures are being taken by all European fresh produce companies to provide the highest protection to workers in the supply chain. Non-essential staff are working from home, distances between essential operating staff have been increased, the highest hygiene precautions in pack-houses and wholesale markets are being taken and truck drivers are being isolated to decrease the risk of shortages of these crucial personnel in maintaining operations. In retail outlets staff and consumer safety is of the highest priority. Precautions have increased to ensure the highest level of safety for essential staff re-stocking shelves to meet heightening demand for products and for consumers expecting safe, high quality fresh products.
The highest levels of food safety and hygiene are being met by operators in the fresh fruit and vegetable supply chain amid the COVID-19 outbreak. While the European Food Safety Authority has stated that there is no evidence that transmission through food consumption could occur, the sector reminds consumers to follow the precautionary recommendations issued by the WHO on good hygiene practices during any food handling and preparation. This includes washing hands, using different chopping boards and knives for raw meat and cooked food and avoiding potential cross-contamination between cooked and uncooked foods. All these efforts by the sector are facilitating consumers in continuing to have a healthy balanced diet rich in fruit and vegetables throughout the outbreak.
The global packaging producer, Ecolean has been awarded the prestigious Gold Medal Recognition 2020 for its sustainability work. The certificate is awarded by the independent and trusted provider of sustainability ratings, EcoVadis. In the overall rankings, Ecolean is placed in the top 5 percent of a total of 60,000 companies assessed from 155 countries.
Ecolean’s high score is based on the company’s strategic work with clear objectives within significant areas of sustainability such as environment, including renewable energy and climate impact and social aspects – as well as via monitoring and transparent reporting of sustainability data of its lightweight packages and filling machines. For Ecolean, this is the first year the company participates in the ratings by EcoVadis.
EcoVadis is an independent provider of business sustainability ratings, which evaluates companies’ sustainability work in global supply chains annually. The assessment focuses on four key areas: environment, labor and human rights, ethics and sustainable procurement. EcoVadis uses international standards such as the Global Reporting Initiative and the UN Global Compact.
About Ecolean
Ecolean develops and manufactures innovative packaging systems for the dairy and liquid food industry. Ecolean’s modern lightweight packaging is consumer convenience and environmental concern in one. Ecolean is a global company with its headquarters in Sweden. Established in 1996, the company has commercial activities in over 30 countries, with China, Pakistan and Russia being its largest markets. Ecolean has 450 employees.
The availability of citrus fruits should increase in the in natura market of São Paulo State in November. Besides the harvesting of late oranges, the supply of tahiti lime should also grow until late November, after the rains in late October (despite the small amount). The warmer weather in November, however, should boost the demand for these fruits, which may underpin quotes, at least in the first fortnight of the month.
As regards orange, the supply of late oranges should increase sharply – the harvesting of valencia oranges started in August (a month before the usual period) and for natal oranges, in mid-October. The wilted-leaf variety should also be available starting November, as it reaches the ideal maturation stage to be traded in the in natura market. According to growers consulted by Cepea, quality has been higher for these varieties than for pear oranges, which should favor sales in the in natura market.
Concerning mid-season varieties, the amount of high quality fruits is becoming lower and lower, due to the dry and hot weather in September and October (when many oranges wilt and crystallize). Thus, in October, pear orange prices averaged 22.99 BRL per 40.8-kilo box, on tree, 17.8 % up compared to that from September.
Citrus growers from SP have also reported losses of mature fruits, due to recent rains, which came along with strong winds in some areas. According to recent reports from citrus growers consulted by Cepea, the groves in regions near Catanduva and Jales may have been the most damaged by winds.
TAHITI LIME – The availability of tahiti lime in early November should be even lower, but it may gradually increase in irrigated groves. According to agents, rains in late October, although occasional, may have favored tahiti lime growth, which should be harvested from the second fortnight of November.
The volume, however, may be smaller than that previously estimated, since in October, high price levels for this variety led some growers to harvest the fruits at a small-size and out of the ideal maturation stage (these fruits would only be ready in November). In October, tahiti lime prices averaged 83.64 BRL per 27-kilo box, harvested, 33.3% up compared to that in September.
Higher supply should also favor tahiti lime exports, which have been low since July, due to the price rises for the variety in the Brazilian market and the low supply of fruits in the required standard for the international market. It is worth to mention that, despite the slower pace, the performance of Brazilian tahiti lime exports has been positive this year, with record volumes registered (until September).
Orange prices were weakened in the Brazilian market in May, due to both the colder weather and high supply at the orchards from SP.
As crushing increases in Brazil, citrus farmers tend to reduce orange supply to the in natura market, aiming to prioritize the trades already closed with processing plants – which may prevent prices from dropping more sharply – many farmers allocated large volumes of early oranges to the in natura segment in May, waiting for crushing to start at the industry.
Between May 2 and 31, pear orange quotes averaged 21.17 BRL per 40.8-kilo box, on tree, 33.4 % down compared to that between April 1 and 30.
Concerning tahiti lime, besides the higher supply, quotes were pressed down by the low demand, from both the Brazilian and the international markets. In May, tahiti lime quotes averaged 15.21 BRL per 27-kilo box, on tree, 36.8 % down compared to that in April.
The larger crop estimated by Fundecitrus (Citrus Defense Fund) for the Brazilian citrus belt (São Paulo and Triângulo Mineiro) in 2019/20, at 388.89 million boxes of 40.8 kilos (36 % larger than that from the 2018/19 season), should offset the inventories at processing plants from São Paulo in June 2020, according to Cepea estimates. However, this is not a high supply scenario, since the volume produced in 2018/19 was small and processing plants need to purchase raw material in order to replenish the low inventories forecast for June 2019.
According to CitrusBR (Brazilian Association of Citrus Exporters) estimates from Feb/19, the 2018/19 season should end, in June/19, with the smallest output since June/11, smaller than the strategic amount (of 250 thousand tons). Thus, if these estimates are confirmed, industrial demand may be firm in 2019/20, offsetting higher orange supply – this context has practically been confirmed, considering the anticipated trades closed in late 2018 at firm prices.
According to Cepea’s first estimates, by the end of the 2019/20 season (in June/20), juice inventories may surpass 300 thousand tons (Frozen Concentrate Orange Juice – FCOJ – Equivalent). For this calculation, Cepea considered the initial inventories forecast by CitrusBR (200.6 thousand tons), 300 million boxes crushed (88 million boxes allocated to the in natura market), average yield at 260 boxes for each ton of orange juice and sales at 1.05 million tons.
Thus, although 300 thousand tons are higher than the strategic level stablished, it is important to consider that production has oscillated in the citrus belt from year to year, with periods of larger volumes followed by years of low production. In this scenario, taking into consideration that the 2020/21 crop may be smaller, inventories should be kept stable at processing plants, aiming to avoid major decreases in the global supply.
PRICES PAID TO CITRUS GROWERS IN 2019/20 – Despite the larger volume forecast for the citrus belt, growers’ revenue should be positive in 2019/20, due to high productivity (which may reduce the cost per unit). Besides, much of the output has been purchased at the same price levels from 2018/19, between 20 and 22 BRL per 40.8-kilo box, harvested and delivered at processing plants (counting or not on a participation additional in the juice selling price in the international market).
Loop Industries, Inc., a leading technology innovator in sustainable plastic announced that they have entered into a multi-year supply framework with the Coca-Cola system’s Cross Enterprise Procurement Group (“CEPG”) to supply 100 % recycled and sustainable LoopT PET plastic (“LoopT PET”) from Loop’s joint venture facility with Indorama Ventures Limited in the United States to authorized Coca-Cola bottlers who enter into supply agreements with Loop. Indorama Ventures is a world-class chemicals company and a global integrated leader in PET and fibers serving major customers in diversified end-use markets.
“We are very proud to become a supplier of LoopT branded PET resin to the members of the Coca-Cola system’s Cross Enterprise Procurement Group,” said Daniel Solomita, Founder and CEO of Loop Industries. “We are especially pleased to be able to assist Coca-Cola’s authorized bottlers as they work to meet their recycled content ambitions.”
“Like all responsible companies, we need to be selective in choosing our packaging materials so that we continue to eliminate waste and work to reduce the environmental impact,” said Ron Lewis, Chief Supply Chain Officer, Coca-Cola European Partners, a bottler member of CEPG. “Investments like this one with Loop Industries support our goal to ensure that at least 50% of the material we use for our PET bottles comes from recycled plastic, and will help us divert more materials from landfills and build a stronger circular plastic economy.”
This arrangement continues the rapid and exciting progress ?being made by Loop as it commercializes its breakthrough depolymerization technology which will help reduce global plastic waste and enable major global brands to meet their sustainability goals. As the demand for sustainable packaging solutions continues to grow, Loop Industries has emerged with transformational technology that allows no and low value plastics to be diverted, recovered and recycled endlessly into new, virgin-quality LoopT PET plastic.
Harvesting of the late oranges from the 2018/19 crop, which started in the first fortnight of August, should step up in September. Thus, with higher supply of other varieties, the farmers consulted by Cepea believe pear orange quotes (which have been higher than in 2017 since May/18, despite the crop peak) will not oscillate as much next month.
In light of the low pear orange supply this year, due to the weather, processors started to purchase late oranges (mainly valência) last month – only the fruits in the ideal maturation stage demanded by this segment were purchased. Therefore, the delivery of these varieties is expected to step up in the second fortnight of September, with a higher share of natal oranges.
In general, citrus farmers consider good the quality of the late oranges in irrigated orchards, since they can still grow until the harvesting steps up. However, on the farms with no irrigation, the drought has already affected production – either by staining the peel or by preventing the fruits from growing up.
PEAR – As for pear oranges, whose prices are over 34 BRL per box, on tree (for higher quality fruits), quotes are expected to increase even more until the end of the crop, since many farmers have reported low supply of that variety. In September, however, higher availability of late oranges should constrain significant price rises (since processors will still be selective regarding valência and natal purchases, until they reach the ideal standard for harvesting).
In August, pear orange quotes averaged 29.08 BRL per 40.8-kilo box in the in natura market, a staggering 77 % up compared to the same period of August/17, in nominal terms. The boost came from low supply in São Paulo State in 2018/19, large purchases from processors from SP and the volumes already sold through mid and long-term contracts. Thus, if competition between processors increases, prices in the field may rise even more in the coming months. Pear orange productivity should have the sharpest decrease compared to 2017/18, at 31.2 %.
TAHITI LIME – Tahiti lime quotes also increased in August. According to Cepea collaborators, many farmers interrupted harvesting, aiming to push up prices again – once the variety, still green, may stay longer on trees. Besides, international demand increased in that period too. Thus, between August 1 and 31, tahiti lime quotes averaged 35.75 BRL per 27-kilo box, harvested, 21.4 % up compared to that between July 2 and 31.
Tahiti lime supply is expected to continue low next month, which may boost prices. In the off-season period (from September to October), many of the fruits still on tree will not have reached the ideal size and color to be harvested. Farmers believe tahiti lime volumes will increase only in November – if it rains during these months and if the volume is enough to favor fruits development on tree.
