Brazil and the Orange Industry

Paper Summary:

This paper examines the role orange growth and marketing plays in Brazil's economy. The Brazilian citrus industry, production, growth, processing, the various differences in production, trade, prices, tariff, industry structure and key strengths and weaknesses of the Brazilian industry are discussed. The paper also focuses on the production of frozen concentrated orange juice (FCOJ) and underlines those factors that have led to the development of this industry, including government initiatives, key drivers, success factors, the structure of the industry and its current state.

From the Paper:

"The world wide market for citrus fruit juices has been growing very rapidly and is expected to grow further in the years to come. These expectations are based on the changes occurring in the: " Geographic variables " referring to the urbanization of the population all around the world, " Demographic variables " higher income, better education levels, working women outside, " Psychological and Behavioral variables " gradual shift towards a natural and healthy lifestyle, convenience which fits very well in the juice consumption. Of the citrus fruit juice trade, the frozen concentrated orange juice (FCOJ) is a commodity whose consumption has been increasing steadily in the past 30 years. FCOJ is traded worldwide, with vast markets in U.S., Europe and Canada. Today, the world's largest producers of oranges and FCOJ are Brazil and the U.S. Brazilian production is mostly in Sao Paul, where about 95 % of the citrus trees are grown. Brazil is the world's largest orange producer and exporter of FCOJ, a commodity that earned almost US $ 1.2 bn in trade revenue in 2001. During the marketing year 2000/01 Brazils orange production represented around 28% of the total world production. The domestic market in Brazil generally prefers fresh oranges, which are then squeezed for juice. Oranges that are processed for FCOJ are usually destined for export markets in the U.S., Europe and Asia."

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