Orange juice production in Brazil has dropped to its lowest level in 5 years

According to the exporter’s group, CitrusBR projected, on the 18th, that the production of orange juice in Brazil would reach 820.5 thousand tonnes in the 2021-2022 harvest season, a 2% drop from the previous season and the lowest level observed since 2016-2017 after a harvest wrecked by meteorological occurrences.

The new figure indicates a 5% decrease compared to the previous forecast released before the consequences of the drought and frosts that affected crops in states like São Paulo, and Minas Gerais were taken into account.

Furthermore, the crop’s industrial yield was lower than expected, limiting the juice availability from its primary producer and global exporter until the next season (2022/23), which begins in the second half of the year.

“The weather effects that were extensively documented throughout the 2021/22 harvest, including prolonged dryness and frosts, hampered the process of fruit development and maturation, affecting the acidity levels of the juice produced,” said CitrusBR executive director Ibiapaba Netto.

The lower production results in Brazil’s frozen juice stocks and concentrates hitting one of the lowest levels in history. Carryover volumes for the 2021/22 cycle should total 126.5 thousand tons, the lowest level since 2017, meaning a 60% drop from the previous season ending stocks.

Netto recalled that the country saw two small harvests in a row, “which greatly tightened the availability of fruit for processing and, consequently, the amount of juice produced.”

According to him, demand “will certainly be affected as there will be no availability of stocks to fully meet the market demand until the 2022/23 crop.”

According to the latest quotes, orange juice prices in New York peaked from August 2018 to the end of last month, at approximately $1.61 per pound, before falling back to $1.33.

Brazil exports orange juice mainly to the European Union, accounting for about 65% of Brazilian shipments, followed by the United States, with approximately 20%. Among other important importers are Japan and China, with around 5% each.

Source: Money Times

To read the full original article, please see:

https://www.moneytimes.com.br/producao-de-suco-de-laranja-do-brasil-cai-ao-menor-nivel-em-5-anos-diz-citrusbr/

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