Brazilian citrus industry: reference in the international market
Introduced in Brazil right at the beginning of colonization, the orange found in the country better conditions to vegetate and develop than in its own regions of origin, thus expanding throughout the national territory. However, currently such production is concentrated mainly in orchards in the states of São Paulo, Paraná and Minas Gerais, so that these are characterized by composing the citrus belt responsible for produce 85% of the national crop.
Brazil is the largest exporter of orange juice.
Faced with this scenario, Brazil has consolidated itself in recent decades as the largest exporter of orange juice in the world and many countries, such as the United States and the United Kingdom, came to depend significantly on production to supply supermarkets and satisfy the demand of its citizens. So thanks to a number of internal problems that the North American market suffered, the national export had, in 2018, a growth 29% greater than that of the previous year, according to data from Secex (Secretary of Foreign Trade), selling 315.4 thousand tons of juice to the United States alone concentrated orange, which represented an 83% growth in relation to the 172.7 thousand tons of the previous year.
This intense search is due, among several factors, to the tendency that the international market has shown to value selected products of high quality and healthier that promote the well-being of its consumers, requirements that Brazil has met rigorously. Nevertheless, it is noteworthy that the sale of 70% of Brazilian production, according to a BBC report that interviewed numerous experts, is made through juice boxes, which accounted for, between July 2018 and February 2019, the equivalent of BRL 5 billion.
Strong annual growth.
In view of this, it is possible to conclude that with a growing market both internally and externally, commercialization becomes increasingly advantageous for producers and exporters of this fruit. In view of the fact that only in the first nine months of the 2019/2020 harvest it was possible to observe an increase of 18% in Brazilian exports compared to the same period of the previous year, according to the Brazilian Exporters Association.
Selected high quality products.
Furthermore, it is noteworthy that thanks to agreements, such as the free trade agreement between Mercosur and the European Union, which was approved at the end of July 2019, and what is being studied between Brazil and Egypt, national exports may experience significant growth both through gradual tariff exemptions, and through the insertion of Brazilian products in new markets, for example.
The importance of the performance of an international consultancy.
However, for this scenario to become a consolidated and reliable reality, it is necessary the assistance of strategic planning and a market study, which are the work of a Consultancy, and which will cause, consequently, the export of oranges may continue to be one of the most profitable trades for the Brazilian economy and for its businessmen.
By Julia Zahary 05/14/2020