Orange supply is scarce in Brazil and the number of operating plants is falling

Published 2024년 12월 9일

Tridge summary

The article highlights the concerns around the upcoming orange supply shortage in Brazil, particularly in São Paulo state, as reported by the Center for Advanced Studies in Applied Economics of Brazil (Cepea). The decrease in operational companies has led to a reduction in processing activities, further exacerbating the existing low supply. The current situation, already marked by below-par supplies, is compounded by issues of quality, with the brix-acidity ratio being unsatisfactory for both producers and industry agents. This problem is further aggravated by the lack of rainfall during the fruit development period, resulting in lower juice yields and the need for more oranges to produce the same amount of juice. Uncertainty about the supply situation persisting beyond February 2025, especially in March, adds to the growing concerns in the orange processing industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The possibility of a lower supply of oranges is reinforced by the decrease in the number of companies operating in the state of São Paulo at the end of November, reported the Center for Advanced Studies in Applied Economics of Brazil (Cepea) The entity reported that in the last two harvests, when the supply of oranges was already below the normal standard, the main processing companies began to reduce the pace of activities only between January and February. In January 2024, only six plants were operating. At the end of November last year, there were seven units in activity. Sector actors surveyed by Cepea said that there could still be a certain volume of raw material for the industry to continue processing until February 2025, but March is still uncertain. To make matters worse, the low supply is being verified together with the low quality. According to the agents surveyed by Cepea, the brix-acidity ratio is unsatisfactory, both for producers and ...

Source: MXfruit