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Changes Boost Consecitrus

Valor Econômico - 08/26/2010

The new reality of the international market and the resulting structural change underway in Sao Paulo citrus chain opened space for the establishment of a new environment for price negotiations between producers of orange and juice industries. With direct support of the Secretary of Agriculture of the State, João Sampaio, and demonstrations in favor of industry and citrus growers, the new Consecitrus "may be ready to conduct public relations in the chain in the next season (2011/12), whose harvest begins in the first half of 2011".

Called "Consecitrus" in allusion to the Council of Producers of Sugar Cane, Sugar and Alcohol of the State of Sao Paulo (Consecana), which oversees the chain relationship in sugarcane, this new environment will have representatives from the entire chain, and, according to its advocates, will establish criteria for the prices of fruit and citrus address issues in general. "The Consecitrus will not be restricted to prices, but will address the organization of the segment", says Gastao Crocco, director of citrus in the Brazilian Rural Society (SRB). The organization is one of three entities representing the orange producers in the negotiations for the creation of the council. The others are the Brazilian Association of Citrus (Associtrus) and the Federation of Agriculture of the State of São Paulo (FAESP). The unification of citrus leaders into a single entity is on the radar, but there is nothing concrete in this direction.

"Concentration is a general trend, but it is necessary to find mechanisms to protect and create clear and transparent rules for negotiations," said Crocco. He said the criteria for the sale of fruit based on the presence of solid-soluble - equivalent to the sugar content in sugarcane under Consecana - will be established, but discussions continue in this direction. The transparency of industries, moreover, is a sore point for Associtrus. Leader in exports of juice, Cutrale is the industry more involved in the negotiations for the creation of Consecitrus and warrants that will be transparent in what it takes to make talks advance.

"The Consecitrus is eagerly awaited," said Christian Lohbauer, President of Brazilian Association of Citrus Exporters (CitrusBR), which represents the four major export industries of orange juice. "Besides the downward trend of world consumption, phytosanitary issues, particularly the threat of greening, are on the agenda. We want to enter next season with a defined situation," he says.

Margarete Boteon, researcher for Cepea / Esalq, also participates in meetings around the Consecitrus, and welcomes the initiative. For her, in the issue price, it is important that the criteria takes into account the structural cost of the producers, so different because of the higher or lower incidence of disease in a given region. "The citrus farmer must be aware. There's so much going on in the crisis and disunity is always complicated," says Mauricio Mendes, the AgraFNP and Consultant in Citrus (GCONCI).


Source: Jornal Valor Econômico

Translation: CitrusBR