Yearly Archives: 2018

STATEMENT – 2018/19 Brazilian Orange Crop – Ratio of the Fruit

17/12/2018|

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São Paulo, December 2018.
STATEMENT – 2018/19 Brazilian Orange Crop – Ratio of the Fruit
To whom it may concern:
The Technical Committee of CitrusBR would like to update information about the development of orange crop 2018_2019 in the Citrus Belt of São Paulo State.
The trend of low Ratio (brix/acid) results has been confirmed not only for early and mid-season varieties, but also for late ones, Valencia and Natal.
As the strong drought and extended winter had affected fruit development and the maturation process till end of September, the mix of bloomings and intensive rainfall produced similar effect in subsequent months, generating a flat curve of Fruit Ratio development and confirming relatively low Vitamin C values.
Even after Brazilian processors took important decisions to delay fruit harvesting and processing, the Fruit Ratio is moving towards a low average. Additionally, the Brix of the fruit has dropped a lot since early November due to intense rainfalls.
CitrusBR members reassure their commitment to deliver high quality products and to look for the best fit of the orange crop with the juice standards in different markets.
Ibiapaba Netto
CitrusBR Executive Director
Representing: Citrosuco, Cutrale and Louis Dreyfus Commodities

STATEMENT – 2018/19 Brazilian Orange Crop – Ratio of the Fruit – 09/10/2018

10/09/2018|

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São Paulo, September 2018.
 
STATEMENT – 2018/19 Brazilian Orange Crop – Ratio of the Fruit
 
To whom it may concern:
 
The Technical Committee of CitrusBR would like to inform that low Ratio (brix/acid) results have been observed in the early & mid orange varieties processed by its members in the 2018/2019 crop in the State of Sao Paulo.
An extensive period of drought coinciding with winter, which persists in the citrus region of the State of São Paulo, is directly affecting fruit development and the maturation process, slowing the natural increment of ratio and affecting Vitamin C content.
The Ratio of the fruit is significantly lower than last couple of years and Vitamin C is relatively lower than history, even considering the high acid level in the juice.
CitrusBR members reaffirm their commitment to deliver high quality products and to look for the best fit of the orange crop with the juice standards in different markets.
Considering the impact of weather already observed on the fruit of this crop and the uncertainties involved in weather forecasts, the committee will update this statement if needed.
Ibiapaba Netto
CitrusBR Executive Director
Representing: Citrosuco, Cutrale and Louis Dreyfus Company Juices S. A.

Press Release: Audited Inventories

14/08/2018|

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INFORMATION TO THE MARKET
 
AUDITED INVENTORIES ON JUNE 30, 2018:
A survey conducted by independent auditing firms with each of CitrusBR members and consolidated by external independent auditing firm, showed that global inventories of Brazilian Orange juice converted into Frozen Concentrated Orange Juice Equivalent (FCOJ 66° Brix) on hands of its members on June 30th, 2018, amounted to 342,967 tons, representing an increase of 219,37% when compared to the existing 107,387 tons from the same date in the previous year (June 30th, 2017).
INDUSTRIAL YIELD ON FRUIT ESTIMATED FOR SEASON 2018/19:
A survey also conducted individually and confidentially by an independent auditing firm with CitrusBR members estimated the average industrial yield on fruit for the 2018/2019 season at 258.78 boxes of oranges required to produce 1 metric ton of FCOJ equivalent to 66 ° Brix. The improvement in yield on fruit can be attributed to the 120 days of drought observed in most of the citrus belt.
The table below contains historical data of juice yield on fruit since the 2000/2001 season:
FRUIT PRODUCTION ON 2018/19 SEASON
On May 9TH, 2018, the Fund for Citrus Plant Protection (Fundecitrus) estimated the orange crop at 288.29 million boxes of 40.8 kilos, 30% lower than the 397 million boxes of the previous season. The forecast was released before the aforementioned period of drought, therefore, without capturing possible effects on production. The lack of rain was observed between May, June and July, an important period for fruit development. Early varieties were the most affected, however, even the mid and late varieties should be impacted.
DEMAND PROJECTED IN THE 2018/19 SEASON:
Brazilian exports reported by the Foreign Trade Secretariat (Secex) finished the 2017/2018 season at 1,150,714 tons, 29% higher than the previous 894,669 tons. The Brazilian internal market of orange juice is estimated at around 35,000 tons. Considering that internal and external demand remain stable during the 12 months of this season, it is possible to estimate the total demand for FCOJ 66 Brix Equivalent at around 1,185,714 tons.
SUPPLY AND DEMAND/ INVENTORIES FOR THE NEXT SEASON
The improvement in juice yield on fruit can compensate for part of the crop decrease, but more accurate data will be obtained with the crop forecast update, on September 10th. Thus, it is reasonable to estimate that inventories, in the best case scenario, of orange juice FCOJ equivalent 66 brix for next season will be 147,716 tons of FCOJ 66 Brix equivalent. If confirmed, this scenario sets a challenging year for the orange juice processing industry.
Below, historical data for Brazilian orange juice inventories
São Paulo, August 14th, 2018
Ibiapaba Netto
Executive-Director

The total processed in the 2017/2018 season and orange juice inventories for june, 30 2018

28/05/2018|

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INFORMATION TO THE MARKET

SÃO PAULO, MAY 22ST 2018

Based on an individual and confidential data compilation carried out by an independent auditing firm, the Brazilian Association of Citrus Exporters (CitrusBR) informs that its members processed in the 2017/2018 season the total amount of 339,997,000 orange boxes of 40.8 kg, an 83.2% increase over the 185,569,000 boxes processed in the previous season. The average yield on fruit in the 2017/2018 season was 281.86 boxes of oranges of 40.8 kg required to produce one metric ton of FCOJ 66 Brix equivalent, 1.6% better than the 286.3 boxes per ton required in the previous season. In the 2017/2018 season, CitrusBR members produced 1,206,252 tons of FCOJ equivalent, an 86.1% increase over the 648,004 tons produced in the 2016/17 season.

For all São Paulo-based non-members of CitrusBR, we estimate a total processing volume around 30,700,000 boxes of oranges of 40.8 kg in the 2017/2018 season, an increase of 88.3% over the 16,300,000 estimated in the previous period. The average yield on fruit estimated for these companies is around 296.7 boxes of oranges required for the production of one ton of FCOJ equivalent, an improvement of 2.1% when compared to the 303 boxes required to produce one ton of FCOJ equivalent in the previous season. Assuming these figures, CitrusBR estimates a total juice production around 103,472 tons of FCOJ equivalent for non-CitrusBR members, a 91.8% increase when compared to the 53,935 tons produced in the previous season.

Considering these assumptions, it is possible to estimate a total processing volume around 370,697,000 boxes of oranges of 40.8 kgs by CitrusBR and non-CitrusBR members in the 2017/2018 season, an 83.6% increase over the 201,869,000 boxes processed in the 2016/2017 season. Total juice production in the 2017/2018 season, also considering São Paulo-based companies who are members and non-members of CitrusBR is therefore estimated at 1,309,724 tons, an increase of 86.6% over the 701,939 tons estimated in the previous season.

SUPPLY AND DEMAND / NEXT SEASON

Based on an individual and confidential data compilation carried out by an independent auditing firm, the Brazilian Association of Citrus Exporters (CitrusBR) reestimates the worldwide inventories of Brazilian orange juice for June 30th 2018 to be 305,986 tons of FCOJ equivalent 66 brix. The forecast represents a 20.3% increase when compared to the projection from february 2018, when the forecast was at 254,200 tons for the same period.

With a fruit production estimated by Fundecitrus at 288,390,000 boxes of 40.8 Kg in the 2018/2019 season, considering a fresh fruit Market around 40,000,000 boxes it is reasonable to estimate a fruit availability for processing around 243,390,000 boxes for São Paulo-based companies who are members and non-members of CitrusBR.

Although the dry weather of the last 70 days favours an improvement in the industrial yield on fruit, data presented by Fundecitrus on May 9th showed that the regions of the Minas Gerais Triangle, Bebedouro, Votuporanga and São José do Rio Preto present crop decreases between 45 and 54% when compared to the previous season, influecing the average total yield on fruit due to the fruit mix from different regions, with a higher proportion of varieties produced in the southwest of the state, with lower industrial yield in comparison to the fruit produced in the regions affected by the dry weather.

In order to better inform the Market, and considering variables such as the total fruit supply for processing, total exports volume , domestic market consumption  and industrial yield on fruit, CitrusBR believes inventories of orange juices projected for June 30, 2019 may vary within an interval from 56,000 to 155,000 tons, following the assumptions above and according to the table below:

São Paulo, 22 de maio de 2018

Ibiapaba Netto

Diretor Executivo

_________________

[1] Brazilian exports registered by Secex, leaving via port of Santos in the last 10 months annualized for the period of 12 months. Since it is not known whether the effects of the Irma hurricane will keep affecting the Florida production and the Brazilian exports to the US, we have only considered the brazilian exports to the United Stated in the first five months of the year to avoid distortions;

[2] Consumption in the Brazilian domestic Market as reported in the Markestrat report based on Euromonitor and Tetrapak data, not considering production estimated in markets outside of the state of São Paulo;

Table 01: Historical data for existing Brazilian Orange Juice inventories held by CitrusBR Members worldwide – tons of 66 brix FCOJ

Table 02: Historical data of fruit processing yields obtained by CitrusBR’s members for production of Orange Juice

Table 03: *Secex historical orange Juice Exports – metric tons coverted into FCOJ 66 brix equivalent

*July-April annualized/Exports to US weighted before effects of the Irma hurricane

Graphic 01
: Variation in number of fruits per tree at stripping by region

STATEMENT ‐ Current situation in Brazil affecting logistics and road transportation

28/05/2018|

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São Paulo, May 2018.
STATEMENT ‐ Current situation in Brazil affecting logistics and road transportation
To whom it may concern:
CitrusBR would like to inform that since Monday (May 21st), Brazilian truck drivers have
started a category strike as a protest against high fuel prices. As they stopped working and blocked
major roads with their demonstrations, they have interrupted access to two of the main export
ports in Brazil – including Santos – as reported in the Brazilian and international press.
Since road transportation is one of the most important chain of logistics and export of
products in Brazil, several activities and business are being affected – the supply of raw materials to
industries of all sectors, the fuel distribution (and therefore transportation of people and goods),
and the exports not only from the citrus sector but from all Brazilian exporting sectors.
Yesterday, May, 27th, the Brazilian government announced some measures in an attempt to
end the strike, but some roads are still blocked. CitrusBR members are closely following
developments related to this topic and will keep the market informed.
Best regards,
Ibiapaba Netto
CitrusBR Executive Director
Representing: Citrosuco, Cutrale and Louis Dreyfus Juice
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