BRAZIL: Orange processing hit by large Brazil crop - CitrusBR
Brazil is forecast to produce around 380m boxes of oranges this season
The Brazilian Association of Citrus Exporters (CitrusBR) has said that Brazil is facing one of the largest orange crops in the last 20 years, resulting in some delays to processing.
CitrusBR's CEO, Christian Lohbauer, told just-drinks today (16 September), that Brazil is forecast to produce around 380m boxes of oranges this season, compared to 317m last year. The country accounts for around 85% of orange juice global exports. As a result, Lohbauer said there have been delays processing the entire crop.
"The dry season, the rain and the temperatures have been almost perfect so the crop is very high [this season]," Lohbauer said. "What has happened is that there is too much crop available. We have 13 companies working 24 hours a day, seven days a week on 100% efficiency.
"We cannot process all the oranges so there are some lines that have to wait," he added. "We have two companies that have hired two smaller firms to help them with processing but even so, it is a matter of input and output. Nobody could have expected that there would be this much supply of oranges."
Nonetheless, Lohbauer believes that the pressure heading into the remainder of September is now easing.
"It is hard to gauge the size of this, but I would say that the worst has passed," he said. "The varieties of oranges early on in the season ... the supply is higher than the varieties that are going to be delivered throughout the next few months of September, October and November."
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