Groundwork for Trade of Orange Juice Between Brazil and the Us

Groundwork for Trade of Orange Juice between Brazil and The US

Orange Juice is a beverage produced extracting the liquid orange pulp. It can be added sugar or sweetener to the juice to let it more flavorful, according with the taste. It is available in trade the concentrated juice, which requires the addition of water for reconstitute the liquid to the state (approximate) of original juice. The orange juice is among the most appreciated and consumed juice, being a good source of vitamin C and other nutrients. Your trade and production involve large financial numbers. Brazil was in century XX the largest producer and the world exporter of the concentrated orange juice. The main producers in Brazil, are: Cutrale, the Citrosuco, the Citrovita and Louis Dreyfus.

The two main producers of orange juice are the states of Florida, in The United States, and the state of Sao Paulo, in Brazil. Together, these regions produce 85% of the world market. In 2012, Brazil was the main exporter of orange juice in the world, exporting around $2.276 billion, more than 50% of the orange juice produced in the world. The main markets were: Belgium (43%), Netherlands (22%), USA (12% or $265.4 billion), Japan (6%), and UK (4%). Even thought Brazil is the biggest producer of orange juice, its internal consumer is very low. According to Citrus BR, only 2% of the concentrated orange juice produced in the country is consumed there, which is mainly used as raw material for soda production.

The United States is the second largest producer of orange juice after Brazil, 9 million tons in 2012 (Citrus BR). After grapes, oranges are the most consumed/purchased fruit in the country, 760,000 metric tons per year. The country still import 200k metric tons of orange juice, which is the second largest amount after the EU. However, imports only account for 6% share of orange consumption. The largest supplier is also Brazil, with 58% of orange juice imports ( $439.6 million in 2010). Nevertheless, the largest supplier of fresh orange to the United States is South Africa. All imports of oranges from South Africa to the US is duty free (AGOA). The United States exports 18% of its production.

In the year of 2012, the domestic consumption of orange juice in the United States was 760,138.00 metric tons , while the consumption in Brazil was 48,000.00 metric tons. On the other hand, the consumption annual growth in Brazil was 9.09%, and 7.47% in The United States. The country that has the biggest growth is China, with 13.31%. In 2012, China consumption was 116,000.00 metric tons. The United States fresh orange imports in 2009/2010 were ten times higher than levels seen in 1980/1981. However, productions level of orange have dropped since 2004. According to specialist the cause are demand and weather. Also, since 1980, the per capita consumption of fresh oranges has fallen 24%. Due to these facts, The United States has increased