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Sharp decline orange production drives up juice price in Brazil

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      China

      China

      Sharp decline orange production drives up juice price in Brazil

      2024-09-04 11:49 Last Updated At:16:57

      Brazilian orange production in key areas is expected to reduce by 24 percent this year due to severe heat waves and disease, leading to significant price increases on the global orange juice market.

      Brazilian citrus industry predicts that in the 2024-2025 harvest season, orange production will fall to 232 million boxes (each box weighs approximately 40 kilograms), the lowest in 36 years.

      "The average yield per hectare used to be 800 boxes of oranges. However, with citrus greening disease and other issues, we now produce only 560 boxes, meaning a 30 percent loss. This reduction is substantial given the total farming area," said Victor Krauss, who manages an 800-hectare citrus plantation in Casa Branca, Sao Paulo.

      The yield drop has caused domestic orange prices to surge: the price of one box oranges has risen from 45 reais (about 8 U.S. dollars) last year to 80 reais (about 14 U.S. dollars) this year, a 78 percent increase.

      As the world's largest exporter of orange juice, Brazil supplies over 70 percent of the global market. However, the sharp decline in orange production has led to a rapid increase in orange juice prices worldwide.

      Industry data reveal that international orange juice futures prices have risen by about 54.7 percent this year. Despite a 9.3 percent decrease in the total volume of orange juice exports in the 2023-2024 harvest season, revenue increased by 21.3 percent to about 2.5 billion U.S. dollars.

      Analysts argue that while rising prices may benefit orange farmers, the shortage and ensuing price hikes pose challenges to the juice processing industry.

      "We've learned that many companies are forced to prioritize certain clients due to product shortages. In some places, consumers are unable to purchase orange juice and may turn to other beverages," said Fernando Gomes, researcher at the Center for Advanced Studies on Applied Economics (CEPEA).

      To meet international demand, some non-traditional citrus-growing states in Brazil are beginning large-scale orange tree planting. However, it will take at least three years before these newly planted trees start bearing fruit.

      Sharp decline orange production drives up juice price in Brazil

      Sharp decline orange production drives up juice price in Brazil

      Next Article

      Transformation, upgrading of China's manufacturing investment accelerates in 2024

      2025-01-20 22:37 Last Updated At:23:07

      China in 2024 saw a faster transformation and upgrading of investment in manufacturing industry, a strong growth of investment in high-tech industries, and a rebound of investment in infrastructure construction, according to the latest data released by the National Bureau of Statistics on Saturday.

      The investment in manufacturing industry grew by 9.2 percent compared to the previous year, or six percentage points higher than the growth rate of overall investment. In particular, investment in technological upgrades of manufacturing industry increased by eight percent, or 4.8 percentage points higher than overall investment growth.

      Private investment in manufacturing grew by 10.8 percent, driving up overall private investment by 5.3 percentage points.

      The structure of investment continued to optimize. Investment in high-tech industries rose eight percent compared to the previous year, which was 4.8 percentage points higher than the growth rate of overall investment. In particular, investment in high-tech manufacturing grew by seven percent, and that in high-tech service industry grew by 10.2 percent. Investments related to high-tech industries, such as aerospace equipment manufacturing and professional technical services, increased by more than 30 percent.

      In 2025, China plans to moderately increase central government budgetary investments, issue ultra-long-term special treasury bonds and local government special bonds, and enhance efforts to support projects for implementing major national strategies and building security capacity in key areas, as well as implementation of large-scale equipment upgrades and consumer goods trade-in programs, with the aim of stimulating private investment activity through various measures, effectively leveraging government investment to drive social investment, improving investment efficiency, and promoting steady growth in investments.

      Transformation, upgrading of China's manufacturing investment accelerates in 2024

      Transformation, upgrading of China's manufacturing investment accelerates in 2024

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