If Brazil is walk to preserve its understand on the an international orange juice market, the going to have to shake things up a bit.

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Brazil makes and also distributes much more orange juice than any other nation in the world, and it’s not even a nearby race—the country makes an ext than 50% the the world orange juice. But recent background hasn’t been all that type to the citrus giant. Orange juice production has actually grown stagnant end the past couple of years and also orange juice exports, i beg your pardon the local market relies greatly on, have fallen virtually 15% due to the fact that their height in 2003.

What’s walking on? A couple of things.

People are drinking much less orange juice these days


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There are almost one billion much more people in the human being than there were in 2000, and also yet the world, together a whole, drinks less orange juice this particular day than that did then. Led by large drops in the US and also Europe, the world’s 2 largest industries for orange juice, orange juice intake has shrunk in virtually each year this decade. If friend export end 98% the the orange juice friend produce, as Brazil does, that’s a major problem.

Especially if benefit margins are shrinking, too.

Exporting orange juice is obtaining expensive

Even if there to be enough demand to sweep much more oranges the end of farmer’s hands, growing oranges isn’t every that rewarding in Brazil anymore. One updated job code has actually driven up the minimum wage, and land lease costs and prices the pesticides have risen, too. In ~ this point, it may not also be cost-effective for smaller growers to produce oranges in Brazil anymore, Marco Antonio dos Santos, the president that a neighborhood grower’s union, told Agence France-Presse:


The government calculated that we have actually a production price of approximately 5 dollars per crate (40.8 kilograms or 90 pounds), while us are selling it in ~ 3.5 to 4 dollars…In the citrus belt that Sao Paulo, fifty percent of the orange farms have disappeared over the past 10 years, and only the most abundant survive.


And exporting them? that’s even more costly. The price the processing and transporting the orange juice to overseas terminals has actually risen steeply—over 50% because 2000—in part due to climbing oil prices.

Orange juice. Orange juice. Who wants orange juice?


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As orange juice exports go, so too does Brazil’s whole orange juice industry. The great news is, despite fewer human being are drink orange juice as whole these days, the decline is mostly driven by shrinking demand in the US and Europe, where consumption has fallen about 20% and also 5% because 2003, respectively.


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In many emerging markets, by contrast, demand for orange juice is growing. The numbers room modest, mind you, but with promising growth and also billions of prospective consumers, the potential is certainly there. Cultivation the market external of the US and also Europe, which with each other account for about 80% of Brazil’s orange juice exports, in countries like China and also Russia could aid protect the country’s smarting citrus sector from the decline happening in developed countries, and also pivot because that the future. 

But if Brazil desires to inject life into its sick orange juice industry, it may want to start by gaining its own civilization to start drinking orange juice.

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Currently the world 10th largest consumer of packaged orange juice, Brazil has seen its own consumption rise only 8% because 2003. Compare the to China, i m sorry consumes much more than twice as much juice as it go in 2003, or Russia, which consumes 70% more. Due to the fact that per-capita incomes have risen a an excellent deal in all three countries, this argues that acquiring Brazilians to drink more of the stuff isn’t just a issue of wait for them come get an ext prosperous. (Note, though: The data don’t record orange juice fresh squeezed ~ above the spot, i beg your pardon is, naturally, much more common in Brazil 보다 in China or Russia.)

Some nevertheless see promise in the Brazilian market. “In a few years, our nation can have actually as many people drinking industrial orange juice together in Germany, which is the world’s leading consumer per capita,” dos Santos called the AFP. Brazil definitely hopes he is right.