Brazil: Citrus growers may have one more year of high prices
In 2024, orange prices paid to citrus growers in São Paulo/Triângulo Mineiro may remain at high levels. The supply may continue to be lower than the industrial demand, keeping the availability limited in the in natura market.
In 2024, orange prices paid to citrus growers in São Paulo/Triângulo Mineiro may remain at high levels. The supply may continue to be lower than the industrial demand, keeping the availability limited in the in natura market.
So far, there are no solid aspects that allow to project the volume that will be harvested in the 2024/25 season; however, the orange juice supply may not be enough to meet the demand, especially because of the expectation of low juice stocks in June 2024.
CitrusBR says that the volume in stocks by the end of the 2022/23 season (in June/23) was only 84.745 thousand tons equivalent to concentrate juice. Cepea calculations based on the orange production forecast by Fundecitrus indicate that the volume in stocks by the end of the current season (2023/24, in June/24) may not be higher. This scenario may be reinforced in case exports continue intense and the productivity remains below-average.
Therefore, it would be important if the orange volume harvested in São Paulo and in Triângulo Mineiro is above the average over the last years in order for the processed volume to meet exports and allow a recovery in stocks by June 2025. However, challenges faced in the second semester of 2023 (greening and heat waves) may bring difficulties for a good harvest in 2024/25.
It is worth noting that Brazil does not have major competitors regarding the global orange juice supply. Mexico, an important supplier for the US market, has been facing difficulties in the production, especially because of the dry weather, while Florida has been facing the impacts of greening. In this scenario, a decrease in the Brazilian availability might affect the world orange juice supply.
Investments
Although the profitability scenario had been positive in 2023, major investments in São Paulo are not expected for 2024, due to the high incidence of greening. The planting can continue firm in Triângulo Mineiro, but the availability of soil and water for irrigation are limited.