Production of orange juice from Brazil 27.5% 2018/19 should fall, says CitrusBR

SAO PAULO (Reuters)-the production of orange juice from Brazil, with processing practically closed on 2018/19 season (July/June), should fall back to around 874,000 tonnes (FCOJ equivalent), 27,5% fall to the previous period, with the sector feeling the effects of a smaller harvest, said on Tuesday the Association of exporters CitrusBR.Se production plummeted, the demand was not of the best, according to data from CitrusBR, which aimed to end June 30 stocks in approximately 200,000 tons (FCOJ, English, frozen orange juice and concentrate), over 50000 tons above the previous estimate designed in. Even if it is an estimate that is greater than the previous one, the level of stocks provided is historically low, said the CitrusBR Association in the country which is the biggest global exporter of orange juice and brings together companies such as Cutrale and Citrosuco, Louis Dreyfus. In comparison with the reserves in 2018, the fall is 41,7%. This after a crop in the citrícola region of Sao Paulo and triangle/Southwest miner who fell almost 30% before last season, to 40.8 kg boxes 284,880,000, according to the Defense Fund of Citrus (Fundecitrus), disclosed earlier This month. "The main reason is the biannual nature of the crop. The 2017/18 was very prosperous ... ", said the Executive Director of CitrusBR, Ibiapaba Netto, explaining that after producing much in the previous harvest, naturally the orange groves had a lower productivity in 2018/19, following the biennial cycle of culture that alternating high and low. For the next harvest (2019/20), "the expectation is that we have a larger crop than the 2018/19, obeying once again the biannual nature," said Netto. "But how will we have to wait the estimate of Fundecitrus in May." LOWER DEMAND the 95% of Brazil, which exports your production of orange juice, is experiencing some weakness in foreign markets. The Brazilian orange juice shipments fell 12% the first six months of the harvest 2018/19, initiated in July to 516,900 tons, according to data from CitrusBR. Asked about a stock end above the previously designed, even in the face of a sharp drop in production, the Executive Director of CitrusBR cited that some competitor countries, such as Mexico, are increasing your participation in European markets and American, the main customers of Brazilians. "As possible factors can have decrease in demand, which may be linked to the fall in demand itself or even in the increased participation of other players, such as the Mexico...," he said, noting that such competitors are moving into markets Brazilians mainly due to bilateral agreements, which make the product more competitive.