With lower production and high demand, domestic price of Orange advances

São Paulo – With a production of around 50 million of the boxes less than in the previous harvest, high demand and low stocks, Orange prices continue to rise in the domestic market.
According to a survey from the Center for advanced studies in applied economics (Cepea), the value of 40.8 kilos box hit the R$ 23.43 last Friday (21). At the beginning of the month, that price was in R$ 20.43.
"This production and the level of productivity are smaller. With the high demand, low inventories and forecast the continuation of exports, the price goes up with more intensity, "says researcher of Citrus the Cepea, Fernanda Geraldini.
It is estimated that the 2016/2017 harvest produces 249 million boxes of oranges, intense fall compares the 300,600,000 recorded in the previous harvest.
According to the President of the Brazilian Association of Citrus (Associtrus), Flávio Viegas, the tendency is high on the final price because of the strong demand. "The price internally will react fairly. However, the best citrus '' remuneration should be reflected only in the next year, because many have closed contracts, "says Varga.
Another aspect to the fall in production is low productivity. In the period 2015/2016, 745 boxes were produced per hectare, while this harvest should be 644 boxes.
"We did a survey and checked in the last harvest produced 1.4 boxes per plant, when we''ve had above 2.2 per plant boxes," adds Chris.
According to him, the low temperatures in September and October of last year contributed to the reduction of the offer.
To the Executive Director of the National Association of exporters of Citrus juices (CitrusBR), Ibiapaba Netto, the values reproduce the shortage of product in the market. "The market is behaving as estimates showed: reduced crop", analyzes the Executive.
Smaller recipe
With 1.08 million tons of orange juice, export revenues in the cycle in the last harvest, which ended in June, reached the amount of $ 1.74 billion, 14.6% lower on the $ 2.04 billion from the previous period. The problem is that the appreciation of the real against the dollar discourages exports. A year ago, the value of the American currency revolved around 3.80 R$, when. Today in R$ 3.12.
According to Netto, it is too early to evaluate the consignment of the product will be sent abroad. For him, it also depends on the operational strategy of the producer. "The producer has two options: to sell Orange to the industry or market in the domestic market. But that will depend on the mix that he has. Today we have a focused market selling fruit and another sale of the juice to the internal market, "he said.