Orange: São Paulo sales improve, but the crisis continues

After living in 2012 the worst crisis in the last 30 years with the fall in export of juice and with the devaluation of the price of the crop, the Orange tries to reorganize to reap good results in 2014.
So, despite the orange juice industry have increased international sales in the first half, the producers still smarting low income and bad pay. Because of this, many are looking for other citrus crops in the State of São Paulo in Brazil.
"The producer will have to have breath until the next year. Many are going out or doing just the basic work. We had no specific programme for citrus in 2013. Last year we had some aid from the federal Government, such as auctions, but this year nothing. Did not approve the minimum price and the 100% juice, that would help sell the production ", says Marco Antônio dos Santos, President of the Citrus sector Chamber under the Ministry of agriculture.
In the first half of this year, the orange juice industry recorded a small recovery in exports. In this period, they have sold 606 thousand tons, while the sector has registered over 2012 a total of 1 million tons. The expectation is to reach the marking of 1, 2milhão by the end of the year.
"Last year we had a problem when exporting to the United States, which embargou the Brazilian juice. We were nearly seven months without being able to export to them. We are in a recovery, with 2011 related numbers (1.15 million tons have been exported), "says Ibiapaba Netto, Executive Director of CitrusBR, the National Association of exporters of Citrus juices.
For the industry, resume the pace two years ago is viewed positively, as exports fall since 2007, when they reached the peak of 1, 41milhão tons. To retrieve this rhythm, the entrepreneurs prepare a communication campaign that recover the habit of consumption of orange juice, which falls in the main countries buyers. "People need to remember the importance of taking orange juice, even if it is at least a shot. Call it generic marketing, work the benefits of the product. This was very well done in the United States with the milk "Netto.
Due to the difficulties in export in 2012, still juice high stocks in the industry. With this, the demand for Orange producers is smaller and the price is still low. "There has been no reflection to the producer with this scenario that industry improvement points. Is a negative scenario, disheartening. What we see is that this needs to change, "criticizes Flávio Viegas, President of Associtrus, the Brazilian Association of Citrus. If the purchase of Orange by the industry is bad since last year, the forecast for the 2013/2014 season is pessimistic. This because of normal wear and tear of the orchards. "Really yield will break down significantly. Fall around 30% ", emphasizes Viegas. The estimates of CitrusBR, the 2013/14 is of 268 million boxes, 117 million less than the last. "It is good to dispose of stocks, leading to a year," stresses Netto.
The differences between producers and industry scenario causes a fight behind the scenes between the two sides of industry. Representative of citrus, Viegas accuses the industry of causing the fall of the price of the box, which is sold for $ 6 and costs about $ 20 for the producer. On the other hand, Netto, a representative of industry, recalls that part of any business and that small producers, who are the ones who suffer most from the current situation, represent only 30% of the sector. "Today the industry produces 40% 30% purchase of Orange and fixed agreements with producers, in average dollar and with fixed price".