Brazilian OJ Exports to United States Surge

Josh McGill Brazil, Orange Juice

Brazil is the world’s leading exporter of orange juice (OJ) and accounts for nearly 80% of the OJ marketed in the world. For every five cups of orange juice consumed, almost four are produced in Brazil.

OJ

According to the Institute of Agricultural Economics, in the first four months of the year, São Paulo exported $682 million in juice, of which 97.3% is OJ. The largest market for exports is the European Union (about 54%), followed by North America (36%). Exports to the European Union have dipped slightly this season, about 5% compared to last year, though revenues rose 10% over the same period.

Meanwhile, exports to the United States are surging. A reported 275,000 tons of OJ were shipped to the United States from January to March 2023, up 68% from last season. Revenue more than doubled, totaling $559 million.

Brazilian exports are supported by lower U.S. production. Florida’s citrus industry was severely damaged by Hurricane Ian at the end of 2022.

With shipments to the EU declining and an increase to the United States, the share of Brazilian OJ exported to the United States rose from 19% in 2021–22 to 36% in 2022–23.

The U.S. Department of Agriculture Foreign Agricultural Service (USDA FAS) projects total Brazilian frozen concentrated orange juice (FCOJ) exports for 2022–23 at 1.05 MMT, a moderate decline from 1.068 MMT in 2021–22.

USDA FAS forecasts 2022–23 Brazilian production of FCOJ at 1.125 million metric tons (MMT). That’s a decrease from the 1.135 MMT projected for the prior year.

The São Paulo industry is expected to process 252 million boxes of oranges for OJ production, accounting for 1.03 MMT of juice. Other producing states should deliver 24 million boxes, accounting for 96,000 metric tons (MT) of OJ.

See the full USDA FAS report on Brazilian citrus here.

Source: USDA FAS

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