World Juice 2010 Geneva Christian Lohbauer President CitrusBR
CitrusBR – First year of activities Institutional - Technical Committee / Subcommittees
National Agenda Consecitrus Study (Professor Marcos Fava) Event with national media (Valor Econômico) International Apex project Sustainability – carbon footprint
Brazilian Orange Juice Exports (million US$) 3.000 2.252 2.000
1.997 1.619
1.469
1.193 1.000
1.058
1.110
2004
2005
0 2003
2006
2007
2008
2009
Brazilian Orange Juice Exports - FCOJ Equivalent (thousands of metric tons) 1.500 1.416
1.403 1.362 1.314
1.310
1.291
1.301
2008
2009
1.000 2003
2004
2005
2006
2007
Evolution of Brazilian NFC Exports 1.000.000
350.000.000
900.000 300.000.000 800.000
Exports in tons
600.000
200.000.000
500.000 150.000.000
400.000 300.000
100.000.000
200.000 50.000.000 100.000 0
0 2003
2004
Not-from-concentrate (NFC) in tons
2005
2006
2007
2008
NFC converted into FCOJ 66째Brix - tons
2009 exports NFC in US$ F.O.B.
Exports in US$ F.O.B.
250.000.000
700.000
Production, Consumption and Price in the New York Stock Exchange
production and consumption (k ton 66 brix)
2.600
190,0 2008/09 and 2009/10 - Poor harvests in Brazil and Florida keep stocks in low levels and push the prices in NY upwards in the middle of 2009
2003/04 - High juice stocks due to good harvests in Brazil and Florida. NY prices remain low.
170,0
2.500 150,0 2.400
2.300
130,0
2004/05 and 2005/06 Several hurricanes in Florida affect juice production pushing prices in NY upwards.
110,0
2.200 2006/07 and 2007/08 - Good harvests in Brazil and Florida combined with lower demand following the trend started in 2004/05 increase world stocks pushing prices in the stock exchange downwards in the 2008/09 season.
2.100
2.000
90,0
70,0
1.900
50,0 2003-04
2004-05
2005-06
2006-07
2007-08
Season (july to june) Production
Demand
Price NY
2008-09
2009-10
Prices NY (cents/pounds
2.700
Consecitrus • System with voluntary entry to establish a pricing model to be used as a reference for citrus producers • Advantages: transparency as to how prices are formed, including internal and external variables and production costs;
• Six meetings have happened with the participation of CitrusBR and 3 producers associations, to discuss openly about the system, especially legal and technical aspects • The industry believes in the model of “Consecana”, the system successfully established by the sugarcane and ethanol sector. In their case, several producers associations created a single organization to represent them, strenghtening their positions and facilitating negotiations • Status: industry collected infos thru a renowned auditing company and prepared technical proposal on how the prices should be decomposed. Producers associations must provide feedback on this proposals and work on their representation • By improving the relationship with producers , we will be able to focus on other important issues for the sector, such as greening and consumption decline
A positive agenda for the Brazilian Citrus Chain • Strengthen producers associations with broad representation basis to enrich the debate in favor of the union in the supply chain, forming an association along the lines of Orplana (from Consecana – sugarcane and ethanol), which may represent all the current associations of citrus growers; • Build reliable technical solutions for the payment of oranges based on soluble solids; • Disseminate the best management practices aimed at increasing agricultural productivity and competitiveness of the chain; • Establish partnerships with universities in the agribusiness sector, aiming to create excellent technical and economic databases, disseminating relevant information with greater transparency to the sector; • Promote campaigns to incentive the growth of Brazilian consumption of oranges and orange juice; • Seek to continuously reduce tariffs in the import markets of Brazilian juice; • Act with government institutions aiming to raise funds to support the citrus industry
Thank you!
Christian Lohbauer President www.citrusbr.com christian@citrusbr.com