Brazils economy is losing in the battle of the breakfast juices

Brazil is the world's largest producer of both oranges and orange juice, however due to changing breakfast preferences in Europe, means that the country's reliance on exporting the fruit may have to change.

Brazils economy is losing in the battle of the breakfast juices

One in every three oranges found globally comes from oranges farms from a relatively small area in the regions of Minas Gerais and Sao Paulo. Three years ago Brazil produced 400+ million boxes of oranges. In the latest 2017 harvest figures that number has dropped to merely 241 million boxes.

The country's indisputable global dominance in the fruit and juice trade would suggest that orange producers have little to worry about, however recent numbers suggest otherwise. The main problem is that the economy relied too heavily on the external juice market. More than 95% of its production is shipped abroad, the majority of it in the form of orange juice.

So when fluctuations occur regarding commodity prices, the exchange rate, or changing consumption habits abroad, Brazilian manufacturers suffer as they have nowhere else to sell their product. The biggest threat to the orange trade is that sugary orange juice has become less popular in Europe, especially in the UK; with coconut water and healthier vegetable juices replacing the top spots for most popular breakfast drink. 


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