Report -The Squeeze is on: the future of orange juice prices

The attached report examines price and structural developments in the major orange-juice producing regions of Florida and Sao Paolo and looks at regions which could emerge as competitors. Key points in the report include:

• In the past, the price of orange juice concentrate has been closely linked with its availability. Over the past two years, the price has risen by 150 per¬cent as bad weather affected the main orange-producing regions.
• As the outlook for the 2011/12 orange harvest in Sao Paulo is good, one might expect prices to fall back to levels seen in the first part of the last decade, but this would ignore the rise in cost price.
• Mexico could develop an attractive orange juice industry and become a competitor for Brazil.
• Unless higher costs are passed on to the consumer, we will see a shake-out in the sector

ENDS

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