Exportações de suco de laranja (orange juice exports)
Trade Regulations

Cutrale suspends exports of Brazilian OJ to the US

Nov, 22, 2021 Posted by Ruth Hollard

Week 202145

One of the largest orange juice exporters in the world, Cutrale, headquartered in Araraquara (SP), decided to suspend shipments of the concentrated and frozen product (FCOJ) from Brazil to the US. The company has exported to the US for decades and maintains an important partnership for supplying the American company Coca-Cola.

Valor learned that Cutrale saw its profit margin shrink due to the 34% of corporate income tax (IRPJ) on the import tax charged by the American government to allow the entry of the Brazilian FCOJ (US$ 415.86 a ton), and decided to seek juice in Mexico to supply Coca-Cola’s Minute Maid and Simply Orange brands. Sought out, the company chose not to comment on the change.

Industry sources point out that Cutrale, which is the second-largest exporter of Brazilian orange juice, after Citrosuco, leads sales to the US, with shipments of both FCOJ and a ready-to-drink beverage (NFC) – which is not burdened by the same tariffs, thanks to USMCA, the United States, Mexico and Canada trade agreement that replaced NAFTA.

See the main destinations for Brazilian orange juice in the chart below. Data are from DataLiner:

Main destinations of Brazilian Orange Juice Exports (HS 2009.1) | Jan 2020 to Sept 2021

Source: DataLiner (click here to request a demo)

Under normal conditions, Cutrale accounts for more than half of Brazilian juice sales to the US. In total, according to SECEX, the foreign trade secretariat, there are between 130,000 and 200,000 tons per harvest – US$ 260 million to US$ 400 million, at current prices. For all destinations, shipments from Brazil reach around US$ 2 billion.

Source: Valor Econômico

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