Growers’ revenue increases 4 pct in the 07/08 crop

Brazilian citrus growers got higher revenues in 2007. According to Cepea, earnings between growers totaled 3.4 billion of reals, roughly 4 percent superior to those obtained in the 2006/07 crop. However, this is a preliminary estimation, since some growers are still in renegotiation with industries and other ones have participation in the international juice market. The final one will be possible only in June 2008

The higher revenue is linked to the valuation of the contracts settled between growers and processors: of around 7 percent in Real and 25 percent in dollar. Even with the superior earnings, the distribution was not the same among growers, with a huge difference between contracts. In the 2007/08 crop, prices oscillated from 3.00 to 7.50 dollars per box.

Besides the disparity between contracts values, the dollar depreciation in the last crops also limited the gains in Real, even with the increasing international prices. Another aspect is the cost of production. According to Cepea, the harvest cost to the industry enlarged 39 percent between 2003 and 2007, in Real.

Regarding in natura orange market, prices received by growers from June to December 20th were similar to those of the previous crop, at around 11.00 reals or 5.88 dollars per box (on tree), considering pera and valencia varieties. Delivered in citrus plant price average, in turn, downed 7 percent over 2006.

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