Plants pay 500 million dollars more to growers

Domestic citrus plants should pay around 500 million dollars more to Brazilian citrus growers in this crop - July/06 to June/07. It means a raise of 60 percent over the last season.

The reasons for the gross value increase are the bigger volume processed and also the higher prices paid to growers. The first increases 24 percent and the second, 30 percent, in dollars, compared to the last season. The prices were boosted by the high valorization of frozen concentrate orange juice (FCOJ) in international market.

The prices received by growers that had traded in the fresh fruit market also increase 30 percent, totaling 220 million dollars. The value of pera orange (on tree), in this season, averaged 5.60 dollars per box (40.8 kilos). The volume directed to the fresh fruit market, on the other hand, could be smaller: only 40 million boxes, a reduction of 10 million over the last year's crop.

The grower's total gross income (plants and fresh fruit markets) should reach 1.57 billion dollars in the 2006/07 season, increasing 49 percent if compared to the last period.

More money to growers can revert the trend of cultivated area reduction in Sao Paulo State - responsible for more than 80 percent of the Brazilian orange produced. It has been observed in the last years due to the high production costs and also because of the competition with sugar cane.

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