With price drops in the in natura market, early varieties are sent to the industry

Cepea, July 2, 2021 – The harvesting of early orange varieties is moving forward in the citrus-producing regions of São Paulo State (SP), and, atypically, the farmers who usually sell fruits to the in natura segment are prioritizing trades with the industry. Although prices are usually higher in the in natura market (since the costs of the harvesting and the freight are usually for the account of purchasers), lower requirements from the industry and the higher volumes purchased are enabling deliveries. It is also worth to mention that the risk of default is lower in trades with the industry, which attracts the attention of farmers.

 

Although the production of early varieties has increased by 12.1% this season, supply was not high in the domestic market early in the season (mid-March/April), when prices were higher than 30.00 BRL/40.8-kilo box, on tree. However, as the harvesting moved forward, values dropped up to 25.00 BRL/box in some period, since, besides the higher volume, demand was low in the domestic market. Thus, allocating fruits to processors has been more advantageous this month, since remuneration is between 28 and 30.00 BRL/box, harvested and delivered to processor.

 

In general, farmers consider que current quality of oranges satisfactory, majorly in irrigated groves. On non-irrigated farms, on the other hand, the drought hampered production – either because of stains on peel or the smaller size.

 

(Cepea-Brazil)

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