PRESS RELEASE CITRUSBR Commitment to Transparency The Brazilian Association of Citrus Exporters - CitrusBR informs that a survey carried out by auditing firms in each of the associated companies and later consolidated by an independent auditing firm shows that global inventories of Brazilian orange juice held by the associated companies on June 30, 2014 totaled 534,000 tons converted into 66 Brix FCOJ equivalent. For comparability, we also inform that the global inventories of Brazilian orange juice in the same period in previous years were as follows:
June 30, 2008: 456,000 tons, equivalent to 20 weeks of consumption; June 30, 2009: 439,000 tons, equivalent to 18 weeks of consumption; June 30, 2010: 249,000 tons, equivalent to 11 weeks of consumption; June 30, 2011: 214,000 tons, equivalent to 7 weeks of consumption; June 30, 2012: 662,000 tons, equivalent to 29 weeks of consumption; June 30, 2013: 766,000 tons, equivalent to 35 weeks of consumption; June 30, 2014: 534,000 tons, equivalent to 23 weeks of consumption; Regarding the estimated orange crop forecast for the citrus belt of the state of São Paulo and in the “Minas Triangle” region, in the state of Minas Gerais for the 2014-15 season, published on May 1, 2014, CitrusBR estimates a total production of 308.8 million 40.8kg boxes of oranges. Effects of the drought currently affecting the entire citrus belt are not included in the estimate. Even so, it is estimated a consumption of 50 million boxes of oranges by the fresh fruit market, and 259 million boxes to be processed by the companies associated or not to CitrusBR, yielding 265 boxes of 40.8-kg of oranges for the production of one ton of 66 Brix FCOJ equivalent. Therefore, CitrusBR estimates the total production of orange juice for the ongoing season to reach 973,000 tons of 66 Brix FCOJ Equivalent.
In a scenario of stability for orange juice exports at low levels, of nearly 1,080,000 tons of 66 Brix FCOJ Equivalent, and an additional consumption of 55,000 tons in the Brazilian market, CitrusBR believes on June 30, 2015 global inventories of Brazilian orange juice will drop to nearly 364,000 tons, corresponding to 16 weeks of consumption in the global market. To calculate the volume of Brazilian orange juice available for trading, auditing firms measure juice in cubic meters and/or using a control panel. Total juice being transported, in trucks or ships, is also calculated and added to the calculation. Juice located in terminals in the cities of Santos (Brazil), Rotterdam (Netherlands), Ghent and Antwerp (Belgium), Florida and New Jersey (USA), Toyohashi (Japan), and New Castle (Australia), as well as juice stored in drums in third-party terminals at the destinations are also added to the total.
São Paulo, July 21, 2014
Ibiapaba Netto Executive Director CitrusBr