Brazil’s orange juice exporters, the world’s biggest player in this market, have called for a move to China this month to allow the country to ship the bulk product to the Chinese as a way to boost exports to the Asian giant, the CitrusBR association. The Brazilian claim is not new and comes up against technical and tariff issues, but the executive director of the National Association of Citrus Juice Exporters (CitrusBR), Ibiapaba Netto, evaluates that Brazil’s mission may have established an agenda to improve business . He said he had met with the Chinese Beverage Association, which represents more than 80 percent of all local industry, and the Chinese Chamber of Commerce for Import and Export of Foods, which “showed an intention to support Brazilian lawsuits, which can accelerate understandings. The main issue in question was the so-called “temperature rate,” a trigger that is triggered if the juice reaches Chinese customs at a temperature warmer than minus 18 degrees Celsius. “The import tariff literally shoots up “According to him, the bulk product is delivered between 8 and 10 degrees Celsius negative in the case of frozen and concentrated juice (FCOJ), and between zero and 2 degrees positive for the juice in its natural dilution (NFC), which makes it impossible to invest in local terminals, considering the tariff issue. Currently, sales to the Chinese are made by container ships, with the juice shipped “It is important that companies have the option of exporting in bulk and this message was brought to the Chinese government by us and the Brazilian government, which involves the possibility of investments,” he said, noting that the bulk of Brazilian exports it is in bulk and not in drums. He added that the Chinese have shown special interest in Brazilian non-concentrated juice (NFC). While the changes do not occur, the Chinese giant remains a relatively small market for the Brazilian product.
Source: Reuters