In the United States, the average consumer drinks approximately 9 liters of orange juice annually, while in Brazil, the per capita consumption is about 0.4 liters. Notably, 53% of the orange juice consumed in the U.S. is sourced from Brazilian oranges, primarily cultivated in São Paulo and Minas Gerais.
The landscape, however, is experiencing changes due to a 10% import tariff imposed by the U.S., potentially disadvantaging Brazilian exports. In contrast, Mexican orange juice benefits from zero tariffs under the USMCA trade agreement, while Brazilian juice remains subject to the standard MFN rate.
Brazil currently accounts for 64.7% of U.S. orange juice imports, with Mexico trailing at 29.6%. According to CitrusBR, 80% of Brazil's orange crop is dedicated to juice exports, contributing to three-quarters of global exports. The U.S. represents 35.4% of Brazil's export revenue.
A strategic alternative for Brazilian exporters could involve "re-exportation" through Mexico. Under USMCA rules, up to 60% of a juice blend can originate from third countries, potentially allowing Brazilian juice to qualify.
Source: DatamarNews
