Brazilian company Citrosuco, one of the world’s leading orange juice producers, warned it may need to declare force majeure on supplies to some clients after disease and rainfall damaged crops. The company claims it was being “severely affected” by greening disease and rain that flooded farms. It added it won’t be able to ensure supplies at the volumes and prices previously agreed.
In a letter, the firm stated: “supply performance is currently prevented by force majeure, until further notice,” the company said it had not taken the actual legal step associated with invoking force majeure, a clause companies usually enforce when an unforeseen event, such as a fire or natural disaster, prevents them from complying with a contract.
Source: bnnbloomberg.ca
