US: Florida Citrus Group drops appeal on Brazil antidumping ruling
In March, the U.S. International Trade Commission voted to remove the duty, saying its decision "is not likely to lead to the continuation or recurrence of material injury to an industry in the United States."
Last month, Florida Citrus Mutual said it would challenge the order.
"We have withdrawn the appeal," Matt McGrath, of Barnes, Richardson and Colburn, said of Florida Citrus Mutual's annual meeting in Bonita Springs, Fla.
Instead, the group is weighing filing a new petition to reinstate the duty, said Mr. McGrath.
"We're more closely evaluating and monitoring the situation," he said.
It's likely that filing a new petition would be less costly than appealing the previous one, Mr. McGrath said. "We'll be able to move more quickly if we're in need of some protection from cheaply sold juice."
Florida produces around three-quarters of the U.S. orange-juice supply. Imports cover the rest, and Brazilian juice accounted for half of those shipments last year.
Brazilian orange juice came under fire earlier this year when traces of carbendazim, a fungicide not permitted for use on oranges in the U.S., was detected on shipments from Brazil.
The scare sent prices of frozen orange juice concentrate on ICE Futures U.S. to a record high of $2.2695 a pound on Jan. 23.
Safety concerns later eased following testing by the U.S. Food and Drug Administration, and prices fell back. Futures for July delivery prices settled Wednesday at $1.1060 a pound, down more than 51% since the record high.
Vic Story, president of Florida Citrus Mutual and a citrus grower, said supplies in Brazil are building up, and "that's worrisome."
"The antidumping duty is gone now, but [dumping is] still a problem," said Ric Freeman, a Florida citrus grower. "Brazil would like to see our prices get way down."
With futures prices on ICE already trading just above two-and-a-half-year lows, growers are concerned that an influx of supply on the market will cause prices to tumble further, especially since consumption is already sliding due to high prices.
If the domestic market is flooded with cheaper Brazilian juice, that could have a serious negative impact on Florida's orange growers, Mr. Story said.
Source: online.wsj.com