|
|
Article: Squeezed out: Brazil's biggest orange-juice exporter plants trees for small growers, who prefer sugar.
- Article from:
- Revista Latin Trade
- Article date:
- November 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 Freedom Magazines, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Already the world's biggest orange grower, Brazil faces two problems: Orange groves around Sao Paulo--where 85% of the fruit is grown--are aging, mainly groves managed by small, rural producers. Secondly, what was once orange groves is being turned into land for sugar cane production. As free trade has grown, Brazilian oranges have become more competitive, but demand for sugar abroad is rising too. The difference is, sugar cane grows more quickly than orange trees, so the money comes faster, too.
In an attempt to turn things around, Cutrale, Brazil's largest orange-juice exporter, has begun a first-ever investment program of US$50 million to replant five million ...