Prices have been rising for months, but now there is a long-awaited change: orange juice is becoming cheaper again. The reason for this is a new trade agreement.
While there have been repeated reports of price increases in recent months, consumers can now rejoice: orange juice prices are falling again. The reason for this is the Mercosur agreement, which also includes the abolition of customs duties, reports Lebensmittelzeitung.
Klaus Heitlinger, Managing Director of the German Fruit Juice Association (VdF), told the trade newspaper: „From the point of view of the association, we absolutely welcome the Mercosur agreement, since the abolition of tariffs will not only reduce import prices, but will also have a positive effect on consumer prices.”
Crop failure in Brazil
According to the food newspaper, orange juice concentrate prices are currently at US$7,200 (EUR6,840) per tonne. This corresponds to a raw material price of about 1.20 euros per liter of finished orange juice. There is also a duty of 12.2 percent (15 cents) and other costs for packaging, logistics and VAT.
Crop failure in Brazil
According to the food newspaper, orange juice concentrate prices are currently at $7,200 (6,840 euros) per ton. This corresponds to a raw material price of about 1.20 euros per liter of finished orange juice. There is also a duty of 12.2 percent (15 cents) and other costs for packaging, logistics and VAT.
This spring, the Brazilian citrus association Fundecitrus announced further crop failures for the current season. Accordingly, the lowest yield in 36 years can be expected.
