The reduction in the number of operational companies in São Paulo state by late November has led to concerns over a diminished orange supply. Historically, major processing companies have slowed down operations between January and February when supply levels were already below normal. However, as of January 2024, the number of active plants has decreased to six from ten in the previous year, with only seven units active by the end of November. According to Cepea, there may be enough raw material for the industry to continue processing until February 2025, but the situation in March remains uncertain.
The situation is exacerbated by the low quality of the available supply. Industry players have reported an unsatisfactory brix-acid ratio, impacting both the efficiency of processing activities and the quality of the final product. This lower juice yield is attributed to the lack of rainfall during fruit development, necessitating more oranges to produce the same amount of juice.
Source: CEPEA