The orange juice processing plants in Brazil are now in full swing, indicating an increased juice output for 2019/20. As a result, Brazilian processors have been pushing high supplies of orange juice in the European market, one of the largest export destinations for Brazilian orange juice.

However, EU imports have been slowing down as EU processors are hoping for orange juice prices to go down with excessive supplies in the market. Also, some of the large retailers in the EU have already fixed their long-term contracts earlier this year. Thus, lower demand from both processors and retailers have resulted in weak imports of Brazilian orange juice. As a result, Mintec Brazilian orange juice concentrate prices in the EU are down 10% year on year and by month.

Furthermore, the Brazilian orange crop is estimated to be cut as a result of droughts in the country. Temperatures are currently above the average and if the drought continues, the upcoming crop’s (2020/21) output is likely to drop by 10% year on year. Therefore, above adverse weather conditions are expected to release downward pressure from the prices. Also, anticipations of smaller orange crop volumes in Spain and Egypt are likely to strengthen the Brazilian orange juice prices in the near future. Mintec

Global food and beverage company Nestlé has expanded its juice production capacity in Pakistan with the opening of a USD22m plant at its Sheikhupura Factory. Punjab Governor Chaudhry Mohammad Sarwar inaugurated the company’s Nestlé Fruita Vitals plant.

The plant is the newest edition to the company’s facilities operating in Pakistan and has 24,000 units per hour production capacity. It produces Nestlé’s range of juices, nectars and drinks. Sarwar said: “We aim to create conditions in which foreign companies are attracted towards making new investments. At present, the government is making concerted efforts to revive the nation’s economy.

Nestlé Pakistan CEO Samer Chedid said: “Nestlé’s recent investment is a testament to our continuous trust in Pakistan and its growth potential. We are also excited about integrating our Chaunsa value chain. We are procuring Chaunsa mangoes from the 110 farms that we introduced interventions to improve their yield’s quantity and quality.

“This integration demonstrates our Creating Shared Value approach in which we ensure that our activities and products are making a positive difference to society while contributing to Nestlé’s ongoing success.” Drinks-insight