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Global Concentrated Orange Juice Market – Brazil Strengthened Its Position as the World’s Leading Exporter

orange juice

Global Concentrated Orange Juice Market – Brazil Strengthened Its Position as the World’s Leading Exporter

IndexBox has just published a new report: ‘World – Concentrated Orange Juice – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The global concentrated orange juice market revenue amounted to $4B in 2018, growing by 6.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.5% from 2008 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The global concentrated orange juice market peaked in 2018 and is likely to continue its growth in the near future.

Consumption By Country

The countries with the highest volumes of concentrated orange juice consumption in 2018 were Brazil (674K tonnes), the U.S. (656K tonnes) and France (141K tonnes), with a combined 62% share of global consumption. The UK, Belgium, the Netherlands, Japan, Spain and Ireland lagged somewhat behind, together accounting for a further 18%.

From 2008 to 2018, the most notable rate of growth in terms of concentrated orange juice consumption, amongst the main consuming countries, was attained by Japan, while the other global leaders experienced more modest paces of growth.

In value terms, the U.S. ($1.4B), Brazil ($1.1B) and France ($218M) were the countries with the highest levels of market value in 2018, together accounting for 69% of the global market. These countries were followed by the Netherlands, Belgium, Japan, the UK, Ireland and Spain, which together accounted for a further 16%.

The countries with the highest levels of concentrated orange juice per capita consumption in 2018 were Belgium (8,445 kg per 1000 persons), Ireland (7,486 kg per 1000 persons) and the Netherlands (5,039 kg per 1000 persons).

From 2008 to 2018, the most notable rate of growth in terms of concentrated orange juice per capita consumption, amongst the main consuming countries, was attained by Japan, while the other global leaders experienced more modest paces of growth.

Market Forecast 2019-2025

Driven by rising demand for concentrated orange juice worldwide, the market is expected to start an upward consumption trend over the next seven years. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +0.6% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 2.5M tonnes by the end of 2025.

Production 2007-2018

In 2018, the amount of concentrated orange juice produced worldwide totaled 2.2M tonnes, rising by 6% against the previous year. The total output volume increased at an average annual rate of +1.8% over the period from 2008 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2009 with an increase of 8.3% against the previous year. Over the period under review, global concentrated orange juice production reached its peak figure volume in 2018 and is expected to retain its growth in the immediate term.

In value terms, concentrated orange juice production amounted to $3.4B in 2018 estimated in export prices. In general, the total output indicated a perceptible expansion from 2008 to 2018: its value increased at an average annual rate of +1.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, concentrated orange juice production increased by +19.1% against 2016 indices. The growth pace was the most rapid in 2012 when production volume increased by 53% against the previous year. Over the period under review, global concentrated orange juice production reached its maximum level at $3.5B in 2017, and then declined slightly in the following year.

Production By Country

Brazil (1.1M tonnes) constituted the country with the largest volume of concentrated orange juice production, accounting for 49% of total production. Moreover, concentrated orange juice production in Brazil exceeded the figures recorded by the world’s second-largest producer, the U.S. (413K tonnes), threefold. The third position in this ranking was occupied by Mexico (137K tonnes), with a 6.4% share.

In Brazil, concentrated orange juice production expanded at an average annual rate of +3.1% over the period from 2008-2018. The remaining producing countries recorded the following average annual rates of production growth: the U.S. (+0.7% per year) and Mexico (+16.9% per year).

Exports 2007-2018

Global exports totaled 1.3M tonnes in 2018, growing by 16% against the previous year. In general, concentrated orange juice exports, however, continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when exports increased by 16% y-o-y. Over the period under review, global concentrated orange juice exports attained their peak figure at 1.6M tonnes in 2009; however, from 2010 to 2018, exports stood at a somewhat lower figure.

In value terms, concentrated orange juice exports amounted to $2B (IndexBox estimates) in 2018. In general, concentrated orange juice exports, however, continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2010 when exports increased by 11% y-o-y. The global exports peaked at $2.3B in 2011; however, from 2012 to 2018, exports remained at a lower figure.

Exports by Country

Brazil was the largest exporting country with an export of about 381K tonnes, which amounted to 30% of total exports. Belgium (146K tonnes) occupied a 12% share (based on tonnes) of total exports, which put it in second place, followed by the Netherlands (12%), Mexico (11%), Costa Rica (9.4%) and Germany (5.2%). The following exporters – Spain (31K tonnes), South Africa (25K tonnes), the UK (22K tonnes), Thailand (20K tonnes) and the U.S. (20K tonnes) – each finished at a 9.4% share of total exports.

From 2008 to 2018, average annual rates of growth with regard to concentrated orange juice exports from Brazil stood at +1.1%. At the same time, Mexico (+29.4%), Costa Rica (+16.4%), South Africa (+9.4%), the UK (+7.3%) and Thailand (+1.6%) displayed positive paces of growth. Moreover, Mexico emerged as the fastest-growing exporter in the world, with a CAGR of +29.4% from 2008-2018. By contrast, the Netherlands (-1.4%), Germany (-4.0%), the U.S. (-4.0%), Spain (-6.6%) and Belgium (-9.5%) illustrated a downward trend over the same period. From 2008 to 2018, the share of Mexico, Costa Rica and Brazil increased by +9.9%, +7.4% and +3% percentage points, while the Netherlands (-1.7 p.p.), Spain (-2.5 p.p.), Germany (-2.6 p.p.) and Belgium (-19.9 p.p.) saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest concentrated orange juice markets worldwide were Brazil ($706M), Belgium ($418M) and the Netherlands ($358M), together accounting for 74% of global exports. Germany, Costa Rica, Mexico, the U.S., Spain, South Africa, the UK and Thailand lagged somewhat behind, together comprising a further 18%.

Mexico recorded the highest rates of growth with regard to exports, among the main exporting countries over the last decade, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

The average concentrated orange juice export price stood at $1,593 per tonne in 2018, declining by -6.4% against the previous year. Over the period under review, the concentrated orange juice export price, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2011 an increase of 28% year-to-year. In that year, the average export prices for concentrated orange juice attained their peak level of $1,744 per tonne. From 2012 to 2018, the growth in terms of the average export prices for concentrated orange juice remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Belgium ($2,855 per tonne), while Mexico ($418 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was attained by Belgium, while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

In 2018, approx. 1.5M tonnes of concentrated orange juice were imported worldwide; jumping by 17% against the previous year. Over the period under review, concentrated orange juice imports, however, continue to indicate a measured deduction. The pace of growth was the most pronounced in 2018 when imports increased by 17% year-to-year. Over the period under review, global concentrated orange juice imports attained their maximum at 2M tonnes in 2008; however, from 2009 to 2018, imports remained at a lower figure.

In value terms, concentrated orange juice imports stood at $2.3B (IndexBox estimates) in 2018. In general, concentrated orange juice imports, however, continue to indicate a measured drop. The pace of growth appeared the most rapid in 2011 with an increase of 23% against the previous year. The global imports peaked at $2.8B in 2008; however, from 2009 to 2018, imports remained at a lower figure.

Imports by Country

The countries with the highest levels of concentrated orange juice imports in 2018 were the U.S. (263K tonnes), the Netherlands (231K tonnes), Belgium (190K tonnes), France (142K tonnes), the UK (122K tonnes) and Germany (101K tonnes), together amounting to 71% of total import. The following importers – Japan (51K tonnes), Spain (44K tonnes), Ireland (41K tonnes) and Poland (35K tonnes) – together made up 11% of total imports.

From 2008 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Japan, while the other global leaders experienced more modest paces of growth.

In value terms, the Netherlands ($471M), Belgium ($347M) and Germany ($227M) constituted the countries with the highest levels of imports in 2018, with a combined 46% share of global imports. These countries were followed by the UK, France, the U.S., Japan, Spain, Poland and Ireland, which together accounted for a further 37%.

Among the main importing countries, Japan experienced the highest growth rate of imports, over the last decade, while the other global leaders experienced more modest paces of growth.

Import Prices by Country

In 2018, the average concentrated orange juice import price amounted to $1,523 per tonne, coming down by -6.1% against the previous year. In general, the concentrated orange juice import price, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2011 when the average import price increased by 28% against the previous year. In that year, the average import prices for concentrated orange juice attained their peak level of $1,625 per tonne. From 2012 to 2018, the growth in terms of the average import prices for concentrated orange juice failed to regain its momentum.

Prices varied noticeably by the country of destination; the country with the highest price was Spain ($2,496 per tonne), while the U.S. ($450 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was attained by Spain, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Brazil

Why Brazil Could Be the U.S.’s Next Great Trade Partner

The U.S. and Brazil are the largest economies in the Americas, and all signs point to an even more active relationship between the two powerhouses in the future. Just this year it was confirmed that U.S. citizens would no longer need a visa to travel to Brazil and can remain in the country for at least 90 days, allowing for more frequent interactions at a very basic level. Since that announcement, Brazil has seen increased travel interest from American tourists, with searches for flights from the U.S. to Brazil up more than 30 percent in March alone, compared to the previous year. 

While tourism is a great way to build strong country relationships, what’s even more significant is a recent report that shows investment interactions between the U.S. and Brazil increased – and improved – between 2008 and 2017. More specifically, the report highlighted growth and opportunity across three of the most powerful indicators of economic health between 2008 and 2017: direct investments, exportation and employment. 

Consider that by the end of 2017, U.S. investments into the Brazilian economy reached a whopping $68 billion, comprising nearly 3.3 percent of Brazil’s overall gross domestic product (GDP) – according to the report. For its part, Brazil’s foreign direct investments into the U.S. surged dramatically (356.5 percent) over the last decade, reaching over $42 billion in 2017. What’s more, from an exportation standpoint, the U.S. is a key destination for Brazilian exports. In fact, in 2017 alone, Brazil exported goods worth over $27 billion to the U.S. Similarly, the U.S. was the second main source of imports to Brazil in 2017. 

Naturally, prolific trade and investment between the two countries is already leading to job creation in both countries. U.S.-controlled multinational companies employed nearly 655,000 Brazilians in 2015 and generated 131,900 new jobs in Brazil between 2009 and 2015. On the other hand, Brazilian companies in the U.S. employed over 74,000 Americans in 2015. Further, for Brazil, increasing trade with the U.S. also eases the country’s access to other international markets, boosting Brazil’s clout internationally while also broadening the job market and improving the Brazilian economy. In turn, increased trade with Brazil offers the U.S. access to resources that are critical to the American economy, such as oil and gas, mining, and chemicals. 

As these initial results suggest, the opportunities on the horizon for a mutually beneficial relationship between the two countries are seemingly limitless. Currently, the U.S. is investing heavily in sectors across the Brazilian economy, focusing especially on mining, finance and insurance – and the U.S. is also especially well positioned to take advantage of unprecedented access and opportunity in one particular sector: oil. In light of that fact that the global demand for oil is rising, potentially reaching 102.3 million barrels per day by 2022, the Brazilian oil and gas industry presents the next great investment opportunity for foreign investors, especially those from the U.S. 

Indeed, Brazil’s oil reserves are enormous – the 15th largest in the world, with over 15 billion barrels – and are located mostly offshore in deep waters. Brazilian oil companies are already pushing the boundaries of innovation when it comes to deep water exploration. Petrobras, for example, discovered pre-salt oil reserves – which are entirely unique to Brazil – off the coast of Rio de Janeiro in the Santos Basin in 2006. This initial discovery led the company to find a series of even larger oil reserves containing potentially billions of barrels of light oil. As oil experts will know, pre-salt extraction is more painstaking and complicated than other forms of oil and gas removal. However, investing in exploration and production in the pre-salt regions is becoming absolutely critical as the world’s post-salt reserves dwindle. Since discovering these reserves, Petrobras has actually developed many of the technologies needed to overcome harsh oceanographic conditions and create production infrastructure. 

Of course, breaking into a new foreign market is always daunting. To entice foreign investors who are best equipped to efficiently and responsibly drill at these pre-salt reserves, Brazil’s National Petroleum Agency is organizing seven auctions (also known as “bidding rounds”) between 2019 and 2021, during which they’ll auction off areas containing billions of barrels of oil. These bidding rounds are designed to formally and transparently assign blocks from the pre-salt reserves that Petrobras currently has ownership over. During an upcoming bidding round on November 6, for instance, the Brazilian government will auction off the rights to extract the excess of 15 barrels of oil from across four fields called Atapu, Buzios and Itapu e Sépia. The winners will be able to utilize Petrobras’ technical data for pre-salt exploration and extraction in return for reimbursing Petrobras for a portion of its investment costs.

Encouraging bilateral trade and investment between Brazil and the United States is already leading to economic growth for both countries, and – as the data from recent years shows – the opportunities for future mutual prosperity are endless. By continuing to create unique investment opportunities, such as those offered to foreign investors during the upcoming oil auctions, Brazil will be able to court U.S. investors and further solidify its standing as America’s next great international trade partner. 

To consult the schedule of bids and more information, please, refer to: http://rodadas.anp.gov.br/en/

 

Sergio Ricardo Segovia Barbosa, 55, is a retired Rear Admiral in Brazilian Navy. With recognized professional experience in military, managerial and governmental areas, he has worked in Intelligence Analysis, Military Operations, and Logistics. He also worked in Emergency and Risk Management, Maritime Safety, Strategic Planning, Navigation and Maritime Operations. In addition, in the foreign trade area, he was responsible for logistics and international acquisition processes, when he was in charge of the group for ship receiving abroad.

Mr. Segovia has a postgraduate degree in Politics and Strategy from the War College. He is fluent in English and Spanish.

pension reform

Long-Awaited Brazilian Pension Reform Reopens Doors for US Investors Ahead of US Secretary Wilbur Ross’s Trip to Brazil

Nearly two weeks ago, Brazil’s House of Representatives approved, in a first round of voting, a long-debated reform of the country’s convoluted pension system. For the millions of Brazilians following the Reforma da Previdência (Pension Reform), this first round of approvals is a positive step forward and one that ensures a reasonable forecast for the estimated economic impact this will have on Brazil over the next decade.

But Brazilians are not the only ones who should celebrate the outcomes of this first round of voting. For US investors, the House’s approval of Brazil’s pension reform is a green light for far greater opportunities to come. Ahead of US Secretary of Commerce Wilbur Ross’s trip to Brazil in the coming week, this move will also help the US evaluate how domestic reforms in Brazil can facilitate US-Brazil bilateral commercial engagement.

The Pension Reform, as it stands, is expected to help revamp Brazil’s costly pension system, bolster Brazilian public finances and bring budget numbers down to a sustainable level within the next years. More importantly, it will be a trigger for much-needed tax reform. Implementation of both pension and tax reforms would be a real turning point for the country’s economy.

Though Brazilians and investors are right to celebrate this progress, a number of additional hurdles lie ahead for the Reforma da Previdência before it is approved. Over the coming weeks, the reform will have to pass through a vote by the Special Committee, a second round of approvals by the House, and two rounds of approvals by the Brazilian Senate.

Nevertheless, for President Jair Bolsonaro’s economic team, headed by economist Paulo Guedes, this is a victory. Since Bolsonaro’s visit to Washington in March 2019, companies interested in investing in Brazil have kept their eyes peeled for concrete outcomes from Brazil’s new administration. This is one such outcome.

Does the Pension Reform solve all of Brazil’s problems? Far from it. The text itself is not perfect and can be (in fact has been) criticized, especially as it pertains to the benefits provided for different categories of workers. But despite its imperfections, foreign investors can take this step forward as a sign that the Brazilian government is committed to making difficult decisions to improve its economic circumstances. There is now an opportunity for Brazil to embark on a growth cycle.

Relying on the assumption that the reform will pass, the Brazilian real has strengthened in the past weeks. This will foster investments in the middle to long term. In addition, it is important to note the government has encouraged the expansion of actions related to the Investment Partnership Program (PPI) in an effort to create a more business friendly and less bureaucratic environment for foreign investors in several sectors of the economy.

Over the long term, in addition to opening a door to other relevant and necessary legislative changes, the approval of the Pension Reform shows Brazil’s commitment to implementing broader necessary reforms, a positive sign to the members of the Organization for Economic Cooperation and Development (OECD) currently evaluating Brazil’s request for accession.

Along with the excitement around the approval of the pension reform text in the past weeks, Brazil can count on another recent victory: the signing of the Mercosur-European Union Agreement. After twenty years of negotiations, under the leadership of Mauricio Macri and Jair Bolsonaro Mercosur reached a final and comprehensive trade agreement with the European Union on June 28, sending a message to the world that Mercosur’s member countries are committed to the multilateral trading system and are looking to expand their trade relationships.

Today’s Brazil is open to investments and to competition; the US private sector should rejoice in these changes. The Brazilian House’s approval of the Pension Reform is at the heart of changes deemed necessary to reduce red tape and improve business performance in Brazil. As President Bolsonaro marks 200 days in office, investors should be ready to once again seize on the opportunities Latin America’s largest economy has to offer.

 

Renata Vargas Amaral is a Visiting Scholar in the Trade, Investment and Development Program at the Washington College of Law at American University. She is the founder of Women Inside Trade.

 Roberta Braga is an Associate Director at the Adrienne Arsht Latin America Center of the Atlantic Council

 With Valentina Sader, Program Assistant at the Adrienne Arsht Latin America Center of the Atlantic Council

Brazil’s Banco Bradesco Confirms Blockchain Integration

Bradesco Bank – the second largest private bank in Brazil, released information confirming the integration of the Marco Polo Network. The global trade finance network combines R3’s Corda blockchain technology and the TradeIX distributed trade finance platform to create a unique, paced process for financial institutions to utilize.

Marco Polo’s Network gives banks and other financial institutions the advantage of learning and exploring opportunities in blockchain technology prior to implementing strategic trade finance initiatives with the platform.

“Facilitating financial inclusion and supporting economic growth is one of our key priorities. Following the successful digitalization of our retail services, we’re now focused on leveraging the best technology to develop new trade finance solutions for our corporate banking customers,” said Roberto Medeiros, Bradesco’s Head of International and Trade Finance in the announcement.

“Our Research & Innovation Department carefully assessed the options available to implement blockchain solutions and APIs. The expertise of the Marco Polo Network, the forward-looking vision and the end user-focused approach convinced us that we had found the optimum place to succeed,” he added.

With a focus on improving trade finance by increasing transparency, connectivity, and optionality, the joint finance initiative provides solutions and efficiencies to minimize financial roadblocks while maximizing client and partner relationships.

“As Marco Polo’s global network continues to grow momentum, it is clear that it is bringing tremendous value to the trade finance and working capital sector. Institutions which get ahead of the curve by engaging actively with blockchain technology now through use-cases and pilots will be ahead of the curve and gain a significant competitive advantage. Banco Bradesco is joining a network leading the way in exploring how blockchain can improve the entire trade finance lifecycle,” said David E. Rutter, CEO of R3.

Source: Marco Polo

Brazilian Medical Tech Firm Selects Orlando’s Lake Nona for New Global Headquarters

Brazil-based medical technology firm Invel has announced plans to move its global headquarters to Lake Nona’s Medical City of the Orlando, Florida region. The firm, which creates biocearmic and far infrared apparel to help with blood flow, chronic muscle pain and cell repair, will open in its new space on Feb. 18. Invel will start operations at its Lake Nona headquarters with 10 employees and expects to add more jobs in later 2019.

Invel’s global headquarters will be located at the GuideWell Innovation Center of Lake Nona’s Medical City. Invel chose the Lake Nona Medical City, a 650-acre health and life sciences park, for its high concentration of medical professionals and status as the premiere global location for health and wellness innovation. The firm will join Lake Nona Medical City’s community that includes the University of Central Florida Health Sciences CampusVA Medical Center, the Johnson & Johnson Human Performance Institute and more.

The Lake Nona district also currently has more than $1 billion worth of projects planned for the next several years. This includes KPMG’s state-of-the-art $430 million new training facility. Amazon is also joining with a planned $120 million, 2.3 million-square-foot fulfillment center and a 3.8-million-square-foot Town Center is underway in partnership with shopping center pioneer Steiner + Associates and Alphabet’s Intersection, who partnered with Lake Nona to create a tech-forward plan to transform traditional brick-and-mortar retail.

Not only will Invel join Lake Nona’s community of medical experts, but it will also leverage Orlando’s diverse life sciences sector to advance its technology. Orlando’s life sciences industry is home to 4,800 companies and thanks to the region’s tech growth, Orlando is also a rising hub for medical technology innovation.

 

Dachser Logistics Urges Proactive Preparations for Brazilian Holiday

Leading global logistics provider, Dachser, released information this week for industry players on how to prepare for Carnival – known as the Brazil’s lengthiest and most important holiday.
In addition to the vast importance the holiday holds, many businesses are known to pause operations for the celebration, which is known to last as long as 10 days for some regions in the country. Businesses such as airports, ports, roads, tolls and hotels are all part of the list that are directly impacted by the holiday.

“Businesses should plan their logistics strategy well in advance of the holiday. We review the critical steps with our colleagues at Dachser Brazil in detail to make sure our customers’ supply chains continue to run without major interruptions,” explains Vincent Touya, Managing Director Dachser USA.
Of the most important actions to take into consideration, Dachser released the list below in an effort to help other businesses with preparations. Primary themes include communication and proactivity.
For example, creating an inventory well stocked throughout the duration of the holiday and booking shipments sooner than later. Dachser also stresses the importance of looping in logistics providers of priority shipments to ensure space is available. Taking these steps ensure your supply chain goes uninterrupted.
Source: BSY Associates

U.S. Export Volume Declines as Trade Deficit Widens

Washington, D.C. – The volume of U.S. exports unexpectedly hit a five-month low in September, widening the trade deficit by 7.6 percent to $40.3 billion, according to the U.S. Department of Commerce (DOC).

The DOC said that September’s shortfall is bigger than the $38.1 billion deficit that the government had forecasted in its recently published advance gross domestic product (GDP) estimate for the third quarter.

As a result, the 3.5 percent annual growth pace it estimated “will probably be trimmed” when the government publishes its revisions later this month.

At the same time, the agency revised August’s trade deficit to $39.99 billion from a previously reported $40.11 billion shortfall. When adjusted for inflation, the trade deficit increased to $50.76 billion from $48.22 billion.

Trade was reported to have contributed only 1.32 percentage points to U.S. GDP growth.

Exports in September fell 1.5 percent to $195.59 billion, the lowest since April, while exports to the European Union fell 6.5 percent and those to China slipped 3.2 percent.

Transpacific shipments to Japan tumbled 14.7 percent with declines also seen in the volume of exports to both Mexico and Brazil.

Overall imports were unchanged in September as petroleum imports hit their lowest level since November 2009. A domestic energy boom has seen the United States reduce its dependence on foreign oil, helping to temper the trade deficit.

Consumer goods imports, however, were the highest on record, as were non-petroleum imports.

Imports from Canada were the highest since July 2008, while inbound shipments from China also hit an all-time record boosting the U.S. trade deficit with that country gap to $35.6 billion, the highest on record.

11/06/2014

Chiquita: Goodbye, Fyffes; Hello, Cutrale-Safra

Charlotte, NC – Shareholders of Chiquita Brands International have done an about-face in rejecting the global fruit producer’s proposed acquisition of Ireland-based rival Fyffes PLC.

The company has said it will, instead, enter into negotiations with Cutrale-Safra, a consortium made up of The Cutrale Group, a little-known Brazilian fruit wholesaler, and the Safra Group, a private investment company.

Since March, Chiquita remained focused on pursuing its planned acquisition of Fyffes for $526 million.

Chiquita-Fyffes merger would have expanded Chiquita’s reach deep into Europe, creating the largest banana-producer-distributor in the world with generating an estimated $4.6 billion in revenue annually.

In addition, the North Carolina-headquartered company would have had the opportunity to reincorporate in Ireland and gain significant tax considerations in a so-called ‘inversion’ transaction.

Now, instead of remaining a public company and reincorporating abroad, Chiquita will reportedly pay Fyffes a multimillion-dollar termination fee and be taken private.

The Cutrale-Safra group appeared relatively late after Chiquita had made its bid for Fyffes, offering an all-cash deal with no financing conditions, and closure of the deal within the calendar year.

Until now, Chiquita’s board had consistently rejected Cutrale-Safra’s bids as too low, including a recent bid of $14.50 a share, up from the previous $14.00 bid. The most recent bid by the Brazilians values Chiquita at around $680 million.

Based in Sao Paulo, Brazil, The Safra Group, with $200 billion in assets, operates the Safra National Bank of New York; Banco Safra in Brazil; Bank Jacob Safra in Switzerland; real estate and farmland on several continents; and a variety of other holdings.

10/27/2014

Brazil’s BRIC Cracks on Disappointing Growth Figures

Los Angeles, CA – There’s a serious fissure developing in the BRIC wall as the latest government figures show that Brazil has slipped into recession, with the Latin American giant’s gross domestic product (GDP) contracting for a second consecutive quarter.

According to the official government statistics bureau in Brasilia, the country’s GDP stands at about $567 billion, down 0.6 percent from the previous three months, while revised figures for the first quarter showed a drop of 0.2 percent.

The government had initially had reported first-quarter growth of 0.2 percent.

The country last experienced a recession in late 2008 and early 2 009, when a world economic crisis slashed demand for steel, minerals, farm goods and other key Brazilian exports.

The BRICS – Brazil, Russia, India, China and South Africa – together represent 18 percent of the world total, are all experiencing slowdowns in their once fast-paced rates of growth. Exacerbating the economic difficulties is Russia’s volatile activity in Ukraine, which has sparked a rash of sanctions on Moscow by the US and the European Union.

Last month, leaders of the five countries met in Brazil and decided to create their own development bank as a counterweight to what they perceive are “western-dominated financial organizations like the US-based World Bank and International Monetary Fund.

The new development bank will reportedly be based in Shanghai and is expected to be functional within two years. It will be capitalized at $50 billion, a figure that could grow to $100 billion to fund infrastructure projects. The fund would also have $100 billion at its disposal “to weather economic hard times.”

08/29/2014

Orkin Sets Up Three New Franchises in South America

Atlanta, GA – International pest control firm Orkin has established three new international franchises in Sao Paulo, Brazil; Belo Horizonte, Brazil; and Asuncion, Paraguay.

All three new franchises will offer commercial and residential pest control and termite services in their respective markets.

The three new franchises currently operate pest control businesses and will convert those existing businesses to Orkin’s standards.

“This will allow them to take full advantage of the Orkin brand and its franchise support to grow and further develop their markets,” the company said.

Each new franchisee traveled to Atlanta, Orkin’s global headquarters, for initial training at the company’s award-winning training center in May.

Founded in 1901, Orkin specializes in pest control services and protection against termite damage, rodents and insects through more than 400 locations.

The company currently serves approximately 1.7 million homeowners and businesses in the US, Canada, Mexico, Europe, Central America, South America, the Middle East, the Caribbean, Asia, the Mediterranean and Africa.

Orkin, a wholly-owned subsidiary of Rollins International Inc., also collaborates with the Centers for Disease Control and Prevention (CDC) and eight major universities to conduct research and help educate consumers and businesses on pest-related health threats.

08/05/2014