Prices and marketing margins of citrus industry in Brazil

Abstract

Brazil is characterized as the largest producer of orange. Although it is a thriving chain in the country’s agribusiness context, relations between players in the agribusiness system orange juice (producer and industry) are tenuous and historically conflicting. This paper seeks to understand the interrelationship between these agents, from the evolution of prices received by producers and the orange juice exporters and through marketing margins in the industry. It was noted that the orange processing industry in Brazil has been operating with positive and high margins, especially when you include the revenue from exports of by-products. Moreover, they were obtained indicators that support the hypothesis that the risk assumed by the orange processing industry is lower than the agricultural link in this chain agribusiness.