Egypt Becomes Brazil’S Top Orange Supplier

(MENAFN- Brazil-Arab News Agency (ANBA)) São Paulo – Brazil is known as the world's largest orange producer and leading exporter of concentrated orange juice, holding 75% of the global market. However, to supplement domestic consumption, the country has always imported oranges, primarily from Spain, a major citrus production. In recent years, another supplier has been competing for the top spot as the largest orange exporter to the Brazilian market: Egypt. In 2024, Egypt became the leading supplier, with sales totaling USD 16.1 million, a 113% increase compared to 2023 (see chart below).

Rodriguez, from Fundecitrus: Extreme heat also affects crops

Orange imports have been increasing, especially in the past two years. In 2024, they nearly doubled, rising from 26,900 tonnes in 2023 to 51,200 tonnes the following year-an impressive 90.3% increase. The main reason is a decline in domestic production, which boosts international demand. To put it in perspective, the estimated production for the 2024/2025 harvest is 228 million boxes, compared to 307 million boxes in the previous season.

The drop in production has two main causes-the spread of greening, a disease caused by bacteria, particularly affecting plantations in the state of São Paulo, and climatic factors, especially extreme heat.

“Our leading problem now is less greening and more extreme heat,” says Guilherme Rodriguez, agronomist and project supervisor at Fundecitrus , a research center founded in 1977 to support citrus production in a region of the state of São Paulo and southern Minas Gerais now known as the“citrus belt.” Rodriguez explains,“Greening has been affecting our plantations since 2004, causing various damages such as branch drying and fruit drop. To combat it, we've implemented different strategies over the years. Extreme heat, on the other hand, primarily impacts fruit setting, reducing their quantity. While greening compromises plant health, heat directly affects production.”

Fundecitrus itself has been fighting greening for two decades. Also known as huanglongbing (HLB), the disease affects all types of citruses, and there is no cure for infected plants. To strengthen these efforts, the fund launched an awareness campaign in February titled“For incidence to be zero, control must be ten out of ten,” emphasizing that the main weapon against the disease is collective preventive action.“Fourty-four per cent of São Paulo citrus farms are currently suffering from greening, with Limeira being the city with the highest incidence at 78%,” explains Rodriguez.“If one farmer takes precautions but their neighbor doesn't, everyone can be affected. Effective control requires regional management.”

In practice, newly affected trees fail to produce fruit, while mature trees experience significant premature fruit drop and gradually wither over time. Originally from Southeast Asia, the greening bacteria has nearly wiped out citrus farming in Florida, United States. While these bacteria are a well-known enemy that has been actively fought, extreme heat has emerged as a new challenge in recent years. One of the current strategies to mitigate its effects is increasing irrigation.

On the other hand, an opportunity for importers


Fávero saw an opportunity for Egyptian oranges in Brazil

As with any trade balance, what is a problem for some becomes an opportunity for others. Brazil has been importing oranges from Egypt since 2019, when the phytosanitary protocols were first approved, but a free trade agreement between the Arab country and Mercosur had been in place since 2017, eliminating an import tax that European countries still have to pay. As the Egyptians improved their product, they also gained a foothold in the Brazilian market, a trend that has been more noticeable in recent years.

São Paulo-based trading company 52W began bringing Egyptian oranges to Brazil in December 2024. Founded three years ago, the company initially imported Portuguese apples as well as apples and pears from Argentina. They discovered the opportunity in Egyptian oranges in an unusual way.“We spent some time in Spain to learn about oranges, tangerines, and lemons. While we were there, a general strike broke out among Spanish orange producers against products from other countries that were arriving with the same quality but at lower prices, especially from Egypt. That's when it clicked,” says Gustavo Fávero, one of 52W's partners.

Mostafa Adel is a 52W's supplier in Egypt

He and his partners realized the market's potential when they saw that some suppliers were struggling to enter the Brazilian market. They soon found a trading partner in Cairo, Dream International, and together they launched an operation to bring table oranges of the Navel-sold as Bahia in Brazil-and Valencia varieties.“It's not an easy operation-everything is evaluated: color, size, acidity, and sweetness levels. The logistics partner must be top-notch because everything has to happen within 30 days, with transportation at four degrees Celsius,” explains the importer, who is now preparing to do the reverse and export Brazilian products to the Arab country.

For Fávero, the increased presence of Egyptian oranges is more due to the replacement of Spanish oranges-offering the same quality at a better price-than to issues in Brazilian production.“Brazil is an excellent citrus producer, but as with any fruit, it's normal for imports to complement supply during the off-season to ensure year-round availability for consumers.” This makes Brazil a great consumer market at any time, regardless of production challenges.

Orange supply

Despite all adversities, the orange supply chain in Brazil remains of utmost importance. The country is still the world's largest producer and accounts for 75% of global orange juice sales. The entire sector creates around 200,000 direct and indirect jobs, contributing USD 189 million in taxes. São Paulo stands out in this industry, responsible for 90% of the country's export volume. In the 2023/2024 harvest alone, the state generated 45,112 jobs-an increase of 10% compared to the previous harvest, according to data from exporters' group CitrusBR.

According to the São Paulo State Department of Agriculture and Supply, despite the challenges posed by greening disease and unfavorable weather conditions, there are still many reasons to celebrate the sector's progress. In addition to job creation, São Paulo's orange industry accounted for 8.2% of the state's total exports, amounting to USD 1.15 billion in trade balance last year. It ranks among the top five agricultural products in São Paulo's trade balance, according to a survey by the department's Institute of Agricultural Economics (IEA-APTA).

Rad more:
Brazil's tariffs cuts cover Arab food products

Report by Débora Rubin, in collaboration with ANBA .

Translated by Guilherme Miranda

©Mahmoud Elkhwas/NurPhoto/AFPSuppliedSuppliedSupplied

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