country losing out in the breakfast juice battle
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
country losing out in the breakfast juice battle
The country losing out in the breakfast juice battle
By Daniel Gallas BBC South America Business Correspondent
Brazil is the world’s biggest producer of both oranges and orange juice, but changing breakfast tastes, especially in Europe, mean the country’s reliance on the fruit may have to change.
Marco Antonio dos Santos says he was not born under an orange tree. But that’s about the only event in his life not linked to oranges, he jokes.
The 54-year-old is from the city of Taquaritinga, in the state of Sao Paulo. He has dedicated his entire life – as have several generations of his family before him – to making Brazil the world’s largest producer of the citrus fruit.
And it has paid off. One in every three oranges in the world is now grown in a relatively small area in the states of Sao Paulo and Minas Gerais.
Half of all orange juice drunk worldwide is from Brazil too.
The country’s unquestionable global dominance would suggest that orange producers like Mr. Santos have little to worry about, but recent numbers suggest otherwise.
Three years ago Brazil produced 400 million boxes of oranges. In the latest harvest for 2016-17 that number had fallen to just 242 million boxes.
“About 15 years ago, I remember we had about 20,000 orange producers in our region. Now we are down to about 6,000,” says Mr Santos.
Much of the decrease can be linked to changes in breakfast tastes, particularly in Europe, putting the future of what was once the world’s most dominant breakfast beverage in jeopardy.
Brazil started exporting oranges in the 1960s when Florida, previously the world’s biggest orange producer, was hit by a citrus greening disease, which makes the fruit unpalatable and eventually kills the trees.
By the 1980s, Brazilian orange producers had achieved a global dominance that remains to this day.
Giant Brazilian juice firms Cutrale and Citrosuco built factories in the US and Portugal as well as modern terminals in major ports such as Ghent and Rotterdam. The scale and low costs achieved by these investments made it virtually impossible for new players to rival them.
Yet increasingly Brazil’s dominance in the sector is becoming a hindrance.
One problem is that it puts too many oranges in only one basket: the external market. More than 95% of its production is shipped abroad, the majority of it in the form of orange juice.
So when there are fluctuations in the exchange rate, the price of the commodity or changes in habits abroad, manufacturers have nowhere else to sell their product.
“This much concentration on external markets is unusual,” says Ibiapaba Netto, who heads CitrusBR, the association that represents the big orange juice players.
“If you take the Brazilian meat industry, for example, they only export about 20% of their production. The other 80% is sold domestically. So they are never too exposed to problems abroad.”
But turning towards their home market wouldn’t solve the problem for orange producers either, because Brazilians just don’t drink enough orange juice.
In Brazil a typical individual drinks just 15 litres a year compared to the 22 litres of an average European or American.
But the biggest threat to Brazilian orange producers is that orange juice has become less popular in Europe, especially in the UK.
For most of the post-World War Two era, orange juice was the dominant breakfast beverage. But not anymore.
“Modern life has a new rhythm and many people are now skipping breakfast, or getting drinks on the go. The cereal industry is facing the same issue,” says Mr Netto.
Fruit juices are also losing their reputation as a healthy option, with some nutritionists claiming they can be as unhealthy as fizzy drinks.
As a result consumers have flocked to new breakfast drinks, such as smoothies and vegetable-based “detox” juices.
One winner in the “juice battle” is coconut water, which has less than half the calories of orange juice. Between 2012 and 2015 in the UK, orange juice consumption fell by 100 million litres, while consumption of coconut water rose by 80 million litres, according to CitrusBR.
Despite changing trends, orange is still juice drinkers’ preferred choice and has a 30% market share.
A better harvest in Brazil and low international stocks could also see orange production rebound this season. According to the government, there will be a 50% increase in the number of boxes produced in the 2017-18 harvest.
Brazilian growers are also fighting back.
For each box of oranges they produce this season, farmers will pay six cents (of a Brazilian real) towards a UK and US marketing campaign promoting the virtues of their produce abroad. Unsurprisingly, they disagree that orange juice is unhealthy.
But for many orange producers in Brazil it is too little too late.
Many in Sao Paulo and Minas Gerais have already abandoned orange production, with some now planting lemons and guava for domestic markets instead. In 2015, Cutrale bought US banana company Chiquita to try to diversify.
But Mr Santos and other traditional orange growers are not willing to lose a fight their families have fought for generations.
“Things will never go back to being what they used to be like. We won’t ever have that many mouths for our oranges anymore. But the market is reaching a new equilibrium.”
Expectations—Paper Must Include:
- Format: executive summary, detail, conclusion.
- Describe the business situation, including the macro-environmental and micro-environmental conditions facing the organization.
- Develop the problem statement: the opportunity or threat facing the organization.
- What alternative strategies and programs would you consider to deal with the opportunity or threat to the organization?
–Present each alternative in sufficient detail to give the reader an idea of why it may be beneficial.
- Recommend one or more of the alternatives you have identified. Inform the reader of your reasons for these recommendations.
- Describe tracking metrics to determine whether your recommended strategies and programs are effective.
–Be sure to include both intermediate and conclusive metrics to guide management’s redirection of ineffective strategies.
- Summarize what you have learned from your critical analysis.
- Remember, this requires you to know your topic and explain why it is relevant to your audience/business.
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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