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Comparison of the citrus fruits sector in South Africa and Brazil

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  1. Introduction
  2. History
    1. Time axis
    2. Analysis
  3. Nokia's strategy from 1970 to 2000
    1. Diversification
    2. Melting phase acquisition
    3. Refocusing
  4. Nokia today : The strategy of innovation
    1. Overview
    2. 2004, the year of questioning ?
    3. 2005 The reaction by innovation
    4. Strategic Analysis
    5. What's next?
  5. Conclusion

The world production of citrus fruits has risen for the 2003/2004 season to 93.5 million tones which classifies the product as the group head of global fruit production. Five countries dominate the production sector: Brazil, the United States, China, Mexico and Spain.

The world citrus landscape is divided into two major areas: the Mediterranean dominates the fresh market, and Brazil and the United States for the juice. Brazil is the largest citrus producer in the world, is also the largest producer and exporter of orange juice. Indeed, 82% of orange juice consumed worldwide comes from Brazil.

This country, the fifth largest in the world by surface area, can claim within 10 years to become the first world agricultural producer. But besides these great leaders, there are other major producers of citrus fruits. One example is that of South Africa, which in 2004 produced 2% of citrus fruits in the world and is the third largest exporter. Moreover, this production increased by almost 45% in the past 15 years, reaching 1.5 million tones in 2005, including 1 million oranges.

This strong production growth is intimately linked to the increase in exports to the EU and the United States since the end of apartheid. In this study, it will seek to understand what led the citrus industry to evolve differently in two countries in the developing world, and imagine the possible scenarios in the future.

So at first, it will study the macro-economic context of South Africa and Brazil, then compare the citrus industry in the economy of each of these two countries to finally conclude on the prospects and possible scenarios of each in these sectors.

Brazil meanwhile, has the largest economy in Latin America, and is the eighth largest in the world. The government adopted a policy ofeconomic stability. One of its great strengths is to have succeeded in developing a large domestic market while continuing to make substantial profits from the export of its exceptional natural resources and especially agriculture. However, social problems inherited from the military period, which was also that of the"economic miracle", weigh heavily on the young democracy:

Brazil faces the increasing development of inequality while maintaining a austerity policy. In 1999, before the financial crisis, the Central Bank of Brazil had to devalue the real.
Brazil chose to implement an austerity policy, which allowed the separation of the country. But the political efforts to reduce social inequalities have not been proven. But foreign policy excels on the side of diplomacy. Brazil is to see the other countries in his role as mediator.

The analysis of the citrus industry that will mainly focus on oranges and orange juice as the massive proportion of the produce in the group of citrus.

Value, citrus fruits are the group's most important international trade.There are two clearly differentiated markets: the fresh market (market dominance) with a strong presence of orange and the market for processed products, especially orange juice.

International trade in fresh citrus industry is characterized by the low degree of concentration of supply with a multitude of medium-sized companies providing the product. On the contrary, trade orange juiceis highly concentrated. A small number of companies operating in Brazil and Florida dominate the market.

Tags: Citrus fruits sector, Brazil, international market

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