In: Economics
Citrus fruits ranks first in global trade among all fruit's trade value. Sweet oranges represent approximately 70 percent of the citrus output.there are two main market of this fruits :
1) The fresh fruit market
2) The processed food market( largely juice)
Comercial Oranges are produced in around 140 countries but
according to Food and Agriculture Organization , four countries
represent 60 percent of world wide production : Brazil , US , India
, Mexico.
If we talk about the US , it represents 14 percent of global
production of citrus fruits . Florida dominates in Oranges
production.in Florida's citrus production Orange's share is 83
percent .It consist 35 percent of the world market. More than 95
percent of Florida’s orange production is processed into juice.
This juice consist essentially all of the US orange juice
production.
So if america's export of oranges to Canada increases , it can
create huge shortage of oranges and its juice in US because only 10
percent of Florida’s production is exported internationally .
Despite being the world's second largest producer, the US only
exports 10% of its orange production, while at the same time it
also imports large amounts of oranges from Brazil. In such a
situation, if they increase their exports, it can worsen the
situation in the American market, the price of oranges in America
will start to touch the sky.