Juice wars get sticky: Brazil accused of dumping OJ
Brazilian orange juice processors have dumped orange juice in the United States market at margins ranging from 24.62 percent to 60.29 percent, the U.S. Department of Commerce found.
A preliminary determination was issued Wednedsay.
The decision covers both frozen concentrated orange juice and not-from-concentrate, and will require future antidumping tariffs up to 60 percent from juice produced by Sucocitrico Cutrale, Fischer S/A (also known as Citrosuco), Montecitrus Group, and other Brazilian suppliers covered by the investigation.
Florida Citrus Mutual and Florida processors Citrus World, A Duda & Sons, and Southern Gardens Citrus filed a petition in Dec. 2004.
"Dumping" is when foreign companies sell at prices that don't reflect fair market values.
"We are pleased our claims that pricing tactics of some Brazilian exporters last year were unfair under U.S. and international law have now been confirmed," said Andy LaVigne, executive vice president/CEO of Lakeland-based Florida Citrus Mutual in a release.
The practice had a adverse impact on Florida growers who were already suffering from the impact of last seasons' hurricanes and the increasing citrus canker threat, the industry advocacy organization said late Wednesday.
In March, the U.S. International Trade Commission made a preliminary determination that Brazilian orange juice imports were causing material injury to Florida growers and processors.
Each of the Brazilian processors will be required to post antidumping deposits equal to the published margins.
The Department will now audit the Brazilian documentation at the company facilities and publish a final determination by the first week of January, Florida Citrus Mutual said.
Florida Citrus Mutual, founded in 1948, is a large citrus grower organization with more than 11,000 members.
Brazil's production of orange juice during 2004-2005 is estimated at 1.14 million tons, down about 15 percent from the prior year level, United States Department of Agriculture data shows.
That was mainly a result of a lower orange crop.
(Published: Tampa Bay Business Journal, August 18 2005)
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