BRAZILIAN ORANGE JUICE: EN ROUTE TO SUSTA I N A BILITY
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1 BRAZILIAN ORANGE JUICE: EN ROUTE TO SUSTA I N A BILITY
2 CITRUSBR MESSAGE Not since today, the agenda of the Brazilian orange juice industry has been to reaffirm its commitment to sustainable development. The industry is a global leader in citrus juices production and exports since the 80s, in addition to a vanguard position for adopting new practices and improvements in the groves, industry and in logistics. Ever since the foundation of CitrusBR, the industry has matured and advanced in order to increase the transparency and disseminate to all stakeholders and the public in general the story of an important industry to Brazil and to the world. Within this context we have gathered some noteworthy highlights in relation to sustainability, as we believe this is the path towards continuous improvement. (Christian Lohbauer CitrusBR Executive President) THE ORIGIN Brazil s flavors travel throughout the world in glasses of orange juice. Citrus fruit seeds came to Brazil with the first colonizers, in the beginning of the 16th century. The seeds adapted to our climate and land in such a natural way that in no time at all the orange trees and other citrus fruit trees brought in from Asia were already mingling with the Brazilian tropical landscape. And although they immediately adjusted to climate, citrus was only seen as one of the most promising businesses in the country 400 years later. In the past 50 years citriculture has matured. The feasibility of producing juice and byproducts at a competitive cost and high quality has attracted investors to the industry. They were willing to take the Brazilian citrus production to the four corners of the world. However, this initiative had an embedded challenge; productivity, after all companies must be professionalized and invest in biotechnology research as well as production, logistics and overall in labor relations. The 1980s. There was a global orange juice production crisis resulting from successive hail storms in Florida in the United States. That was the window of opportunity that Brazil had longed for. In the endless horizon of orange groves spread throughout the southeast region of Brazil, new solid business began to flourish, with an innovative labor philosophy and initiatives for the standards at the time that would certainly change the Brazilian agribusiness context forever. Soon came the results. In little time the country took on a leadership position in the industry. Today, over half the orange juice on the planet comes from Brazilian groves. Now the challenge is to increase Brazilian orange juice consumption in the markets we have already reached and reaffirm the commitment made by the citriculture chain to sustainable development in the global arena.
3 CITRUSBR In order to face inherent challenges to growth and establish new strategic lines of action towards sustainable development, companies from the Brazilian citriculture industry have decided to join hands with CitrusBR. CitrusBR has been active since 2009, the entity represents the main citrus juice processors and exporters in Brazil and abroad. The objective of CitrusBR is to safeguard the collective interests of citrus juice exporters; monitor international trade issues; intervene on the elimination of trade barriers; advocate institutional interests; promote the attributes of Brazilian orange juice and its byproducts in the main industry-related forums. And also represent the interests of CitrusBR members with government bodies, in Brazil or internationally. Additionally, the entity has been endeavoring efforts to strengthen the industry s relationship with different stakeholders, encouraging the dialogue between its members, through thematic committees and meetings with similar associations and government bodies in order to provide more visibility to the good practices of the Brazilian citriculture chain en route to sustainability. HOW THE BRAZILIAN ORANGE JUICE INDUSTRY WORKS During the orange juice production process there is no solid waste. All parts of the fruit are utilized, and water and energy are used in a sustainable way CitrusBR interacts not only with major juice processors, but also with the entire industry s production chain, be it in Brazil or internationally, especially with input companies, growers, coops, bottlers, retailers, NGOs and the government, so that together they can find sustainable alternatives for the challenges that they will face with the increase in productivity in the upcoming years. FOREIGN PORT PORT OF SANTOS
4 ECONOMIC PERFORMANCE Superlative figures show the importance of citriculture for the Brazilian economy. The challenge is to strengthen our leadership. Citriculture in figures: Brazil exports 1,200 thousand tons of orange juice per year on average equal to FCOJ at 66 o Brix (juice concentration level). Every 1,000 kg of oranges yield 553 kg of juice and other byproducts. IN THOUSAND TONS OF FCOJ 66 o BRIX EQUIV. 1,600 1,400 1,200 1, ,276 1,348 1,214 1,033 1, ,362 1,192 1,314 1,058 1,406 1,110 1,415 2,251 1,310 1,291 1,300 1,996 1,619 1,468 2,500 2,000 1,199 BRAZILIAN 1,154 1,619 2,376 1,500 1, MILLIONS OF US$ F.O.B. ORANGE JUICE EXPORTS In thousand tons of FCOJ 66 o Brix Millions of US$ F.O.B Source: Secex Orange juice is the most consumed fruit-based beverage in the world 35% share among juices. Europe is the main destination of Brazilian juice exports. In 2011, global exports of the whole citriculture totaled 1.59 million tons of product or US$ 2.72 billion in revenues, representing 2.9% of Brazilian agribusiness exports. In the ranking of global exports of farming products, Brazil s share in orange juice ranks first, followed by coffee, beef, poultry, sugar, ethanol and soybean. KEY MARKETS EU + Switzerland 68.09% THREE OUT OF EVERY FIVE GLASSES OF ORANGE JUICE CONSUMED WORLDWIDE ARE PRODUCED IN BRAZIL USA Japan 14.5% 6.1% BRAZIL PRODUCES OVER HALF THE ORANGE JUICE CONSUMED IN THE WORLD USING LESS THAN 1.2% China 4.7% OF BRAZILIAN PLANTED AREA Others 6.7% BRAZILIAN ORANGE JUICE HOLDS APPROXIMATELY Source: Secex % OF GLOBAL EXPORTS
5 SOCIAL PERFORMANCE When a glass of orange juice is served anywhere in the world, it is served along with a set of social benefits. veil bag Citriculture was one of the crops that quickly established workers protection and support rules. In a field dominated by informal labor relations, practices focused on training, health and safety, innovated service rendering, especially during the planting and harvesting stages, created room for a virtuous cycle that starts with recognition, moving on to acknowledgement up to quality of service rendered in each stage. When a glass of orange juice is served anywhere in the world, it takes with it a number of social benefits. More than complying with legislation, the industry is aware of the importance of evolving in social responsibility matters. This care includes from uniforms to special personal protection equipment made to provide more safety and comfort for workers, up to the adoption of many additional workers benefits than just those required under law. Another initiative has been to dialogue and work together with the communities surrounding the production areas seeking socially fair solutions aligned with the values of respect and ethics. And, more importantly, be sure that these values are practiced in the entire citriculture chain from planting the first seeds to the sale of juice to foreign markets with the same effort and integrity. In the harvesting activity, for instance, there is no difference between men and women, on the other hand the repudiation of child labor is on the radar of the entire citriculture chain as a practice that has become more and more encouraged by growers. protective eyewear apron with sleeves gloves gaiters boots Individual Protection Equipment - IPE Protective eyewear with UVA/UVB protection, water repellent clothing, made from fabric that allows the air to flow and avoids that products sprayed on the crops penetrates the clothing. And also: gloves, hat, boots and sunscreen. The industry has been alert now for some decades so that child labor is not employed in any stage of the business chain. In the cities of Araraquara and Itápolis, in the state of São Paulo, for instance, there is a project that maintains supplementary education centers with music, sports and environmental awareness courses. The initiative is certified by the Abrinq Foundation seal, aimed at repressing child labor practices by mobilizing society and advocating children and teenager rights. The social focus is extended to small growers, through the Fundecitrus program. After all, the guarantee of healthy groves and prosperous business is shared with the community made up of orange growers. The Foundation offers them training courses as well as technical literature and magazines, and periodical visits from agronomists. Through parallel efforts, companies create and maintain social projects in the communities in which they operate. And they have an eye out for basic care, such as investing in local labor aligned with the Federal Government s Child Labor Eradication program. The Abrinq seal, present in 100% of the companies, is the guarantee of this commitment. And since social and environmental indicators evolve, it is all the more natural that a business corporate management as a whole marches to the rhythm of corporate governance. Starting in 2010, an encompassing discussion began and all the stages of the chain are working to make pricing a fair, balanced, healthy, and above all, transparent equation. Figures, information and rationale to reach the values practiced for buying oranges are discussed and shared. Even crop and inventory outlooks, which up to a while back were restricted, are currently widely disseminated, so as to mitigate insecurity and speculation. The opening of info in addition to the efforts to establish Consecitrus, shows that the industry has changed a lot in the past years and is willing to continue on the path of dialogue and transparency. IN ONE YEAR, THE BRAZILIAN CITRUS CHAIN Is responsible for 230 thousand direct and indirect jobs Pays US$ million in salaries Collects US$ 189 million in taxes
6 ENVIRONMENT PERFORMANCE The CitrusBR sustainability subcommittee works to align the practices of the citriculture chain to the Brazilian P comply with strict and important requirements of consumer markets such as Europe. Such practice has been the grove density and soil sustainability activities. The advances in precision agriculture enabled an increase in average productivity, which went from 15 tons/ha to 29 tons/ha in the past 15 years, where some groves can reach volumes of more than 80 tons/ha. According to Brazil s tradition and production volume, it is the country that gathers the best conditions to increase production with environmental balance. A proof of that is that CitrusBR created a sustainability subcommittee to diagnose the advances and rethink the most efficient practices for Brazilian orange juice production. Among the main advances in the industry, we can mention: 1) Rational land use Regardless of the industry s leadership, orange growing in Brazil is one of the activities that uses the least amount of land: only 1.2% of the total planted land and 0.41% of farming land in the country are used by citriculture. (Source: O Retrato da Citricultura Brasileira (The Portrait of Brazilian Citriculture) (2010), Prof. Marcos Fava Neves, PhD and the 2006 IBGE Agricultural and Livestock Census) 2) Production system Throughout the past decades, the industry has implemented many improvements and technological innovations in fertilization, irrigation, 3) Legal milestone Aware of the responsibility of land use, Brazilian citriculture has endeavored efforts to comply with the rules established by the Brazilian Forestry Code, as well as other state and municipal regulations. Such practice can be seen in Legal Reserve (variable percentage of each rural property s domain where maintenance is mandatory and the native vegetation must be preserved) areas and Permanent Preservation (protected areas, covered or not by native vegetation, with the environmental purpose of preserving water resources, landscape, geological stability and biodiversity) areas maintained by the industry, in addition to the principle of prioritizing occupation of already degraded areas by other crops for planting groves, thus contributing to decrease deforestation. 4) Rational water use Special attention is also given to water resources. In plants, the objective is to use the least amount of water from the supply network as possible. Around 75% of all water needed for the production process comes from the fruit itself, removed during juice and byproducts production. Instead of disposing it, the water is stored and used for washing fruit and cleaning equipment. Additionally, the CitrusBR technical sustainability subcommittee began a pilot study in 2011 about water use in the industry, in order to map eventual vulnerabilities and improve its practices even more. AREA X PRODUCTIVITY ORANGES IN THE STATE OF SÃO PAULO (BRAZIL) Area Productivity HECTARES 800, , , , , , , , , , , , , , , , , , , , BOXES / HECTARES Source: Markestrat University of São Paulo with data from IBGE (Brazilian Institute of Geography and Statistics), 2011 Elaborated by CitrusBR
7 olicy on Climate Change and to the Low Carbon Agriculture Program, as well as to passport to strengthen the industry s presence in the global landscape. 5) Waste transformation Fruit waste, such as peel, skin, pith and seeds, are also transformed into byproducts, such as aromatizing essences and animal feed, resulting in 100% of economic use and zero waste of solid orange waste disposed into the environment. 100% OF THE FRUIT IS USED 0.5% Aqueous phase 0.1% Oily phase 2.7% Pulp 0.9% D-limonene 1.8% Essential oils 44.8% Orange juice 49.2% Peel, seeds and pith All parts of the orange are used in processing. The aqueous phase is reutilized in washing fruit, floors and equipment and in other stages of the watery process. The oils are used in many industries such as the food, cosmetics, drug industry etc. Orange juice, concentrate or non-concentrate is sold to bottlers all over the world, as well as the orange pulp, which can again be added to the juice if client wishes to do so. Lastly, waste such as the skin, seed, pith or non-qualified oranges for processing are used as raw material for animal feed production. 6) Low impact fertilizers and pesticides The Brazilian citriculture industry is taking wide steps towards integrated pest management in citrus fruits. Recent research shows that a more rational use of pesticides is possible, with specific applications that maintain the efficacy and mitigate the risks to field workers health and to the environment. The Fundecitrus (Fund for Citrus Plant Protection, not-for-profit entity established in 1977 with the purpose of maintaining orange groves healthy and competitive in the state of São Paulo) initiative is implementing the concept of regional disease and pest management in São Paulo State citriculture. Research reveals that coordinated management could be more effective, rational and sustainable, by reducing the number of applications for instance. Additionally, more rational control measures are being analyzed and implemented in citrus pest management, through biological control (use of fungus and benefic insects), selective control and behavioral control. The care goes all the way to the seedling production system. The over 500 nurseries protected by screens and registered with the Agricultural Secretariat of the state of São Paulo guarantee plant health of plants that go to the field. Fundecitrus has a committee that meets periodically to update the PIC (Integrated Citrus Production) list, that lists the pesticides permitted for use on citrus in Brazil. The list is more restrictive than Brazilian laws, since it aims at complying with laws from over 90 importing countries. 7) Greenhouse Gas (GHG) Emissions Aware of the importance of being aligned with the low carbon economy, and government policies that reaffirm that commitment, CitrusBR has been tracing the carbon footprint since 2009 within the context of the Brazilian Policy of Climate Change of the Low Carbon Agriculture and the more and more demanding requirements of the consumer market for concentrate and non-concentrate orange juice up to their delivery at the European terminals. The expectation is that citriculture will be the first industry in the Brazilian economy to have a completely monitored production base, which makes it easier to pursue integrated solutions for CO 2 emission reductions to the atmosphere. Another relevant sector initiative in order to contribute to reduce emissions is related to the use of ethanol in the light vehicle fleet. And in other vehicles Brazilian gasoline is used, which contains 25% ethanol; or Brazilian diesel, which contains 5% of biodiesel, considered a less polluting alternative for the environment. It is worth noting that all companies from the industry have environmental policies, aiming at mitigating environmental impacts, proof of that is the use of biomass as a source of energy in the plants, and the constant commitment to treating liquid and gas waste.
8 MAIN HIGHLIGHTS BRAZILIAN ORANGE JUICE: EN ROUTE TO SUSTAINABILITY As the largest orange juice producer in the world, Brazil already knows that improving and multiplying good social, economic and environmental practices is the most sustainable path to increase productivity. Within this context, the industry, which is already a market leader and pioneer in adopting good sustainable practices, faces the challenges of increasing transparency, seeking integration between the links of the chain and especially, the constant improvement in relation to environmental, social and economic sustainability. Over half the orange juice on the planet comes from Brazilian groves. Europe is the main destination of Brazilian exports. in the case of pesticide application. The industry is responsible for 230 thousand direct and indirect jobs. Respectful of labor: adopts practices to increase workers safety and comfort in the groves and mitigate health hazards CitrusBR fights and repudiates the use of child labor in its entire production chain. Productivity in Brazilian groves has gone from 15 tons/ha to 29 tons/ha in the past 15 years, thanks to the use of technological innovations and precision agriculture in activities such as fertilization, irrigation, grove population and appropriate soil use. control, insecticides selective to natural enemies and behavioral control. and is developing a pilot project on water use. All the port terminals have ISO certification. Brazilian gasoline (contains 25% ethanol) or Brazilian diesel (contains 5% biodiesel). Most part of the water necessary for the production process comes from the fruit itself. Fruit waste is transformed into byproducts, resulting in zero disposal of solid orange waste. More rational control measures are being analyzed and implemented in citrus pest management, through biological CitrusBR traces the carbon footprint of the entire concentrate and non-concentrate orange juice production since 2009, The vehicle fleet has been using more fuel from renewable resources and/or less polluting fuels, such as: ethanol, The Brazilian industry mostly uses energy from renewable resources, such as hydropower plants and burning sugarcane bagasse. It is worth noting that the Brazilian citrus products follow, voluntarily and strictly, the Sure, Global, Fair (SGF) code of conduct; the entity has the mission of promoting safety and quality of fruit-based products. From time to time, the SGF inspects and audits plants, in order to guarantee compliance with European standards and industrial self-regulation (even stricter), in addition to product authenticity and quality. SUS TA I N A B I L ITY O F B RAZILIAN CITRIC ULTURE IRRIGATION AVERAGE NUMBER OF PLANTS PER HECTARE STOCK VOLUME FOR PEST AND DISEASE CONTROL (*) PRODUCTION PER HECTARE 15 YEARS AGO 99% of non-irrigated groves, when irrigated, were irrigated by sprinklers, a system that consumes more water, power and labor 250 to 300 trees/hectare 3 to 6 thousand liters of water/hectare 15 tons/hectare TODAY 20% of groves are irrigated, using the fertirrigation technique through droplets, which presents higher efficiency and higher savings with water and fertilizers 400 to 600 trees/hectare, some groves have over 800 trees/hectare 1 to 3 thousand liters of water/hectare 29 tons/hectare, in the more technified properties, over 80 tons can be obtained (*) Stock volume is the mixture of water with agrochemicals. Practices as specific applications, regional disease and pest management and reduction of stock volume allow the decrease in both components utilization. CitrusBR citrusbr@citrusbr.com
9 BRAZILIAN NATIONAL ORANGE PLANTATION MAP Amazon Rainforest RORAIMA AMAPÁ Atlantic Rainforest Source: IBGE, Produção CEARÁ AMAZONAS MARANHÃO PARÁ RIO GRANDE DO NORTE PARAÍBA PIAUÍ PERNAMBUCO ACRE ALAGOAS TOCANTINS MATO GROSSO BAHIA 5.5% DISTRITO FEDERAL MINAS GERAIS GOIÁS MATO GROSSO DO SUL 76.6% 4.5% SÃO PAULO ESPÍRITO SANTO RIO DE JANEIRO 3.2% PARANÁ SANTA CATARINA 2.1% RIO GRANDE DO SUL Associates: Citrosuco CitrusBR Citrovita Cutrale Support: SOURCES: ACKNOWLEDGMENT: Fundecitrus / CONSULTING BY: TSK alternativas sustentáveis PHOTOGRAPHY INFOGRAPHIC: Duo Dinâmico / GRAPHIC DESIGN: Miriam de Oliveira. 4.5% SERGIPE This material was produced with Brazilian FSC-certified paper, with water-based varnish finish (facilitates recycling), printed on Huber Green-certified vegetable oils. Print run: 2,000 copies. RONDÔNIA
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