Mercosur agreement makes orange juice cheaper again
The conclusion of the Mercosur agreement will make orange juice cheaper again for German and European consumers. The Verband der deutschen Fruchtsaft-Industrie e.V. welcomes the customs agreement, which creates the largest single market in the world. The abolition of customs duties will have a particularly noticeable effect on orange juice.
At the moment, prices for orange juice concentrate are at 7,200 $/t, which corresponds to a raw material price of around 1.20 EUR/l finished orange juice, plus 12.2 % customs duty, which amounts to a further 0.15 EUR. Added to this are packaging costs, logistics, the retailer's margin and VAT, so that the consumer price increases even further. With the elimination of customs duties, orange juice will therefore become cheaper in the long term once the agreements have been concluded.
"From the association's point of view, we expressly welcome the Mercosur agreement, as the elimination of customs duties will not only reduce import prices, but will also have a positive impact on consumer prices," comments Klaus Heitlinger, Managing Director of the German Fruit Juice Industry Association (VdF) "This is a gain for the entire value chain."
As a reminder: 80% of the orange juice traded worldwide comes from Brazil, the largest agricultural producer in the Mercosur Group. Orange juice is also one of the most important sources of vitamin C; one glass covers the daily vitamin C requirement and therefore contributes to the health of the population.
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
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