This article talks about the orange juice market and how a majority of the production comes from only two countries, the United States and Brazil. The United States has long been the main supplier to both the US and the rest of the world but recently in the last few decades Brazil has become a major threat to US suppliers. Brazil has been able to produce orange juice and increasingly lower costs. These lower costs are the result of lower labor costs in Brazil. To protect the suppliers of the domestic United States orange industry, there have been tariffs on oranges since the 1930s. Florida and Brazil process over 90% of the world’s orange juice and the citrus growing industry contributes to over 90,000 jobs in Florida. It is the state’s largest industry after tourism and the industry contributes to over $9 billion in economic activity. The tariff has been lowered over the last few decades but if it was to be eliminated, the effects on the suppliers would be devastating. Jim Griffiths
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This note was uploaded on 02/15/2011 for the course FBE 462 at USC.