Why the new orange juice consumption model favors global trade and growth in orange production

Abstract

Purpose: The purpose of this paper is to analyze international orange trade as different types of orange juice seem to obtain the favor of newer food consumption patterns as opposed to fresh oranges. In addition, the authors will outline market tendencies that could be useful to stakeholders interested in any way in the sector. Design/methodology/approach: This document uses the Lafay index (LFI) in order to evaluate the intra-sectoral trade specialization; however, the social network analysis (SNA) approach is used to connect the international trade relations and to refine, classify and prioritize the countries having a central role in the orange juice world trade network. For both indexes, UNCOMTRADE has been used. Findings: The findings show that the growing orange juice trade is the leading global growth factor as opposed to the sale of fresh oranges. It appears that major trade revenues come from orange juice concentrate (Frozen Concentrated Orange Juice (FCOJ)). Business takes place mostly in Europe. Originality/value: This study shows for the first time that the current orange juice export competitiveness is crucial to the long-term survival of the orange sector. This study valuably contributes to the less known literature regarding FCOJ and Not From Concentrate orange juice trade relevance.