Demand for Brazilian Frozen Concentrated Orange Juice Exports

Demand for Brazilian Frozen Concentrated Orange Juice Exports
Author :
Publisher :
Total Pages : 246
Release :
ISBN-10 : OCLC:709383149
ISBN-13 :
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Book Synopsis Demand for Brazilian Frozen Concentrated Orange Juice Exports by : Vasco Antonio Moretti

Download or read book Demand for Brazilian Frozen Concentrated Orange Juice Exports written by Vasco Antonio Moretti and published by . This book was released on 1978 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: Brazilian exports of frozen concemtrated orange juice (FCOJ) have been increasing in the last few years. However, the Brazilian export price for FCOJ has been very unstable during the same time period, and in several competing countries, FCOJ production has been increasing rapidly. For Brazil the international market for FCOJ is very important since almost all production is exported. Therefore, existing pricing policies and marketing strategies need to be anlyzed. This study focuses on frozen concentrated orange juice since it is the most important Brazilian citrus product exported. The importing countries included in the study are West Germany, Belgium-Luxemburg, Canada, Denmark, Netherlands, United Kingdom, Sweden, Switzerland, Norway, Australia, France, Finland and Japan.The objectives are to (a) describe the institutions, laws, and regulations that affect world trade in FCOJ and (b) estimate the demand relationship for Brazilian FCOJ exports. The institutional description was organized around the following topics: taxes and tariffs, Brazilian government support programs, processing structure in Brazil, U.S. duty drawback provisions, and the U.S. advertising program for citrus products on the European market. The Brazilian export demand model was estimated using 11 years of cross-sectional data for thirteen non-producing FCOJ importing countries in a pooled regression analysis. A model with Brazilian quantity of FCOJ exported as the dependent variable was estimated. Demand for Brazilian product was found to be price elastic. The magnitude of the elasticity (1.59) suggests that for each one percent decrease in price, the quantity demanded is expected to increase 1.59 percent, holding all other variables constant. This means that if Brazilian price decreases, total revenue for the whole industry wil increase. Quantity demanded was highly responsive to population and exchange rate.


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