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January 29, 2012

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US seizes juice with fungicide

US health regulators on Friday detained nine shipments of orange juice from Brazil and Canada that contained traces of an illegal fungicide, and rejected industry calls to overhaul the way they test for the banned substance.

The Food and Drug Administration said carbendazim would remain illegal for citrus in any amount in the United States. Brazil and US industry groups asked the FDA to reconsider its stance on the fungicide, widely used in Brazil to combat blight blossom and black spot, a type of mold that grows on orange trees.

The FDA started testing for the fungicide on January 4, after an alert from Coca-Cola, roiling orange juice futures to record highs as traders feared a prolonged disruption to supply.

Traders also fretted that the fungicide testing would further dent demand if it translated into higher prices for consumers, or sparked fears of a health risk.

Brazilian orange juice makes up about half of all US imports, and meets more than a tenth of domestic demand.

The US Juice Products Association and Brazil's CitrusBR urged the FDA to raise the amount of the fungicide, carbendazim, it will allow into the country by raising the legal limit for frozen concentrated juice.

"If this were considered, the whole problem would have been already resolved," CitrusBR's Christian Lohbauer said on Friday.

Since the concentrate is diluted before drinking, the level could be close to 60 parts per billion (ppb) without exceeding the FDA's legal limit for drinkable juice, industry groups said. The FDA said imports with detectable levels of fungicide, which means above 10 ppb, would not be allowed in the country.



 

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