Florida Gaining in Japan’s Orange Juice Market : Trade: Since import restrictions were lifted, sales of the state’s product have lagged Brazil’s.

Brazil and Florida are locked in a battle over orange juice in Japan now that the doors to the huge market are finally open.

Since the opening April 1, Japan has been deluged with imports. Brazil is ahead, but analysts think that Florida, which offers a more expensive but higher quality product, will win market share over the long term.

Japan agreed in negotiations with the United States to allow sales of imported pure orange juice. Before April, imported orange juice had to be mixed with local mandarin orange juice.

Mandarins, or mikan, are smaller in size than those from Florida or Brazil and have a slightly bitter taste. They cost more than imported oranges.

The results of liberalization have been dramatic.

A study by the Agriculture Ministry found that from April to June imported juice more than tripled to 1.83 million gallons from 518,700 gallons in the same period last year.

“The eating life of Japanese is changing,” said Takaichi Nagayama, director of the Japan Fruit Juice Assn.

“In the near future, you will see Japanese having toast and fresh orange juice for breakfast instead of tucking into the traditional breakfast of rice and miso soup,” he said.

So far Brazilian oranges, which cost 20% to 30% less than those from Florida, have been winning the import battle.

Sixty-five percent of the bulk concentrate imported in 1991 came from Brazil versus 28% from Florida.

This year Florida has gained ground. Its share of the imported juice from April to June, 1992, rose to 42% and that of Brazil dropped to 52%.

“The quality of Florida juice is better than that of the Brazilian juice,” said an official of a major Japanese trading company.

Analysts think that the U.S. market share will grow.

“Recently, young mothers want to keep slim and try to eat as little sugar as possible,” said Nagayama.

“Sugarless Florida juice fits the bill. After consumers change their idea that juice is not only to quench thirst but is also good for health, we can expect a dramatic growth in sales of Florida juice,” he said.

Both exporters see Japan as one of the biggest markets of the future.

The stakes are especially high for Brazil, for whom exports of oranges are a major foreign exchange earner.

In addition to the specter of losing ground in Japan, Brazil may lose ground in the United States because of the North American Free Trade Agreement, which aims to eliminate trade barriers among the United States, Mexico and Canada. Mexican juice, which will enjoy better tariff rates, is expected to be a big competitor.