Orange Juice Imports Stopped (KO, PEP)
The US Food and Drug Administration has halted all imports of orange juice into the US pending final test results on imported juice from Brazil due later this week. If more than a trace amount (greater than 10 parts/billion) of…
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The US Food and Drug Administration has halted all imports of orange juice into the US pending final test results on imported juice from Brazil due later this week. If more than a trace amount (greater than 10 parts/billion) of a US-banned fungicide is found in the juice, it will be destroyed. The two largest orange juice producers in the US are The Coca-Cola Co. (NYSE: KO) and Pepsico Inc. (NYSE: PEP).
If the tests show just trace amounts, the juice could be allowed to be resold. The fungicide, which causes liver cancer in rats, is banned in the US but permitted in other countries. Bloomberg News reports that tests on juice already on store shelves are also being run because domestic and imported juices are often mixed.
The FDA could order the removal of tainted orange juice from the market if levels of the fungicide are determined to pose a health risk.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
