FDA Rejects Request to Allow More Fungicide in Orange Juice (KO, PEP)

The US Food and Drug Administration has rejected a request from orange juice producers to allow more of the fungicide carbendazim in US imports of orange juice. Two major US producers of orange juice are Coca-Cola Co. (NYSE: KO), makers of the Minute Maid brand, and Pepsico Inc. (NYSE: PEP), makers of the Tropicana brand.

The ruling means that Brazil, the US’s leading source of imported orange juice, will not be able to export juice made from concentrate. Orange juice not made from concentrate will still be allowed into the US.

Brazil asked the FDA to allow a concentration of 60 parts per billion of carbendazim in orange juice concentrate, an increase of 6 times the current limit of 10 parts per billion. The reasoning behind the request was that the volume of juice not made from concentrate is about 6 times the volume of concentrate. The FDA rejected the request.