Decline in profits of Asian Citrus after the scandal of tinted oranges

The 1st producer of oranges in China recorded a turnover in decline.

Analysts predicted for Asian Citrus, the first Chinese producer of oranges, an increase of 9.6% of turnover and 14% for profits. This is the opposite that happened: the Asian Citrus shares fell almost 9% (6.6% on a single day).

The reasons? The production fell by 5,000  tons because of bad weather conditions but also a decline of 17% in sales prices. Consumers have shunned the orange of Asian Citrus after the discovery of a new food scandal.

Producers of Jiangxi region (the region where Asian Citrus produces oranges) used carcinogenic colorants to dye their oranges. Dyed fruits looked ripe and allowed these producers to meet the demand of the early season and sell more expensive fruit. These fruits, dyed with colorants for plastics, were sold as Australian and American oranges.

source : women of china cn, agrimoney com