Brazilian companies Renar and Pomifrai are on the cusp of consolidating their businesses to form one of the three largest apple producers in the country, reported Diario Catiranense.

Renar recently restructured its focus to integrate Pomifrai's operations into the company, resulting in reduced production costs and debt re-negotiations, the story reported.

The story claimed the restructure reduced Pomifrai's annual production costs by US$5.46 million (BRL$9 million), while the fusion of the two companies should save around US$2.9 million (R$4.8 million).

Pomifrai is already one of Brazil's core apple producers  and accounts for 5% of national production

Renar commercial director Marcelo Holtz told the newspaper the reduction in domestic production of around 15% will likely lead to price recovery for the industry, as harvests began.

Brazil was the world's 12th largest apple producer in 2008 with a volume of 1.12 million metric tons (MT), according to the Food and Agriculture Organization of the United Nations (FAO).

Source: www.freshfruitportal.com