However, since part, or all, of the inputs used in citrus production are manufactured into commercial products in Brazil, the actual impact of the devaluation on specific cost items are reduced in terms of U.S. dollar equivalents. Most active fertilizer ingredients are imported into Brazil. Part of the manufacturing of the ingredients into commercial products is done in Brazil. Most active ingredients are imported into Brazil. The ingredients are manufactured into commercial products in Brazil.
Machinery costs .
Therefore the devaluation in REALs has little, if any, impact. Machinery operating costs . Labor costs . The net effect of the REAL devaluation has been to lower Brazilian production costs relative to U.S. production costs. The details of how costs have changed and how current Brazilian production costs compare with Florida are discussed in the next section.