The proposed merger of two juice processors in Brazil, the world's top orange juice exporter, would not create unfair competition in the sector, Brazilian Finance Ministry officials said in a report.

In May last year, Citrovita, owned by Brazil's Votorantim group, and Citrosuco, controlled by the Fischer group, said they would merge, forming a joint venture with annual revenues of 2 billion reais ($1.23 billion).

They are two of just four firms producing around 80 percent of the world's frozen concentrated orange juice exports. Farmers have accused them for decades of running a price-fixing cartel as many smaller firms pulled out of the sector. They deny the charges.

The Finance Ministry's opinion, specifically on how the tie-up would affect the market, is one of several that must be submitted to anti-trust regulators, who then decide whether to approve the merger.

The Justice Ministry has yet to conclude an investigation into the cartel allegations leveled at the four companies. The other two are family owned Cutrale, the largest, and France's Louis Dreyfus Citrus. (Reuters)