Tighter supplies of Florida oranges could mean a slightly earlier end to the season.
At Seald Sweet in Vero Beach, FL, GT Parris says following reports indicating there’s a three percent decrease in supplies of Florida oranges - possibly higher - Seald Sweet has seen a slight decrease in oranges so far but understands it may feel more of the pinch during the Valencia run. “We’re just getting into our Valencia oranges so that means possibly instead of extending the season into June, we may be done in May,” says Parris. “We’d love to go to late June with fresh and then into our storage program but I don’t think we’ll be able to do that this year. We haven’t seen the shortage yet on the fresh side but it’s coming.”
While Florida still is contending with citrus greening disease which affects a tree’s yield, there’s additional pressure on Florida citrus following the 2021 freeze in Texas. “We knew this going into the season that we’ve had a good run on oranges, good FOB pricing and the juice people are seeing a better return as far as yield. So we have seen better pricing all around,” he says.
Pricing (and costs) up
That means pricing is approximately $1 higher per size than last year. However, costs for growers and shippers are also up. “So they’re probably making more in Florida than last year. But if you don’t have as much yield and your costs are up, then it’s really the same price. It’s an offset, to be honest,” says Parris.
It’s not surprising demand is brisk given citrus is an item that has somewhat benefited from the pandemic. “We have seen a renewed customer base since COVID. But Florida citrus needed it,” says Parris. “It’s taken a beating in the last several years so anything that’s a positive--whether it’s higher prices, more demand--we, as Florida shippers and growers, really appreciate it.”
Looking ahead, prices are likely to continue strengthening as the season goes deeper. “The price walks itself up as you get less and less supply,” says Parris. “And on demand, there’s no other domestic juice oranges to compete with Florida in late April and into May so supply and demand dictate the price. It typically bumps up to where you’re still moving fruit, retailers are making their money and wholesalers are making their margins. Where that is you don’t always know.”
For more information:
G.T. Parris
Seald Sweet International
Tel: +1 (772) 569-2244
gtparris@sealdsweet.com
www.sealdsweet.com