The drop in the production of oranges is leading to a significant increase in the price of concentrated juice. Over the past few weeks, as reported by investire.biz, the historic level of USD 4.19 per lb were reached, the highest since 1996 when the future contracts on frozen concentrated orange juice began to be traded in the New York Stock Exchange. This should lead to a higher demand for apple concentrated juice for the production of juices.
"The increase in the price of concentrated orange juice is a global phenomenon. In addition to the price, availability is a problem too, as the quantities of orange juice available in Europe have diminished considerably. The industry is modifying the recipes of mixed beverages such as multivitamin juices to replace orange juice with apple juice. As a consequence, we believe the behavior of consumers will change and that the shelf space dedicated to orange juices in supermarkets will diminish," comments Christoph Tappeiner, director of VOG Products.
Orange juice used to be a basic beverage for many US families in the past, however consumption has been constantly diminishing over the past two decades.
Christoph Tappeiner, director of VOG Products
We are reaching the end of 2023 and it is impossible to make an assessment of this campaign. "This year, the main theme has been the availability of raw materials and the importance of stable chains. Raw materials tend to become precious good, which is positive. At VOG Products, we mostly source produce from our partners, i.e. three producer organizations and 17 cooperatives from Alto Adige and Trentino. They gather over 6,000 families of growers. We can proudly say we can guarantee deliveries all year round, as the apple chain is ours as a cooperative. This generates reliability and trust and supports the stability of our commercial model."
Finally, as regards the new Ppwr-Packaging and Packaging Waste regulation, Tappeiner believes that "the world of packaging will become increasingly important and the Ppwr European directive tackles this critical issue. We are hard at work to find the best solutions. Most goods leave our facilities in tankers. As for smaller containers, we use ecological pooling systems, especially when it comes to bins. These are constantly in circulation and are used multiple times, which is appreciated by our clients."