The orange juice sector is experiencing significant challenges due to adverse conditions affecting harvests in Brazil, a key global supplier. Wholesale prices of orange juice have surged to $4.95 a lb on commodity markets, driven by concerns over reduced output. Brazilian growers anticipate a harvest 24% lower than the previous year at 232m 40.8kg boxes, a decline exacerbated by citrus greening disease and extreme weather conditions linked to the climate crisis. This disease, alongside drought and heat stress, has compromised the health of orange trees during crucial flowering periods.
Brazil, responsible for 70% of orange juice exports, is not alone in facing these difficulties. The U.S. state of Florida has also encountered hurricanes and the spread of citrus greening. These consecutive poor harvests globally have strained manufacturers' ability to blend new crops with frozen juice reserves. The International Fruit and Vegetable Juice Association (IFU) is exploring regulatory changes to allow orange juice to include other citrus fruits to mitigate these challenges. Additionally, consumer demand for orange juice has declined by approximately 20% due to escalating prices and changing consumer habits, according to Rabobank's senior beverages analyst, Francois Sonneville. The industry may need to adapt by incorporating alternative fruits or adjusting pricing strategies.
Source: theguardian.com