High orange juice prices may be on the table for a while due to disease and extreme weather
Orange juice prices have always been volatile and highly dependent on the weather
MOGI GUACU, Brazil — Orange juice prices have always been volatile, falling when bumper harvests create an oversupply of oranges and rising when frost or a hurricane knocks out fruit trees.
But the record-high prices the world is seeing for OJ right now may be on the table for a while, since the diseases and extreme weather ravaging orange groves in some top-producing countries aren’t easily resolved problems.
This year’s harvest in Brazil, the world’s largest exporter of orange juice, is likely to be the worst in 36 years due to flooding and drought, according to a forecast by Fundecitrus, a citrus growers’ organization in Sao Paulo state.
“The concern isn't just that the price of juice is going up. The concern is not having the juice,” Oscar Simonetti, an orange farmer in Mogi Guacu, Brazil, said.
In the U.S., Florida's already diminished orange production fell 62% in the 2022-2023 season after Hurricane Ian further battered a crop that was struggling due to an invasive pest. Drought also cut Spain’s orange production last year.
Scarce supplies have sent prices soaring. In the U.S., a 12-ounce can of frozen orange juice concentrate cost an average of $4.27 in April, 42% more than during the same month a year earlier, according to government figures.
In the United Kingdom, where the British Fruit Juice Association says supplies are at 50-year lows, the price of fresh orange juice rose 25% over the past year, according to consumer research company Nielsen.
Those price increases are turning off inflation-weary consumers. Orange juice consumption has fallen 15% to 25% in major global markets — including the U.S. and the European Union —
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