If you've noticed an uptick in the price of orange juice, global market dynamics along with rising production costs are influencing local prices. This situation presents challenges for juice companies dependent on imported juice concentrate, yet offers an improved scenario for Australian citrus growers. In the Sunraysia region, citrus farmer Tim Vandenberg has experienced a notable improvement in crop quality and profitability, thanks to higher global juice prices, despite facing increased costs due to COVID-19, the Ukraine war, and rising wages.
The global orange juice concentrate market has seen prices soar due to disease and drought impacting major producing regions like Florida and Brazil, significantly reducing global concentrate supplies. This has pressured Australian juice companies to source more local fruit, impacting juice pricing. For instance, Nippy's, a South Australian juice company, has seen a 20% price increase for their 2-litre orange juice product over 18 months. Despite these cost pressures, demand for juice remains strong. For local farmers, the current market conditions have led to better returns, particularly after facing losses in previous years due to adverse weather and low-quality produce.
Source: ABC News