Extreme weather conditions have disrupted orange crop harvests globally, causing a significant reduction in supply. In Spain, catastrophic flooding in October led to considerable damage to the nation's crop yields, with estimated losses of around $205 million. Valencia, a major orange-producing region, was particularly affected. This situation has forced market players to search for alternative suppliers. The scenario is exacerbated by similar low orange yields in Brazil and Florida, leading to the lowest orange juice availability in approximately 50 years, as noted by the British Fruit Juice Association.
Spain, being the world's largest exporter of oranges in 2022, with the industry valued at $3.65 billion, faces a substantial economic impact due to reduced crop production. This not only affects the nation's gross domestic product but also its orange farmers. The increasing frequency and intensity of flooding, attributed to human-caused global heating, are concerning. The Earth's record temperatures in recent years indicate a trend that could result in more frequent flooding, affecting agriculture and leading to scarcity in consumer goods like orange juice, subsequently driving up prices. Mintec's Benchmark Prices highlighted a 130% increase in orange juice prices year-on-year.
In response, some farmers are diversifying their citrus production to include mandarins, which have been less affected by extreme weather. Additionally, new markets are being explored for orange supply, including Egypt, Greece, Morocco, Argentina, and Peru. Addressing the root cause of climate change by reducing planet-warming pollution is essential for mitigating future impacts on agriculture and food supply.
Source: TCD