Orange juice prices have experienced a significant increase, with a 77% rise attributed to decreased production in key areas. The primary regions affected include Florida and São Paulo, which together account for 85% of the global market. Brazil, exporting 99% of its production, alongside the United States, plays a pivotal role in setting the global price for orange juice. This situation has led to escalated prices and reduced availability in Europe, impacting consumers. The futures contract for frozen concentrated orange juice has escalated to $6,500 per ton upon reaching Rotterdam, reflecting the broader trend of rising costs in production, export, and packaging. However, these are not the primary factors behind the price surge.
Recent reports from Fundecitrus and the US Department of Agriculture (USDA) highlight the challenges facing the industry. Fundecitrus has noted a 24% decrease in the Brazilian harvest, marking a 36-year low, while the USDA forecasts a modest increase in US production, though still significantly lower than two years prior. Drought and Huanglongbing disease, also known as yellow dragon disease, have severely impacted crops in both Florida and Brazil, exacerbating the decline in production. Additionally, other major producers like Mexico and Spain have reported a 30% drop in output due to drought conditions.
Source: euronews.com