Most difficult situation in 50 years
Hurricanes and “Yellow Dragon” – is the OJ running out?
08/11/2023, 1:45 p.m
Florida is one of the most important growing regions for oranges in the world. Two hurricanes and a bacterium affecting citrus fruits threaten crops. The price of orange juice concentrate jumps to record levels. And in Europe, the popular drink could become scarce.
In the US, the price of orange juice has risen to a new record high. The price of a pound (450 grams in the US) of frozen orange juice concentrate for delivery in September rose to more than three dollars, having briefly touched $3.20 in late July. Reason is a very bad harvest. In Germany, too, the price of orange juice has already climbed by around 50 percent.
The association of the German fruit juice industry had already warned at the end of July: “We are in the most difficult situation for more than 50 years.” In addition to the crop failures in the USA, there are “historically low inventories in Brazil” – after weak harvests there in recent years. The availability of orange juice concentrate is “massively restricted”.
With a 90 percent market share, Brazil is the most important EU supplier of orange juice concentrate. But given the poor harvest in the US, “the orange juice is now going there,” said Klaus Heitlinger, executive director of the fruit juice industry association. Transportation costs from Brazil to the United States are lower and “the United States pays more.”
In Germany, the price of orange juice has risen sharply since last year. “In retail, consumers pay two euros per liter and above,” said Heitlinger. He believes it is possible that the price will continue to rise. However, many consumers then switched to other juices.
“Yellow Dragon” plagues fruit
Unfortunately, the tense situation with orange juice could not relieve Mexico and Spain either, the association explained. Here, too, the harvest yields are below average due to the weather. In Mexico, the harvest volume has fallen by more than a third compared to average years.
In autumn 2022, the two severe hurricanes “Ian” and “Nicole” swept across Florida, where the main growing region for oranges in the USA is located, the so-called citrus belt. The region is the second largest producer of orange juice in the world after Brazil.
The citrus disease Huanglongbing (HLB), known as “yellow dragon”, has also been spreading in Florida for around 15 years. It ensures that the fruits remain small and green, are deformed and bitter and the trees die within a few years. The bacterium is transmitted by the citrus leaf flea.
The US Department of Agriculture expects orange production to fall 25 percent this year to 2.3 million tons. That would be the lowest amount in 56 years.