Orange Juice Prices Skyrocket by 300% Due to Brazil's Harvest Crisis

Orange juice prices have surged by 300% over the past two years, driven by severe drought and citrus greening disease affecting Brazil's orange harvest.

Brazil, the world's largest producer of orange juice, accounts for 70% of global exports. The country is now struggling to cope with an incurable citrus greening disease and extreme droughts, leading to a significant drop in orange production. The situation has caused orange juice prices to exceed €2.80 per bottle in supermarkets.

Juliano Ayres, director of Fundecitrus, emphasized the importance of overcoming citrus greening to remain competitive in the industry. "To stay competitive, the citrus industry depends on overcoming citrus greening," he said.

Why this matters: The surge in orange juice prices has significant implications for global food security and trade, highlighting the vulnerability of agricultural supply chains to environmental and disease-related disruptions. This could lead to further price increases, supply shortages, and economic instability, affecting consumers and producers worldwide.

The impact of Brazil's production issues is felt globally. In Japan, the price of imported orange juice has increased from 259 yen ($1.60) per liter in 2020 to 491 yen in 2023. The average import price of frozen concentrated orange juice in Japan also soared from ¥293 per liter in 2021 to ¥706 in the first quarter of 2024.

Brazil's orange production is expected to drop by 24% in 2024, marking the third consecutive difficult global harvest. This decline is the smallest since the late 1980s and has led to record futures prices for frozen concentrated orange juice.

The United States, another major producer of orange juice, has also struggled with citrus greening disease and was recently hit by a series of hurricanes. These factors have contributed to the global supply shortage.

Australia, the world's 12th-biggest producer of oranges, relies heavily on imports of frozen orange juice concentrate from Brazil (80%) and Israel (10%). While Australian consumers have not yet been severely affected, the country's over-reliance on imports will eventually lead to a supply crunch.

To enhance resilience, Australian citrus growers could invest in automation to reduce labor costs, diversify sales channels, and establish more fruit-processing facilities. Research into climate-resilient crop varieties and renewable energy sources, along with educational programs for growers, could help mitigate the risks of climate change.

The surge in orange juice prices highlights the vulnerability of global agricultural supply chains to environmental and disease-related disruptions. The industry continues to face these challenges, consumers and producers alike will need to adapt to a rapidly changing market environment.

Key Takeaways

• Orange juice prices surge 300% in 2 years due to drought and citrus greening disease in Brazil.
• Brazil's orange production to drop 24% in 2024, marking 3rd consecutive difficult harvest.
• Global food security and trade affected, with price increases, supply shortages, and economic instability.
• Australia, reliant on imports, faces supply crunch; growers advised to invest in automation and diversification.
• Industry must adapt to environmental and disease-related disruptions to ensure resilience.