Orange Juice Prices Surge as Brazil Faces Historic Harvest Crisis

• The orange juice concentrate market is currently experiencing unprecedented price hikes, a trend driven by significant supply challenges.
• Brazil’s ongoing crisis regarding orange production has led to a dramatic shortage, with the country facing its lowest harvest in over three decades.
• According to estimates, as much as 38.06% of Brazil’s orange trees are infected with citrus greening, which has led to drastic measures being enforced by local legislation.

This article explores the rising prices of orange juice concentrate due to severe production challenges, underscoring the implications for consumers and the agricultural sector.

Brazil’s Orange Crisis: A Historic Setback in Production

The current turmoil in Brazil’s orange production is resulting in substantial price increases for orange juice concentrate. Recent reports indicate that the nation is grappling with its worst orange harvest in 36 years, which poses grave concerns for both local producers and international markets. Brazil, being the largest exporter of oranges globally, plays a vital role in setting market prices. The benchmark Frozen Concentrate Orange Juice Continuous Contract has surged to an all-time high of 514.65¢ per lb, signaling a potential shift in consumer prices across retail platforms.

The Impact of Citrus Greening on Harvest Yields

The significant drop in production can be attributed to the rampant spread of citrus greening disease, a condition that has wreaked havoc on orange crops in both Brazil and Florida. Approximately 77 million orange trees in Brazil alone have fallen victim to this disease, constituting about 38.06% of the total harvest. As mandated by legislation, infected trees are required to be removed to prevent further spread, effectively decimating available supplies. The National Association of Citrus Juice Exporters (CitrusBR) emphasizes that the current stockpiles are critically low, with little reprieve in sight.

Consumer Adaptations in Response to Rising Prices