Orange Industry is In Crisis and Prices Are Soaring

If you have been to the grocery store lately, then you know that orange juice is extremely expensive. No, it's not just because of inflation. The Orange Industry is in Crisis right now, and Prices could stay inflated for quite some time because of it.

But what's causing this?

This Was a Perfect Storm

What happens when you combine extreme weather, ongoing supply constraints, and a citrus disease?

Related: Hack for Turning an Orange Into a Candle Is a Must-Try Idea

An orange crisis and accelerated prices.

Brazil is the world’s largest producer and exporter of orange juice. This year’s harvest is likely to be the worst in 36 years due to flooding and drought, according to a forecast by Fundecitrus, a citrus growers’ organization in Sao Paulo state.

According to CNBC, the company typically produces about 300 million boxes of oranges per cycle, but in a report published on May 10, Brazil was set to produce 232.4 million boxes of oranges this season. That is a 24% decline from last season.

“The concern isn't just that the price of juice is going up. The concern is not having the juice,” Oscar Simonetti, an orange farmer in Mogi Guacu, Brazil, told ABC News .

What is Greening?

And Brazil isn't the only one being hit hard with this.

Greening is an untreatable disease that results in bitter, stunted fruit and it has severely hurt the orange production in Florida. Production there is now at around 17 million boxes, down from 242 million boxes just 20 years ago.

In the 2022-2023 season, after Hurricane Ian, the orange crops in the Sunshine State fell another 62%. At that time, the farmers there struggling with an invasive pest that was also ravishing crops.

Drought also cut Spain’s orange production.

Prices Are Soaring

The age-old issue of supply versus demand is in play here. Production is down, demand remains the same, and prices go up to match. Add in inflation, and orange prices may soon become unattainable for many families.

Frozen concentrated orange juice closed at $4.29 per pound earlier this week, which is nearly double the price from a year ago, according to CNBC.

Of course, like the egg and dairy industries , orange prices have always been volatile. They can rise and fall with good and bad crops, which are usually determined by weather events and disease.

But with ongoing issues, these high prices may be around for a while, especially as we wait for crops to grow.

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