Futures prices for orange juice have risen to record levels as Brazil, the world’s top orange exporter, has been hit by severe weather and the spread of the deadly citrus greening disease. To combat the shortage, companies are turning to mandarins, which are similar to oranges, to make up for the shortfall.
Concentrated orange juice futures hit $4.92 a pound on the ICE Futures exchange in New York on May 28. This price is nearly double what it was a year ago and represents a record high. Orange juice futures have been rising since late 2022 when hurricanes and cold snaps hit Florida, the world’s second-largest orange producer. More recently, a very poor orange crop in Brazil has also fueled the rise.
“I’ve never seen prices like this, even when we’ve had severe cold snaps and hurricanes,” Kees Cools, president of the International Fruit and Vegetable Juice Association (IFU), told the Financial Times, calling it a “crisis.”
The severe shortage of oranges is expected to fundamentally reshape the global orange juice industry. Juicers typically blend frozen orange juice from the previous season with oranges from the latest harvest to create their products. This blending helps overcome some of the year-to-year flavor differences. However, for the past three years in a row, supply has been declining, depleting juice stocks. The solution has been to find more climate-resistant mandarins.
“The only option we have without compromising the naturalness and image of the product is to use a different fruit,” said Cools. This method is already being practiced in Japan, where a weaker yen has made importing orange juice more expensive. Seven & I Holdings, owner of supermarket chain 7-Eleven, has launched a juice product made from locally grown citrus.
The IFU is considering amending its regulations to allow beverages to include citrus fruits other than oranges. This would first require a change in the United Nations’ Codex Alimentarius, which is a food standard guideline, followed by a change in the FDA’s regulations.
The current orange shortage stems from more than 20 years ago when huanglongbing (citrus greening disease) was first detected in the United States. This plant disease severely damages citrus fruit, stunts tree growth, reduces fruit quality, and eventually kills the tree.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
