The global orange juice industry is facing an unprecedented crisis as severe drought and widespread crop disease devastate orange production in key growing regions. Brazil, the world’s largest orange juice exporter, is experiencing its worst drought in 50 years, while both Brazil and the United States grapple with the destructive citrus greening disease.
Concentrated orange juice futures on the Intercontinental Exchange in New York hit an all-time high of $4.92 a pound on Friday, nearly triple the price from two years ago. This price surge reflects the dire situation in Brazil, where orange yields are projected to be down almost 25% from the previous year, marking the smallest crop in 35 years.
Andrés Padilla, an analyst at Rabobank, described the situation as “the perfect storm,” citing the combination of drought, rising citrus greening disease, and delayed rainy seasons. The citrus greening disease, spread by sap-sucking psyllid insects, has been particularly devastating. In 2023, 38% of Brazil’s orange trees showed symptoms of the disease, with psyllid populations reaching their highest levels since 2004.
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The shortage is not limited to Brazil. Florida, once a major orange-producing region in the United States, has seen its groves decimated by citrus greening over the past two decades. With global supplies plummeting, soft drink companies are struggling to manage costs and maintain production.
The crisis is expected to have a significant impact on consumers, with orange juice prices set to rise further. Kees Cools, president of the International Fruit and Vegetable Juice Association (IFU), warned that “an already expensive orange juice will get more expensive.”
The industry is now exploring alternatives, including the use of other citrus fruits in juice production and the development of more climate-resilient crops.
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