Record High Orange Juice Prices
US: "Orange Production Very Serious... Supply Shortage"
As orange prices surge globally, the United States is also experiencing a sharp rise in orange juice prices due to reduced orange harvests caused by climate change and the spread of pests and diseases, reported the U.S. economic media CNBC on the 31st (local time).
Yonhap News, citing CNBC on the same day, reported that orange juice prices remain high as orange harvests decline in major orange-producing areas such as Florida in the United States. The futures price of frozen concentrated orange juice on the New York ICE Futures Exchange reached an all-time high of $4.92 per pound at the end of May, and has since remained stubbornly above $4 per pound.
Daniel Munch, an analyst at the U.S. Farm Bureau Federation, stated, "The current situation of orange production in the U.S. is very serious" and "Supply is not keeping up with demand, causing consumer prices to soar."
The futures price of orange juice began to rise sharply since the end of 2022. After hurricanes and cold waves hit Florida at that time, the total orange farm area in Florida was reduced by nearly half. Due to climate change and the spread of pests and diseases, farm incomes have decreased, leading to a reduction in cultivation area and a significant shortage of orange supply compared to demand. In fact, the total orange farm area in Florida, which was 658,000 acres (about 2,663 km²) in 1998, decreased by 54% to 303,000 acres (about 1,226 km²) as of last year.
Additionally, the current spread of the incurable citrus greening disease is having a major impact. Citrus greening disease inhibits the growth of citrus trees and greatly reduces the quality and yield of fruit. It was first discovered in Florida in 2005 and has since affected other production areas such as Texas and California. Amy Oschier, CEO of the agricultural science company InBio Science, said, "Once citrus greening disease enters a grove, it hinders the growth of the trees, causing them to gradually die," adding, "Eventually, these trees have to be removed."
Industry and academia are focusing on developing disease-resistant varieties and antimicrobial control measures to protect the trees. However, CNBC pointed out that due to climate change, extreme weather events are becoming more frequent, and no solution has yet been found for citrus greening disease, leaving the threat to orange production unresolved.
Experts predict that with the increasing volatility in orange harvests, orange juice prices will remain high for the foreseeable future.
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