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Insight of the Day: Why have orange juice prices soared?

Key Points:

  • Reduced Production in Brazil: Brazil, the world's largest orange producer, is facing a significant decrease in orange production for 2024 due to weather conditions (high temperatures and low rainfall) and the spread of a tree disease called greening. This is the lowest yield since 1989.

  • Global Production Decline: Global orange production has been steadily declining over the past decade due to factors like unfavorable weather conditions, diseases, and a decrease in fruit-bearing trees.

  • Increased Export Revenue but Reduced Volume: While Brazil's export revenue for orange juice has increased by 23% in the nine months to April 2024, the volume of exports has decreased by 7.7% compared to the same period last season.

  • Rising Prices: Orange juice prices have reached record highs, surging over $4 per pound at the end of 2023 and remaining elevated in 2024. Manufacturers like Purity Soft Drinks have been forced to increase product prices due to rising commodity costs.

  • Weakening Demand: Consumer demand for orange juice is expected to continue declining due to high prices, competition from other beverages, and concerns about sugar content. However, this decline might help stabilize prices to some extent.


The combination of reduced production, ongoing disease pressure, climate change, and geopolitical disruptions has created a perfect storm for orange juice prices, driving them to record highs. While weakening demand may help stabilize prices, the uncertain future of Brazil's orange production and the lack of a cure for the devastating greening disease pose significant challenges for the industry. The future of orange juice prices remains volatile and uncertain.


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