A global orange juice supply crisis is brewing – why we should worry

Dr. Imran Ali discusses the severe crisis facing the global orange industry due to extreme drought, heat stress, and citrus greening disease in Brazil, the world's largest orange juice exporter. This has led to a forecasted 24% drop in Brazil's orange production for the 2024-25 season, the smallest harvest since the late 1980s. Other major orange-growing regions, including Florida, Israel, Spain, and Argentina, are also experiencing declining production. Consequently, the futures price of frozen concentrated orange juice has hit an all-time high. In Australia, which relies heavily on imports from Brazil, local orange growers have mitigated immediate impacts, but a supply crunch is anticipated. The crisis may lead to higher prices for orange juice and other products using orange concentrate. While the situation presents opportunities for Australia's orange industry to increase domestic production and exports, challenges such as rising production costs, labor shortages, and competition from imports persist. Enhanced automation, better market access, and climate resilience are key to the industry's long-term sustainability.