What’s the global orange juice supply crisis – and should Australians be worried?

Global orange production, particularly in Brazil, the top producer of oranges and exporter of orange juice concentrate, is facing a severe crisis due to extreme drought, heat stress, and citrus greening disease. This has driven the shortage of frozen orange concentrate and the price of orange juice to an all-time high in the USA and Europe. The consumers in these markets have been switching to alternatives such as orange juice blended with apple, mango, pineapple and or mandarin juice Although Australian consumers have not yet felt the full impact, the over-reliance on imports, particularly from Brazil, suggests an impending supply crunch and rising prices of orange juice and related products. Nonetheless, the current supply shortages in the global markets open opportunities for Australian producers to increase supplies of orange, as well as mandarin (as an alternative), meeting domestic needs and increasing exports. However, challenges such as high input and labour costs, limited access to the international markets, lack of enough processing facilities and high bargaining power of supermarkets are key impediments. To enhance the resilience and growth of the industry, investments in automation, diversification of sales channels, the establishment of more processing facilities, research into climate-resilient varieties and more collaborative plans are recommended.