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

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posted on 2024-06-16, 20:35 authored by Imran AliImran Ali
Brazil, the world's largest orange juice exporter, producing 70% of global supply, is facing a severe crisis due to extreme drought, heat stress, and citrus greening disease. This has resulted in 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 like Florida, Israel, Spain, and Argentina are also experiencing declines. Consequently, the futures price of frozen concentrated orange juice has reached an all-time high. Australia, despite being the 12th-largest orange producer, relies heavily on imports, with 80% coming from Brazil. The crisis has not yet severely impacted Australian consumers due to local supply, but a future supply crunch is likely. The shortage may drive up orange juice prices and disrupt other products using orange concentrate. While the situation presents an opportunity for Australia's orange industry to increase production and exports, challenges such as rising costs, labor shortages, and supermarket competition persist. Enhancing automation, market access, and climate resilience is crucial for long-term sustainability.


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