High ocean freights due to port congestion in China and Germany also restrict material movement for global trade, in addition to production challenges. FCOJ is preferred by exporters owing to its ease of handling and reduced space occupancy in shipping vessels. Although imports from other orange juice-producing markets, such as Brazil and Mexico, currently make up most of the orange juice consumed in the U.S., Florida's orange juice sector is critical as it is the major producer of the Not From Concentrate (NFC) variety, which has gained popularity among consumers compared to the older style, frozen concentrated orange juice (FCOJ). Orange juice futures on ICE exchange are witnessing an uptick of as much as 5.5 percent as of Q3 2022, which is already impacted by citrus greening disease in addition to the recent hurricane Ian in Florida, which is threatening further supply losses. The overall trend of a slow decline in fruit juice demand globally with growing consumer awareness of health and wellness could also have some long-term impact on juice production patterns with more focus on valorization such as organic, low/no sugar added than conventional juices that are gaining flak for sugar content and additives, among others. The state budget, effective from July 1 st, 2022, included $37 million for the orange and juice industry, with the majority invested in the Department of Citrus marketing programs, research programs, and the Citrus Health Response Program, which includes cultivating new trees resistant to greening. The recent hurricane has caused the greening fungus from abandoned orange farms to be transported by wind to renovated ones, thereby wasting work and investment. is moving towards a supply deficit and import-dependent market for orange juice, which would alter the market dynamics globally. Orange juice inventories were at their lowest in five years owing to the impact of supply losses due to citrus greening. In recent years, the production of Florida oranges has already been poor owing to various parameters, such as contracting acreage due to real estate expansion and citrus greening disease, which have been increasing challenges for growers. Orange juice is a traded commodity, and futures prices reflect the overall oranges and juice market. Orange Juice Industryįlorida is the leading producer of processing oranges in the U.S., whereas California produces oranges principally for fresh consumption. Orchard rehabilitation, disease management and control, and new farm investments are likely to witness an increase with the goal of reviving the industry and developing a sustainable supply chain. With prices not getting any cheaper, industry players (growers and processors) are likely to invest in more collaborative efforts to revitalize the falling industry, as oranges are a major cash crop and signature in Florida. Challenges from production and output to logistics and operation have necessitated immediate attention on all stages of the supply chain. The overall rising inflation, the upcoming recession in the U.S., and losses due to citrus greening disease attacks have thrown the entire orange juice supply chain into a disarray in one of the leading orange juice-producing markets. The price increases have been capped by a drop in demand, especially after the pandemic, where high prices are a barrier for the industry, causing consumers to look at other options such as apple juice, non-fruit beverages, and flavored water.įurther supply chain disruption has intensified owing to the impact of the recent Ian Hurricane in Florida, which is threatening supply losses. The pandemic witnessed a boost in demand for citrus products, such as orange juice, owing to the associated health benefits of Vitamin C in oranges and consumer demand for immunity and wellness-boosting beverages. have been witnessing an upsurge in recent years owing to the lowered availability of processing oranges plagued by supply losses due to citrus greening.
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