US reliance on Brazilian orange Juice has surged from 19% of Brazil's total juice exports in 2021/22 MY to 31% in 2022/23 MY, according to market sources. This significant increase can be attributed to the substantial decline in orange production in Florida, primarily caused by the persistent greening disease and the destructive impact of hurricanes, with Hurricane Ian being the latest in September 2022. Reports indicate that Florida's orange juice crop harvest is approaching its lowest level since the 1930s. Consequently, market players have stated season to date frozen concentrated orange juice stocks in Florida have plummeted by 33%, while Not from Concentrate (NFC) stocks have declined by approximately 16%.
The scarcity of orange juice is also reflected in the price. The Mintec Benchmark Price for Brazilian Orange Juice Concentrate [Mintec Code: 4Q04] witnessed a 57% year-on-year increase, reaching $3,270/mt at the end of June. This surge in price highlights the heightened demand from the US market and the strong global demand for orange juice. As the US continues to grapple with the challenges posed by citrus greening, many farmers are shifting their focus to alternative agricultural production or selling their citrus farms.
