Orange growers in Brazil expected to harvest their smallest crop in at least eight years after rains hindered flowering, while severe cold weather caused damage to about 5% of the crop in Florida. Orange juice futures have already surged by 43% in the past year, the price of orange juice concentrate has doubled and the price of orange juice on the European market could rise by as much as a third, reported the UK’s Daily Sun.
According to Justin Chadwick, CEO of the Citrus Growers Association, South Africa is a very small player in the global orange juice industry, as most fruit grown locally is sold on the fresh-fruit markets. Therefore an orange-juice price increase wouldn’t significantly affect South African citrus prices, he said.
However, Kobie du Plessis of Granor Passi, one of the leading fruit processors in South Africa, said rising prices and a drop in the world supply of orange juice concentrate could very well lead to product shortages in the local market.“Orange juice concentrate manufacturers will be more tempted to export their product when international prices rise. At the moment the export price for concentrate is R22/â„“ while the local price is only R15/â„“,” said Du Plessis.“I don’t think we’ll have an orange juice crisis in South Africa, but consumers can expect to pay a little more for their juice later this year.”
