Orange juice prices may remain high

Articles
October 20, 2008

Orange juice prices may remain high

The state of Florida is the nation's leader in citrus production, and only second to Brazil in worldwide production. The industry has battled through a three-year slump, and this year mother nature has not helped much in the industry's struggle to recover. According to our editorial partners at StormExchange.com, hurricanes and crop diseases can be blamed for the reduction in Florida orange yields, driving prices for consumers to a record six dollars per gallon for refrigerated orange juice. The USDA has predicted a 2.5% drop in Florida orange crop size, which will keep those prices high.

The state of Florida is the nation's leader in citrus production, and only second to Brazil in worldwide production. The industry has battled through a three-year slump, and this year mother nature has not helped much in the industry's struggle to recover.
 
According to our editorial partners at StormExchange.com, hurricanes and crop diseases can be blamed for the reduction in Florida orange yields, driving prices for consumers to a record six dollars per gallon for refrigerated orange juice. The USDA has predicted a 2.5% drop in Florida orange crop size, which will keep those prices high.
 
Florida was hit hard by a volatile storm season this year, which included Tropical Strom Fay, the sixth named storm of the 2008 Atlantic strorm season, hitting the state four times in August of this year. The weather and crop lands undergoing conversion into urban development are two factors in Florida's lower yield. In addition, another costly problem for growers is the ongoing spread of citrus greening, an insect-borne bacterium that wreaks havoc on the plant's vascular system, rendering the fruit useless.
 
While prices of orange juice stay high, timing is bad for consumers suffering from the nation's overall economic pains, quite possibly making orange juice more of a luxury for families trying to make ends meet. According to data from The Nielsen Company, dollar sales for Total Refrigerated Orange juice as of the 52 weeks ending 10/4/2008, have experienced a 2.2% decline.