Hurricane Milton is also affecting the global orange juice market

By: Trademagazin Date: 2024. 10. 14. 11:39

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

Hurricane Milton severely affected Florida’s orange production, causing significant crop losses in the state’s most important citrus regions. The state has been dealing with a disease called citrus greening for years, and now the natural disaster has made the situation even worse. According to the forecast of the US Department of Agriculture (USDA), orange production in Florida could drop by up to 16% this season, to 675,000 tons, the Financial Center reports.

Matt Joyner, executive vice president of Florida Citrus Mutual, said the damage from the hurricane was particularly severe because the storm hit Florida’s most important producing regions, where more than 70% of orange production takes place. The timing was also unfavourable, as most of the ripe fruit was affected by the windstorm, which blew a significant amount of fruit to the ground. According to the USDA, US orange production in the 2024-2025 season could be 2.62 million tons, down 5% from the previous year.

Over the past 20 years, Florida orange production has declined by 92% due to natural disasters and citrus greening disease. This is not just a problem for the United States: Brazil, the world’s largest producer of oranges, is also struggling with the disease. The impact on the global orange juice market can already be felt, as frozen orange juice concentrate prices on the ICE Futures US exchange rose by 53% this year, and the November contract rose by 4.4%, closing at $4,792 per pound.

According to Brett Friedman, senior partner at Winhall Risk Analytics, the Florida crop failure could have a larger than usual impact on the global market as supply becomes tighter. But local farmers are optimistic and resilient, as Joyner emphasized: “Our growers are always able to rebuild and move forward.”