Tariff|In Finland, the price of orange juice has risen by almost 30 percent during the beginning of the year, according to the S Group.
The summary is made by artificial intelligence and checked by a human.
The price of orange juice rises quickly.
Brazil’s orange production is at its lowest level in more than 30 years due to weather problems and yellowing disease.
Availability problems raise the fear of rising prices for consumers and shape the entire juice industry.
The prices of fruit, berry and vegetable juices in Finland have increased by more than 20 percent compared to the end of 2022.
Orange juice the price rises rapidly and breaks records week after week.
The price of orange juice concentrate derivatives has risen by almost 70 percent in a year. The juice derivatives market anticipates future price developments and helps industry players to protect themselves from price fluctuations.
The price increase has peaked in May, as the price has risen by almost 30 percent during the month.
The reason behind the increase in the price of juice is, among other things, the weather problems in Brazil, the world’s largest orange-producing country, and the impact on citrus fruits yellowing disease.
There will be strong upward pressure on the price in the future, as the research institute Fundecitrus, which focuses on citrus fruits, estimated at the beginning of May that the news agency According to Reutersthat in the 2024–2025 season, Brazil’s orange production will be at its lowest level in more than 30 years.
President of the International Fruit and Vegetable Juice Association (IFU). Kees Cools appointed of the Financial Times in the interview, the situation was really bad.
“This is a crisis. We’ve never seen anything like this before, even during long periods of frost or hurricanes,” Cools told the FT.
According to the IFU, the availability problems of oranges have raised fears that the price increase will soon hit consumers and fundamentally reshape the entire juice industry. According to Cools, one possibility is, for example, that oranges will be replaced in the future with mandarins, which are more resistant to weather changes.
Problem can already be seen concretely on store shelves in Finland as well. For example, the market leader of Finnish grocery stores, the S group, reports that the sales prices of orange juices have risen in the S group during the beginning of the year by almost 30 percent compared to the same time last year.
Kesko does not disclose price changes for individual products. Kesko’s director of purchasing and sales Janne Vuorinen says that the price changes in orange juices have been of different magnitudes for different products, depending, for example, on whether the product is full orange juice or, for example, made from concentrate.
Vuorinen also says that the increased prices of orange juice have decreased the demand for the juice. According to Vuorinen, for example, the demand for apple juices and mixed juices has increased.
Availability problems are familiar to both retailers. Last year, for example, S Group stores ran out of juice due to availability problems. Kesko also says that last year it had challenges in the availability of juice. According to the company, there have been no more this year.
Both are silent on the future price development for competitive reasons. However, Vuorinen agrees to say that the global situation is estimated to continue to be challenging beyond the next harvest season.
In Finland, Statistics Finland does not track orange juice prices. According to its price monitoring, the prices of fruit, berry and vegetable juices have risen by more than 20 percent in Finland compared to the end of 2022.
Orange futures prices have been rising drastically due to availability problems due to weather phenomena and diseases for a long time. Prices have already risen by almost 140 percent after the end of 2022, for example. Prices have thus more than doubled in less than a year and a half.
The problems started in September 2022, when several powerful hurricanes hit Florida. September is an important period for orange production in Florida.
In addition to weather phenomena, the yellowing disease of citrus trees has also taxed crops.
The disease originating in Asia is also called HLB disease (huanglongbing). It is a bacterial disease that prevents, among other things, the transport of nutrients in the tree. As a result, the leaves of the tree begin to turn yellow.
As a result of the bacterial disease, the fruits remain raw and their juice bitter, and eventually the tree dies. The disease is spread from tree to tree by the diaphorina citri insect.
#Prices #bacterium #originating #Asia #wreaking #havoc #orange #juice #skyrocketing #crisis
