Orange juice prices have surged to an all-time high, with futures reaching $3.69 per pound on Tuesday, marking a 13% increase this month and a nearly 78% rise year-to-date.
This price hike reflects broader inflation trends affecting major grocery items like raw sugar and cocoa, despite a general easing in inflation.
The spike in orange juice prices is largely attributed to last year’s severe weather in Florida, a key U.S. producer, which led to a significant reduction in crop yields.
Florida’s orange crop faces a 70% drop, impacting juice prices nationwide.Hurricanes and a late freeze devastated Florida’s orange grove, pushing production to its lowest level in nearly 80 years.
The U.S. Department of Agriculture now projects Florida will produce only about 15.9 million boxes of oranges this year, a drastic 70% drop from the 2020-21 season.
Moreover, other major orange juice exporters, such as Brazil and Mexico, have also revised their production estimates downward due to crop challenges from warmer weather. This combination of reduced supply and ongoing weather-related issues continues to drive up prices for consumers.