Poor harvests: Orange juice becomes scarce and prices rise
The juice industry is suffering from poor harvests in numerous regions and falling stocks of orange juice concentrate in Brazil, the most important supplier country, said Klaus Heitlinger, managing director of the Association of the German Fruit Juice Industry (VdF), to the German Press Agency. On the commodity futures exchange in the U.S., orange juice concentrate is currently several times more expensive than usual, he said. "The commodity is in short supply and raw material costs are rising. This means that consumers must also prepare for orange juice to become more expensive," said the industry expert.
He is not alone in this assessment. The head of the Mönchengladbach-based juice producer Valensina, Tino Mocken, also recently painted a gloomy picture of the situation in an interview with the industry trade journal Lebensmittel Zeitung. The prices for orange juice concentrate are at record levels. Worse still: There is currently nothing to buy, the markets are empty, he described the situation.
Valensina has largely secured its own supply capability for 2023 through long-term contracts. However, Valensina will not be able to meet larger additional orders, for example because competitors are no longer able to deliver. "In the market as a whole, there is therefore a threat of bottlenecks and supply shortfalls in the summer - and further price increases," the newspaper wrote.
Boris Voelkel, head of purchasing at organic juice specialist Voelkel, does not see a quick improvement. "We are dealing more and more with weather extremes - like the drought in Italy and Spain. This will continue to get worse," he fears. In the past, he says, it often took a considerable amount of time for similar price spikes in lemon juice or raspberries to drop significantly again.
However, Voelkel, as a family business oriented towards the common good, has so far coped comparatively well with the crisis, the manager emphasized. The company is now benefiting from the fact that it has invested in long-term relationships with its suppliers and has always paid its growing partners an adequate price above the market level. In return, they have now raised prices less than the world market price would have allowed. However, the producer also benefits from the fact that it specializes in direct juices.
According to the latest market report from the U.S. Department of Agriculture, global orange production in the 2022/23 marketing year is expected to be 5 percent below the previous year's level. The slump is particularly severe in the USA, where production is even expected to fall to its lowest level in more than 56 years, experts predicted. The main reasons for this were the spread of a plant disease - known as citrus greening - and the impact of hurricanes on crop volumes in Florida. But bad weather also had a negative impact on crop volumes in Brazil, the largest orange-producing country, and in Europe, they said.
Global orange juice production is expected to fall as much as 7 percent, according to U.S. Department estimates. Stocks of orange juice concentrates are at an all-time low in Brazil, where 90 percent of EU imports come from, it said.
But there is also good news for orange fans. According to the Agrarmarkt Informations-Gesellschaft (AMI), the market situation for fresh oranges looks much better than for juice concentrate. This is because the markets for juice concentrate and for fresh produce are neatly separated. Around 90 percent of the orange juice concentrate for the EU comes from Brazil. Fresh oranges in the supermarket, on the other hand, usually come from the Mediterranean region in winter and often from South Africa in summer.
"At the moment there is no shortage of fresh oranges. The supply is not particularly abundant because of the drought in Spain, but it's not really scarce," said AMI expert Gabriele Held. Those who want to buy oranges will get them, albeit at prices slightly above last year's level./rea/DP/tih (dpa)
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
Other news from the department business & finance
Coffee instead of cinema and concert
What people in Germany are doing without Tchibo Coffee Report 2023
Warsteiner Extra - the extra for summer
In contrast to the classic pilsner, the new product has only half the alcohol content
Lindt & Sprüngli publishes Sustainability Report 2022
Over 112,000 farmers in seven cocoa source countries benefit from the L&S Farming Program
Could a retrofit of existing infrastructure help solve plant-based scalability?
Opportunities in existing infrastructure for plant-based meat companies
Winners of the “Renewable Material of the Year 2023” Innovation Award
Biodegradable elastic materials based on food waste, carbon-light yeast oil, and a plastic-free natural polymer
Exciting foodtech business opportunities in Skåne, Sweden
“Food is heavily put under the microscope when we’re talking about climate change and other aspects of sustainability,”
Eating as an art of living instead of XL portions
Experts advise enjoyment in company, reflection and slow eating - enormous need for research on portion sizes
Enzymit Partners with Aleph Farms to Reduce Production Costs and Shorten Time-to-Market for Cultivated Meat
Enzymit Employs AI and Deep Learning to Develop Novel Insulin Substituents as Processing Aids for Cost-Efficient Cultivated Meat Production
Most read news
Extracting the best flavor from coffee
Understanding the origin of uneven extraction in brewing espresso can improve the beverage and enable substantial financial savings by using coffee more efficiently and sustainably
Paper-based packaging has a good eco-image
Study by the University of Bonn examines how the type of packaging influences purchase intention
More news from our other portals
Researchers harvest abundant clean energy from thin air, 24/7
“The air contains an enormous amount of electricity”
Presence of nicotine and antidepressants detected in Antarctic waters
A study with the participation of IDAEA and IGME locates organic contaminants derived from human activity in inland and coastal waters of the frozen continent
Electronic noses sniff out volatile organic compounds
Improving the fluid flow inside noselike chambers can enhance detection of harmful chemicals
New concept for lithium-air batteries
Research project in Germany aims to improve the stability of this novel battery type
Artificial intelligence identifies anti-aging drug candidates targeting ‘zombie’ cells
New platform has potential to fuel advances in senolytic anti-aging compounds and longevity research
New theory explains superconductivity in spun graphene trilayers
The study, carried out by CSIC scientists, lays the foundations for understanding the mechanisms of certain unconventional superconducting materials
Microbe of the Year 2023: Bacillus subtilis – for health and technology
Already, Bacillus subtilis is indispensable in many industries, and many more innovations are expected
X-ray imaging captures fleeting defects in sodium-ion batteries
A Cornell-led collaboration succeeded in identifying an elusive mechanism that can trigger degradation in sodium-ion batteries
An electric vehicle battery for all seasons
New electrolyte for lithium-ion batteries performs well in frigid regions and seasons
Researchers develop new method to synthesise cannabis plant compound
cis-tetrahydrocannabinoids can now be produced synthetically, enabling pharmaceutical applications
Verder Group acquires ERWEKA
With this acquisition, Verder Scientific expands its portfolio to include dissolution and tablet testing equipment for the pharmaceutical and life science sectors
Scientists streamline a widely used chemical reaction, creating new manufacturing opportunities
This research should have a far-reaching impact: it allows scientists to forge valuable carbon-carbon bonds used in the pharmaceutical and agrochemical industries, and beyond
Launching Revvity: A Scientific Solutions Company Powering Innovation from Discovery to Cure
The Company was previously affiliated with PerkinElmer, Inc.
Graphene-based breakthrough in hydrogen peroxide production
Process produces higher yields with the potential to be more cost-effective and environmentally friendly than current methods
Insilico Medicine-led study combines quantum computing and generative AI for drug discovery
“Quantum computing is recognized as the next technology breakthrough which will make a great impact, and the pharmaceutical industry is believed to be among the first wave of industries benefiting from the advancement”
The World’s Smallest Impedance Spectroscopy System in the Form of a Pill Finds Weak Spots in Machines and People
Small as a candy: Waterproof IoT sensor reliably measures the properties of liquids even in hard-to-reach places
Bioeconomy startup traceless receives millions in funding from the German Federal Ministry for the Environment
Planned construction of a demonstration production plant receives 5 million euros in funding
Eat right, live longer: could a moderate protein diet be the coveted elixir of youth?
Researchers decode the correlation between dietary protein intake and improved metabolic health in mice
Ångström-Resolution Fluorescence Microscopy
This innovation is poised to usher in a paradigm shift in our approach to study biological systems with thus far unprecedented detail
Fight against microplastics: Groundbreaking invention in the field of packaging materials
Environmentally friendly coating could replace plastic packaging
Chemical reactions completely without waste
Mechanically driven reactions run completely without solvents: this sustainable process is now to be ready for the market
AI supports analysis of metallic materials
"With our specially developed algorithm, we are three times faster"
Li-Cycle and Glencore Announce Plans for a Significant European Recycling Hub
Would be the largest source of recycled battery-grade lithium as well as recycled nickel and cobalt in Europe