The price of orange juice has surged to an all-time high in 2024, driven by a combination of devastating weather conditions and widespread crop diseases in major producing countries, particularly Brazil. Futures prices for concentrated orange juice on the Intercontinental Exchange have reached nearly $5 per pound, nearly tripling since 2022. This dramatic rise is largely due to Brazil experiencing its worst drought in 50 years, which has severely reduced orange yields by around 25%, marking the smallest crop in over three decades.
In addition to the drought, Brazil’s orange groves have been ravaged by citrus greening disease, a bacterial infection spread by sap-sucking insects that renders the fruit bitter and eventually kills the trees. Approximately 38% of Brazil’s orange trees have been affected by this disease, making it one of the worst infestations in recent history. As a result, global supplies of orange juice are tightening, putting significant pressure on beverage companies and consumers alike.
The United States is also feeling the pinch, with Florida’s orange production continuing to decline due to its own citrus greening issues. This has compounded the global shortage, leading to higher costs for orange juice across markets. Analysts warn that prices may remain elevated for the foreseeable future, particularly as extreme weather events like El Niño continue to impact global agricultural output.
Orange juice is not the only staple seeing price hikes. Olive oil prices have also spiked dramatically due to severe droughts in key Mediterranean producing countries, including Spain, Greece, and Italy. Spain, the world’s largest olive oil producer, has seen a drastic reduction in its harvest due to one of the hottest and driest years on record. Olive oil prices have more than doubled, causing significant concern among consumers and businesses alike. This crisis, like that affecting orange juice, highlights the broader impact of climate change on global food supply chains.
Both the orange juice and olive oil crises underscore the vulnerability of global agricultural markets to extreme weather and diseases, raising concerns about future food security as climate change continues to disrupt production.
