Prices skyrocket rapidly. - Might orange juice become a luxury item?
The Financial Times reports that due to bad weather conditions and prevalent diseases in Brazil, the country with the largest orange exports, there is a possibility that manufacturers could switch to mandarins for production.
The question arises, will orange juice become as expensive and rare as caviar?
It is evident that there's a price surge in the stock markets!
The prices of orange juice futures (securities) have been skyrocketing since the end of 2022, due to a hurricane and a cold spell in the production region of Florida (USA). This led to the destruction of harvests, resulting in a sharp price hike in May. According to the FT, the reason is the predicted poor harvest in Brazil.
Tuesday saw the price for orange juice futures (at the Intercontinental Exchange in New York) reaching $4.92 per pound, which is a doubling of the annual price.
Kees Cools, the President of the International Fruit and Vegetable Juice Association (IFU), is quoted as saying by the paper, "We've never experienced anything like this before, not even during the worst frosts and hurricanes. This is a crisis." Cools further anticipates a significant transformation of the industry.
One manufacturer, Granini, has already made a move, substituting half of the orange juice in their "Granini Drinking Pleasure Orange" blend with water. This results in a price rise of 156% within a year, which upsets consumer advocates.
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