Orange juice prices near two-year high
Jeremy Hobson: Well now to orange juice prices which are the highest they’ve been in two years. Of course consumers are used to paying a premium for trendy drinks like pomegranate juice and coconut water.
But orange juice? Sally Herships explains.
Sally Herships: We are running low on juice — orange juice, that is.
Bo Norberg: Inventories in the two largest orange juice producing nations, Brazil and the United States, are at record lows.
Citrus economist Bo Norberg says a nasty disease has hit Florida and Brazil, affecting a 10th of the orange crop. Then there’s Florida’s weather extremes — from freezes to hurricanes.
Judy Ganes-Chase is a tropical commodities consultant.
Judy Ganes-Chase: Grove owners have been so battered, their costs have gone up tremendously.
Ganes-Chase says during the housing bubble, a lot of Florida citrus farmers became developers. They converted their groves into condos, which means even fewer oranges.
Ganes-Chase: The market continues to go up and up and up, but consumers are balking at the high prices.
Perhaps Americans who are drinking less orange juice. But Florida Department of Citrus economist Bob Norberg says demand for America’s iconic morning drink is growing around the world.
I’m Sally Herships for Marketplace.
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