Impact of the Orange Harvest in Brazil: Opportunities for a Rising Price Market

28 Sep Impact of the Orange Harvest in Brazil: Opportunities for a Rising Price Market

The outlook for the next orange harvest in Brazil, the world’s largest producer, is worrying. Projections indicate a 24% drop in production for the 2024-2025 season, putting it at 232.4 million cases, its lowest level in more than three decades. This decrease is due to climatic factors, such as heat waves and the El Niño phenomenon, as well as the impact of greening disease, which seriously affects crops in Brazil and other producing countries.
This decline in Brazilian production has already had significant repercussions on international orange juice prices. In the futures market, the price of concentrated orange juice has reached all-time highs, surpassing $4.76 per pound in May 2024. Experts note that the price has increased more than 200% since 2021. The global shortage, also aggravated by poor harvests in Florida, has skyrocketed the cost of juice, affecting both producers and consumers.
This situation of high prices in international markets offers an opportunity for European juice manufacturers such as Baor Products, which can position themselves as a more stable and competitive alternative to the challenges faced by large producers in America. At Baor Products, we have the best high-quality orange juice and concentrate in Spain, taking advantage of advanced technology and strong relationships with local producers. With volatility in global markets, our products can offer a reliable and sustainable option for the European market and beyond.

The price of orange juice concentrate has reached all-time highs, and projections for 2025 indicate that prices will remain elevated due to climate and health factors that continue to affect production in Brazil and the US. Since 2021, prices have experienced an increase of more than 200%, driven by a drop in global production due to problems such as Huanglongbing disease (HLB) and extreme weather events such as heat waves and hurricanes. This context has depleted inventories and generated significant pressure on international prices.
Orange juice concentrate prices are expected to continue fluctuating at high levels, with future estimates hovering around $4.53 per pound in contracts through 2025. Analysts do not foresee a significant supply recovery in the near term, so that costs for consumers could continue to rise
involved in the juice industry or considering investments in the market, this environment can offer strategic opportunities for manufacturers like Baor Products that can maintain stability amid these fluctuations.