Supply Constraints Result in Americans Being Unable To Afford Popular Juice

Photo by Franki Chamaki on Unsplash

( – The supply constraints have resulted in the prices for orange juice reaching a record high, forcing many manufacturers to consider the possibility of making juices using alternative fruits. 

In the past few years, there has been an increase in the price of orange juice, which is considered a breakfast staple for many homes across the United States. Florida, which is one of the main producers of the product, has seen a decline in output over the past few years. In Brazil’s orange-producing areas, there has been another decline partly stemming from the rise in extreme weather phenomena. 

Particularly the decline in the South American country, which is the world’s largest orange juice producer, has had a big effect on the price of juice across the world and has affected the industry globally. On Wednesday, the Intercontinental Exchange in New York saw the price for frozen concentrated orange juice closing at $4.77 per pound, which is close to double the price that could be seen a year ago. 

Mintec commodity market data analyst Harry Campbell has noted regarding the increase in orange juice prices that it has resulted in many blenders and manufacturers considering alternative fruit options. He added that many producers are also altering the juice quantities they are putting into the blends, increasing the amount of other fruit juices such as apple, pear, and grape, while dropping the percentage of orange juice. This allows them to move away from being so reliant on orange juice. 

He proceeded to note that it appears that the current situation is going to continue for a longer term. 

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