Strong Rise in International Price of Orange Juice

The decline in the US supply caused by the effects of Hurricane Irma on Florida plantations is an opportunity for Central American producers.

Thursday, October 5, 2017

The international price of concentrated orange juice increased by 24% between early July this year and October 3, going from $1.25 per pound of solids to $1.55. Producers of the fruit in Costa Rica even believe that the price could rise more in the coming weeks.

Roberto Aragón, executive director of Tico Frut, the main orange concentrate exporter in Costa Rica, explained to that "... any upward adjustment in the market will benefit companies and producers in Costa Rica, although he said that it is still difficult to establish this positive impact."

He thinks that a greater rebound in prices is still possible, in view of this unexpected decrease in the supply of the product, although it is estimated that a good crop from Brazil, the largest producer in the world, could alleviate the upward trend in prices."

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More on this topic

Oranges: Prices Rise As Supply Drops

July 2016

The projected 16% drop in orange production in the state of Florida in the 2015-16 season will drive up the international price of fruit concentrate.

The Department of Agriculture reported that orange production in Florida will be reduced by up to 90 million cases in the 2015-2016 season, 16% less than in the previous season, when 96.8 million cases were produced. 

Sharp Rise in International Price of Orange Juice

January 2014

The decline in the U.S. supply caused by the effects of a pest in plantations in Florida, creates opportunities for Central American producers.

An attack of the yellow dragon disease in plantations in the state of Florida, the second largest supplier of orange juice, caused a decrease in supply resulting in a price increase.

Costa Rica: Boom in Oranges

August 2011

High international prices of orange concentrate is benefiting local exporters.

Since 2007 prices have been showing an upward trend, partly due to the reduced supply of oranges in the United States, one of the leading producers and exporters worldwide.

In Costa Rica, the size of the area under cultivation has also increased in recent years, which has enabled them to take maximum advantage of the favorable prices.

Low prices for orange juice affects producers

November 2008

The value on the New York Stock Exchange is below the break-even point in production costs, estimated to be $0.90 per pound of solids.

From December 2006 to now, the price of orange juice fell 59%, creating problems for farmers.
This product was being quoted on the New York Stock Exchange went from $1.98 per pound of solid juice frozen concentrate to only $0.80 per unit, during the aforementioned period.

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