Florida Orange Production Decline and Price Surge

CNBC
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Orange production in the U.S., particularly in Florida, has drastically dropped by 90% from 2005 to 2023. The resultant shortage has led to a significant price surge in orange juice, which has seen an increase of 56% this year alone, suggesting more price hikes could be imminent. The challenges facing growers are multifaceted, predominantly driven by citrus greening disease, extreme weather conditions, and pressure from rising operational costs due to inflation. Farmers now confront one of the highest production expenses in U.S. agricultural history while battling a disease that inhibits orange tree health. Citrus greening is a relentless threat, responsible for over 75% production loss and forcing trees to die prematurely. Consequently, growers are left grappling with decreased yields and inflated costs. The labor market also poses challenges, with high wages due to minimal mechanization and strict labor requirements exacerbating their plight. Urban expansion further pressures growers, as many contemplate selling land rather than facing another poor harvest. While California has surpassed Florida in citrus production, the state also faces its own threats, including the spreading citrus greening disease. Potential recovery hinges on advancements in research aimed at controlling this disease and innovating pest management. Nonetheless, the road ahead appears fraught with difficulties, wherein the balance of supply and demand will dictate future prices and availability of orange juice for consumers.
Highlights
  • • Florida's orange harvest dropped 90% between 2005-2023.
  • • Orange juice prices have surged 56% this year.
  • • Citrus greening disease is the primary threat to crops.
  • • Production costs for growers are at historical highs.
  • • Labor shortages are exacerbating the industry's difficulties.
  • • Florida used to produce 70% of U.S. oranges, now only 17%.
  • • California has overtaken Florida in citrus production.
  • • Urban expansion is forcing farmers to consider selling land.
  • • Citrus greening disease has caused a loss of 75% of Florida's production.
  • • Research is ongoing to find solutions for citrus greening.
* dvch2000 helped DAVEN to generate this content on 08/06/2024 .

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