Orange shortage hits juice manufacturers.
A world shortage of juicing oranges is developing due to frost and poor crops in the main growing areas.
Juice manufacturers are complaining that the cost of raw materials has risen by up to 50% this year, and warn that prices may have to rise.
"The current crop situation is going to affect the freshly squeezed
"The industry is doing its very best to meet demand without compromising quality or taste, but, naturally, prices are massively increasing in line with the shortage."
The comments come on the heels of USDA USDA,
n.pr See United States Department of Agriculture. estimates showing Florida's orange crop will be 9% lower than last year at 135 million boxes. Florida's Department of Citrus blamed persistent hurricane damage and said the state's groves had the capacity to produce up to 185 million boxes.
Mike Yetter, FDOC FDOC Florida Department of Citrus
FDOC Florida Department of Corrections
FDOC Fire Direction Operation Center international business director, admitted that orange prices would continue to rise. "We still think oranges offer great value, though."
Other growing regions have also suffered. There has been frost in Uruguay and Argentina, which has taken out almost half the crop. South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. has had a below average crop and floods have delayed picking. It means fruit is taking longer to ship and as much as 40% will be imported to the EU under punitive 15% tariffs.
A freeze in Australia has turned it into a net importer of oranges this year. And Brazil, normally the fourth largest supplier in the southern hemisphere, is absorbing almost all its harvest in the domestic manufacture of concentrates.
It all stacked up to a retail price increase of 20-30p/litre, Lord said. But he reckoned that would have little impact on sales growth, which is at about 6% a year for freshly squeezed juices.