ST. PETERSBURG, Fla. — Orange juice prices have reached a new high of $3.05 per pound, leading to consumers paying almost $9 a gallon this month, according to data compiled by Nielson and published by the Florida Department of Citrus.
While inflation has begun to cool, there are other factors that are driving up the price. The biggest of these factors is supply. Citrus production has taken a hit in both Florida and the world's largest orange juice exporter, Brazil.
In Florida, citrus farmers are scrambling to recover from the destruction of hurricanes Ian and Nicole. The extreme weather of the past two years, which included rare freezing temperatures last December and January, has taken a major toll on citrus farms throughout the state.
Since citrus trees take time grow and develop, analysts believe Florida is facing a long-term problem in orange production.
With domestic production down, the U.S. is relying more on juice imported from Brazil. But Brazil is also facing a decrease in production and, according to a report from the Department of Agriculture, a 1.7 percent drop in orange juice exports, due mostly to a crop disease infecting orange groves in both Brazil and Florida.
Citrus greening, according to the USDA, is one of the most serious citrus plant diseases in the world. It has infected millions of acres of citrus crops, it can't be cured, and it kills trees within a few years while causing the fruit to be bitter and unsuitable for consumption.
All of these factors combined have led to a lower supply of orange juice this year and concerns that supply could be down for the foreseeable future, bringing prices to their highest levels yet.