Global orange shortage: Why juice prices could soon double at Aussie check-outs

Australian households could soon be paying much more for orange juice amid a global shortage.

Farmers in NSW fear prices will double within months if major supermarkets choose to raise prices, as insects and bad weather take a heavy toll on the international market.

Brazil produces 70 percent of the world’s orange juice, but its orchards have been devastated by both disease and drought. Next year, a quarter of juice production is expected to be lost.

The Albanian government has urged supermarket giants not to use the shortage as an excuse to “take advantage” of Australian families.

The Albanian government has warned supermarkets not to use the global shortage of oranges as a reason to increase juice prices during the cost of living period.

Federal Agriculture Minister Murray Watt said the global orange shortage will impact Australian juice producers, but assured they will still have access to locally grown fruit.

He urged supermarkets to keep prices low during the cost of living crisis, the Daily Telegraph reported.

“It’s important that we don’t see supermarket chains using overseas supply issues to take advantage of Australian consumers,” Watt said.

“The Albanian government’s work on competition reforms is designed to ensure that farmers and families both get a fair deal from the supermarket chains.”

Growers have warned Australia is not producing enough citrus fruit to fill the gaps left by the global shortage and are concerned prices will continue to rise.

They added that over-reliance on cheap imported orange concentrate has weakened the domestic market.

Most of Australia’s juice concentrate – which is usually blended with fresh Aussie orange juice – comes from Brazil, making the products cheaper and more affordable for consumers.

Many Australian orange juice producers use imported juice concentrate and blend it with locally squeezed citrus fruits to keep costs down

Riverina orange producer and chairman of the NSW Farmers Horticulture Committee Jo Brighenti Banard said supermarkets were already limiting shelf space for orange juice and Australians could expect more blends with other fruits.

“What we will see is that prices will rise, the juice will not be special, it will get to a point where customers will shy away from the price,” she said.

The orange shortage has already hit North America and Europe, with empty shelves in their supermarkets.

In Australia, Aldi has been experiencing supply issues, which has resulted in a lack of availability of some of their orange juice products.

Woolworths uses imported juice concentrate in many of its products and says it is monitoring the orange shortage.

Seventy percent of the world’s orange supply comes from Brazil, which is struggling with crop diseases and drought, driving up prices

A spokesperson for Woolworths told the publication that it is currently not experiencing a “noticeable impact” on the availability of orange juice, but would not say whether prices would increase in the future.

Citrus Australia CEO Nathan Hancock said there has already been a major price increase for Australian oranges.

He said oranges from cultivation are not good enough for supermarkets, but can be used for juice. They cost about $50 per ton and now cost more than $400 per ton.

Quality Valencia oranges used for juicing used to cost $250 per tonne, but are now worth more than double that: almost $600 per tonne.

Daily Mail Australia has contacted Aldi and Woolworths for comment.