Prices of orange juice concentrate, a commodity made famous by the “Trading Places” film, are poised to keep increasing as a result of a series of circumstances affecting the production of citric fruit. According to Brazilian media, the orange price problem will not have a rapid solution, given that the country is having the worst orange harvest in 36 years.

This is already affecting prices internationally, given that Brazil is the largest producer of oranges. The benchmark Frozen Concentrate Orange Juice Continuous Contract, reached historic record prices, hitting 514.65¢ per lb. Retail offerings are already. However, prices might increase even more, given that reserves are technically depleted in Brazil, according to the National Association of Citrus Juice Exporters (CitrusBR).

A disease called citrus greening is affecting Brazil’s and Florida’s harvests, decimating their productivity. In Brazil, an estimated 38.06% of the orange harvest, about 77 million orange trees, have been infected, with legislation requiring these to be cut and discarded.

This situation is already making juice bottlers formulate new mixes to try to keep prices low, preparing juices with lower orange content or even mixing apple juice with orange to obtain a similar flavor.

Orange juice is part of an agricultural commodity rally led by coffee, which is also near its historic levels. Arabica futures have reached $2.49 per lb, close to the highest price in decades. The causes for this price increase are also related to the adverse climate in Brazil, which is responsible for a third of the bean production.

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