The global futures price for frozen orange juice concentrate (FOJC) has hit a record high in 2023, jumping more than 60 per cent year-on-year.
The skyrocketing price is mostly because of production issues in the major citrus-growing US state of Florida, which is forecast to produce its smallest orange crop since the 1930s.
Speaking to ABC Landline, fourth generation citrus grower Kyle Story said Florida's citrus harvest had been challenged by extreme weather events such as freezing temperatures, cyclones, hail storms and a drought.
He said production had also been decimated by orchards succumbing to citrus greening disease (Huanglongbing).
"In Florida we've seen some dismal production numbers because of citrus greening and the effect of that disease, with older trees going out of production at an accelerated rate," he said.
"Citrus greening is just the most devastating thing we've ever witnessed and by far the number one ongoing threat."
Battle against citrus greening
Mr Story said his company had been trialling a number of "tree therapies" to combat the disease and had invested in technology to grow citrus under a protective screen.
"We're growing specialty fruit basically in a greenhouse environment," he said.
"So we're able to have that citrus greening-free environment we enjoyed 30 years ago.
"It's very capital-intensive as an investment, but we're seeing a return on it even in the third year."
Mr Story said Florida's citrus harvest would end this month and the significant drop in production would have ripple effects with trading partners around the world.
The Intercontinental Exchange futures price for FOJC went beyond $US2.86 per pound in April ($9,424/tonne) compared to $US1.73 per pound 12 months prior ($5,701/tonne).
Orange juice futures on Australia's radar
Citrus Australia chief executive Nathan Hancock said Australian growers were mostly focused on the fresh fruit and fresh juice markets, but the rising global price for orange concentrate was presenting an opportunity.
"Usually the concentrate produced in Australia is too expensive for world trade and even some juice makers in Australia don't tend to use Australian concentrate because it's not priced comparatively to the futures market," he said.
"But last year Australia had an excess of oranges for juicing and a lot of it got concentrated, probably at record levels.
"So there's now a unique opportunity to trade some of that into the world market, or make it competitive for Australian producers to use Australian product."
Large harvest ahead for Australia
Mr Hancock said it was crucial Australia kept itself free of citrus greening disease.
"Florida and even Brazil are under huge pressure from greening disease, their crops are reducing and we've got an opportunity here in Australia to fill some of that demand in fresh fruit, juice and possibly concentrate."
He said the mandarin harvest was now getting underway in Australia and overall the forecast was for a large citrus crop this year of close to 1 million tonnes.
When asked if Australian consumers would notice a price difference when buying concentrated juice at the supermarket this year, Mr Hancock said it would depend on processors' exposure to world pricing.
"I'd recommend consumers switch to Australian fresh orange juice regardless," he said.
"It's a healthier product grown right here in Australia."
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