Australian orange sector warns about price surges

Australian orange sector warns about price surges

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Australian orange sector warns about price surges

Increasing production costs and unsustainable short-term contracts are putting pressure on the Australian orange sector, ABC News reports.

According to Citrus Australia chief executive Nathan Hancock, post-pandemic woes and supply chain disruptions caused by the war in Ukraine caused a surge in input costs.

Additionally, a lack of agricultural workers is also stalling harvests.

"The cost of labor on-farm has increased significantly and there are fewer pickers at the moment," Hancock says.

This has especially impacted Valencia oranges, which are the main variety used for orange juice.

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Hancock adds that lesser volumes will result in an increase of imported concentrate, driving prices up for this popular commodity.

"At the moment, the cost of orange juice concentrate is probably the same amount as what it is to juice a Valencia orange," he says.

The citrus industry is Australia’s largest fresh fruit exporting industry by volume, with major export markets in China, Japan, Hong Kong, Malaysia, Indonesia, United Arab Emirates, Singapore, the U.S., and Thailand.

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