Algarve, Portugal may be the escape from the orange juice price hike frenzy

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Algarve, Portugal may be the escape from the orange juice price hike frenzy

Portugal might escape the orange juice price hike frenzy, thanks to the Algarve. The southern region currently accounts for 88% of citrus production in the country, and the demand is not expected to slow down, according to a report by ECO. 

According to ECO, production in the region is proceeding as normal and is keeping up with initial expectations. Oranges will be available until September or October and there will be a normal supply to both national and international markets. 

Orange juice prices have seen an unprecedented hike due to adverse conditions and the Asian citrus greening disease impacting production in Brazil and the Unitedong States.

Brazil, the world's largest orange juice producer and accounting for 70% of all orange juice exports, is battling the incurable citrus greening disease and extreme droughts, which have led to a poor harvest and an increase in orange juice prices. This marks the third consecutive difficult global harvest. 

The United States, another major producer of orange juice, has been battling greening disease and was hit by a series of hurricanes in the past month.

Related article: Japan suffers orange juice shortages

Japan is currently suffering due to shortages as well. According to the Japan Fruit Juice Association, the price of imported orange juice was 259 yen ($1.60) per liter in 2020, but it climbed to 491 yen in 2023, an increase of more than 50% in yen terms.

Concentrated orange juice reached an all-time high last Tuesday, trading at $4.92 per pound or 453 grams, double the price recorded a year ago, at the Intercontinental Exchange in New York. A day later, it traded at $4.77 per pound.

The Algarve Citrus Fruit Operators Association expects an increase in demand, which would benefit producers in the region.

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