CNN reported that Citrus disease and bad weather have impacted orange production, leading to a spike in prices.
This year, the United States Department of Agriculture is expecting 44.5 million boxes of oranges, a small amount compared to the usual production. This crop will be the lowest since the 1940s. Demand has soared, particularly for orange juice. During the pandemic, orange juice prices have risen by more than 50%
“You have your classical supply-demand mismatch,”CNN spoke with Shawn Hackett from Hackett Financial Advisors.
Florida’s orange harvest has also been steadily decreasing for years due to citrus disease as well, according to Shelley Rossetter, assistant director of global marketing at the Florida Department of Citrus.
“The disappointment of another decline in the forecast is hard to overstate,”Rossetter made the statement in a statement.
Orange juice demand was down two decades ago, but this was before the pandemic. “supplies are way, way down,” Hackett said.
Oranges aren’t the only things that are getting more expensive. According to the Bureau of Labor Statistics, prices for food prepared at home rose 6.5% in 2013