Orange juice prices have been increasing and reached record levels again this week, following adverse weather conditions and citrus diseases that are hitting production in the world's largest exporter, Brazil, but also in the USA. The reality could not be more different in the Algarve, a region that accounts for 88% of citrus production in Portugal, which is already anticipating an increase in demand, according to a report by ECO.

Since the end of 2022, when a hurricane and a cold snap devastated hectares of orange groves in the North American state of Florida — the main growing region in the USA, the second largest producer in the world -, orange juice futures prices have been increasing, reported the Financial Times. But the rise accelerated sharply from April onwards given the prospects of a poor harvest in Brazil, due to the increased prevalence of pests and diseases that seriously affect citrus production, as well as the floods that occurred in the State of Rio Grande do Sul.

In this context, concentrated orange juice reached an all-time high last Tuesday, trading at 4.92 dollars per pound (1 pound is equivalent to 453 grams), almost double the price recorded a year ago, at the Intercontinental Exchange in New York. A day later, it traded at $4.77 per pound.

Speaking to ECO, AlgarOrange explains that the sale of oranges, clementines, tangerines, or lemons produced there “is more aimed at the fresh fruit market and not the juice industry”, although “between 5% and 10%” of production ends up being directed to this industry each year, as it does not comply with fresh market marketing standards.

According to this association, which brings together 12 citrus fruit operators from the Algarve, production in the current orange campaign is proceeding in accordance with initial forecasts and presents “normal quantities”, which will allow oranges to be available “until September or October”. The producers associated with AlgarOrange ensure, in fact, that there is capacity for a normal supply to the national and international markets.

The Algarve Citrus Fruit Operators Association recognizes that, given the global situation – particularly in Brazil –, “there may be an increase in demand and appreciation for the orange juice industry”, which would benefit citrus fruit producers in the Algarve. “However, so far, this is not the case”.