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. The crop is expected be the smallest in 40 years. Demand for orange juice has increased dramatically, in particular. Orange juice prices have increased by more than half during the pandemic.
“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 stated this in a statement.
The demand for orange juice was lower than it was in the past two decades. “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