Australian households could soon pay much more for orange juice amid a global shortage.
NSW farmers fear prices could double within months if major supermarkets choose to increase prices, as insects and bad weather take a heavy toll on the international market.
Brazil produces 70 percent of the world’s orange juice, but its orchards have been destroyed by both disease and drought, and a quarter of its juice production is expected to be lost next year.
The Albanian government has urged supermarket giants not to use shortages as an excuse to “profit” from Australian families.
Australians are being warned that a global orange shortage could impact the availability and prices of orange juice.
The Albanian government has warned supermarkets not to use the global orange shortage as a reason to increase juice prices during the cost of living crisis.
Federal Agriculture Minister Murray Watt said the global orange shortage will hit Australian juice producers but said they would still have access to locally grown fruit.
He urged supermarkets to keep prices low during the cost of living crisis, the Daily Telegraph reported.
“It’s important we don’t see supermarket chains using overseas supply issues to take advantage of Australian shoppers,” Mr Watt said.
“The Albanian government’s work on competition reforms is designed to ensure that both farmers and families get a fair deal from supermarket chains.”
Farmers have warned Australia is not producing enough citrus to fill the gaps left by global shortages and are concerned prices will continue to rise.
They added that an overreliance on cheap imported orange concentrate has weakened the domestic market.
Most of Australia’s juice concentrate, which is usually blended with fresh Australian orange juice, comes from Brazil, making the products cheaper and more affordable for consumers.
Many Australian orange juice producers use imported juice concentrate and blend it with locally squeezed citrus to keep costs down.
Riverina orange grower and chair of the NSW Farmers’ Horticulture Committee, Jo Brighenti Banard, said supermarkets were already limiting shelf space for orange juice and Australians can expect to see more blends with other oranges. fruit.
“What we will see is that prices will increase, the juice will not be special; there will come a point where customers will resist the price,” he said.
The orange shortage has already impacted North America and Europe with empty shelves in their supermarkets.
In Australia, Aldi is understood to be experiencing supply issues, which has resulted in a lack of availability for some of its orange juice products.
Woolworths uses imported juice concentrate in many of its products and says it is monitoring orange shortages.
Seventy percent of the world’s supply of oranges comes from Brazil, which has experienced crop diseases and drought and is driving up prices as a result.
A Woolworths spokesperson told the publication it was not currently experiencing a “notable impact” on the availability of orange juice, but did not say whether prices would rise in the future.
Citrus Australia chief executive Nathan Hancock said there had already been a big price increase for Australian juice oranges.
He said out-of-production oranges are not good enough for supermarkets, but they can be used to make juice, they used to cost around $50 a ton and now cost more than $400 a ton.
Quality Valencia oranges used to make juice previously cost $250 a ton, but now cost more than double that, almost $600 a ton.
Daily Mail Australia has contacted Aldi and Woolworths for comment.