The main orange-producing countries have suffered a considerable drop in their harvests, pushing them to increase their selling prices to soda manufacturers. The crisis could soon have repercussions on the prices applied on the shelves.
New price increase. The shortage affecting the orange juice sector due to climate change, but also because of yellow dragon disease, is worrying beverage manufacturers.
In an interview given to our colleagues at Les Échos, Arnaud Jobard, the commercial director of Suntory Beverage & Food France which produces Orangina, Oasis and Schweppes sodas in France, evokes a “situation which is no longer tenable”. The increase in prices applied in stores is inevitable.
Falling harvests everywhere
The crisis caused by climate change and dragon disease is affecting the main orange-producing countries. Production fell 61% in Florida and 20% in Brazil.
“This year, so the year 2024, we were supposed to have a normal harvest. But this harvest is in fact 20% below last year’s harvest which was already not a good harvest,” explains Emmanuel Vasseneix , president of the National Interprofessional Union of Fruit Juices, at RMC.
In Brazil, nearly 77 million orange trees have been contaminated by dragon disease, explains Aurore Bescond, general secretary of Unijus to Les Échos. According to her, “the incidence rate of the disease increased from 24% to 38% in one year”.
Manufacturers want to “share the effort”
The sales director of Suntory Beverage mentions an 84% surge in the price of oranges for juice over the last two years. According to him, this increase is in addition to those in packaging and transport caused by the war in Ukraine.
“In two years, the increase in these additional costs represented the equivalent of one year’s profit. We had partially reduced our margins. Today, we must share the effort,” he says.
The increase in sales prices in stores is therefore inevitable. While negotiations between the manufacturer and the distribution brands begin in a few weeks for the year 2025, Suntory estimates that increases could in fact be applied to “several references”. Also, promotions on orange-based drinks could be reduced.
The group also says that it is working on new recipes with fewer oranges and more fruit mixtures.
