Why Your Orange Juice Bill Has Shot Up

Remember when a litre of supermarket orange juice cost less than £1? That same own‑label carton now goes for about £1.79 — a jump of 134% since 2020 and nearly 29% in the last year alone. It’s the sort of price shock that makes you double‑check the receipt at breakfast. The reasons read like a supply‑chain thriller. A bacterial disease called citrus greening has devastated orange trees in major producing regions, and extreme weather has hammered harvests. Brazil — which supplies most of the world’s orange concentrate — had its weakest crop since 1988, and in some areas two‑thirds of trees are affected. Florida’s output has plunged too, battered by hurricanes and the same disease. When crop volumes fall, commodity prices spike. Frozen orange concentrate climbed from around $1–$1.50 per pound over the last decade to a record $5.30 per pound by the end of last year; at one point traders offered the equivalent of $7 per kilo. Those wholesale blows take time to wash through to supermarket shelves — but when they do, consumers notice. Concentration of supply has made things worse. A handful of giant producers dominate the market, so when they struggle there are few alternatives. Attempts to diversify — from Spain, Morocco, Egypt or South Africa — have limited reach, and some growers there were also hit by bad weather. Trade friction and new rules have added more pressure. Recent tariffs and trade disputes have pushed up costs for some routes, while the UK’s move to change import tariffs in 2024 only partly eased the problem. Meanwhile, new packaging rules that make producers pay for recycling add a weight‑based fee that squeezes margins further. Producers and retailers have reacted in familiar ways. Some makers are blending orange with cheaper juices — mandarins, mango or pear — to keep sweetness and cut costs; cafes sometimes charge several pounds for a glass when ingredient costs are high. Big brands have restructured or re‑positioned products, and industry investment is backing long‑term measures — including tech projects aimed at fighting the blight. The orange juice story is a neat lens on wider grocery inflation. Other staples — beef, butter, coffee and milk — have also seen double‑digit rises, and the UK’s reliance on imported fruit and veg leaves it exposed to climate and supply shocks overseas. While a good harvest could bring prices down, the dominance of a few suppliers and persistent climate and disease risks mean volatility may not be going away. So next time you reach for the carton, you’re tasting more than fruit — you’re feeling the strain of a fragile global food system. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.bbc.co.uk | Read original article