U.S. orange juice shipments plummet as Canadians discover Florida OJ exhausting to swallow

[ad_1] Feeling slightly squeezed within the orange juice aisle?

Between the climbing value for a carton of fresh-squeezed juice, steep counter-tariffs on U.S. juices like Tropicana, and now plummeting U.S. shipments, you would possibly fear this breakfast staple is in peril of turning into a luxurious good.

However business and enterprise specialists say none of that is surprising and that buyers have choices.

Canada is seeing a "dramatic discount" in imports of orange juice from Florida however that's to be anticipated, given the rising costs and the truth that the beverage was particularly focused by our counter-tariffs, mentioned Michael von Massow, a professor of meals agriculture and useful resource economics on the College of Guelph in Ontario.

In different phrases, the marked drop in imports has been compounded by the continuing client want to purchase Canadian, he mentioned.

"We're most likely seeing an impact right here the place simply the American product goes up in worth — which signifies that it is taking place in demand — however there are different choices on the shelf," von Massow informed CBC Information.

"Until you are tied particularly to fresh-pressed orange juice from Florida."

WATCH | Orange juice costs exhausting to swallow? You've gotten choices: Excessive worth of Florida OJ exhausting to swallow? You've gotten choices

When you've stopped shopping for orange juice from Florida as a result of the tariffs have despatched costs hovering, there are lots of choices to maintain the breakfast staple in your desk, says Michael von Massow of the College of Guelph. U.S. shipments drop to 20-year low The entire worth of U.S. shipments of recent orange juice to Canada noticed a steep drop in June to its lowest degree in additional than 20 years, in keeping with information from each the U.S. Census Bureau and Statistics Canada.

The entire import worth in June of recent orange juice from the U.S. into Canada was $5.78 million, in comparison with almost $12 million in June 2024, in keeping with Statistics Canada. Since January alone, the month-to-month import worth dropped by 64 per cent.

There are a variety of things at play, mentioned William Huggins, an assistant professor of finance and enterprise economics at McMaster College in Hamilton.

Provide constraints push up costs, which reduces demand, he mentioned. Plus, there are the 25 per cent counter-tariffs imposed by Canada on March 4.

Canada's response to U.S. President Donald Trump's tariffs impacts $30 billion price of U.S. items, together with orange juice.

"Canada particularly focused Florida orange juice as a method of creating a political level. We weren't even shy about it," Huggins mentioned.

Orange juice is virtually symbolic of the U.S., a lot in the identical method that maple syrup is for Canada, he defined.

It is also turn out to be emblematic of the patron boycott, he added: when consumers consider orange juice, they consider Florida, and after they consider Florida, they consider Trump and his Mar a Lago residence.

"Essentially the most primary factor you are able to do to offer your finger to essentially the most highly effective man on the earth is to harm his residence state's financial system," Huggins mentioned.

Costs on the best way up Orange juice costs have at all times been unstable, as The Related Press notes. Costs fall when bumper harvests create an oversupply of oranges and rise when frost or a hurricane knocks out fruit timber.

And lately, the value has been going up, in keeping with Statistics Canada.

The month-to-month common retail worth for a two-litre carton shot up in June to $5.95, from $5.62 in January, and is up 54 per cent in comparison with June 2020.

This yr's harvest in Brazil, the world's largest exporter of orange juice, is more likely to be the worst in 36 years because of flooding and drought, in keeping with a forecast by Fundecitrus, a citrus growers' group in Sao Paulo state.

Within the U.S., Florida's already diminished orange manufacturing fell 62 per cent within the 2022-23 season after Hurricane Ian battered a crop that was already struggling because of an invasive pest. Drought additionally reduce Spain's orange manufacturing final yr.

However what Statistics Canada does not present is that the value improve right here is essentially pushed by the value of Florida orange juice, von Massow reiterated.

At Loblaws, for instance, a 2.63-litre container of U.S.-based Tropicana may cost as much as $13.50 however the prepared-in-Canada PC model at present prices $6.50. At Metro, 2.63 litres of Tropicana orange juice is $13.99, however 2.5 litres of Irresistible model is $7.69.

Canadian-owned juice model Oasis, which sources its oranges from Brazil and bottles the juice in Quebec, prices $5.49 for 1.5 litres at Meals Fundamentals.

However all these costs are considerably increased than what Canadians paid in 2017. Based on Statistics Canada, a two-litre container of orange juice again then value about $3.61— 40 per cent lower than what it prices now.

<img loading="lazy" alt="A man inspects an orange grove" srcset="https://i.cbc.ca/1.7613994.1755719519!/cpImage/httpImage/image.jpg_gen/derivatives/original_1180/florida-citrus-future.jpg?im=Resize%3D300 300w,https://i.cbc.ca/1.7613994.1755719519!/cpImage/httpImage/image.jpg_gen/derivatives/original_1180/florida-citrus-future.jpg?im=Resize%3D460 460w,https://i.cbc.ca/1.7613994.1755719519!/cpImage/httpImage/image.jpg_gen/derivatives/original_1180/florida-citrus-future.jpg?im=Resize%3D620 620w,https://i.cbc.ca/1.7613994.1755719519!/cpImage/httpImage/image.jpg_gen/derivatives/original_1180/florida-citrus-future.jpg?im=Resize%3D780 780w,https://i.cbc.ca/1.7613994.1755719519!/cpImage/httpImage/image.jpg_gen/derivatives/original_1180/florida-citrus-future.jpg?im=Resize%3D1180 1180w" sizes="(max-width: 300px) 300px,(max-width: 460px) 460px,(max-width: 620px) 620px,(max-width: 780px) 780px,(max-width: 1180px) 1180px" src="https://i.cbc.ca/1.7613994.1755719519!/cpImage/httpImage/image.jpg_gen/derivatives/original_1180/florida-citrus-future.jpg?im=" style="aspect-ratio:1.4993646759847523" data-cy="image-img"/> Trevor Murphy inspects an orange tree in certainly one of his groves in February in Sebring, Fla. The entire import worth in June of recent orange juice from the U.S. into Canada was $5.78 million, in comparison with almost $12 million in June 2024. (Marta Lavandier/The Related Press) Worth will increase turning off shoppers And shoppers aren't shopping for it.

World orange juice demand dropped 15 per cent year-over-year between 2025 and 2024, in keeping with a Could report from Rabobank, a Dutch financial institution that focuses on meals and agriculture. They cited excessive costs, weaker client sentiment and restricted availability.

In a July report, Rabobank famous a "sharp decline in international orange juice provide."

Some Canadian companies have informed CBC they've stopped serving orange juice as they rethink their relationship with U.S. merchandise.

Huggins mentioned he actually does not foresee orange juice turning into the following "liquid gold," like olive oil, which lately noticed its worth double over three years.

Shoppers produce other choices, he defined, and the boycott sentiment remains to be going sturdy.

"It isn't like there aren't any substitutes for orange juice. Individuals will simply drink apple juice," Huggins mentioned.

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Carol Ann McDevitt, who owns the Roaring 20s Mattress and Breakfast, about 40 kilometres west of Fredericton, is placing apple cider on the menu instead of imported U.S orange juice. And it’s not due to the associated fee. [ad_2] Source link