How drought and disease in Brazil threaten Sunday brunch

A breakfast staple is under threat as disease and drought in Brazil leads to a global shortage of oranges and price hikes.

Major supermarkets say their suppliers are meeting demand for orange juice, but Australian consumers have been warned to expect shortages and price hikes.

Synergy Food Group operations manager Adrian Hall said Australia’s citrus supply chain was feeling the knock-on effects of Brazil’s poor harvest.Credit: Nikki Short

Central Queensland University management and innovation senior lecturer Imran Ali said the frozen orange juice concentrate shortage from Brazil had already triggered orange juice supply shortages and significant price hikes in the UK, Europe and United States.

“The consumers in the world’s other markets have already started moving to alternate juice options including orange juice blended with grapes, mango or pineapple,” he said.

Ali said he expected the ongoing supply shortage would prompt Australian consumers to switch to other juices including mandarin.

Brazil is the world’s largest producer and exporter of oranges and frozen orange juice concentrate.

Synergy manufactures fruit and vegetable juices including Nectar Cold Pressed Juice from its Brookvale plant on Sydney’s northern beaches.Credit: Nikki Short

However, Ali said the country’s orange production had faced crises in the past few years due to heat stresses, droughts and citrus greening diseases.

“Given this, Brazil’s orange juice production and export have already significantly declined and it is estimated that it will continue to decline by a quarter over the next year,” he said.

Australia is one of the world’s top orange producers, but Ali said 50 per cent of its orange juice is imported, mostly from Brazil.

The shortage of frozen orange juice concentrate from Brazil had not visibly impacted the Australian market because locally produced orange juice had filled the supply gap.

“However, if the situation remains, it is highly likely that Australian consumers will also face orange juice supply shortages and price climbs shortly,” Ali said.

Ali also said locally produced orange juice was more expensive to make due to labour and energy costs.

One local orange juice manufacturer said Australia’s citrus supply chain was feeling the knock-on effects of Brazil’s poor harvest.

Synergy Food Group operations manager Adrian Hall said the impacts of Brazil’s growing challenges were expected to continue for the next three years.

“Whilst orange prices have risen and will continue to rise, the real challenge for manufacturers of fresh juice like us will be the ability to actually access the fruit,” he said.

Synergy manufacturers fruit and vegetable juices including Nectar Cold Pressed Juice from its Brookvale plant on Sydney’s northern beaches.

Hall said the company had not passed on price rises to consumers ”and will resist doing so as long as reasonably possible”.

“We want to do our bit as a company to not make the simple pleasures in life like having a nice breakfast with a coffee and a glass of fresh orange juice more expensive than it needs to be,” he said.

A Woolworths spokesman said the supermarket giant was closely monitoring the market. Coles was contacted for comment.

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