Valencia, along with other regions in Spain, experienced severe floods on 29 October, causing extensive damage, including to the citrus industry.

The Agricultural Association of Young Farmers (AVA-ASAJA) reported that the citrus sector incurred damages exceeding €192m (US$205m). This event has led to disruptions in the European market, which relies on Spain for citrus fruits for both food and drinks.

The Citrus Management Committee has stated that Valencia's packaging facilities remain operational. However, the global supply chain faces pressures from reduced crop yields in Brazil and the United States, major producers of the world's orange juice. Brazil is dealing with its smallest crop yield in over 30 years due to drought and citrus greening, while Florida faces similar challenges. The British Fruit Juice Association has noted the lowest orange juice availability in more than 50 years, with expectations that this scarcity may persist.

In response to rising orange juice prices, which have increased by 130% year-on-year according to Mintec's Benchmark Prices, companies are exploring alternative solutions. Coldpress in the UK has introduced mandarin juice, utilizing high-pressure processing technology. Andrew Gibb, the founder of Coldpress, has endorsed mandarins as a nutritious alternative to oranges. Similarly, Uncle Matt's in the US is expanding its product range to include teas and wellness shots, incorporating organic orange juice, coconut water, and ginger.

With Spain's citrus supply diminished, Mediterranean countries and South American nations are adjusting to meet European demand. Greece, Morocco, and Egypt are increasing their exports, while Argentina and Peru are revising their export strategies to align with EU standards. The challenges faced by the orange juice sector, from environmental disasters to agricultural diseases, continue to impact global juice production and distribution, leading to higher prices and limited availability.

Source - https://www.freshplaza.com