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Wednesday, 2 November 2005, 13:37 GMT

Hurricanes squeeze juice prices

Diseased oranges on Florida trees Fruit juice could be the latest commodity to see its price soar as a result of the recent US hurricanes.

The British Soft Drinks Association (BSDA) has warned that the cost of juices could surge by up to 25%.

It said hurricanes and strong winds in the US and Caribbean had affected orange crops.

A drought has also hit apple growers in Poland - and the resulting 10% drop in juice supplies could double the price of apple concentrate, it warned.

"It is possible that retailers will be able to contain this within their existing prices but I wouldn't expect so on this scale," said Richard Laming, BSDA public affairs manager.

"I think consumers should brace themselves for substantial price rises. The general trend is to try to keep prices down but fruit juice is a natural product and we can't beat the weather."

Hurricane losses

According to the trade association, UK consumers drink about 1,200 million litres of fruit juice a year - with orange juice making up the bulk of the market at 70% and apple juice second at 13%.

In the US on Monday, orange juice prices surged to new record highs as news of crop damage from Hurricane Wilma emerged.

Florida Citrus Mutual, which represents the state's growers said it had lost at least 17% of its crop to the storm last week causing a loss of fruit worth about $180m (£102m).

The news prompted orange juice prices for January delivery prices to hit a record $119.90 on the US commodities market.



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Related to this story:
US spending up on storm payouts (31 Oct 05 |  Business )
Wilma hits Cuba as Florida braces (24 Oct 05 |  Americas )
Hurricanes lift US discount shops (06 Oct 05 |  Business )
Oil hits new high on storm fears (30 Aug 05 |  Business )
Warning over fruit juice 'excess' (26 Jan 05 |  Health )

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