Concerns for future of orange juice -Smart Farmer (Australia)

12-Mar-2020 05:09:31 AM

Citrus Australia has revealed a brutal reality: If things don't change, there will be no Australian orange juice on shelves in as little as five years.

It is calling on major retailers to lift prices to juice growers, who are facing a decline in production from seasonal conditions.

Some growers have made the difficult decision to downsize, unable to make a profit and operating on a loss of hundreds of dollars a tonne with the ever-increasing cost of water.

Citrus Australia chief executive officer, Nathan Hancock, said prices paid for fresh juice by supermarkets to juice companies do not reflect the seasonal environmental impacts.

"The juice growing industry is under immense pressure and Australian consumers may not have access to fresh Australian orange juice in as little as five years," Mr Hancock said.

"We implore our major retailers to recognise the impact seasonal conditions are having on our growers and to lift their prices accordingly."

Yet the change needs to happen across the board according to Redbelly Citrus' Vito Mancini, who says juicing companies need to improve communication with their growers.

"We urge the processing sector to really engage with growers to help develop a plan for the future of the juice sector," he said.

Last December, juicing companies offered growers $280 per tonne for Valencias, and were painting a poor picture of future prices. Yet just six weeks later, the price virtually doubled, he said.

"That is the confusion there. A lot of growers enjoy growing juicing oranges as it works in with their business models, but we need the confidence that we aren't going to be left behind.

"There will always be a home for juicing in this region as we produce the best juicing fruit in the world, but time will tell if the profitability from production is there for the growers to continue."

Lion Dairy and Drinks, who source a lot of oranges from the region, said their juice company offered competitive pricing that supported long-term sustainability.

In 2018, it launched Lion Orchard Pride, a sustainability program.