According to CNBC, February recorded the largest monthly increase in food prices since April 2020, the second month of the pandemic. Baked goods saw a 1.3% rise in prices, with flour and prepared mixes increasing by 1.1% due to surging wheat prices, as reported by BLS data. Dairy products and related items rose by 1.9%, marking the highest monthly increase since April 2011, primarily driven by escalating milk prices. Additionally, meat prices continued their upward trend, with poultry prices climbing 1.7% in February and ham prices rising by 3%.
The surge in citrus prices is occurring during a challenging growing season for farmers in states like Florida, California, and Texas. The USDA noted in its January citrus report that the production forecast for the crop was significantly lower than in previous years. The report indicated that adverse weather conditions and the spread of citrus greening disease would make this season particularly difficult. Freezing temperatures in Florida and Texas have negatively impacted this year’s orange crop. According to The Wall Street Journal, citrus greening, which currently has no cure, has spread throughout Florida and Texas, reducing yields for farmers and affecting the quality of the fruit. The disease results in smaller fruits with higher acidity and lower sugar content, making them less appealing to consumers.
Moreover, the ongoing supply chain crisis has complicated the already challenging task of growing and selling citrus fruits for farmers. Emily Ayala, an owner of Friend’s Ranches farm in Ojai, California, informed CNBC that farmers in her area had to discard about 10% of their healthy oranges due to a lack of available labor and freight for transportation. The increase in citrus prices has affected consumer products as well. Orange juice prices rose by 13.8% in 2021, based on USDA data cited by The Washington Post. Although orange juice sales had been declining for years due to consumers’ concerns about its high sugar content, the beverage experienced a resurgence in popularity at the onset of the pandemic. Many continue to associate orange juice with immune health due to its high vitamin C content. After two years of the pandemic, consumers still prioritize beverages that offer functional benefits, sustaining high demand for orange juice. A report from Tridge in July 2021 projected that orange juice sales would grow at a compound annual growth rate of 2.35% until 2025.
In light of these trends, the nutritional aspects of orange juice, such as its calcium citrate forms, may also contribute to its appeal, as consumers increasingly seek health benefits in their food and beverage choices.