by DEE-ANN DURBIN and TATIANA POLLASTRI AP Business Writer
Brazil — Orange juice prices have always been volatile
falling when bumper harvests create an oversupply of oranges and rising when frost or a hurricane knocks out fruit trees
But the record-high prices the world is seeing for OJ right now may be on the table for a while since the diseases and extreme weather ravaging orange groves in some top-producing countries aren't easily resolved problems
the world's largest exporter of orange juice
is likely to be the worst in 36 years due to flooding and drought
a citrus growers' organization in Sao Paulo state
"The concern isn't just that the price of juice is going up
The concern is not having the juice," Oscar Simonetti
Florida's already diminished orange production fell 62% in the 2022-2023 season after Hurricane Ian further battered a crop that was struggling due to an invasive pest
Drought also cut Spain's orange production last year
a 12-ounce can of frozen orange juice concentrate cost an average of $4.27 in April
42% more than during the same month a year earlier
where the British Fruit Juice Association says supplies are at 50-year lows
the price of fresh orange juice rose 25% over the past year
according to consumer research company Nielsen
Those price increases are turning off inflation-weary consumers
Orange juice consumption has fallen 15% to 25% in major global markets — including the U.S
and the European Union — over the last year
a Dutch bank that focuses on food and agriculture
a principal for fresh food client insights at market research company Circana
said consumers are increasingly getting their morning fruit intake from energy drinks
smoothies and other beverages besides orange juice
"The price gets high and people consider other alternatives," she said
Global orange juice consumption was already declining before the current price hikes due to competition from other drinks and public concern about the amount of sugar in fruit juices
it should help balance supply with demand and keep prices from rising much further
But it expects limited supplies will keep prices elevated for some time
orange juice is disappearing from shelves altogether
McDonald's in Australia removed orange juice from its menu in favor of an "orange fruit drink" that contains 35% orange juice
expects to stop shipping its Sunkist brand orange juice – which uses juice from Brazil – by the end of June because of low juice supplies from Brazil
based in the northern Japanese city of Sapporo
stopped shipments of 1-liter (about a quart) and 450-milliliter (15.2-ounce) packs of orange juice
which it sells under an agreement with Dole
Some companies are considering using alternatives to oranges in their products
introduced a mandarin juice product in February
citing the high price of regular juicing oranges
But others are tight-lipped about their plans
Several major orange juice makers – including Dole
which makes the Simply and Minute Maid brands – declined to comment or failed to respond to inquires from The Associated Press
The roots of the current supply troubles stretch back decades
an invasive bug called the Asian citrus psyllid arrived in Florida
injecting bacteria from its saliva into the state's orange trees
The bacteria slowly kills the tree by destroying its root systems
There's no known cure once a tree is infected
before the disease – called citrus greening – hit Florida
the state produced 200 million boxes of oranges
a professor of entomology and the director of the University of Florida's Citrus Research and Education Center
said no type of orange tree is totally resistant to greening
but scientists have been trying to breed trees that are more tolerant of it
Citrus greening arrived in Brazil around the same time as Florida
but it has progressed more slowly there because Brazil has much larger orange groves
Bugs spread the disease by flying from tree to tree
Fundecitrus estimates that 38% of Brazil's orange trees had citrus greening in 2023
estimates that 20% of his production is affected by greening
Oranges on affected trees don't ripen properly and fall off early
Shifting production to other locations isn't necessarily an option
and the citrus psyllid doesn't fare as well in the state's climate
But California also doesn't get the rainfall needed for juicing oranges; its oranges are usually sold for eating
Another issue impacting orange harvests is extreme weather
which is becoming more common as the world warms due to climate change
resulting in lower output and poorer fruit quality
the impacts of El Niño have been particularly dramatic
with a historic drought in the Amazon and devastating floods in the southern state of Rio Grande do Sul
"The temperatures are high during the day
The plant can't stand this temperature difference," Simonetti said
Brazil's 2024-2025 harvest is expected to yield 232 million boxes of oranges
"We have never seen a harvest like this," Vinícius Trombin
the coordinator of Fundecitrus' crop estimates survey
To make up for the anticipated smaller yield
some producers are considering blending oranges with tangerines to make juice
"The consumer wants an orange juice made up 100% out of oranges," he said
She thinks blends with other fruits might help hold down costs and revive consumer interest in orange juice
"The idea of multiple flavors is very popular and is a way to stand out," she said
"You've got to keep people engaged
it's really hard to get people back."
AP Writers Yuri Kageyama in Tokyo and Eleonore Hughes in Rio de Janeiro contributed
FILE - Cashiers process purchases at a Walmart Supercenter in North Bergen
are stepping up discounting heading into the summer of 2024
as they hope to offer frustrated shoppers some relief from higher prices and entice them to open their wallets.(AP Photo/Eduardo Munoz Alvarez
FILE - People walk towards a Target store in Clifton
as they hope to offer frustrated shoppers some relief from higher prices and entice them to open their wallets
“Retailers recognize that unless they pull out some stops on pricing
they are going to have difficulty holding on to the customers they got,” Neil Saunders
managing director of consulting and data analysis firm GlobalData
“The consumer really has had enough of inflation
and they’re starting to take action in terms of where they shop
While discounts are an everyday tool in retail
Saunders said these aggressive price cuts that cover thousands of items announced by a number of retailers represent a “major shift” in recent strategy
He noted most companies talked about price increases in the past two or three years
and the cut mark the first big “price war” since before inflation started taking hold
and we’re going to manage our (profit) margins
and we’re going to be the Walmart that we’ve always been,” CEO Doug McMillon told analysts earlier this month
a large operator of convenience stores in rural areas and small towns
is launching its most aggressive deals in terms of their depth in roughly 20 years for both members of its free loyalty program and other customers
members of Arko’s free loyalty program who buy two 12-packs of Pepsi beverages get a free pizza
The promotions kicked off May 15 and are due to end Sept
Kotler said he focused on essential items that people use to feed their families after observing that the cumulative effects of higher gas prices and inflation in other areas had customers hold back compared to a year ago
we have seen the trend of consumers cutting back
and consumers reducing their purchases,” he said
crafts chain Michaels last month reduced prices of frequently purchased items like paint
The price reductions ranged from 15% to up to 40%
Michaels said the cuts are intended to be permanent
Many retailers said their goal was to offer some relief for shoppers
But Michaels said its new discounts brought prices for some things down to where they were in 2019
“Our intention with these cuts is to ensure we’re delivering value to the customer,” The Michaels Companies said
”We see it as an investment in customer loyalty more than anything else.”
Target said it was difficult to compare what its price-reduced products cost now to a specific time frame since inflation levels are different for each item and the reductions varied by item
said the average price of a two-liter bottle of soda in April was $2.27
That compares with $1.53 in the same month five years ago
A pound of white bread cost an average of $2 last month but $1.29 in April 2019
One pound of ground chuck that averaged $5.28 in April cost $3.91 five years ago
retailers are trying to get customers back to their stores
Target this month posted its fourth consecutive quarterly decline in comparable sales — those from stores or digital channels operating at least 12 months
the share of online sales for the cheapest items across many categories
increased from April 2019 to the same month this year
which covers more than 1 trillion visits to U.S
the market share for the cheapest groceries went from 38% in April 2019 to 48% last month
while the share for the most expensive groceries went down from 22% to 9% over the same time period
Saunders doesn’t think retailers are raising prices on other items to make up for the ones they lowered since doing that would bring a backlash from customers
Target declined to disclose details but said its summer price promotion was incorporated into the company’s projected profit range
which falls below analysts’ expectations at the low end
as well as the first comprehensive set of guidance on actions that companies
NGOs and others can take to sustain the world’s forests
we are working to conserve the biodiversity and health of all forestland
including those that are not used to make renewable
More from International Paper Company
Brazil (TND) — Brazil’s government on Monday launched a lawsuit against several landowners to seek compensation for damage to the Jamanxim National Forest
according to government-run media outlet AgenciaBrasil
in collaboration with the Chico Mendes Institute for Biodiversity Conservation (ICMBio)
It accuses the landowners of causing lasting damage through deforestation
ICMBio claimed to have discovered 3,000 cattle in the deforested areas which had not been registered with the agricultural surveillance agency
Brazil Attorney General Jorge Messias vowed to aggressively prosecute the defendants
any type of environmental violation,” he said
“Especially in areas of conservation and environmental preservation
Damage calculations were based on the “social cost” of greenhouse emissions in the damaged areas
California leveled a complaint against energy companies to hold them accountable for the impacts of climate change
That lawsuit aimed to create a fund to pay for future damages caused by climate-related disasters
“It is time they pay to abate the harm they have caused,” California Attorney General Rob Bonta said
We will meet the moment and fight tirelessly on behalf of all Californians
in particular those who live in environmental justice communities.”
Follow Jackson Walker on X at @_jlwalker_ for the latest trending national news
MOGI GUACU, Brazil — Orange juice prices have always been volatile, falling when bumper harvests create an oversupply of oranges and rising when frost or a hurricane knocks out fruit trees
But the record-high prices the world is seeing for OJ right now may be on the table for a while, since the diseases and extreme weather ravaging orange groves in some top-producing countries aren’t easily resolved problems
A worker harvests oranges Thursday on a farm in Mogi Guacu
This year’s harvest in Brazil
the world’s largest exporter of orange juice
a citrus growers’ organization in Sao Paulo state
“The concern isn’t just that the price of juice is going up
The concern is not having the juice,” Oscar Simonetti
Orange farmer Oscar Simonetti examines his fruits
with some affected by citrus greening bacteria
on Thursday at his plantation in Mogi Guacu
“The concern isn't just that the price of juice is going up
The concern is not having the juice,” he said
where the harvest is likely to be the worst in 36 years
Those price increases are turning off inflation-weary consumers
Jonna Parker, a principal for fresh food client insights at market research company Circana, said consumers are increasingly getting their morning fruit intake from energy drinks
Global orange juice consumption was already declining before the current price hikes due to competition from other drinks and public concern about the amount of sugar in fruit juices
Workers harvest oranges Thursday on a farm in Mogi Guacu
McDonald’s in Australia removed orange juice from its menu in favor of an “orange fruit drink” that contains 35% orange juice
expects to stop shipping its Sunkist brand orange juice by the end of June because of low juice supplies from Brazil
But others are tight-lipped about their plans. Dole, Tropicana
Uncle Matt’s and Coca-Cola declined to comment or failed to respond to inquiries
A spoiled orange hangs on a branch Thursday in a farm in Mogi Guacu
where some 38% of orange trees had citrus greening in 2023
The roots of the current supply troubles stretch back decades. In 2005, an invasive bug called the Asian citrus psyllid arrived in Florida, injecting bacteria from its saliva into the state’s orange trees. The bacteria slowly kills the tree by destroying its root systems. There’s no known cure once a tree is infected
The impact has been devastating. In 2004, before the disease — called citrus greening — hit Florida
a professor of entomology and the director of the University of Florida’s Citrus Research and Education Center
Fundecitrus estimates that 38% of Brazil’s orange trees had citrus greening in 2023
Oranges on affected trees don’t ripen properly and fall off early
Shifting production to other locations isn’t necessarily an option
and the citrus psyllid doesn’t fare as well in the state’s climate
But California also doesn’t get the rainfall needed for juicing oranges; its oranges are usually sold for eating
Last year, nine heat waves swept across Brazil, resulting in lower output and poorer fruit quality. This year, the impacts of El Niño have been particularly dramatic, with a historic drought in the Amazon and devastating floods in the southern state of Rio Grande do Sul
Brazil’s 2024-2025 harvest is expected to yield 232 million boxes of oranges
“We have never seen a harvest like this,” Vinícius Trombin
the coordinator of Fundecitrus’ crop estimates survey
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a shop owner reaches into a drink display refrigerator at his convenience store in Kent
A study on America’s eating habits released on Tuesday
2019 shows only slight improvement from 1999 to 2016
While adults cut down a bit on added sugars and ate marginally more whole grains
they still eat too many sweetened foods and unhealthy fats
CHICAGO (AP) — Americans’ diets are a little less sweet and a little crunchier but there’s still too much sugar
the authors estimated there was a modest improvement over 16 years on the government’s healthy eating index
That’s hardly cause for celebration — 100 is the top score
Diets are still too heavy on foods that can contribute to heart disease
a nutrition researcher at Tufts University near Boston
“Despite observed improvements,” the authors wrote
Among them: Getting Americans to cut down on snack foods
butter and other foods containing saturated fats
The study found these unhealthy fats increased from 11.5% to almost 12% of daily calories
And while the biggest change was a small drop in added sugars
The government says less than 10% of daily calories should come from added sugars
Researchers think fewer sweetened sodas contributed to the decline
but Zhang noted added sugars are often found in foods that don’t even seem sweet
oatmeal and other whole grains are among the types of foods adults ate slightly more of
each of those contributed to less than 5% of daily calories in 2016
Salt intake dipped slightly and a small decline in fruit juice contributed to a drop in low-quality carbs
But these still amount to 42% of daily calories
including many likely from highly processed white bread and other refined grains
The study is based on in-person health surveys conducted every two years that ask adults to recall what foods they ate in the previous 24 hours
adults were asked that question twice several days apart
The study lists food groups rather than individual foods; for example “whole grains,” not oatmeal
and “refined grains,” not white bread but Zhang said those two foods are among the most common grains in the U.S
dietary guidelines recommend a “healthy eating pattern” to reduce chances of developing chronic disease
The focus should be on nutrient-dense foods including vegetables
low-fat dairy products; plus varied proteins sources including seafood
to more than 7%; obesity rates increased during many of those years
Heart disease remains the leading cause of death
“Cooperation from the food industry” is key
Follow AP Medical Writer Lindsey Tanner at @LindseyTanner
FILE - An orange blossom grows alongside some ripening fruit in a grove on Dec
The owner of a commercial nursery has won a $1.2 million judgment against the Florida Department of Agriculture for destroying his citrus trees in the 2000s during an attempt to stop the spread of citrus greening
(AP) — The owner of a commercial nursery has won a $1.2 million judgment against the Florida Department of Agriculture in the latest verdict against the state agency for destroying citrus trees in the 2000s during an attempt to stop the spread of costly tree diseases
A jury in Orlando last week determined the state agency had destroyed more than 160,000 citrus plants in an effort to stop citrus greening and Gary Mahon deserved the $1.2 million as compensation at fair market value
The Department of Agriculture had argued Mahon did not deserve compensation since he could have avoided his losses by moving his citrus plants into greenhouses
Mahon’s attorneys disputed that interpretation of the law
Florida lawmakers passed legislation requiring citrus plant growers to sell or destroy plants not grown in greenhouses to protect the state’s citrus industry from citrus greening
Citrus greening is among the biggest threats to the U.S
citrus industry since infected trees produce fruits that are green
The disease can eventually kill infected trees
“While the Florida Legislature and Department of Agriculture meant well by passing and enforcing this law
it had a catastrophic impact on citrus nursery growers,” said Alexander Clem
“Our client fought for years to get justice for the thousands-upon-thousands of plants he was forced to destroy
and we are thrilled he will be compensated and can move on with his life.”
the Department of Agriculture said Wednesday that it would appeal the case
“This case has been long fought by our department
and our position has not changed: the damage to Mr
Mahon’s citrus crop was a direct result of his failure to come into compliance with state regulations,” the statement said
Florida’s citrus industry has been threatened with greening and another disease called citrus canker
Citrus canker can cause the leaves and fruit on citrus trees to drop prematurely and create unappealing lesions on the fruit
The lesions leak bacterial cells that can spread to other trees by wind
state agriculture workers destroyed citrus trees in an effort to stop their destructive spread
won a judgement of $42 million against the state for destroying their citrus trees
Tens of thousands of homeowners in Broward
Lee and Palm Beach counties also have won class action lawsuits against the state over their destroyed trees
A case in Miami-Dade County is still pending
FILE - The symbol for Pepsico appears on a screen at the Nasdaq MarketSite in New York
PepsiCo will sell Tropicana and other juices to a private equity firm in exchange for pretax proceeds of $3.3 billion
PepsiCo will have a 39% non-controlling stake in a newly formed joint venture in the deal with PAI Partners .(AP Photo/Richard Drew
PepsiCo will sell Tropicana and other juices to a private equity firm in a $3.3 billion deal
The New York drink and snack company will keep a 39% non-controlling stake in a newly formed joint venture in the deal with PAI Partners
The sale reflects the industry’s uncertainty about demand for fruit juice as consumers look for healthier options with less sugar
head of soft drinks at Euromonitor International
“This deal reflects the desire of the industry to focus and innovate around a smaller core of categories and brands
coffee and the staple carbonated soft drinks,” Telford said
juice sales volumes actually rose last year as more people enjoyed breakfast at home during the pandemic and sought the immunity benefits of vitamin C
But that was a blip in a longer-term decline
Overall juice sales fell 3% between 2015 and 2020
the managing partner of Beverage Marketing Corp
The group does not see that trend changing
has also been shedding slow-selling brands
over the last year so it can focus on stronger performers
But Coke is holding on to its Minute Maid and Simply juice brands for now
The juice business delivered about $3 billion in revenue for PepsiCo last year
but at operating profit margins that were below the company’s overall margins
Pepsi said falling juice sales offset gains for other products in North America
sports drinks like Gatorade and energy drinks like Propel
PepsiCo Chairman and CEO Ramon Laguarta said in a prepared statement Tuesday that the deal “will free us to concentrate on our current portfolio of diverse offerings
including growing our portfolio of healthier snacks
PepsiCo bought Tropicana in 1998 and the Naked juice brand
It was heading in another direction by 2018 when it bought SodaStream
has the option to sell certain juice businesses in Europe
The deal is expected to close late this year or early next year
Pepsi shares were flat in early trading Tuesday
AP Business Writer Dee-Ann Durbin contributed to this report
acrid smell hits you just outside the main entrance
it wafts on the air under a brilliant Brazilian sun
papermakers have a saying about that smell
their Brazilian counterparts say the same thing
“The smell we say is money,” said Eduardo Possamai
Papermaking — an industry that has buoyed Maine’s economy for 100 years — is taking its turn on the global stage
the industry is spreading to developing nations
where labor and fiber are cheaper and corporate investment flows — ominous signs for Maine
its papermakers saw the potential in eucalyptus trees
they honed a species that makes Brazil the top producer of market pulp in the world
coated papers made at the mills in Rumford and Jay
Maine’s spruce and fir forests produce the long fibers needed for the pages of Cosmopolitan
Sports Illustrated and Seventeen magazines
But for other mills such as those in Woodland
Millinocket and Old Town — which make paper for printers
business forms and tissue — Brazil is a competitive powerhouse
•labor costs that are a small fraction of those in the U.S.;
•fiber costs that are little more than half of those in the U.S.;
because of Brazil’s independence from foreign oil
a genetically enhanced eucalyptus species that grows to maturity five times faster than Maine’s pulp trees — almost an inch a day
but we didn’t have much technology 30 years ago,” said Ludwig Moldan
“But we invested a lot in eucalyptus to improve its wood quality
That’s our great secret.” Seeing the forest and the trees
Just inside the main entrance at the Mogi GuaEcu mill are three silver-and-blue motor coaches
waiting for the end of a shift to take workers home — a perk for many of the 1,300 people who work there
A canopied stage sits outside the cafeteria
Bright posters designed by children of the staff tout safety precautions everywhere
the Mogi GuaEcu mill was built to take advantage of the surrounding natural resources: its namesake river (Mogi GuaEcu means “river of large snakes” in the Tipi language) and available land
the Mogi GuaEcu mill is enjoying something Maine papermakers haven’t seen in a long while: huge capital investments
IP also owned the Androscoggin Mill in Jay and another mill in Arapoti
Both were sold as part of the Tennessee-based manufacturer’s decision to focus only on uncoated paper — the kind they specialize in at Mogi GuaEcu
IP is sinking $60 million into upgrades at Mogi GuaEcu
One project will eliminate chlorine from the paper-making process and the other is streamlining its effluent system
It’s just a snippet of the $12 billion that paper companies have invested in their Brazil facilities in the last decade and the $14 billion they pledge going into the next
“We are one of the most profitable mills inside IP,” said Luiz Carlos Rehder
“We are profitable because of the engagement of our employees.” The mill is already a star
It earns a 94 percent efficiency rating within IP’s corporate kingdom of 116 mills; the average is in the high 80s
It also hasn’t had a lost-time incident in its manufacturing plant in 689 days and counting
The average overall incident rate for IP is 1.2
but a renewed focus on safety brought the rating down to 1.6 in August
but tipped their caps to their Brazilian cousins
“Verso has a plan and is working hard to get to the level that the Brazilian mills achieve,” said William Cohen
challenges to Brazil’s pulp and paper industry
yet 35 percent of operating costs go toward taxes
A cumbersome government with suffocating layers of bureaucracy makes doing business in Brazil difficult — so much so that it is considered the least business-friendly country in South America
The focus of intense global criticism for its lack of protection of the Amazon rain forest
Brazil now has stringent environmental regulations
The pulp and paper industry is required by law to protect native species of trees already on its land; it can only grow plantation species where native species are not growing and can only harvest plantation species for its mills
The upshot: The industry manages 4.2 million acres of plantation forests
and preserves another 6.4 million acres of natural forests
“Between 25 and 30 percent of our land is in native species,” said Luis Fernando Silva
“It is a legal requirement we take very seriously.”
Brazil’s government flexes its muscle in other ways as well
The law requires that workers receive vacation (four weeks minimum); long-term disability; Social Security payments; maternity leave; minimum wage ($350 reals per month — about $167 U.S.
considered a livable wage); notice of layoffs; and FTGS (a form of severance pay)
It also mandates a bonus of one month’s pay per year
called simply the “13th.” The extra payment is usually made in two installments
mill management also offers employees health insurance; profit sharing; assistance with car and homeowners insurance; free transportation to and from work; an allowance for families with disabled children; child care allowance; Christmas baskets and gifts; life insurance; meal subsidies and a pension plan
Brazil’s papermakers make about $4,000 U.S
“They are considered good jobs,” said Marcos Gardinali
spent 13 years working at the mill in the safety and security division
A shopkeeper in Mogi GuaEcu’s central plaza
Gardinali remembers his mother washing his dad’s uniform two or three times to remove the paper mill smell
and — more warmly — the terrific holiday parties the mill would throw for its workers
it would be the dream of everyone to work inside there,” he said
German auto parts maker Mahle opened a factory here a few years ago
giving IP a run for the money attracting workers
And two internationally renown ceramic factories still operate in Mogi GuaEcu
producing tiles and other ceramics for high-end designers that carry the Italian names of the founding families who started the factories 50 years ago
commercial farming and other businesses are springing up in this community of 100,000
from financial services to restaurants to car washes
Yet the underpinnings of its prosperity are obvious just outside of town
The fierce concentration on Maria de Fatima da Costa’s face contrasts with the gentle flutter of her scissors and the dappled sunlight that plays off her hands as she strips most of the leaves from a small green sprig
Costa repeats that motion 5,000 times a day preparing the next generation of genetically enhanced eucalyptus trees for planting
Methodically she moves along the long rows of sprig trays
one of a team of nursery workers who will send 11 million new sprouts annually into the fields
ensuring the mill a constant supply of superior fiber
And it has made millions for the papermakers who use it
“This is where it all begins,” said Silva as he sweeps his hand across the nursery
scientists have spent the last 20 years refining eucalyptus for pulp
By fusing the best attributes of two species of eucalyptus
they have produced a new species that is resistant to disease
it produces high-quality fiber for paper making
Growing at almost two centimeters per day (about four-fifths of an inch)
Urograndis allowed Brazil to export $2.9 billion in market pulp in 2005; this year
making it the largest exporter of bleached hardwood pulp in the world.