If you’re the type of person that needs a groundhog to tell you how winter will pan out this year, don’t bother. Even if the sun decides to grace the US with an early bout of warm weather, the impact of recent winter storms will have some agriculture businesses’ pocket books frozen for the next few seasons.
As a leading producer of fresh citrus products, California has taken the biggest hit, with an estimated 75% of its citrus crops ruined due to persistent freezing temperatures in the region. California produces about 85% of the nation’s supply of lemons; about 20% of oranges (second to Florida). Aside from citrus fruit, the state is also a significant supplier of avocados, broccoli, strawberries, lettuce, and cut flowers. A message on the Web site for Sunkist, the state’s largest grower, eloquently explains the future impact for consumers.
An article in USA TODAY reports that prices for oranges, as well as other fruits and vegetables, could more than double within the next few weeks. The impact will funnel its way down through food and beverage makers to find its home at cash registers at local grocery and restaurants across the country.
With two of the largest makers of orange juice - Coca-Cola’s Minute Maid and PepsiCo’s Tropicana - already selling products with larger price tags due to hurricane activity in Florida, California’s cold snap puts a big squeeze on both companies’ orange juice segments. Other companies affected by supply shortage include VeryFine (a subsidiary Kraft Foods), Sunny Delight, Dole, Odwalla, and Florida’s Natural.
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