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The Honolulu Advertiser
Posted on: Wednesday, November 8, 2006

Dismal Florida orange crop to increase prices up to 8%

By Travis Reed
Associated Press

ORLANDO, Fla. — PepsiCo Inc. said yesterday it will boost prices on Tropicana and Dole orange juice by 4 percent to 8 percent at the start of 2007, further fallout from what's expected to be the worst Florida citrus crop in more than a decade.

The company also said it would trim the size and frequency of discounts offered to consumers. Combined with price increases announced in September, the changes effective Jan. 1 amount to a 20 percent increase for Tropicana and Dole.

Tropicana is the largest buyer of oranges from Florida, which is by far the largest domestic producer. The state is second only to the country of Brazil in world orange production.

But two nasty hurricane seasons, drought and crop disease has caused a significant drop in Florida's harvest. Last month, the U.S. Department of Agriculture predicted 135 million boxes of oranges would be picked in the 2006-07 season, down from 148 million boxes last year.

If the forecast holds true, it would be the worst crop in more than 15 years.

Before the past two hurricane seasons, Florida was averaging about 220 million boxes, which weigh 90 pounds each.

Last week, the Coca-Cola Co. raised prices 9 percent to 11 percent for its Minute Maid and Simply Orange juice products, citing the Florida shortage and higher fuel and energy costs. It was the company's fourth orange juice price increase in 2006 after holding steady for five years.