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Spared by Helene, Florida citrus industry braces for Milton

investing.com 09/10/2024 - 18:55 PM

Hurricane Milton Threatens Florida Orange Farms

By Marcelo Teixeira and Seher Dareen

NEW YORK (Reuters) – Many orange farms in Florida could be affected by Hurricane Milton as it approaches the state on Thursday, just days after Hurricane Helene spared them from damage.

"While farmers can evacuate families and secure equipment, there is little we can do to prevent wind and floods from destroying groves," said Matt Joyner, Executive Vice President and CEO of Florida Citrus Mutual.

Hurricane Milton has shifted slightly south, increasing the risk for the three major citrus growing regions, according to the Citrus Research and Development Foundation.

As the largest citrus producer in the U.S., Florida is crucial for orange juice production. Most farms are located in the Center-South region, in Milton's potential path.

A significant impact from the storm would exacerbate the struggles of the industry and consumers, who are already facing low orange production and high prices. Orange juice futures reached an all-time high last month, driven by declining output in Brazil due to drought and greening disease losses.

Florida's orange production has been facing challenges due to greening, a bacterial infection that spreads rapidly and has cut the planted area in half over the past 20 years. The Citrus Research and Development Foundation warns that strong winds could further spread the disease.

The hurricane is expected to cause fruit drop and waste. Damaged trees would take at least three years to replant and restore production.

Additionally, sugarcane fields near orange farms might also be at risk, as Florida and Louisiana together account for 40% of U.S. sugar production.




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