Commodities and Futures News

Spared by Helene, Florida citrus industry braces for Milton

2024.10.09 15:23

By Marcelo Teixeira and Seher Dareen

NEW YORK (Reuters) – Many orange farms in Florida could be hit by Hurricane Milton when it makes landfall in the state on Thursday, according to citrus industry groups, only days after they largely escaped the destruction caused by Hurricane Helene.

“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.

“Milton has wobbled slightly south from early yesterday (Tuesday), which is worse for the three major growing regions,” said in a note the Citrus Research and Development Foundation.

Florida is the largest citrus producer in the United States, supplying oranges for the local juice production. Most of the farms are located in the Center-South part of the state, which is in the likely path of Milton.

A large impact by the storm would be another setback for the industry and consumers, which are struggling with low orange production and high prices. Orange juice futures in New York hit an all-time high last month. Another factor was falling output in top grower Brazil due to a historic drought and losses linked to the greening disease.

Florida’s orange production is already going through difficult times, mostly due to greening, a bacterial infection that can spread quickly. It has reduced the planted area in the state by half in the last 20 years.

The Citrus Research and Development Foundation said strong winds could help spread the disease to more groves.

© Reuters. A motorist drives amid heavy rain and wind gusts before the arrival of Hurricane Milton in Matlacha, Florida, U.S. October 9, 2024. REUTERS/Ricardo Arduengo

The hurricane will cause fruits to drop from the trees and get wasted. If trees are damaged, eventual replanting would mean no production for at least three years.

Sugarcane fields could also be impacted by the storm, since they are located not far from the orange areas. Florida and Louisiana account for 40% of the U.S. sugar production.



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