Orange Juice Sales Expected to Soar in U.S.

Americans will buy more orange juice this year than ever before because of a drop in price and an abundant supply, says a university researcher.

“As the retail price per gallon of orange juice decreases, consumption will reach 950 million gallons by the end of 1986,” said Dr. Dan Gunter, economic research director at the Institute of Food and Agricultural Sciences at the University of Florida.

“Projected consumption for 1986 represents an increase of 133 million gallons from 1985, the highest jump since 1980.”

The reason for the price decline is a flood of orange juice from Brazil, said Bobby F. McKown, executive vice president of Florida Citrus Mutual in Lakeland.

The price for orange juice is expected to average $3.28 per gallon in 1986, a decrease of 52 cents from last year. At the price of $3.80 per gallon, 817 million gallons was sold throughout the country last year.

Prices have been dropping steadily over the last 12 months, McKown said.

The record consumption of 808 million gallons occurred in 1980 when orange juice was $2.38 per gallon.

“On the average, every American consumes about four gallons of orange juice a year,” Gunter said. “About 83% of American households purchase orange juice.”

He said demand is only half of the equation. “Supply is equally important.”

The nation’s orange juice supply comes largely from Florida and Brazil. Freezes in Florida since 1980 have made Brazil the second-largest single orange juice supplier to the country.

Slightly more than 50% of the nation’s orange juice comes from Florida, down from 95% since 1980. More than one-third of the orange juice processed in Florida today comes from Brazil.