Brazilian orange production in key areas is expected to reduce by 24 percent this year due to severe heat waves and disease, leading to significant price increases on the global orange juice market.
Brazilian citrus industry predicts that in the 2024-2025 harvest season, orange production will fall to 232 million boxes (each box weighs approximately 40 kilograms), the lowest in 36 years.
"The average yield per hectare used to be 800 boxes of oranges. However, with citrus greening disease and other issues, we now produce only 560 boxes, meaning a 30 percent loss. This reduction is substantial given the total farming area," said Victor Krauss, who manages an 800-hectare citrus plantation in Casa Branca, Sao Paulo.
The yield drop has caused domestic orange prices to surge: the price of one box oranges has risen from 45 reais (about 8 U.S. dollars) last year to 80 reais (about 14 U.S. dollars) this year, a 78 percent increase.
As the world's largest exporter of orange juice, Brazil supplies over 70 percent of the global market. However, the sharp decline in orange production has led to a rapid increase in orange juice prices worldwide.
Industry data reveal that international orange juice futures prices have risen by about 54.7 percent this year. Despite a 9.3 percent decrease in the total volume of orange juice exports in the 2023-2024 harvest season, revenue increased by 21.3 percent to about 2.5 billion U.S. dollars.
Analysts argue that while rising prices may benefit orange farmers, the shortage and ensuing price hikes pose challenges to the juice processing industry.
"We've learned that many companies are forced to prioritize certain clients due to product shortages. In some places, consumers are unable to purchase orange juice and may turn to other beverages," said Fernando Gomes, researcher at the Center for Advanced Studies on Applied Economics (CEPEA).
To meet international demand, some non-traditional citrus-growing states in Brazil are beginning large-scale orange tree planting. However, it will take at least three years before these newly planted trees start bearing fruit.
Sharp decline orange production drives up juice price in Brazil
China's top housing authority has noted "overall positive changes" in the real estate market, as homebuyer confidence was revived by a series of beneficial measures announced by major Chinese cities since September to boost the country's property markets.
The Ministry of Housing and Urban-Rural Development said most cities have seen a rise in visits to property projects by over 50 percent from a year ago.
Thanks to new policy adjustments on Sept 30, both transaction volume and inquiries for second-hand homes in Beijing increased notably during the week-long National Day holiday, which runs from Oct 1 to 7.
"On Oct 1, four orders were signed at our store and on Oct 2, one order was signed, bringing the total number to five. This marks a historical peak in our transaction records," said Liu Qiujing, a house agent at Huilongguan sub-branch of Lianjia Real Estate Brokerage in Beijing.
She also reported that property viewings at her store stood at 39 groups during the holiday, an increase of 15 groups over the previous week.
According to a circular jointly issued by six municipal departments on Sept 30, non-Beijing residents are allowed to purchase homes inside the city's fifth ring road if they have a record of paying social insurance or individual income tax in the city for at least three years - down from five years as was previously required.
The new policies which took effect on Oct 1 also lift the housing purchase restrictions in Tongzhou District, where the Beijing Municipal Administrative Center is located, to allow the district's homebuying rules to comply with the city's unified property market policy.
Under the new rules, homebuyers face less financial pressure, as the minimum down payment ratio for individual commercial mortgages are reduced from 20 percent to 15 percent for first-home purchases, and from 30 percent to 20 percent for second homes.
"Following the introduction of the new regulations, buyers have shown a stronger willingness to purchase properties, acquiring them more swiftly. Clients with rigid demand for residential housing are swiftly entering the market. From the perspective of homebuyers, their confidence has significantly increased," said Liu.
Between Oct 1 and noon of Oct 3, on-site inquiries for second-hand homes in Beijing jumped by 104.1 percent year on year, according to a report on the Ministry of Housing and Urban-Rural Development.
China's housing market sees positive changes following eased homebuying rules
