Analysis and discussion of issues that impact business

Another industry affected by hurricanes.

Orange juice prices, already at historic highs, are expected to climb further as production in Florida’s hurricane-ravaged groves bottoms out.

This article details some good lessons regarding economics

Some of the numbers are intriguing.

Juice makers like PepsiCo Inc.’s Tropicana Products and The Coca-Cola Co.’s Minute Maid, which get the vast majority of their juice from Florida, are facing a profit squeeze from rising domestic prices and imports from Brazil that come with margin-killing tariffs.

But it might not be what you think. It's not that imported OJ is cheaper and Florida OJ.

To make up the shortfall, wholesalers will likely have to rely more on imports of Brazilian juice, which carry a nearly 30-cent per gallon tariff. The state of Florida is second only to the country of Brazil in world orange production.

So for those who say that we need to heavily tax imports to 'level the playing field', this is the reality. As long as you understand that.

A 9 percent jump in average retail prices this year to $4.89 per gallon has met with a 6 percent drop in volume, according to an ACNielsen report for the four weeks ended Sept. 2.

OJ is more expensive that gasoline! But there is a silver lining. At least if you're a grower.

The good news for growers is that high prices for their scarce fruit could provide some of their best returns in over a decade.

So just remember that one market's boom is another market's bust. Ain't capitalism grand!

It ain't easy, but it's grand.