« Bankrupt Tower Records Sold | Main | Wal-Mart Guilty According To PA Jury »

Oct24
The Economics Of Orange Juice

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.


1 Comments/Trackbacks




It's good to be here! Hope to do well in fostering new relationships through this forum.

submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Bankrupt Tower Records Sold | Main | Wal-Mart Guilty According To PA Jury »

Advertise

sponsored ads



subscribe


Prefer Email?
Subscribe below-

Enter your Email:


Powered by FeedBlitz What's this?

Current News

Support This Blog

-->

business social media

Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

BIZZlogos - Add your logo - free link to your site
BIZZphotos - Add photos of your products and people
BIZZprofiles - Submit your profile and build your online visibility
BIZZspotlight - Spotlight your business with free links
BIZZvideos - Videos about businesses, products and business people.
BIZZbites - "Digg" for Business - Submit your articles and posts

know more media network

View Network Map

Network Feed List (OPML)

Know More Media Network
Feed


we support unitus

PRWeb

Influencer



AnalyzeThisBusiness is a member of the Know More Media network of business related blogs.

Here are some current headlines from some of our business publications:

ProductivityGoal

CallCenterScript

AdHurl

TheBizofKnowledge

LandingTheDeal

CustomersAreAlways

HealthCareVox

BrainBasedBusiness

TheInsurancePolicy

MarketingBlurb