Many American consumers might be shocked to find out that their "Florida orange juice" actually comes from frozen orange pulp transported from Brazil.
Major brands like Tropicana and Simply Orange built their businesses on Florida's orange groves, but have faced increasing competition from Brazilian oranges for decades. In the 1960s, frosts destroyed a large percentage of Florida's orange harvests, opening the door for Brazilian producers to enter the market. Furthermore, as recently as 2005, a citrus disease affected Florida oranges and caused a 55 percent dive in production. This resulted in a spike in the price of orange juice. Again, Brazil saved the day by offering its cheaper and more abundant product.
Even after some of the Florida groves recovered, many companies still preferred using Brazilian oranges. After all, they are significantly less expensive than Florida oranges. Today, oranges are big business in Brazil, valued at $1.4 billion. In fact, many Brazilian companies have taken it one step further by buying out Florida's groves so that even oranges produced in Florida are actually owned by Brazilian companies.
The human cost of Brazil's high production, however, is high. Some liken it to a system of indentured servitude and even slavery, according to a 2015 report by activist organization Supply Chainge. According to the report, orange pickers can go weeks without being paid and are bound by unfair employment contracts. Not only are payment conditions unfair, but there are health hazards due to pesticides that are harmful to the workers' health.
Citrosuco, a large orange production company in Brazil, denied the report's findings, stating that it "strives to be totally compliant with the labor and environmental laws everywhere it operates. All of our more than 18,000 workers earn salaries above minimum wage by law, have weekly rest days, receive robust training and are provided with appropriate safety equipment."
American President Donald Trump's policies on international taxes and trade have been unpopular with Europe, Canada and China, which have all begun applying import taxes on U.S. orange juice. These taxes could effectively destroy America's already flailing orange industry while bolstering Brazil's foothold in the orange juice export market.
