U.S. government predicts low Florida orange harvest

According to the federal government Florida will see its worst orange crop since 1990 due to Hurricane Wilma last year and the cold stretch that gripped Florida in February. The U.S. Department of Agriculture is predicting thirteen million fewer boxes of oranges will be picked this year as compared to last year. The U.S. Department of Agriculture predicted 135 million boxes of oranges will be picked in the 2006-07. This estimate is down from the average about 220 million boxes of oranges Florida usually produces during an average harvest. Due to the decrease in the supply of oranges, orange juice prices have already increased about 9 percent over last year and are expected to make further jumps. This decrease in the supply of oranges is bad for consumers, but is great for the growers who could see their best returns in 10 or 15 years due to the smaller crop. Will the decrease in the supply of oranges affect the prices of substitutes and complements of oranges and orange juice? Will the increase in the price for oranges and orange juice dissuade consumers from purchasing these goods? How wide will the effects of this small harvest be? We can only wait and see.