The Orange Juice Conundrum: Everything You Need to Know About What’s Happening With Your O.J.
January 23Last week it was revealed that traces of a fungicide, called carbendazim, was found in orange juice products produced in the United States. How did this happen and where did this come from? Here is everything you need to know about the latest issue with our beloved OJ:
Believe it or not, this story starts in Brazil. They are the largest exporter of oranges in the world, which is valued at $2 billion. This accounts for 85% of global orange exports, where 15% of that is sent to the U.S. to be used in orange juice, and not for general consumption of oranges. Due to the humid climate in areas where the oranges are grown in Brazil, they are prone to develop fungus. The prevention method was to use a fungicide called cabendazim, which prevents dark spots (the fungus) from forming on the fruit and also from falling off trees prematurely, i.e. before they are ripe. 1
In many countries, like Brazil, carbendazim is allowed in small amounts; however, it’s prohibited to be used on anything produced or grown in the United States. If other countries use it on their products, then export it to the U.S., then technically it is considered legal. It’s also important to note that consuming this fungicide in small doses is considered to be harmless.
But wait…… doesn’t California and Florida produce oranges? A lot of them? The short answer is yes they do, but obviously not enough. At various points throughout the year, depending on the harvest and the quality of oranges grown in the U.S., the orange juice used to make products such as Tropicana and Minute Maid, consist of blending American and Brazilian oranges.
Think about this for a second. It’s not unusual for the U.S. to import oranges since they are not able to keep up with demand for a “commodity” like orange juice from strictly American sources. From a business, production, and supply & demand perspective, this seems perfectly understandable.
What is the result?
The FDA is now blocking all shipments of oranges to the United States that contain traces of carbendazim. In the short-term, that means orange juice producers will have to use more oranges from the United States which usually results in an increase in price. That’s happening now. According to foodnavigator-usa.com, “The commodity rose by nearly 10% at one point to $2.1275 per pound – its highest price since November 1977”. That’s the highest it’s been in 34 years! 2
Why is this issue being scrutinized?
The big issue is that not only are most oranges in our “Made in America” orange juice coming from Brazil and not Florida or California, but they contain this fungicide that is not outlawed by the FDA. Looks like the orange juice producers found quite the loophole. Situations like these fuel consumers interest to know where products are made, and where the ingredients come from. They want quality products, more natural, healthier, and better tasting. It’s no wonder the “ingredience” trend is more predominant than ever, and is the reason why this is influencing not only consumer behaviour, but also food companies’ sourcing decisions. In theory, blending oranges is acceptable as long as the taste is not sacrificed. In this case, it’s not ok since this fungicide is not allowed to be in ANY food products.
Who is at fault here? Is it Pepsi (Minute-Maid) and Coca-Cola (Tropicana) who should be more aware of the FDA’s rules and regulations? Or is the FDA at fault, for not enforcing this in a stronger manner? What do you think?
Please share your comments and questions below.
Sources:
- “Brazil’s Orange Juice Fungicide Dilemma – Video – Business News.” CNNMoney – Business, Financial and Personal Finance News. 17 Jan. 2012. Web. <http://money.cnn.com/video/news/2012/01/17/n_brazil_oranges.cnnmoney/>.
- Watson, Elaine. “Orange Juice Price Spikes after Carbendazim Scare.” Food Navigator USA. 16 Jan. 2012. Web. <http://www.foodnavigator-usa.com/Market/Orange-juice-price-spikes-after-carbendazim-scare>.