Mary Katharine Ham

An unseasonable freeze wiped out 75 percent of California’s orange crop this week, but Congress is planning to wipe out any “price gouging” Big Orange executives have in mind.

Some experts predict that produce prices could double or triple in the coming months, but senators are making sure Big Orange answers for the squeeze it’s putting on American orange buyers. Some have suggested a windfall profits tax, with revenues distributed to lower-income juice-drinkers to help them get through their winter breakfasts.

At a hearing called by Republican Bill Frist, Big Orange CEOs found little sympathy from senators, who said their constituents are suffering from high citrus prices while Big Orange makes big profits.

Sen. Barbara Boxer, D-Calif., cited huge bonuses — atop huge salaries and stock options — the executives are getting while “working people struggle” to pay for orange push-pops and face the specter of soaring Juicy-Juice bills.

"To my constituents, today's hearing is about shared sacrifices in tough times versus orange company greed," Boxer said. "Working people struggle with high juice prices and your sacrifices appear to be nothing."

CEOs at the hearing defended their pricing and profits. Several executives noted that the industry faces costs of $1 billion to recuperate from damages caused by the recent natural disaster. One orange industry analyst predicted the problem for consumers shortly after the freeze hit, attributing it to a sharp decline in supply instead of “price gouging” on the part of orange moguls.

"We shut down all kinds of everything. This is the big one," said the analyst. "This is unmitigated, bad news for consumers."

One CEO, questioned about reports of a one-day doubling in the wholesale price of gasoline by Tropicana after the freeze, said he couldn't comment on that instance but denied the company was price gouging.

Mary Katharine Ham

Mary Katharine Ham is editor-at-large of, a contributor to Townhall Magazine.

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