California citrus losses said to be in excess of $800 million
California citrus losses said to be in excess of $800 million
Less than a week following the week-long freeze that devastated the California citrus crop, California Citrus Mutual released an initial assessment of the extent of the damage.
According to the Jan. 23 release, a total of around 86.6 million cartons of citrus in eight counties were believed lost to the freeze. The gross loss is estimated to exceed $800 million.
CCM made the collective damage assessment following a conference call with producers and packers representing production areas in San Diego, Riverside, Imperial, Ventura, Kern, Tulare, Fresno and Madera counties, according to the release.
Approximately 40 million cartons of Navel oranges were lost, with an estimated dollar loss of $410 million, according to the assessment. In addition, 20 million cartons of Valencia oranges were lost at a dollar loss of $184 million, 7.6 million cartons of lemons were lost at $114 million, 15 million cartons of Mandarin varieties were lost at $67 million, and 4 million cartons of grapefruit were lost at $28.5 million.
"There is no question in our mind that this was, is and will be a major disaster for California and our industry," said CCM board Chairman Philip LoBue of LoBue Bros. in Lindsay, CA. "We have alerted county officials, who will now accumulate their information on our industry and other commodities affected and forward that total to Sacramento."
"It is anticipated that the numbers for Navel oranges, lemons and Mandarin variety fruit will be adjusted upward in early spring after all product has been accounted for," the CCM release stated.
While damage to the Valencia crop "appears to be significant at this time," the release stated, "only the harvesting results will determine the final numbers." Valencia harvest begins in early spring. "A slightly damaged Valencia orange has the ability to heal itself," but fruit that experienced "temperatures in the low 20s for 10 hours or longer is no doubt lost," according to the release.
"Today, our industry has pockets of optimism in the form of quality fruit for the fresh market. They are isolated, but they are there," said Mr. LoBue. "We will harvest over the next several weeks, utilize our consumer protection program and complete the season early, a season that normally runs into June."
In addition to the loss of fruit on the tree, "we have also learned that significant tree damage did occur in Imperial and Riverside counties," said CCM President Joel Nelsen.
Lemon growers expect the late 2007 crop to be "adversely affected," but "the extent of that damage is unavailable," the CCM release stated. "New buds were destroyed, thus eliminating potential fruit" that would have been harvested in late summer and early fall.
Some citrus fruit that is unsuitable for fresh packing can still be used for juice, although prices to growers are much lower. According to the CCM release, "fruit that has some juice is being harvested immediately" providing it has a value at least equal to harvesting costs. But "the majority of the fruit is damaged so badly that it will eventually be stripped from the tree" and sent to a landfill.
The California industry typically exports 15-20 percent of its orange volume. "That will not occur this year," stated the CCM release.
"Inquiries have been made as to sourcing product offshore," the release continued. However, many citrus-producing countries "have pest and disease issues and are forbidden from entering into the United States" or into specific citrus-producing areas.
According to CCM figures for the year 2005 (2006 reports have not yet been published), Tulare County accounts for the largest citrus acreage in California with a total of 117,000 acres of citrus (including, 81,000 acres of Navels) with a total value of nearly $583 million. In second place is Kern County with about 51,400 acres of citrus (including almost 32,000 acres of Navels) valued at nearly $355 million, and Fresno County with nearly 37,000 acres (including almost 27,000 acres of Navels) valued at nearly $198 million. Ventura County has over 26.000 acres of citrus (including nearly 21,000 acres of lemons) valued at $209 million.
A summary of the economic impact of the freeze attributable to the California citrus industry issued by CCM Jan. 23 noted that "in terms of revenue generated, California's fresh market-based industry ranks as the number one citrus industry in the United States." It notes also that California citrus producers "have the highest cost of production worldwide," with production costs exclusive of harvesting amounting to about $1,945 per acre.
While most of California's competitors in other citrus-growing areas around the world "receive direct government assistance," the CCM summary said, California growers receive none.
The total California citrus industry represents about $1.3 billion of tree value and creates another $750 million of economic activity," according to the summary. Eighty-five percent of the 270,301 acres of citrus in California are "owned and operated by family farmers."
According to a 2002 economic study by Arizona State University, "every 1,000 acres of oranges lost, for one year, costs the state of California $3.4 million in total output, 53 direct and indirect jobs and $177,000 in tax revenue. Workers throughout the economy lose nearly $1 million in income and, therefore, spend less" at retail.
This winter's frost season began in November 2006, according to the CCM economic impact summary. From the last week in November 2006 through Jan. 21, 2007, California citrus growers "expended in excess of $100 million protecting citrus crops, and the total continues to rise with each additional night of freezing temperatures."
According to the Jan. 23 release, a total of around 86.6 million cartons of citrus in eight counties were believed lost to the freeze. The gross loss is estimated to exceed $800 million.
CCM made the collective damage assessment following a conference call with producers and packers representing production areas in San Diego, Riverside, Imperial, Ventura, Kern, Tulare, Fresno and Madera counties, according to the release.
Approximately 40 million cartons of Navel oranges were lost, with an estimated dollar loss of $410 million, according to the assessment. In addition, 20 million cartons of Valencia oranges were lost at a dollar loss of $184 million, 7.6 million cartons of lemons were lost at $114 million, 15 million cartons of Mandarin varieties were lost at $67 million, and 4 million cartons of grapefruit were lost at $28.5 million.
"There is no question in our mind that this was, is and will be a major disaster for California and our industry," said CCM board Chairman Philip LoBue of LoBue Bros. in Lindsay, CA. "We have alerted county officials, who will now accumulate their information on our industry and other commodities affected and forward that total to Sacramento."
"It is anticipated that the numbers for Navel oranges, lemons and Mandarin variety fruit will be adjusted upward in early spring after all product has been accounted for," the CCM release stated.
While damage to the Valencia crop "appears to be significant at this time," the release stated, "only the harvesting results will determine the final numbers." Valencia harvest begins in early spring. "A slightly damaged Valencia orange has the ability to heal itself," but fruit that experienced "temperatures in the low 20s for 10 hours or longer is no doubt lost," according to the release.
"Today, our industry has pockets of optimism in the form of quality fruit for the fresh market. They are isolated, but they are there," said Mr. LoBue. "We will harvest over the next several weeks, utilize our consumer protection program and complete the season early, a season that normally runs into June."
In addition to the loss of fruit on the tree, "we have also learned that significant tree damage did occur in Imperial and Riverside counties," said CCM President Joel Nelsen.
Lemon growers expect the late 2007 crop to be "adversely affected," but "the extent of that damage is unavailable," the CCM release stated. "New buds were destroyed, thus eliminating potential fruit" that would have been harvested in late summer and early fall.
Some citrus fruit that is unsuitable for fresh packing can still be used for juice, although prices to growers are much lower. According to the CCM release, "fruit that has some juice is being harvested immediately" providing it has a value at least equal to harvesting costs. But "the majority of the fruit is damaged so badly that it will eventually be stripped from the tree" and sent to a landfill.
The California industry typically exports 15-20 percent of its orange volume. "That will not occur this year," stated the CCM release.
"Inquiries have been made as to sourcing product offshore," the release continued. However, many citrus-producing countries "have pest and disease issues and are forbidden from entering into the United States" or into specific citrus-producing areas.
According to CCM figures for the year 2005 (2006 reports have not yet been published), Tulare County accounts for the largest citrus acreage in California with a total of 117,000 acres of citrus (including, 81,000 acres of Navels) with a total value of nearly $583 million. In second place is Kern County with about 51,400 acres of citrus (including almost 32,000 acres of Navels) valued at nearly $355 million, and Fresno County with nearly 37,000 acres (including almost 27,000 acres of Navels) valued at nearly $198 million. Ventura County has over 26.000 acres of citrus (including nearly 21,000 acres of lemons) valued at $209 million.
A summary of the economic impact of the freeze attributable to the California citrus industry issued by CCM Jan. 23 noted that "in terms of revenue generated, California's fresh market-based industry ranks as the number one citrus industry in the United States." It notes also that California citrus producers "have the highest cost of production worldwide," with production costs exclusive of harvesting amounting to about $1,945 per acre.
While most of California's competitors in other citrus-growing areas around the world "receive direct government assistance," the CCM summary said, California growers receive none.
The total California citrus industry represents about $1.3 billion of tree value and creates another $750 million of economic activity," according to the summary. Eighty-five percent of the 270,301 acres of citrus in California are "owned and operated by family farmers."
According to a 2002 economic study by Arizona State University, "every 1,000 acres of oranges lost, for one year, costs the state of California $3.4 million in total output, 53 direct and indirect jobs and $177,000 in tax revenue. Workers throughout the economy lose nearly $1 million in income and, therefore, spend less" at retail.
This winter's frost season began in November 2006, according to the CCM economic impact summary. From the last week in November 2006 through Jan. 21, 2007, California citrus growers "expended in excess of $100 million protecting citrus crops, and the total continues to rise with each additional night of freezing temperatures."
