Florida citrus crop rebounds, but industry faces slow, uncertain recovery
Florida citrus crop rebounds, but industry faces slow, uncertain recovery
While the Florida citrus industry got a spot of good news Oct. 12 with the release of the 2005-06 citrus crop forecast, the beleaguered industry still has a long way to go toward recovery in the face of the devastating canker and citrus greening plights.
The U.S. Department of Agriculture said that it expects the state's orange crop to produce 190 million boxes during the coming season 27 percent more than the 149.6 million boxes produced last year.
Dan Gunter, executive director of the Lakeland, FL-based Florida Department of Citrus, addressed a group of select media in a combined conference call and live audience.
"We are very pleased with the forecast," said Mr. Gunter. The numbers are in range of our expectations.
He added that the strengthening in orange juice sales has resulted in stable prices, which is good news for growers in the state.
We expect to see further strengthening in the market, and growers expect better returns that will help them to continue their recovery, he added, referring to the four hurricanes that tore a path through the majority of the citrus regions in August and September of 2004.
Bob Norberg, the FDOCs market and economic research director, was also on hand to address the group during the conference.
It is quite early in the season for a precise analysis, said Mr. Norberg. In another two weeks, our reports will have more detail.
The report stated that 100 million of the 190 million boxes expected to be produced in the coming season are in oranges.
The last time we had a crop this size was during the 1998- 99 season, added Mr. Norberg. We expect 24 million boxes of grapefruit, up 88 percent from last year, but still the second-lowest crop since 1944-45. We still have a long way to go with grapefruit.
This estimate shows that the industry is still feeling the effects of last years hurricanes as production continues to rebound and canker has claimed 65,000 acres of grove acreage this year alone, said Andy LaVigne, executive vice president and CEO of Florida Citrus Mutual, the states largest citrus-grower organization. Despite this recovery period, we do not expect an impact on the availability of orange juice to consumers. We expect grower prices to be the same or possibly better than last year. However, because of the increased production costs such as fuel and labor, we are unsure of how much improvement growers will see on returns this season.
Storm damage to orchards and trees last year resulted in the smallest Florida fresh grapefruit crop in recorded history. While a slight increase is projected in the coming season, it will be far from normal-size production, and there are signs that it may not ever fully recover.
During the conference, questions were raised regarding how canker disease has and will continue to affect the industry as well as its anticipated permanent effect.
Mr. Gunter said that a path of change in terms of development, spurred by canker spread, makes it hard to predict how many growers will replant groves lost to canker and how many will sell land to developers.
The Indian River area in southeastern Florida is famous for its high-quality grapefruit that is traditionally shipped around the world. But it is also one of the faster-growing areas for both commercial and residential development. Many growers feel that the threat of canker, more hurricanes and most recently citrus greening disease make it too risky to replant. That same grove land continues to rise in development value, meaning that many will benefit economically and over a longer term if they sell rather than continue to attempt to farm.
Citrus greening, a disease considered even more treacherous than canker, is also currently changing the landscape of the states industry. The confirmation of two citrus greening finds in Homestead, FL, on Sept. 2 was bad news, but updates from USDAs Animal & Plant Health Inspection Services National Plant Germplasm & Biotechnology Laboratory in Beltsville, MD, about a week later confirmed that the disease is much more widespread than originally thought. In early October, reports were issued that the number of confirmed cases had doubled in just 10 days.
Citrus greening begins its deadly path by destroying fruit, followed by the death of the trees usually within five years. It is carried from tree to tree by the citrus psyllid, an Asian insect species, and is nearly impossible to stop because extermination cannot kill every insect. Those that avoid insecticide contact make their way to the next tree, begin reproducing and continue their destruction. Trees cease to produce edible fruit even in the early stages of the disease.
Thought to be the most serious citrus disease in the world, citrus greening is the major limiting factor for citrus production in parts of Asia and Africa, where it is widespread. It is also a major problem in the Saudi Arabian peninsula, and it has been found in Sao Paulo State, Brazil. Citrus greening has not been found in Australia or in the Mediterranean citrus-production regions.
It isnt all bad news for the Florida citrus industry, however. On Sept. 30, U.S. Agriculture Secretary Mike Johanns announced $53.75 million in emergency funds to eradicate citrus canker. In his announcement, Mr. Johanns said that this critical funding would help accelerate eradication activities and keep citrus canker from spreading in Florida.
USDA is providing these funds to help Florida protect the health of the citrus industry, which has been placed at greater risk by a series of hurricanes that have spread the wind-borne disease, said Mr. Johanns.
In addition to this money, President Bushs fiscal 2006 budget calls for $42.6 million in citrus canker funding. This latest infusion of emergency money will support tree removal and commercial grove surveillance.
We are extremely pleased with this news regarding canker eradication funds, said Mr. LaVigne of Florida Citrus Mutual. Secretary Johanns assured citrus growers in June these funds would be available, and we greatly appreciate the administrations ability to designate this money so quickly.
Since October 1995, when citrus canker was first detected in Miami, the U.S. Department of Agriculture and the Florida Department of Agriculture & Consumer Services have been working to eradicate the disease. The hurricanes that moved through the citrus-producing region in 2004 spread the disease when the program was close to completing the eradication program.
While these funds are greatly appreciated, Florida Citrus Mutual continues working in Washington, DC, to ensure that compensation dollars are also available for impacted growers, said Mr. LaVigne. These next few weeks should provide more information regarding the amount of compensation funds allocated.
The U.S. Department of Agriculture said that it expects the state's orange crop to produce 190 million boxes during the coming season 27 percent more than the 149.6 million boxes produced last year.
Dan Gunter, executive director of the Lakeland, FL-based Florida Department of Citrus, addressed a group of select media in a combined conference call and live audience.
"We are very pleased with the forecast," said Mr. Gunter. The numbers are in range of our expectations.
He added that the strengthening in orange juice sales has resulted in stable prices, which is good news for growers in the state.
We expect to see further strengthening in the market, and growers expect better returns that will help them to continue their recovery, he added, referring to the four hurricanes that tore a path through the majority of the citrus regions in August and September of 2004.
Bob Norberg, the FDOCs market and economic research director, was also on hand to address the group during the conference.
It is quite early in the season for a precise analysis, said Mr. Norberg. In another two weeks, our reports will have more detail.
The report stated that 100 million of the 190 million boxes expected to be produced in the coming season are in oranges.
The last time we had a crop this size was during the 1998- 99 season, added Mr. Norberg. We expect 24 million boxes of grapefruit, up 88 percent from last year, but still the second-lowest crop since 1944-45. We still have a long way to go with grapefruit.
This estimate shows that the industry is still feeling the effects of last years hurricanes as production continues to rebound and canker has claimed 65,000 acres of grove acreage this year alone, said Andy LaVigne, executive vice president and CEO of Florida Citrus Mutual, the states largest citrus-grower organization. Despite this recovery period, we do not expect an impact on the availability of orange juice to consumers. We expect grower prices to be the same or possibly better than last year. However, because of the increased production costs such as fuel and labor, we are unsure of how much improvement growers will see on returns this season.
Storm damage to orchards and trees last year resulted in the smallest Florida fresh grapefruit crop in recorded history. While a slight increase is projected in the coming season, it will be far from normal-size production, and there are signs that it may not ever fully recover.
During the conference, questions were raised regarding how canker disease has and will continue to affect the industry as well as its anticipated permanent effect.
Mr. Gunter said that a path of change in terms of development, spurred by canker spread, makes it hard to predict how many growers will replant groves lost to canker and how many will sell land to developers.
The Indian River area in southeastern Florida is famous for its high-quality grapefruit that is traditionally shipped around the world. But it is also one of the faster-growing areas for both commercial and residential development. Many growers feel that the threat of canker, more hurricanes and most recently citrus greening disease make it too risky to replant. That same grove land continues to rise in development value, meaning that many will benefit economically and over a longer term if they sell rather than continue to attempt to farm.
Citrus greening, a disease considered even more treacherous than canker, is also currently changing the landscape of the states industry. The confirmation of two citrus greening finds in Homestead, FL, on Sept. 2 was bad news, but updates from USDAs Animal & Plant Health Inspection Services National Plant Germplasm & Biotechnology Laboratory in Beltsville, MD, about a week later confirmed that the disease is much more widespread than originally thought. In early October, reports were issued that the number of confirmed cases had doubled in just 10 days.
Citrus greening begins its deadly path by destroying fruit, followed by the death of the trees usually within five years. It is carried from tree to tree by the citrus psyllid, an Asian insect species, and is nearly impossible to stop because extermination cannot kill every insect. Those that avoid insecticide contact make their way to the next tree, begin reproducing and continue their destruction. Trees cease to produce edible fruit even in the early stages of the disease.
Thought to be the most serious citrus disease in the world, citrus greening is the major limiting factor for citrus production in parts of Asia and Africa, where it is widespread. It is also a major problem in the Saudi Arabian peninsula, and it has been found in Sao Paulo State, Brazil. Citrus greening has not been found in Australia or in the Mediterranean citrus-production regions.
It isnt all bad news for the Florida citrus industry, however. On Sept. 30, U.S. Agriculture Secretary Mike Johanns announced $53.75 million in emergency funds to eradicate citrus canker. In his announcement, Mr. Johanns said that this critical funding would help accelerate eradication activities and keep citrus canker from spreading in Florida.
USDA is providing these funds to help Florida protect the health of the citrus industry, which has been placed at greater risk by a series of hurricanes that have spread the wind-borne disease, said Mr. Johanns.
In addition to this money, President Bushs fiscal 2006 budget calls for $42.6 million in citrus canker funding. This latest infusion of emergency money will support tree removal and commercial grove surveillance.
We are extremely pleased with this news regarding canker eradication funds, said Mr. LaVigne of Florida Citrus Mutual. Secretary Johanns assured citrus growers in June these funds would be available, and we greatly appreciate the administrations ability to designate this money so quickly.
Since October 1995, when citrus canker was first detected in Miami, the U.S. Department of Agriculture and the Florida Department of Agriculture & Consumer Services have been working to eradicate the disease. The hurricanes that moved through the citrus-producing region in 2004 spread the disease when the program was close to completing the eradication program.
While these funds are greatly appreciated, Florida Citrus Mutual continues working in Washington, DC, to ensure that compensation dollars are also available for impacted growers, said Mr. LaVigne. These next few weeks should provide more information regarding the amount of compensation funds allocated.
