Citrus Industry Outlook

Published: January, 27 2006

By Jina Martin

Ask industry leaders what impacted agriculture most this year, and you’ll get one answer: Hurricanes.

“Hurricane Wilma had the single largest impact on Florida fruit and vegetable growers this year,” said Mike Stuart, president of the Florida Fruit & Vegetable Association. “The losses to the industry exceeded the combined impacts of all three storms in 2004.”

According to the Florida Department of Agriculture and Consumer Services, citrus, vegetable and tropical fruit growers suffered more than $500 million in production loss and crop damage from the storm.

But, it’s just not the actual storm damage that’s taking a toll.

“Not only did these storms cause severe crop loss and tree damage, but also the spread of citrus canker,” said Andy LaVigne, executive vice president/chief executive officer of Florida Citrus Mutual. “From 1995 to July 2004, we lost 16,000 acres of commercial citrus due to canker. In the one-year period following the 2004 hurricanes, we have or are scheduled to lose more than 70,000 acres.”

Because canker is wind- and rain-driven, hurricanes are the perfect method to spread the disease. And, the wait is on to determine the effects of Hurricane Wilma on the canker situation.

Citrus greening, or Huanglongbing, also reared its ugly head in 2005 making its first appearance in the state. As of Nov. 17, 414 trees tested positive for citrus greening on residential and commercial sites. Although the spread of the disease is still being determined, the industry knows it has a serious fight ahead.

Dan Gunter, executive director of the Florida Department of Citrus, said the resolution of the box-tax case in November had a big impact on the citrus industry.

“This reaffirmed the legality of generic advertising, which provides a significant return on investment to citrus growers and the state of Florida,” he said.

This resolution will allow the FDOC to focus 100 percent of its energy on growing the market for the Florida citrus industry, Gunter said.

Agriculture accomplishments

The year wasn’t all bad news. 

“The industry has done an outstanding job dealing with both the production and marketing challenges caused by the hurricanes,” Stuart said.

Production and marketing challenges didn’t keep the citrus industry down.

“The industry was able to stem the decline in orange juice sales,” Gunter said. “Total consumption declined only 1.2 percent during the 2004-05 season compared to 3.7 percent during the 2003-04 season. Retail revenue was up in 2005 — the first increase in five years.”

Jimmy Cheek, University of Florida’s senior vice president of Agriculture and Natural Resources, said the “industry leaders’ commitment to the survival and long future of the industry” was a bright spot in 2005.

And since canker was a major problem, it’s also reassuring that progress was made in fighting the disease. 

“One of the biggest accomplishments would be securing $200 million for canker compensation and nearly $54 million for canker eradication, both in federal funds,” LaVigne said.

This is due to citrus growers funding the Citrus Preservation Oversight Committee for the last two years, he added. This increased presence in Washington, D.C., helped preserve the citrus tariff and secure hurricane funding, as well canker compensation and eradication funds.

The continued challenge

The industry obviously has a hard road ahead in continuing to deal with the storms’ impacts — including canker — as well as other invasive pests and diseases, urban sprawl and labor availability.

“In the upcoming year, Florida citrus growers must face some difficult decisions,” LaVigne said. “They face a huge challenge if they want to continue.”

“Citrus canker and greening are serious threats to the survival of Florida’s citrus industry,” Stuart said. “The availability of labor is also a significant challenge facing growers statewide.”

Canker and greening top Cheek’s list of challenges, too. But, there also are the difficulties of dealing with the continuing problems of urbanization of prime farm lands, potential for more hurricanes, labor shortages and continued competition, he said. 

The FDOC has the challenge to continue growing the market for orange juice, Gunter said, adding “The industry’s recovery depends on maintaining a strong market.”

The strength of the Florida farmer

While Hurricane Wilma devastated many crops in the field, it couldn’t destroy the spirit of Florida’s farmers, who have been replanting, rebuilding and working to put fresh Florida products in stores. But, when the new harvest of fruits and vegetables arrives, shoppers might notice a slight change in their appearance.       

To encourage consumers to still buy the produce, Wal-Mart Stores Inc., Bentonville, Ark., has a plan. Displays of tomatoes, citrus, peppers, squash and cucumbers in the chain’s Florida stores will have signs that read: “The appearance and size of many fruits and vegetables may change due to crop destruction from Hurricane Wilma. Please help us support your local Florida growers during this time.”

“This is a critical time for our state’s agricultural producers who are working hard to ensure that adequate supplies of fresh Florida fruits and vegetables are available this season,” Florida Agriculture Commissioner Charles Bronson said.

Bronson has personally assessed the damage to crops and infrastructure and met with growers.

“I can say without hesitation that this storm’s damage is more extensive than any I have witnessed in my lifetime,” he said. “Despite this devastation, I am proud to report that the spirit of Florida’s farmers remains strong.”