The Food Institute Report - Market News - Jan. 19, 2004 |
| Produce | Canned Vegetables | Tomato Products | Canned Fruit |
| Processed Fish | Frozen Vegetables | Dried Vegetables | Dried Fruits |
| Nuts & Nut Meats | Frozen Fruits | Juices & Concentrates |
STRAWBERRIES – Fresh off of a record crop, California strawberry farmers will plant even more berries to be harvested this year, increasing acreage by 12%, according to a California Strawberry Commission survey. Farmers in every strawberry-growing district will plant more, with the biggest acreage hikes in Oxnard and Santa Maria. By contrast, farmers elsewhere in the nation plan to reduce slightly their overall strawberry acreage, reported California Farm Bureau Federation.
MANGOS – First handlers and importers of fresh mangos have voted to approve a national promotional campaign. The vote was taken in a referendum conducted by USDA’s AMS from Nov. 10 through Nov. 28, 2003. Any current first handler or importer who handled or imported 500,000 or more pounds of mangos during calendar year 2002 was eligible to vote. The promotion program will be administered by a board of 20 members under USDA supervision, members will be appointed by the Secretary of Agriculture from nominees submitted by the mango industry.
First handlers and importers of mangos will pay an initial assessment of 0.5 cents per pound on all handled and imported fresh mangos. This will finance a coordinated program to develop, maintain, and expand markets for mangos in the U.S.
APPLES – Evidence released Jan. 13 shows that a population of apple maggots has penetrated the state’s apple-growing region east of the Cascade mountains will likely shut certain export markets to Washington apples, reported The Yakima-Herald (Jan. 15). Growers in Kittitas County, where state biologists made the discovery this fall, can also expect a quarantine and the loss of the maggot-free status that gives WA apples a marketing edge over other major U.S. apple-growing regions. If Kittitas County is quarantined, growers will still be able to move their apples. Their shipments will need to be accompanied by a state certificate stating that no apple maggots were found within a half-mile radius of the orchard.
The maggot lays its eggs in apples and spends part of its life cycle burrowing through the fruit’s flesh. The resulting dimples on the surface and brown trails through the apple make it soft, rotten and unmarketable. Once an apple-maggot quarantine is imposed, it is rarely, if ever lifted, said Dr. Brad White, Washington Department of Agriculture’s pest program manager.
Officials have no reason to believe the apple maggot has taken hold in Yakima County, the nation’s leading apple producer. In 2002, Yakima, Kittitas and Benton counties produced a combined 1.2 million tons of apples.
ONIONS - USDA issued a final rule that decreases the assessment rate established for the South Texas Onion Committee for the 2003-04 and subsequent fiscal periods from $0.085 to $0.03 per 50-lb. equivalent of onoins handled. For more, see WASHINGTON.
GRAPEFRUIT – USDA is adopting, as a final rule, effective Feb. 5, 2004, without change, an interim final rule removing the regulations for seeded grapefruit under the Florida citrus marketing order and for seeded grapefruit imported into the U.S., noted the Federal Register (Jan 6). The order regulates the handling of oranges, grapefruit, tangerines and tangelos grown in Florida and is administered locally by the Citrus Administrative Committee. The change in the import regulation is required under section 8e of the Agricultural Marketing Agreement Act of 1937. Production of seeded grapefruit in Florida has declined to the point that removing seeded grapefruit from order requirements will have no significant impact on the grapefruit market. This rule also continues in effect a relaxation of the minimum grade requirements for domestic shipments of fresh Valencia and other late type oranges the last few weeks of the season. The volume remaining at the end of the season is small and has difficulty meeting grade requirements. This rule will help maximize shipments and returns for fresh Valencia and other late type oranges. For more information, contact: William Pimental, (863) 324-3375 or George Kelhart, (202) 720-2491.
CITRUS – USDA is advising the public of the availability of a draft pest risk analysis that has been prepared by the Animal and Plant Health Inspection Service relative to a proposed rule currently under consideration that would allow the importation of various types of fresh commercial citrus from Peru into the U.S., noted the Federal Register (Jan 12). The agency is making this draft pest risk analysis available to the public for review and comment and will consider all comments that we receive on or before Mar. 12, 2004. For more information, contact: Dr. Leah Millar, (919) 513-7045.
ORANGES – Conditions have improved for California navel growers, who have struggled with low prices in recent years. Marketers say prices have averaged higher than the five-year average for this time in the season. A new cooperative helps growers keep track of market demand, and farmers harvest enough to serve that demand. In addition, new color standards have provided shoppers with oranges that look and taste better, which in turn has kept demand strong.
GARLIC – In November 2003, the Department of Commerce received two requests to conduct new shipper reviews of the antidumping duty order on fresh garlic from the People’s Republic of China, noted the Federal Register (Jan 12). The Department determined that one of these requests meets the statutory and regulatory requirements for the initiation of a new shipper review. For more information, contact: Brian Ellman or Minoo Hatten at (202) 482-4852 and (202) 482-1690.
SWEET POTATOES – Production of sweet potatoes in 2003 is estimated at 15.9 million cwt, up 24% from a year earlier and 9% above 2001 for comparable states. Production is at its highest level in the U.S. since 1962, when 17.1 million cwt were produced. Growers harvested 92,400 acres, up 11% from last year. Yield per acre, at 172 cwt, is up 18 cwt from 2002 and is the largest yield on record.
Production increased in Louisiana, South Carolina, North Carolina, Mississippi, and California in 2003. Excellent weather conditions contributed to record high yields being realized in California, Louisiana, Mississippi and South Carolina.
POTATOES – Production of fall potatoes for 2003 is estimated at 411 million cwt, down less than 1% from the December forecast and 1% below 2002. Area harvested, at 1.09 million acres, is down 2% from 2002, but 2% above two years earlier.
The average yield is estimated at 377 cwt per acre, 4 cwt above last year. Production estimates are generally higher this season in the Central and Eastern states, but lower in the West.
Negotiations continue with processors on multiple-year pricing along with a term contract for tonnage on an acreage basis. Pricing would be adjusted depending on the size of the crop in order to try and keep acreage within the marketing arena for 2004 and beyond. The California Tomato Growers Association is seeking an early price so growers will know what to expect in light of an improved situation for competing crops like cotton, rice and almonds, which some processing tomato growers are considering planting this coming year. Tomato processors are telling negotiators that even with the smaller than expected crop last season there is no shortage thus they do not need to raise the tomato farm price, reported California Farm Bureau Federation.
PASTE – The paste for sale pack totaled 4.7 million tons, raw product equivalent, down 10% from the Dec. 1, 2002 pack, but up 22% from the 2001 pack.
CANNED TOMATOES - Processed tomato stocks on hand totaled 8.5 million raw product equivalent tons on Dec. 1, down 12% from a year ago. Movement between June 1 and Dec. 1 was 5.7 million tons, up 3% from 2002.
POTATOES - U.S. fall season potato production is estimated at 412 million hundred weight (cwt), down 1% from last year, for a state-by-state breakdown see CANNED VEGETABLES.
Stocks of raw potatoes in the eight major processing states on Jan. 1 were 211.6 million cwt., down slightly from 2002.
Approximately 86.8 million cwt. have been used for processing through Jan. 1 in the eight major processing states, down 6% from a year earlier.
Production in Canada for 2003 totaled 5.3 million metric tons, up 14% from 2002. Total production increased in eight of the ten producing provinces in 2003.
Japan’s imports of frozen fried potatoes have declined slightly since 1999, from 232,500 tons to 220,800 tons in 2002. Recent statistics for total frozen potato imports, January through September 2003, show a drop of 10% in imports to 174,670 tons, compared to the same period the previous year, a decline in value of 14% to JPY 18.6 billion. The U.S. exported 137,377 metric tons, a drop of 13%. Canada, the second largest exporter, also experienced a decline of 26,946 tons, a decline of 8%.
With increasingly health-conscious consumers, Japanese fast food chains are turning to healthy menus. McDonald started a new service called “Mac Choice,” for their customers to choose one side order from four options: fried potato, cup salad, pancake, and chicken nuggets. This selection has led to a decline in McDonald’s potato usage of approximately 16%. McDonald’s overall sales have been sluggish for last 12 months, and forecasts further decline.
The convenience store industry is also decreasing its use of fried potatoes. The convenience store industry is developing a diversified fast food menu at their stores in order to meet consumer demands. In place of the potato, Italian style hot sandwiches, Chinese style dim sum, and traditional Japanese snacks are increasingly available. This year, Japan’s cool summer reduced travel and attendance at recreational facilities during the vacation season, reducing fried potato consumption at amusement facilities, a major user of fried potatoes.
While the U.S. is still the largest supplier to the Japanese market, U.S. market share is declining. Market share is down from an 84.6% in 2000 to 82.0% in 2002. Canada, New Zealand, Australia, among others, gained market share during this period. Japan’s concern for GM potato is one reason why Canada, New Zealand and Australia are exporting more potatoes to Japan. The number two Japanese hamburger chain, MOS Burger, has switched to sourcing its potatoes from Canada and Australia, due to GM concerns.
For a free copy of USDA’s FAS Japan – Frozen Potato Products – Annual 2003, call Justin 201-791-5570 x26 or email jmarsling@foodinstitute.com.
USDA OFFERS TO BUY – USDA offers to purchase 54,720 cases of canned apple slices (6/10) and 88,464 cases of canned applesauce (6/10) for use in child nutrition program and other food assistance programs. Deliveries will be made from Mar. 1 through June 30, 2004. For more information, contact USDA at (202) 720-4517.
OLIVES – USDA temporarily denied federal aide on Jan. 8 to Central Valley, CA growers who claim their industry is being hurt by low-priced imports.
Though olive imports have increased, USDA officials said they could not yet conclude the increases “contributed importantly” to a decline in U.S. producer prices, reported The Sacramento Bee (Jan. 9). Consequently, the domestic growers are not eligible for a new form of aid designed to offset trade losses.
For the Visalia, CA-based Olive Growers Council of California, it’s another negative in what’s already been a grim year. Imports now account for about 40% of the so-called “table olive” market in the U.S. Domestic prices have plummeted, with a ton of California olives now bringing only about $430, compared to about $620 per ton last year. American growers largely blame subsidized competition from Spain and unsubsidized competition from Morocco, which is why the growers thought of tapping the new trade adjustment assistance program set up by Congress last year.
USDA has not entirely barred the door, though. Officials say the California olive growers must wait until they can present a full year’s worth of price and supply information. Those figures, instead of the projections presented last month, are what federal economists use in making decisions. Olive growers count their marketing year as ending in July, so it will be at least seven months before they can again seek solace for their import pain.
To qualify, U.S. producers must show that recent prices have been less than or equal to 80% of the national average price during the previous five marketing years. They also must demonstrate that imports “contributed importantly” to the decline in domestic prices.
PEACHES – South American peach canners are raising their selling prices for the 2004 pack based on expected higher raw product costs and the weak U.S. dollar, according to Foodnews.
The Chilean peach crop is reported to be good with harvest just getting underway. Selling prices have reportedly increased substantially as Chilean canners indicate that trading is at $19.50 - $20.00/case for Choice 2.5 halves in heavy syrup, f.o.b. Chile. The weakness of the U.S. dollar has deterred exporters with the Chilean peso reaching its strongest point since April 2001. (This represents a 23% change from the weakest level in 2003). Argentina is expecting to can more peaches this year and canners have also raised selling prices, in some cases as much as 20% higher than last year. Argentine canners have also not reached agreement on raw product pricing for 2004, but expectations are that the raw product price will be substantially higher than last year. When asked about increased sales to Europe this year, one Argentine processor noted that their major markets will be Brazil, Mexico and the U.S., reported California Canning Peach Association.
USDA OFFERS TO BUY – USDA offers to purchase 97,200 cases (12 oz.) of canned chunk light tuna for use in Federal food and nutrition programs. Deliveries will be made from Apr. 1 to June 30, 2004. For more information contact USDA at 202-720-2650.
CRAWFISH - The Administrator, FAS, denied a petition for TAA that was filed on Dec. 4, 2003, by a group of crawfish producers in Louisiana. Upon investigation, the Administrator determined that imports of crawfish did not increase during the January-December 2002 marketing year, a condition required for certifying a petition for TAA, noted the Federal Register (Jan. 15).
SALMON – A new study of fillets from 700 salmon, wild and farmed, finds that the farmed fish consistently have more PCB’s and other contaminants, but at levels far below the limits set by the federal government, reported The New York Times On The Web (Jan. 9). The study, which was published in the Jan. 9 journal Science, found more than a sevenfold difference in PCB levels, with farmed salmon having an average of 36.63 parts per billion and wild salmon having 4.75.
Dr. Barbara Knuth, a study author, said that the findings indicate that the vast majority of farm-raised Atlantic salmon should be consumed at one meal or less per month. More than 90% of the fresh salmon eaten in the U.S. is farmed, and sales have been growing 10% to 20% a year, according to Alex Trent, executive director of Salmon of the Americas. Officials with the FDA dispute the study’s recommendations.
SHRIMP- The U.S. International Trade Commission gave notice of the institution of investigations and commencement of preliminary phase antidumping investigations Nos. 731-TA-1063-1068 (Preliminary) under section 733(a) of the Tariff Act of 1930 (19 U.S.C. 1673b(a)) (the Act) to determine whether there is a reasonable indication that an industry in the U.S. is materially injured or threatened with material injury, or the establishment of an industry in the U.S. is materially retarded, by reason of imports from Brazil, China, Ecuador, India, Thailand and Vietnam of certain frozen or canned warmwater shrimp and prawns, provided for in subheadings 0306.13.00 and 1605.20.10 of the Harmonized Tariff Schedule of the U.S., that are alleged to be sold in the U.S. at less than fair value. Unless the Department of Commerce extends the time for initiation pursuant to section 732(c)(1)(B) of the Act (19 U.S.C. 1673a(c)(1)(B)), the Commission must reach a preliminary determination in antidumping investigations in 45 days, or in this case by Feb. 17, 2004. The Commission’s views are due at Commerce within five business days thereafter, or by Feb. 24, 2004.
For purposes of these investigations, the products covered are defined as certain warmwater shrimp and prawns, whether frozen or canned, wild-caught (ocean harvested) or farm-raised (produced by aquaculture), head-on or head-off, shell-on or peeled, tail-on or tail-off, deveined or not deveined, cooked or raw, or otherwise processed in frozen or canned form. Excluded from this definition are fresh shrimp and prawns, whether shell-on or peeled; coldwater shrimp and prawns, in any state of processing; shrimp and prawns in prepared meals; breaded shrimp and prawns; and dried shrimp and prawns, noted the Federal Register (Jan. 8). For more information, contact: Jim McClure (202) 205-3191 or Elizabeth Haines (202) 205-3200.
Allegations by a powerful American trade group that Thai shrimp producers are illegally dumping their products in the U.S. markets threaten to spark a wider trade dispute and complicate planned negotiations for establishing a free-trade agreement between Bangkok and Washington by 2006, for more on this story see WASHINGTON.
The Administrator, Foreign Agricultural Service (FAS), certified a petition for trade adjustment assistance (TAA) that was filed on Dec. 4, 2003, by the Organized Seafood Association of Alabama, Inc., Bayou La Batre, AL. Upon investigation, the Administrator determined that increased imports of farmed shrimp contributed importantly to a decline in the landed prices of shrimp in Alabama by 20.5% during January 2002 through December 2002, when compared with the previous five-year average, noted the Federal Register (Jan. 12).
Shrimpers and shrimp farmers in Alabama certified as eligible for TAA may apply to the Farm Service Agency for benefits through Apr. 12, 2004. After submitting completed applications, producers shall receive technical assistance provided by the Extension Service at no cost and an adjustment assistance payment, if certain program criteria are met. Producers certified as eligible for TAA, contact: Farm Service Agency service centers in Alabama. For general Information about TAA, contact: Jean-Louis Pajot, Coordinator, Trade Adjustment Assistance for Farmers, FAS, USDA, (202) 720-2916, email: trade.adjustment@fas.usda.gov.
Meanwhile, the Administrator, FAS, denied a petition for TAA for shrimpers that was filed on Nov. 18, 2003, by the Southeastern Fisheries Association, Inc., Tallahassee, FL. Upon investigation, the Administrator determined that domestic producer prices for shrimp did not decline at least 20% during January 2002 through December 2002 when compared with the previous five-year average, a condition required for certifying a petition for TAA, noted the Federal Register (Jan. 12).
PEAS & LENTILS – Trading activity within the market is slow to moderate with light to moderate demand. Limited amount of domestic trading going on, bulk of business continues to be for CCC Tenders.
Production of dry edible peas in Idaho, Montana, North Dakota, Oregon, and Washington is estimated at 5.2 million cwt for 2003, up 4% from the November forecast and 23% above 2002. Production is up from the previous year in for all the major producing states except Washington.
Production of lentils in Idaho, Montana, North Dakota, and Washington is estimated at 2.44 million cwt for 2003, up 7% from the November forecast, but 3% below 2002. Producers in the principal growing areas experienced a hot, dry season with precipitation levels well below average, which led to lower yields compared to 2002. However, the lentil crop quality is reported to be good.
CALIFORNIA BEANS – Trading activity continues to be slow with light to moderate demand.
DRIED BEANS – Dry edible bean trading was slow this past week with light to moderate demand.
U.S. dry bean production is estimated at 22.5 million cwt for 2003, down 1% from the December forecast and 25% below last year. Production is below a year ago in 12 of the 18 producing states. Most notable is a 50% production decrease in Michigan, where planted area is the lowest on record. Also, Oregon’s production is down 37% due to drought conditions.
DATES – Pakistani pitted are 69 cents per pound, Pakistani diced are $1.20-lb. and Pakistani loose-pack pitted are $1.05-lb. Iranian loose-pack pitted are 95 cents per pound. All prices are ex-whse. NJ.
RAISINS – Through the Jan. 3, California raisin shipments are down up 9% from this point last year, at 308,054 sweatbox tons. Natural seedless, which account for 91%, are at the same pace as last year, with 123,896 packed tons moved. Of the total, 63% has been shipped domestically (and Canada), while 45,279 tons have been exported.
Organic shipments for the season through Jan. 1 totaled 1,475 packed tons. The total includes 1,072 tons for domestic use, and 399 tons for export. Natural seedless continues to be the most popular variety of organic, as well as overall, however, dipped seedless and zante currant shipments continue to grow.
FIGS – Turkish Garland are $15.60-cs., and Turkish pulled #4 organics are $1.55-lb.
BANANAS – Philippine banana chips sweetened are 65 cents per pound and unsweetened are 75 cents per pound, ex-whse. NJ.
BERRIES – USA cherries are $5.95-lb., USA cranberries are $4.95-lb. and USA blueberries are $7.95-lb. Thai dried strawberries are $4.50-lb.
HAZELNUTS - USDA issued an interim final rule that establishes interim final and final free and restricted percentages for domestic inshell hazelnuts for the 2003-04 marketing year under the Federal marketing order for hazelnuts grown in Oregon and Washingon, for more see WASHINGTON, pages 10-11.
PISTACHIOS – Producing more than a quarter of the world’s production of pistachios, scientists warn the relatively young industry in California that a devasting disease could put hinder future growth.
Plant pathologists at the American Phytopathological Society (APS) say panicle and shoot blight is a serious and devastating disease.
One scientist at APS says losses of 40% to 100% is not uncommon in infected orchards. He went as far as to call panicle and shoot blight the most serious threat that exists to pistachio trees because California’s industry is particularly susceptible to the fungus that causes the blight.
Plant breeders are working with plant pathologists to develop disease-resistant varieties in hopes of avoiding an epidemic. In the meantime, APS recommends growers conduct regular surveys, sanitation by pruning possible infections, controlling insects and following fugicide programs designed to control the blight.
The U.S. is currently the second largest producer of pistachios next to Iran, producing an average of 250 million pounds valued at $235 million each year.
WALNUTS – Marketing year-to-date shipments through Dec. 31 are 7% higher than this point last year, at 224.3 million pounds. Inshell shipments are up 15%, the majority going to exports. Shelled movement is just about the same as this point last season, with exports up 24% and domestic shipments down 8%. The month of December was similar to the previous year, with 20.0 million pounds of shelled nuts moved.
Exports through Dec. 31 are higher than they were last year, with inshell up 19% and shelled up 8%.
Japan is just about on the pace as a year ago, while shipments to Germany, Canada, Israel and Spain have all increased. Inshell exports for the top five purchasing nations are all higher than last season.
U.S. production for the 2002/03 marketing year (MY) was 255,825 tons, down 10% from the prior marketing year. While this year’s crop was in a downswing of the production cycle, this crop is still the third largest on record. Production for MY 2003/04 is forecast to be a record 285,760 tons, up 12% from MY 2002/03 and up 3% from the large MY 2001/02 crop.
ALMONDS – USDA issued an interim final rule, effective Jan. 9, that decreases the assessment rate established for the Almond Board of California for the 2003-04 and subsequent crop years from $0.025 to $0.020 per pound of almonds received, noted the Federal Register (Jan 8).
The Board locally administers the marketing order which regulates the handling of almonds grown in California. Authorization to assess almond handlers enables the Board to incur expenses that are reasonable and necessary to administer the program. The crop year began Aug. 1 and ends July 31. The assessment rate will remain in effect indefinitely unless modified, suspended or terminated. Comments received by Mar. 8, 2004, will be considered prior to issuance of a final rule.
For more information, contact: Toni Sasselli, (559) 487-5901 or George Kelhart, (202) 720-2491.
Meanwhile, USDA directed that a referendum be conducted among eligible growers of California almonds to determine whether they favor continuance of the marketing order regulating the handling of almonds grown in the production area. The referendum will be conducted from Feb. 9 through Mar. 5, 2004. To vote in this referendum, growers must have been producing California almonds during the period Aug. 1, 2002 through July 31, 2003.
For more information, contact: Martin Engeler, (559) 487-5901 or Anne Dec, (202) 720-2491.
PEANUTS – Georgia producers enjoyed an abundance of good fortune in 2003, with plentiful rainfall, record-high yields and the lowest incidence of tomato spotted wilt virus since 1990.
Despite the low incidence of the virus this past year, it is present in Georgia fields, according to entomologists at the University of Georgia Extension. The University of Georgia Tomato Spotted Wilt Virus Index has helped Georgia growers significantly in their continuing battle against the potentially devastating virus.
Improved varieties remain one of the best weapons against the virus. “Everything that has been released in the past few years has been resistant to the virus at the Georgia Green level or better. Some of the newer ones are considerably better in terms of resistance than Georgia Green. DP-1 and AP-3 are pegged as the best in our index,” says entomologist Steve L. Brown.
USDA OFFERS TO BUY – USDA offers to purchase 25,080 cases of frozen apple slices (30-lb.) Deliveries will be made from Mar. 1 through June 30, 2004. For more information, contact USDA at (202) 720-4517.
BLUEBERRIES – Negotiations are underway between Maine blueberry processors and growers, following a $56 million verdict against the growers. On Jan. 2, Justice Joseph Jabar approved tripling the $18.68 million in damages awarded to the growers, bringing the damages to $56 million. Jabar also denied all three motions by the growers to decertify the class of growers, reject the jury verdict and proceed with a new trial.
Negotiations are now proceeding to come up with a figure that could appease the growers, while keeping the processors in business, as they claim $56 million could cause bankruptcy. Sources close to the negotiations report $21 million was suggested during negotiations on Jan. 2 as an amount that could settle their differences, reported The Bangor Daily News. Sources also report the figure arose from the growers’ side, and the suggestion angered the processors’ attorneys.
Maine Agriculture Commissioner Robert Spear invited both sides to join him when negotiations resume with a professional negotiator from the Maine Labor Relations Board.
BLACKBERRIES – USDA is inviting blackberry growers, handlers and other interested persons to propose alternatives or suggested revisions to a proposed marketing order for processed blackberries. A proposed marketing order has been filed by the Oregon/Washington Blackberry Proponent Committee, which is an industry group created to develop a proposed order. USDA will consider any additional alternatives or suggested revisions if received no later than Feb. 6.
The proposed marketing order would establish a producer allotment form of volume regulation and would allow for reserve pooling of excess processed blackberries. The proposal would authorize quality standards and allow for production and marketing research, and promotion, including paid advertising.
After receipt of any alternatives or suggested revisions, USDA will consider holding a public hearing in the growing region to learn how the proposal could help the industry address its marketing problems. If USDA decides the establishment of a processed blackberry marketing order would fall within the scope of the Agricultural Marketing Agreement Act of 1937, a recommended decision would be issued. Ultimately, a grower referendum would decide whether an order would be established.
For more information, visit http://www.ams.usda.gov/fv/moab.html, or contact Kathleen Finn at AMS, (202) 720-2491.
CITRUS UPDATE - Florida’s all orange January forecast is 250 million boxes, down 2 million boxes from the December forecast. The decline came entirely among the early and mid-season varieties, which are harvested through February. Even with that decline, the current orange crop would be the largest in the state’s history, up 2.5% from the previous record of 244 million boxes in the 1997/1998 season.
FCOJ - The FCOJ yield for the 2003/2004 season is forecast at 1.53 gallons per box at 42.0 degrees Brix, down from last month’s projection of 1.55 and slightly below last season’s final estimate of 1.54 gallons per box. The early-midseason portion is projected to yield 1.47 gallons, down from 1.49 for the 2002/2003 crop. Valencia’s are projected to yield 1.60 gallons as compared to 1.61 gallons for last season.
USDA agreed to purchase up to $50 million worth of canned and frozen orange juice, a move hailed by Florida orange growers who are facing shrinking prices caused by their largest crop ever. The federal purchase should take about 8.5 million 80-pound boxes of oranges out of the marketplace, possibly boosting prices. USDA’s planned purchase is equal to two or three weeks worth of U.S. orange juice consumption. The state’s citrus industry originally had requested that the government buy between $200 million and $240 million worth of juice, reported The Lakeland Ledger.
Florida orange growers currently are earning about 53 cents to 55 cents per pound solids, according to Florida Citrus Mutual. That compares to an average of 85 cents per pound solids growers got for the same early and midseason varieties last season.
As of Nov. 1, the U.S. exported 30.3 million gallons of 65 Brix FCOJ, a 72% decrease from the prior year due to the sharp decline in containers over 3.785 liters, which accounted for 98% of U.S. exports. Increased shipment to countries such as France, the United Arab Emirates and Israel could no offset the decreased shipments to The Netherlands or Japan.
GRAPEFRUIT CONCENTRATE - Florida’s January grapefruit forecast declined by one million boxes for the second consecutive month. The white grapefruit forecast was reduced, while the colored grapefruit remained unchanged. About 65% of Florida’s grapefruit crop goes to juice annually.