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ECONOMIC CONTRIBUTIONS OF THE
FLORIDA CITRUS INDUSTRY IN 2015-16
PRESENTATION TO THE FLORIDA CITRUS COMMISSION
MAY 17, 201...
Scope of the Florida Citrus Industry, 2015-16
Florida Commercial Citrus Production Areas
• Largest citrus producer in the ...
Study Purpose
• Estimate the economic contributions of
the citrus industry in Florida for 2015-16
season
– Fruit productio...
Data Sources and Methods
• U.S. Department of Agriculture (USDA)
– National Agricultural Statistics Service (NASS)
• Citru...
y = -20,628x + 763,555
R² = 0.9398
0
100
200
300
400
500
600
700
800
AcresBearing(Thousands)
0
100
200
300
400
500
600
Yie...
Trends in World Citrus Production, Consumption, Exports,
and Orange Juice Consumption, 2011-12 – 2015-16
Source: USDA-FAS
...
10.1
84.1
0
10
20
30
40
50
60
70
80
90
Fresh Processed
Utilization(millionboxes)
Tangerines
Tangelos
Red seedless
grapefru...
Florida Fresh Citrus Shipment Values and
Packinghouse Margins, 2015-16
The wholesale margin on fresh
packed fruit is the d...
Wholesale Value of Florida Citrus Juice, 2015-16
• Total volume: 810 million gallons
̶ Orange juice: 771 million gallons
̶...
Volume and Value of Processed
Citrus Byproducts, 2015-16
Sources: www.svfeeds.com; www.gardeningknowhow.com; www.primafleu...
Economic Contributions of Florida Citrus Industry Activities, 2015-16
15,563
27,872
1,987
0
5,000
10,000
15,000
20,000
25,...
State and local tax contributions:
$271 million
Tax Contributions of Florida Citrus Activities, 2015-16
Tax on Production
...
Total Employment Contributions by Industry (Jobs), 2015-16
Agriculture, forestry,
fishing & hunting,
8065, 18%
Manufacturi...
Florida Citrus Production by County, 2015-16
Source: FDACS
• Top five producing counties
1. Hendry
2. DeSoto
3. Polk
4. Hi...
Economic Contributions of the Florida Citrus Industry
by Production Area, 2015-16
Economic Contributions of the Florida Citrus Industry
by Production Area, 2015-16
• Central, share of 2015 economy
̶ Emplo...
Direct Employment and Value Added Contributions as a Share of
2015 Employment and Value Added by County
Employment Shares
...
Comparisons with Past Studies
29,448
19,942
15,563
34,037
27,877 27,872
2,960 2,149 1,987
0
5,000
10,000
15,000
20,000
25,...
Economic Impacts of Citrus Greening (HLB)
Cumulative total losses attributable to HLB from 2006-07 – 2015-16 were estimate...
Economic Impacts of Citrus Greening (HLB)
Cumulative total losses attributable to HLB from 2012-13 – 2015-16 were estimate...
Corresponding Author
Contact Information:
Christa D. Court
ccourt@ufl.edu
(352) 294-7675
Alan W. Hodges
awhodges@ufl.edu
(...
Connect. Explore. Engage.
/fred.ifas.ufl
@UF_IFAS_FRED
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Economic Contributions of the Florida Citrus Industry in 2016-16

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UF/IFAS Economic Impact Analysis Program analyzed the economic contribtutions of the citrus industry in Florida. The final report was prepared for the Florida Department of Citrus.

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Economic Contributions of the Florida Citrus Industry in 2016-16

  1. 1. ECONOMIC CONTRIBUTIONS OF THE FLORIDA CITRUS INDUSTRY IN 2015-16 PRESENTATION TO THE FLORIDA CITRUS COMMISSION MAY 17, 2017 Christa D. Court, PhD | Assistant Scientist Alan W. Hodges, PhD | Extension Scientist Mohammad Rahmani, PhD | Economic Analyst Thomas J. Spreen, PhD | Professor Emeritus FOOD AND RESOURCE ECONOMICS DEPARTMENT
  2. 2. Scope of the Florida Citrus Industry, 2015-16 Florida Commercial Citrus Production Areas • Largest citrus producer in the U.S. ̶ 49% of total U.S. citrus production ̶ U.S. is 4th largest producer in the world • 27 counties have citrus production ̶ 5 commercial citrus production areas • 480,000+ acres of grove lands ̶ 435,000+ acres of bearing grove lands • 32 packinghouses ship fresh fruit to global markets • 19 processing facilities that process citrus juice and byproducts
  3. 3. Study Purpose • Estimate the economic contributions of the citrus industry in Florida for 2015-16 season – Fruit production – Packinghouse operations – Citrus juice manufacturing • Estimate impacts for five commercial citrus production areas – Northern – Western (peninsular) – Central – Indian River – Southern • Compare results to previous studies – 2012-13 season – 2014-15 season • Update estimates for the economic impacts of citrus greening disease (HLB) Source: UF/IFAS
  4. 4. Data Sources and Methods • U.S. Department of Agriculture (USDA) – National Agricultural Statistics Service (NASS) • Citrus acreage, fruit production by type, grower prices – Foreign Agricultural Service (FAS) • World citrus production, consumption, and exports • Florida Department of Agricultural and Consumer Services (FDACS) – Fruit shipments to packinghouses and processing plants • Florida Department of Citrus (FDOC) – Juice shipments, wholesale and retail prices (Nielson), byproduct prices (industry survey) – Byproduct volumes • IMPLAN regional input-output software and data – Captures the direct, indirect, and induced multiplier effects of industry activities in all economic sectors Source: UF/IFAS Source: UF/IFAS
  5. 5. y = -20,628x + 763,555 R² = 0.9398 0 100 200 300 400 500 600 700 800 AcresBearing(Thousands) 0 100 200 300 400 500 600 Yield(boxesperacre) Grapefruit Orange 0 50 100 150 200 250 300 350 ProductionUtilized(millionboxes) Trends in Florida Citrus Acreage, Production, Yields, and Value, 2000-16 Declined by 42% Grapefruit declined by 39% Orange declined by 46% Declined by 68% Source: USDA-NASS Note: Data are for calendar years and 2016 data are preliminary 0.0 0.5 1.0 1.5 2.0 2.5 ProductionValue(billiondollars) Acres Bearing Yield Production Utilized Production Value
  6. 6. Trends in World Citrus Production, Consumption, Exports, and Orange Juice Consumption, 2011-12 – 2015-16 Source: USDA-FAS 8.81 8.42 8.90 8.92 9.36 0 1 2 3 4 5 6 7 8 9 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2011-12 2012-13 2013-14 2014-15 2015-16 WorldExports (thousandmetrictons) Country/RegionExports (thousandmetrictons) World China South Africa Turkey United States Egypt 88.93 86.29 89.91 90.14 88.49 0 10 20 30 40 50 60 70 80 90 0 5 10 15 20 25 30 35 2011-12 2012-13 2013-14 2014-15 2015-16 WorldConsumption (millionmetrictons) Country/RegionConsumption (millionmetrictons) World China Brazil European Union United States Mexico 89.63 86.69 90.84 90.89 89.21 0 10 20 30 40 50 60 70 80 90 0 5 10 15 20 25 30 35 2011-12 2012-13 2013-14 2014-15 2015-16 WorldProduction (millionmetrictons) Country/RegionProduction (millionmetrictons) World China Brazil European Union United States Mexico Production Consumption Exports Orange Juice Consumption 2,058 2,070 1,959 2,055 1,892 0 500 1000 1500 2000 0 100 200 300 400 500 600 700 800 900 1000 2011-12 2012-13 2013-14 2014-15 2015-16 WorldOrangeJuiceConsumption (thousandmetrictons) Country/RegionOrangeJuiceConsumption (thousandmetrictons) World European Union United States Japan China Canada
  7. 7. 10.1 84.1 0 10 20 30 40 50 60 70 80 90 Fresh Processed Utilization(millionboxes) Tangerines Tangelos Red seedless grapefruit White seedless grapefruit Valencia orange Non-Valencia oranges Florida Citrus Production Volumes and Grower Values for Fresh or Processed Utilization, 2015-16 • Total volume of citrus fruit production 94.2 million boxes • 81.6 million boxes of oranges • 10.8 million boxes of grapefruit • 1.8 million boxes of specialty citrus (tangelos and tangerines) • Fresh market: 11 percent • Processing: 89 percent • Total value of citrus fruit production $825 million • Oranges: $682 million • Grapefruit: $108 million • Specialty citrus: $35 million • Fresh market: $170 million • Processing: $656 million 170 656 0 100 200 300 400 500 600 700 Fresh Processed Value(milliondollars) Tangerines Tangelos Red seedless grapefruit White seedless grapefruit Valencia orange Non-Valencia oranges
  8. 8. Florida Fresh Citrus Shipment Values and Packinghouse Margins, 2015-16 The wholesale margin on fresh packed fruit is the difference between the value of shipped fruit and the value paid to growers. Volume of certified fresh shipments: 17,458 thousand 4/5 bushel cartons ̶ Non-Valencia oranges: 3,153 ̶ Valencia oranges: 2,862 ̶ White seedless grapefruit: 980 ̶ Red seedless grapefruit: 8,091 ̶ Tangelos: 414 ̶ Tangerines: 1,959 53 40 19 128 6 48 0 20 40 60 80 100 120 140 Non- Valencia oranges Valencia orange White seedless grapefruit Red seedless grapefruit Tangelos Tangerines Oranges fill Grapefruit fill Specialty Citrus Value(milliondollars) Value paid to growers Packinghouse margin
  9. 9. Wholesale Value of Florida Citrus Juice, 2015-16 • Total volume: 810 million gallons ̶ Orange juice: 771 million gallons ̶ Grapefruit juice: 38 million gallons • Total producer value: $2.8 billion ̶ Orange juice: $2.7 billion ̶ Grapefruit juice: $115 million • Total in-state sales: $157 million ̶ Frozen concentrate: $42 million ̶ Single strength: $116 million • Total out-of-state sales: $2.6 billion ̶ Frozen concentrate: $692 million ̶ Single strength: $1.9 billion • 94% of the value of citrus juice sales is shipped out-of-state 733 2,057 0 500 1,000 1,500 2,000 2,500 Frozen Concentrate Single Strength Value(milliondollars) Out-of-state In-state 697 36 1,978 79 0 400 800 1,200 1,600 2,000 Orange Grapefruit Orange Grapefruit Frozen Concentrate fill Single Strength Value(milliondollars) Packaged Bulk
  10. 10. Volume and Value of Processed Citrus Byproducts, 2015-16 Sources: www.svfeeds.com; www.gardeningknowhow.com; www.primafleurbotanicals.blogspot.com
  11. 11. Economic Contributions of Florida Citrus Industry Activities, 2015-16 15,563 27,872 1,987 0 5,000 10,000 15,000 20,000 25,000 30,000 Growers Processors Packinghouses Employment(fulltimeandpart-timejobs) Direct Indirect Induced 2,559 4,230 8,632 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Labor Income Value Added Industry Output (milliondollars) Growers Processors Packinghouses Total contributions by citrus industry sector Total employment contributions by type and citrus sector
  12. 12. State and local tax contributions: $271 million Tax Contributions of Florida Citrus Activities, 2015-16 Tax on Production and Imports: Sales Tax 46%Tax on Production and Imports: Property Tax 36% Personal Tax: NonTaxes (Fines- Fees) 5% Tax on Production and Imports: Other Taxes 4% Corporate Profits Tax 4% Other 5% Federal tax contributions: $547 million Personal Tax: Income Tax 34% Social Ins Tax- Employer Contribution 23% Social Ins Tax- Employee Contribution 21% Corporate Profits Tax 16% Tax on Production and Imports: Excise Taxes 4% Other 2%
  13. 13. Total Employment Contributions by Industry (Jobs), 2015-16 Agriculture, forestry, fishing & hunting, 8065, 18% Manufacturing, 6425, 14% Health & social services, 4088, 9% Retail trade, 3861, 8% Government & non- NAICs, 3746, 8% Accommodation& food services, 2439, 5% Professional, scientific & technical services, 2314, 5% Wholesale trade, 2119, 5% Other services, 2110, 5% Construction, 1704, 4% Other, 8552, 19%
  14. 14. Florida Citrus Production by County, 2015-16 Source: FDACS • Top five producing counties 1. Hendry 2. DeSoto 3. Polk 4. Highlands 5. Hardee • County and area level estimates of economic contributions were allocated based on the proportional distribution of production volume Citrus production by county, 2015-16
  15. 15. Economic Contributions of the Florida Citrus Industry by Production Area, 2015-16
  16. 16. Economic Contributions of the Florida Citrus Industry by Production Area, 2015-16 • Central, share of 2015 economy ̶ Employment contributions: 2.7 percent ̶ Value added contributions: 3.5 percent • Southern, share of 2015 economy ̶ Employment contributions: 2.1 percent ̶ Value added contributions: 2.7 percent • Western (peninsular), share of 2015 economy ̶ Employment contributions: 0.9 percent ̶ Value added contributions: 1.0 percent
  17. 17. Direct Employment and Value Added Contributions as a Share of 2015 Employment and Value Added by County Employment Shares 6.01% - 13.00% 4.01% - 6.00% 1.01% - 4.00% 0.51% - 1.00% 0.01% - 0.50% Value Added Shares 10.01% - 25.00% 4.01% - 10.00% 2.01% - 4.00% 0.51% - 2.00% 0.001% - 0.50%
  18. 18. Comparisons with Past Studies 29,448 19,942 15,563 34,037 27,877 27,872 2,960 2,149 1,987 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2012-13 2014-15 2015-16 Employment (FulltimeandPart-timeJobs) Growers Processors Packinghouses 4,007 2,713 2,118 8,043 6,303 6,206 465 334 308 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2012-13 2014-15 2015-16 IndustryOutput (MillionDollars,2016) Growers Processors Packinghouses Declines in total employment contributions by sector: ̶ Growers: 47% ̶ Processors: 18% ̶ Packinghouses: 33% Declines in total output contributions by sector: ̶ Growers: 47% ̶ Processors: 23% ̶ Packinghouses: 34% Overall employment, labor income, value added, and industry output contributions have all decreased by 31 percent in constant dollar terms between 2012-13 and 2015-16 and by 8-9 percent between 2014-15 and 2015-16.
  19. 19. Economic Impacts of Citrus Greening (HLB) Cumulative total losses attributable to HLB from 2006-07 – 2015-16 were estimated at: ̶ $4.643 billion in industry output (annual average of $464 million) ̶ $2.768 billion in value added (annual average of $277 million) ̶ $1.760 billion in labor income (annual average of $176 million) ̶ 34,124 job-years (annual average of 3,412 ongoing full- and part-time jobs) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Totalgrowerrevenuesreceived(million$) Without HLB With HLB
  20. 20. Economic Impacts of Citrus Greening (HLB) Cumulative total losses attributable to HLB from 2012-13 – 2015-16 were estimated at: ̶ $4.393 billion in industry output (annual average of $1.098 billion) ̶ $2.631 billion in value added (annual average of $658 million) ̶ $1.673 billion in labor income (annual average of $418 million) ̶ 31,778 job-years (annual average of 7,945 ongoing full- and part-time jobs) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Totalgrowerrevenuesreceived(million$) Without HLB With HLB
  21. 21. Corresponding Author Contact Information: Christa D. Court ccourt@ufl.edu (352) 294-7675 Alan W. Hodges awhodges@ufl.edu (352) 294-7674
  22. 22. Connect. Explore. Engage. /fred.ifas.ufl @UF_IFAS_FRED

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