Production, Utilization and Demand

The Texas citrus industry is located in a comparatively small area (Hidalgo, Cameron, and Willacy counties) in the Texas Lower Rio Grande Valley. Since the growing acreage of Texas citrus is prevalent in this region only, the industry is subjected to heavy impacts from weather extremes and other extraneous factors. This industry was greatly impacted by freezes that hit the Rio Grande Valley in 1983 and 1989. While one could postulate that a decade without extraneous weather factors would propel the industry back to pre-freeze levels of production, the reality is that the urbanization of the Rio Grande Valley has limited acreage re-growth. Fortunately, by implementing new hybrids, production levels have improved to 60% of pre-freeze levels without requiring the same acreage.

The bearing acreage of citrus in the Rio Grande Valley is presently at 29,000 acres. The 1983 freeze destroyed 47,000 acres of the 69,000 acres of citrus. By 1989, acreage had grown to 35,700; however, the December 1989 freeze destroyed 24,000 acres. By combining the devastation of the groves due to the freezes with the booming urbanization of this area, it can be assessed that the acreage levels of citrus will not return to pre-freeze levels.

Production and utilization data show eleven years after the last freeze, the industry has not been able to return to pre-freeze levels. For comparison purposes, an average of the five years preceding the 1983 freeze was taken. The current level (2000-01 growing season) of production is at 83% of the 5-year period for grapefruit and 42% of the 5-year period for oranges. After the 1989 freeze, production levels fell to zero for the 1990-91 season. Since the 1989 freeze, there has been a 296% increase in the production level of Texas citrus.

Production utilized for the 1999-2000 season was 237,200 tons or 68% of the 1983 pre-freeze average for grapefruit and 70,550 tons or 31% for oranges. The most recent season completed (2000-01) estimates yields of 288,000 tons or 83% of the 1983 pre-freeze average for grapefruit and 94,988 or 42% for oranges.

Roughly 25 countries produce citrus worldwide. Of these countries, the United States ranks first in grapefruit production and second to Brazil in orange production.

The three major production areas of the United States (California/Arizona, Florida, and Texas) have all fell victim to acreage reduction due to weather, urban expansion, and general economic conditions. However, simply considering acreage reductions alone does not provide an accurate picture of the status of the industry. Other factors, such as orchard age, density, rootstocks, variety, management, climate, etc, determine orchard productivity. Production and utilization data provides a clearer picture of the supply and market share, than actual acreage data.

GRAPEFRUIT

Production, utilization, and value of all grapefruit production in the United States are presented in Table 1 by production area for the 1978-79 season through the 2000-01 season. Texas ranks third in terms of production and in market utilization (both fresh and processed), representing an average of 6.86% of total U.S. grapefruit production since 1978-79. Florida supplies nearly 72% of the U.S. fresh grapefruit market, however, over half of their total production is sent to processing. Texas and California/Arizona, on the other hand, utilizes an average of over 60% of their grapefruit in the fresh market.

Table 1: Annual production, utilization and value of US grapefruit by area for 1978-2001

Season / Production (tons) / Fresh Utilization (tons) / Processed Utilization (tons) / Percent Fresh / Value ($1000)
California/Arizona
1978-79 / 272,465 / 154,350 / 118,115 / 56.65% / 36,967
1979-80 / 340,950 / 155,540 / 185,410 / 45.62% / 29,997
1980-81 / 353,220 / 198,150 / 155,070 / 56.10% / 48,338
1981-82 / 279,196 / 157,415 / 121,781 / 56.38% / 25,325
1982-83 / 345,770 / 208,778 / 136,992 / 60.38% / 32,822
1983-84 / 318,196 / 206,398 / 111,798 / 64.87% / 40,414
1984-85 / 396,720 / 273,740 / 122,980 / 69.00% / 81,869
1985-86 / 645,818 / 245,130 / 400,688 / 37.96% / 72,822
1986-87 / 403,675 / 254,265 / 149,410 / 62.99% / 70,175
1987-88 / 370,175 / 244,550 / 125,625 / 66.06% / 65,388
1988-89 / 333,325 / 228,973 / 104,353 / 68.69% / 58,085
1989-90 / 388,600 / 256,778 / 131,823 / 66.08% / 97,460
1990-91 / 348,400 / 230,882 / 117,518 / 66.27% / 67,133
1991-92 / 428,800 / 282,740 / 146,060 / 65.94% / 77,447
1992-93 / 380,225 / 238,319 / 141,906 / 62.68% / 52,041
1993-94 / 370,175 / 241,602 / 128,573 / 65.27% / 55,625
1994-95 / 358,450 / 241,971 / 116,480 / 67.50% / 60,207
1995-96 / 311,550 / 213,462 / 98,088 / 68.52% / 57,715
1996-97 / 304,850 / 218,889 / 85,961 / 71.80% / 55,064
1997-98 / 294,800 / 202,206 / 92,594 / 68.59% / 71,068
1998-99 / 269,675 / 240,028 / 29,648 / 89.01% / 83,010
1999-00 / 256,275 / 213,797 / 42,478 / 83.42% / 59,784
2000-01 a / 226,125 / 174,368 / 51,758 / 77.11% / 52,166
Average / 347,715 / 220,971 / 126,744 / 65.08% / 59,725
Percent of US Total / 13.38% / 18.64% / 8.97% / 18.15%
Florida
1978-79 / 2,125,000 / 841,075 / 1,283,925 / 39.58% / 177,009
1979-80 / 2,329,000 / 828,793 / 1,500,207 / 35.59% / 246,458
1980-81 / 2,137,750 / 729,598 / 1,408,152 / 34.13% / 248,294
1981-82 / 2,044,251 / 710,558 / 1,333,693 / 34.76% / 165,540
1982-83 / 1,674,501 / 778,303 / 896,198 / 46.48% / 129,851
1983-84 / 1,738,461 / 708,303 / 1,030,158 / 40.74% / 170,511
1984-85 / 1,870,000 / 636,990 / 1,233,010 / 34.06% / 228,661
1985-86 / 1,986,875 / 833,850 / 1,153,025 / 41.97% / 267,067
1986-87 / 2,116,500 / 889,865 / 1,226,635 / 42.04% / 329,098
1987-88 / 2,288,625 / 982,175 / 1,306,450 / 42.92% / 387,446
1988-89 / 2,326,875 / 1,015,835 / 1,311,040 / 43.66% / 332,849
1989-90 / 1,517,250 / 567,120 / 950,130 / 37.38% / 260,275
1990-91 / 1,916,750 / 1,016,728 / 900,023 / 53.04% / 328,770
1991-92 / 1,802,000 / 970,743 / 831,258 / 53.87% / 349,688
1992-93 / 2,343,875 / 984,045 / 1,359,830 / 41.98% / 236,717
1993-94 / 2,169,625 / 956,335 / 1,213,290 / 44.08% / 271,114
1994-95 / 2,367,250 / 945,158 / 1,422,093 / 39.93% / 231,779
1995-96 / 2,224,875 / 970,828 / 1,254,048 / 43.64% / 211,180
1996-97 / 2,371,500 / 987,573 / 1,383,928 / 41.64% / 207,607
1997-98 / 2,105,875 / 899,300 / 1,206,575 / 42.70% / 174,956
1998-99 / 1,999,625 / 847,705 / 1,151,920 / 42.39% / 216,309
1999-00 / 2,269,500 / 774,223 / 1,495,278 / 34.11% / 314,206
2000-01 a / 1,955,000 / 742,263 / 1,212,738 / 37.97% / 198,322
Average / 2,073,085 / 852,929 / 1,220,157 / 41.25% / 247,118
Percent of US Total / 79.76% / 71.93% / 86.33% / 76.37%
Texas
1978-79 / 360,000 / 160,000 / 200,000 / 44.44% / 17,680
1979-80 / 316,000 / 168,000 / 148,000 / 53.16% / 26,237
1980-81 / 268,000 / 186,000 / 82,000 / 69.40% / 27,260
1981-82 / 556,000 / 289,200 / 266,800 / 52.01% / 38,173
1982-83 / 241,400 / 141,950 / 99,450 / 58.80% / 24,148
1983-84 / 106,675 / 59,075 / 47,600 / 55.38% / 9,385
1984-85 / - / - / - / 0.00% / -
1985-86 / 13,175 / 12,325 / 850 / 93.55% / 2,076
1986-87 / 77,000 / 62,200 / 14,800 / 80.78% / 15,122
1987-88 / 152,000 / 111,400 / 40,600 / 73.29% / 25,754
1988-89 / 192,000 / 155,600 / 36,400 / 81.04% / 25,107
1989-90 / 80,000 / 64,200 / 15,800 / 80.25% / 14,162
1990-91 / - / - / - / 0.00% / -
1991-92 / 2,600 / 2,600 / - / 100.00% / 983
1992-93 / 75,000 / 55,880 / 19,120 / 74.51% / 12,856
1993-94 / 120,000 / 86,200 / 33,800 / 71.83% / 15,238
1994-95 / 186,000 / 128,040 / 57,960 / 68.84% / 15,539
1995-96 / 182,000 / 120,880 / 61,120 / 66.42% / 21,257
1996-97 / 212,000 / 148,720 / 63,280 / 70.15% / 2,078
1997-98 / 192,000 / 139,760 / 52,240 / 72.79% / 22,574
1998-99 / 244,000 / 163,480 / 80,520 / 67.00% / 35,307
1999-00 / 237,200 / 154,880 / 82,320 / 65.30% / 37,342
2000-01 a / 288,000 / 162,200 / 125,800 / 56.32% / 19,324
Average / 178,307 / 111,852 / 66,455 / 63% / 17,722
Percent of US Total / 6.86% / 9.43% / 4.70% / 5.48%

a. Preliminary data for the 2000-01 growing season

SOURCE: September 2001 Fruit and Tree Nut Situation and Outlook Yearbook, ERS, USDA

Since 1978, on the average, Texas as shipped 63% of its total grapefruit to the fresh market. However, Texas grapefruit remains a distant third, as its almost 7% share of U.S. production only generated over 5% of the U.S. total value. The California/Arizona average value of production was the highest at $171.76 per ton, Florida=s came in second at $119.20 per ton, and Texas= value of production is $99.39 per ton (calculated by dividing the average value of production by the average production for the 22 year period).

ORANGES

Annual production, utilization and value of U.S. oranges by production area for the growing seasons of 1978-79 to 2000-01 are presented in Table 2. Texas ranks as third in the production of oranges, averaging less than 1% of total U.S. production. Florida is ranked as 1st in total U.S. production with production levels exceeding 76% of the U.S. total. However, processing is the primary market utilizing Florida oranges. Roughly 6% of Florida oranges are utilized in the fresh market, while California/Arizona and Texas oranges exceed 65% fresh market utilization.

Table 2: Annual production, utilization and value of US oranges by area for 1978-2001

Season / Production (tons) / Fresh Utilization (tons) / Processed Utilization (tons) / Percent Fresh / Value ($1000)
California/Arizona
1978-79 / 1,507,500 / 991,500 / 516,000 / 65.77% / 994,990
1979-80 / 2,358,750 / 1,563,000 / 795,750 / 66.26% / 1,068,408
1980-81 / 2,581,875 / 1,513,500 / 1,068,375 / 58.62% / 1,045,600
1981-82 / 1,685,625 / 1,332,000 / 353,625 / 79.02% / 387,020
1982-83 / 1,883,625 / 1,717,313 / 1,278,938 / 91.17% / 335,257
1983-84 / 2,041,875 / 1,562,500 / 421,125 / 76.52% / 411,869
1984-85 / 2,097,375 / 1,575,188 / 466,688 / 75.10% / 525,271
1985-86 / 2,272,500 / 1,696,687 / 400,688 / 74.66% / 378,920
1986-87 / 2,207,700 / 1,637,250 / 570,450 / 74.16% / 450,859
1987-88 / 2,280,750 / 1,602,188 / 678,563 / 70.25% / 473,109
1988-89 / 2,272,500 / 1,568,063 / 704,438 / 69.00% / 477,006
1989-90 / 2,737,875 / 1,809,713 / 928,163 / 66.10% / 568,719
1990-91 / 1,025,625 / 660,675 / 364,950 / 64.42% / 404,031
1991-92 / 2,616,750 / 1,618,350 / 998,400 / 61.85% / 450,400
1992-93 / 2,574,375 / 1,897,350 / 677,025 / 73.70% / 481,529
1993-94 / 2,456,250 / 1,785,488 / 670,763 / 72.69% / 475,130
1994-95 / 2,139,375 / 1,691,063 / 448,313 / 79.04% / 480,408
1995-96 / 2,236,875 / 1,716,300 / 520,575 / 76.73% / 498,102
1996-97 / 2,452,500 / 1,980,113 / 472,388 / 80.74% / 593,552
1997-98 / 2,625,000 / 2,114,325 / 510,675 / 80.55% / 619,955
1998-99 / 1,393,125 / 765,300 / 627,825 / 54.93% / 424,077
1999-00 / 2,441,250 / 1,668,975 / 772,275 / 68.37% / 350,962
2000-01 a / 2,246,250 / 1,902,375 / 343,875 / 84.69% / 567,215
Average / 2,179,797 / 1,581,270 / 634,342 / 72.36% / 541,843
Percent of US Total / 22.31% / 76.53% / 8.20% / 33.30%
Florida
1978-79 / 7,380,000 / 526,545 / 6,835,455 / 7.13% / 994,990
1979-80 / 9,301,500 / 494,550 / 8,806,950 / 5.32% / 1,068,408
1980-81 / 7,758,000 / 372,420 / 7,385,580 / 4.80% / 1,045,600
1981-82 / 5,661,000 / 342,900 / 5,318,100 / 6.06% / 752,547
1982-83 / 6,282,000 / 464,400 / 5,817,600 / 7.39% / 955,741
1983-84 / 5,251,500 / 343,800 / 4,907,700 / 6.55% / 880,377
1984-85 / 4,675,500 / 299,340 / 4,376,160 / 6.40% / 930,139
1985-86 / 5,364,000 / 403,200 / 4,960,800 / 7.52% / 708,356
1986-87 / 5,386,500 / 399,150 / 4,987,350 / 7.41% / 864,171
1987-88 / 6,210,000 / 428,400 / 5,781,600 / 6.90% / 1,288,199
1988-89 / 6,597,000 / 381,960 / 6,215,040 / 5.79% / 1,357,529
1989-90 / 4,959,000 / 266,490 / 4,692,510 / 5.37% / 888,097
1990-91 / 6,822,000 / 560,295 / 6,261,705 / 8.21% / 1,180,715
1991-92 / 6,291,000 / 519,840 / 5,771,160 / 8.26% / 1,094,369
1992-93 / 8,397,000 / 482,580 / 7,914,420 / 5.75% / 1,004,253
1993-94 / 7,848,000 / 445,410 / 7,402,590 / 5.68% / 1,061,122
1994-95 / 9,247,500 / 469,845 / 8,777,655 / 5.08% / 1,138,825
1995-96 / 9,148,500 / 448,605 / 8,699,895 / 4.90% / 1,316,167
1996-97 / 10,179,000 / 481,320 / 9,697,680 / 4.73% / 1,235,547
1997-98 / 10,980,000 / 495,450 / 10,484,550 / 4.51% / 1,339,529
1998-99 / 8,370,000 / 488,700 / 7,881,300 / 5.84% / 1,252,704
1999-00 / 10,485,000 / 422,685 / 10,062,315 / 4.03% / 1,304,965
2000-01 a / 10,048,500 / 433,035 / 9,615,465 / 4.31% / 1,063,496
Average / 7,506,196 / 433,518 / 7,071,895 / 6.00% / 1,075,037
Percent of US Total / 76.82% / 20.98% / 91.37% / 66.06%
Texas
1978-79 / 272,000 / 89250 / 182750 / 32.81% / 26,970
1979-80 / 171,275 / 88400 / 82875 / 51.61% / 19,791
1980-81 / 184,025 / 121125 / 62900 / 65.82% / 20,363
1981-82 / 252,450 / 141100 / 111350 / 55.89% / 28,228
1982-83 / 241,400 / 141950 / 99450 / 58.80% / 26,402
1983-84 / 106,675 / 59075 / 47600 / 55.38% / 11,492
1984-85 / - / 0 / 0 / 0.00% / -
1985-86 / 13,175 / 12325 / 850 / 93.55% / 3,168
1986-87 / 37,188 / 33,363 / 3,825 / 89.71% / 7,469
1987-88 / 60,775 / 54,230 / 6,545 / 89.23% / 12,373
1988-89 / 78,625 / 66,130 / 12,495 / 84.11% / 13,932
1989-90 / 51,213 / 28,178 / 23,035 / 55.02% / 8,256
1990-91 / - / - / - / 0.00% / -
1991-92 / 1,275 / 1,275 / - / 100.00% / 431
1992-93 / 21,675 / 19,040 / 2,635 / 87.84% / 4,156
1993-94 / 23,375 / 21,420 / 1,955 / 91.64% / 5,044
1994-95 / 44,838 / 30,515 / 14,323 / 68.06% / 4,828
1995-96 / 39,950 / 33,490 / 6,460 / 83.83% / 7,310
1996-97 / 60,350 / 40,630 / 19,720 / 67.32% / 7,563
1997-98 / 64,813 / 47,983 / 16,830 / 74.03% / 5,874
1998-99 / 60,775 / 47,515 / 13,260 / 78.18% / 11,147
1999-00 / 70,550 / 54,358 / 16,193 / 77.05% / 10,173
2000-01 a / 94,988 / 54,018 / 40,970 / 56.87% / 5,539
Average / 84,843 / 51,538 / 33,305 / 66% / 10,457
Percent of US Total / 0.87% / 2.49% / 0.43% / 0.64%

a. Preliminary data