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September 20, 2002
Initial Estimate of California's 2002/03 Navel Crop Shows Significant Increase
On September 12, 2002, the National Agricultural Statistics Service (NASS) released its first estimate of the 2002/03 California navel crop. Navel production in California during 2002/03 is estimated at 1.5 million tons, 18 percent higher than the 1.3-million-ton level of the previous year. Fruit set is significantly above last year, and according to NASS, the highest set since 1992. However, the fruit size is small. The majority of the oranges that the United States exports are navel oranges from California. During the current marketing year, November-June 2001/02, U.S. exports of oranges totaled 447,367 metric tons, down 12 percent from the previous year. Canada, Korea, Japan, Hong Kong, and China are the United States largest markets for oranges accounting for 87 percent of the November-June 2001/02 total.
Florida Citrus Growers File Lawsuit Against State and Florida Department of Citrus (FDOC)
On September 12, 2002, a group of Florida citrus growers filed a lawsuit in Leon County Circuit Court against the State of Florida and the FDOC seeking to declare unconstitutional a tax they pay on each box of fruit they produce for juice products. The tax is used to support state-sponsored generic and brand-name advertising campaigns for orange and grapefruit products. The suit alleges violation of freedom of speech. The growers argue that the advertising directly benefits the brand owners and retailers but not the growers. They also state that the generic advertising benefits imported citrus at least as much as it benefits Florida citrus. The growers are asking the court to strike down the tax and refund their portion of taxes paid for the states’ citrus advertising and marketing for the last three years.
China joins the International Organization of the Vine and Wine (OIV)
On September 11, 2002, in Yantai, eastern China's Shandong Province (one of the largest ports of entry for U.S. wine in China), the OIV, an intergovernmental organization concerned with the scientific and technical aspects of wine, and China Vintage Industry Association officials signed a memorandum admitting China into the OIV. This action may hurt exports of New World (non-European) wines to China if China adopts OIV wine standards, which are more restrictive than U.S. and other New World wine regulations. This new relationship could also make Chinese wines more competitive on the world market. In December of 2000, the United States formally withdrew from the OIV due to concerns that the OIV was striving to become the world standard-setting body for wine and that membership no longer advanced the position of the U.S. industry. According to an Agricultural Counselor report, China is increasing research and innovation expenditures on the grape growing industry. Last year, U.S. wine exports to China were valued at $2.6 million. Wine exports for the first half of this year are down 8 percent from a year ago.
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