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NASS Estimates Significant Decline in the 2004/05 U.S. Citrus Crops: On October 12, 2004, NASS released the first estimates for this year’s U.S. citrus crops. The report was much anticipated because it took into account the hurricanes that devastated much of the Florida citrus growing area. According to NASS, Florida’s production of grapefruit in 2004/05 is estimated at 579,000 tons, down 63 percent from the 2003/04 level. Since Florida’s grapefruit production generally accounts for about 80 percent of the U.S. total, the overall U.S. number is estimated to decline 51 percent. According to the Florida Department of Citrus (FDOC), of the 40 percent of the grapefruit crop that goes to the fresh market, 70 percent of it is exported. For oranges, NASS has estimated the 2004/05 Florida crop at 7.2 million tons, down 27 percent from last year, and the smallest in a decade. While Florida produced about 84 percent of the total U.S. orange crop last year, over 95 percent of the crop goes into processing. It is uncertain, whether or not imports of orange juice from Brazil (the United States’ largest import supplier) will rise. Florida has significant orange juice stocks as a result of the large 2003/04 crop and sluggish demand caused by the popularity of low-carbohydrate diets. California’s orange crop is estimated in 2004/05 at 2.1 million tons, an increase of 19 percent from last year. Most of the oranges exported from the United States originate from California.

Panama Restricts Importation of U.S. Frozen Fries: On September 24, Panama’s Agricultural Ministry officials informed frozen fries importers that, effective immediately, their imports would be limited to their average quantities imported between January and August of this year. Phytosanitary permits will only be granted to importers for their quantities permitted under this formula. This is particularly problematic for importers because their high season is just starting. Panama does not produce frozen fries, but potato growers have complained that imports are displacing their fresh potatoes sales to the quick-service restaurant sector. Late last year and in early 2004, Panama used its phytosanitary permit system to impose similar restrictions on frozen fries imports. U.S. exports of frozen fries to Panama in 2003 were valued at $1.3 million, down 9 percent from 2002, due mainly to the permit problems. U.S. exports of frozen fries to Panama from January through July 2004 are valued at $696,000, down 6 percent from the same period in 2003.

Codex Talks Could Change Definition of Reconstituted Orange Juice: The Ad Hoc Intergovernmental Task Force on Fruit and Vegetable Juices is meeting the week of October 11, 2004, in Brazil to discuss the definition of reconstituted orange juice for the Codex Alimentarius standard. The U.S. delegation is pushing for a Codex standard that defines juice as 11.8 brix, which reflects current U.S. industry practice. In contrast, the EU is fighting for a definition of 11.2 brix, in line with EU industry practice. The U.S. position would result in lower global orange juice supplies, which would tend to increase farm prices for Florida oranges, since orange juice at 11.2 brix uses more water and fewer oranges than juice at 11.8 brix. If Codex adopts the EU position, it will increase the orange juice supply by 5 to 6 percent, according to industry contacts. Although Florida processors export less than 10 percent of their juice outside North America, the global supply of orange juice affects the price Florida processors will pay the state’s growers. In addition, current Federal Regulations require products labeled ‘orange juice’ sold in the United States to have at least 11.8 brix. If Codex adopts the 11.2 brix standard, the United States will have to change how it regulates imported orange juice.

Last modified: Wednesday, July 21, 2004