Trends in Citrus Marketing differential trends in production and utilization of citrus predominantly tied to the industry’s fresh-shipping market

Sidney Hoor

Events of the past 30 years-the depres- cause the large bulk of their fruit was California was the only commercial pro- sion of the early 1930s; World War 11; shipped fresh, and on the fresh market, ducer of lemons, and still is-by far- the development of frozen concentrates; California oranges have, over the years, the dominant producer. The industry did the fantastic growth of the state’s popu- enjoyed higher prices per pound than not ship the entire lemon crop to the lation; and the uprooting of orchards Florida oranges. fresh market in order to affect prices and before the avalanche of housing-helped Contrary to what occurs on the fresh grower returns. A substantial proportion shape the California citrus industry, and market, consumers in general are not of the lemon crop was channeled to low- there will be future changes because ad- willing to pay a premium for frozen con- value by-products. justment and readjustment are parts of centrate made from California oranges. In the postwar years, however, canned economic development. California frozen concentrate must com- lemon juice got a foothold. Of even When considering the California citrus pete on a price basis without a premium. greater importance was the development industry it is necessary to distinguish Hence, juice products returns to Califor- of frozen lemonade concentrate which between California navel and Valencia nia growersbecause of their higher rapidly gained consumer acceptance. The oranges, Florida oranges, and lemons, costs-must be higher per ton than to market potentials of these products at- and between fresh shipments and proc- Florida growers to result in the same net tracted attention, and new manufacturers essed products. income per ton of fruit to the growers and distributors entered the picture. At In the manufacture of orange prod- in each state. But such is not the case. the same time, plantings began in areas ucts, California navels and Valencias Florida growers can profitably grow or- where commercial production of lemons differ very much. Navels are purchased anges for juice manufacture while Cali- had not occurred-areas where process- by consumers-in most part-for eating fornia growers can not do so. The pro- ing lemons can be produced, especially fresh. About 85% of the crop is shipped ducers in this state must look to the fresh when their juice is blended with that of to the fresh market with the remaining market for returns adequate to continue California lemons. Plantings of one-shot- 15%-off grade and small sizes not suit- operations. harvest lemons for processing began in able for the fresh market-sent to proc- California navel growers have always Arizona and Florida, competing areas essing. faced direct competition from Florida where production costs are substantially California Valencias also go primarily fresh oranges when both are marketed lower than in California. As yet, lemons to the fresh market. ThreeJecades ago in the winter. But the navel, because of grown in other states make up only a or so, over 90% of the Valencia crop its quality and eating qualities, competed small proportion of the total supply. But was shipped fresh. As the industry reg and even earned a premium to offset its some manufacturers of juice products ulated the flow of fresh marketings to higher production and marketing costs. imported increasing amounts of lemon affect prices and returns, and as the proc- And navels continue to compete on a rea- concentrate stock from Italy. Thus, the essed outlets developed, the proportion sonably profitable basis. lemon industry in California was faced of the Valencia crop shipped fresh has California Valencias have experienced with supply competition from abroad as trended down. During recent years, how- a much more changed market picture well as at home. The out-of-state sources ever, on the average about two thirds of than navels. The better packs of frozen Concluded on page 15 the Valencia crop has been marketed concentrate-for many consumer-sub- fresh. stitute for home squeezed juice from In Florida the situation is much dif- California Valencias much more so than CALIFORNIA AGRl CULTURE canned single-strength juice. The stora- ferent. There the products market is the Progress Reports of Agricultural Research major outlet of the orange crop. As late bility of the frozen concentrate permits published monthly by the University of Cali: as just before World War 11, over 95% its sale to consumers during the entire fornia Division of Agricultural Sciences. of the Florida orange crop was shipped year. California Valencias now do not William F. Calkins...... Manager fresh. In the postwar years, with the in- enjoy the seasonal advantage of having Agricultural Publications W. 0. Wilde...... Editor and Manoper troduction of canned frozen orange con- the summer market to themselves, as they California Agriculture centrate and its fantastic accelerated ex- used to have. Florida oranges, in the Articles published herein may be republished pansion, an increasing proportion of the form of frozen concentrate, have high- or reprinted provided no endorsement of a Florida orange crop has gone into proc- volume sales the year around; they also commercial product is stated or implied. Please credit: University of California essing. This trend has increased to the have attained a wider geographical mar- Division of Agricultural Sciences. extent that now as much as two thirds ket. For example, substantial sales of California Agrieulturs will be sent free upon request addressed to : Editor, California of the Florida crop is processed for man- Florida frozen orange concentrates are Agriculturs, University of California. 22 ufacture into juice products-mostly now made throughout the year in the Pa- Giannini Hall, Berkeley 4. California. To simplify the information in California frozen concentrates-for sale throughout cific Coast states. Consumers have been Agriculture it is sometimes necessary to use the country and throughout the year. increasingly shifted from fresh oranges trade names of products or equipment. No endorsement of named products is intended Costs facing Florida orange growers to frozen orange juice because of its rela- nor is criticism implied of similar products have, for a long time, been lower than tive price, availability, and convenience. which are not mentioned. those faced by California growers. Yet, The impact of technology has affected despite higher costs, California growers other parts of the citrus industry also, 1k1 had been able to operate profitably be- particularly lemons. For a long time, I

2 CALI FO R N I A A C R I C U LTU R E, NOVEMBER, I95 7 marked holes. This method reduced the the demand for fresh lemons is gradually -in large closed tanks for 60-90 days planting time by 50%. However, a close decreasing. before the sludge is pumped into drying follow-up irrigation-by furrow or However, California has the advantage basins spread with filtering layers of sprinkler-is necessary to settle the of being able to ship fresh lemons of high peat, sand, rice hulls, or wood shavings, plants. quality throughout the year. A profitable either pine or redwood. A good crew is important in the use outlook for the California lemon indus- After a short period of drying, the of the labor transport and once a crew try depends on the maintenance and ex- basins are rototilled which results in has been trained the men should be kept pansion of the fresh lemon market. In aeration of the sludge and the creation to work together. this respect, the orange and lemon situa- of aerobic biological conditions. Sludge tions are the same; both are tied to the handled in such a manner is well aggre- Bernarr I. Hall is Farm Advisor, San Diego fresh-use markets. gated, light and porous rather than a County, University of California. moist sticky mass. Subsequent new lay- Robert G. Curley is Extension Agricultural Sidney Hoos is Professor of Agricultural Economics, University of California, Berkeley. ers of anaerobic sludge can be pumped Engineer, University of California, Davis. on top of the tilled material in the basins, John H. MacGillivray is Professor of Vege- and again rototilled two or three weeks table Crops, University of California, Dauis. later. After a final short period of roto- Growers Tom Imaizumi, Valley Center, and Fred M. Yasukochi, San Luis Rey, constructed RAPID PACK tilling and aeration the sludge is ready the equipment and cooperated in the study Continued from page 3 for use. Digested sludges processed in reported here. different ways usually have less desirable thus make it easier for the packer to pick physical properties and may be fine and up the front row. Front fruit is held in dusty and difficult to wet. place by a thii strip of wood kept as low BUDDING as possible, but high enough to prevent fruit from rolling over the edge. Greenhouse Trials Continued from page 7 The rollboard must be sufficiently deep Sewage sludge-primarily based on that a perfectly smooth union would ulti- so that fruit is free of the baffle and has peat and wood shavings-from the Red- mately be obtained. time to settle into a single layer before wood City processing plant was tried on The critical height of budding with reaching the edge. chrysanthemums, roses, carnations, and the various combinations of scions and The carton is seated on a board placed camellias. stocks is unknown but-apparently-8" tight in front of, but below, the edge of In a greenhouse trial with chrysanthe- should be considered a bare minimum the rollboard and should be tipped to- mums peat based sludge was added to with lemons and probably a greater ward the packer enough so that the first fine sand in 8" raised beds at the rate of height would be safer and more advan- row of fruit in it will stay in place. one half by volume. The mixture was tageous. The waxed slip board system for mov- not steam sterilized. An excellent crop ing a packed carton to a conveyor used W. P. Bitters is Associate Horticulturist, of chrysanthemums was grown-in 120 University of California, Riverside. at Santa Paula appears to be very prac- days from the planting of rooted cuttings R. G. Platt is Specialist in Subtropical Horti- tical. to flower harvest-without additional cdture, University of Cdijornia, Riverside. How much faster a packer can work fertilization. John A. Brusca is Principal Laboratory Tech- with the rapid pack system has not yet The same experiment was tried on nician in Horticulture, University of California, been determined but studies are being greenhouse roses with the exception that Riverside. made to determine the rate of pack that the mixture was steam sterilized after the N. W. Dukeshire is Principal Laboratory may be anticipated. sewage sludge was added. Subsequent Technician in Horticulture, University of Cali- fornh, Riverside. Roy 1. Smith is Professor of Agricultural growth of the roses indicated that some Economics, University of Calilornia, Los An- toxic effects resulted from the steaming. The above progress report is based on Re- geles. search Project No. 193C. Other observations indicate that steam Haruo Najima is Assistant Specialist in Agri- sterilization of sewage sludge mixtures cultural Economics, University of California, may result in a hazardous risk of crop Los Angeles. damage. MARKETING A mixture of 25% sludge-peat or wood shavings base-by volume has Continued from page 2 SLUDGES proven satisfactory with carnations grown in the greenhouse on raised beds. of supply could not be controlled by the Continued from page 13 state lemon products marketing order After-steaming toxicity was held in check which had been introduced to regulate tions sludges neither appreciably in- by leaching with heavy application of the flow and price of lemons used in proc- crease nor decrease the water or air irrigation water at planting. Additional essing. A situation developed wherein content of a soil. fertilizers and amendments-single su- the lemon products marketing order was The value of sludges to the grower perphosphate at four pounds, one and terminated as of September 30, 1957. using containers lies in the fertilizer one half pounds sulfate of potash, and The effects of these developments were value. An increase in the air space of an 10 pounds of agricultural lime-were not limited to the lemon products, but artificial growing mix is easily provided added per 100 square feet of plantbed epilled over into the fresh lemon market by the incorporation of peat, wood shav- area shortly before planting. No nitrogen which has always been the mainstay of ings, fir bark or other similar materials. fertilizer was added for a period of sev- profitable earnings for California lemon To determine the feasibility of using eral months. growers. Canned lemon juice and frozen sewage sludges in ornamental produc- In other trials sludge has been used concentrated lemonade compete with tion, material from a new process in use successfully on canned Meyer lemons, fresh lemons. Studies indicate that, al- at Redwood City was selected for trial camellias, junipers, and daphne with though the demand for fresh and proc- because-primarily-of the excellent 25% by volume sludge-either peat or essed lemons combined continues to in- physical conditions of the product. In wood shavings base-mixed with fine crease, the growth is absorbed by the the Redwood City process, sewage is di- sand. No additional fertilizer was added demand for lemon juice products while gested-by standard anaerobic methods Concluded on next page

CALI FOR N I A A C R I CULTU R E, NOVEMBER, 1957 15