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Keeping Growers Informed Oranges: Lemons: Specialty Citrus: Grapefruit

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Keeping Growers Informed Oranges: Lemons: Specialty Citrus: Grapefruit Keeping Growers Informed March 7, 2014 Oranges: Sales of Navel oranges picked up as weather moderated across the U.S. and we expect that trend to continue. Export demand also should remain strong over the next few weeks. Sizes are peaking 72/88/113s and 56s. Valencia exports are underway from Districts 1 (D1) and 3, moving at a steady pace and sizing in the 72s and smaller range. Sales of Organic Navels were up at steady pricing and in line with crop pacing. We see good volumes ahead and harvest will be geared toward demand. Cara Cara movement is steady, peaking on 72/88s and 56s. As for Moro (blood) oranges, all houses are now finished and another successful season is on the books. Lemons: Lemon movement, as it has been all season, is significantly better than our two previous seasons. Also, in the midst of Lent, we expect markets to be firmer. Peak sizes are currently 75s, 95s, 115s and 235s. Specialty Citrus: Sales of our Sunkist Smiles® Mandarins continue steady, with recent rains causing only minor harvest delays. Projections at this time show the majority of the D1 industry crop will be finished by the end of March, with only limited supplies going into April. Movement has been heaviest to size 28/32/24s. The end of another successful Pummelo season is in sight as we clean up all remaining supplies this week. Fruit quality and flavor are excellent for our Minneola Tangelo crop, now predominantly coming from D1. Demand, both export and domestic, remains steady. Sizes are peaking on 100s and smaller at a packout ratio of 85% SK vs. 15% choice. Projections anticipate the crop will be finished by late March, with limited supplies into April. The season for Sweeties is coming to a close with only minor remaining supplies. Royal Mandarin sales are slower and we expect sales of Pixies to get started mid-month. Volumes will be down this season. Grapefruit: Projections at this time show our California Rio Reds to be available through March, to be followed by Ruby grapefruit. Movement for the Rios is down slightly with shipments averaging 55% SK vs. 45% choice. Fruit quality for our Texas Rio Stars remains excellent, with great color and flavor with shipments expected to carry into the first of May. Dark Reds in Florida remain limited on all sizes, as are supplies of larger-sized (23s/27s) for the Reds. Movement is steady on the remaining Reds, peaking on 32s and smaller. Sunkist exhibits at the Supermarket Trade Show in Tokyo Sunkist® citrus was a big hit at the Supermarket Trade Show, held February 12-14 in Tokyo. Over 80,000 visitors attended the trade show from retail chains, wholesalers and trading firms. Visitors to the Sunkist® booth were able to sample Sunkist Premium Sweet® Navel oranges, Pinkie® (Cara Cara Navel oranges), Moro (blood) oranges and fresh lemonade. Sunkist promotes seasonal citrus and Lil Snappers to online influencers Sunkist conducted an outreach program to several online influencers focused on parenting and nutrition to promote Sunkist seasonal citrus and Lil Snappers® kid-size fruit. A mailer with fruit samples, recipes and varietal information was sent to select targets, who will be sharing information about Sunkist citrus and Lil Snappers on their social media channels to help spread the word about the nutritional benefits of citrus as well as recipe ideas and usage tips. Sam’s Club showcases the best of the season with in-store sampling Sam’s Club stores ran a Sunkist® sampling program in February, providing consumers with the opportunity to try navel oranges in 108 Clubs throughout Wyoming, Utah, Wisconsin and Ohio, and Cara Cara navels in 603 Clubs across all 19 distribution centers nationwide. The sampling events were held Friday, Saturday and Sunday over three consecutive weekends, introducing customers to the unique color and amazing flavor of Cara Cara navels and also reminding them that conventional navels are always a sweet and delicious treat! Sunkist achieves fourth consecutive billion-dollar year Citing significant advances on key strategic initiatives, Sunkist President and CEO Russell Hanlin announced another billion-dollar revenue year in 2013 at the cooperative’s annual meeting, February 19 in Sherman Oaks. This marks the fourth consecutive billion-dollar year for Sunkist, with grower payments totaling $873 million, compared to $838 million in 2012. “Over the past year, we have made significant advances on key strategic initiatives to position Sunkist for long-term growth and profitability,” said Hanlin. “Acreage increases, the launch of the grower distribution program, the first year of our Ventura Coastal joint venture juice partnership, for-profit business gains and the headquarter building sale were significant business highlights of 2013.” “Profitable and competitive returns have fostered growth for Sunkist, allowing us to expand with the addition of a new grower/shipper and acreage increases among Sunkist’s existing packinghouses,” said Mark Gillette, president of Sunkist-affiliated Gillette Citrus Inc. and re-elected chairman of Sunkist’s Board of Directors. “In addition, our growers are continuing to expand production of newer varieties that consumers favor to position Sunkist for further growth in the current marketplace.” As a result of cost containment efforts and positive results, Sunkist launched the grower distribution program in 2013 to directly share annual earnings with the cooperative’s grower members. 2013 also marked the first full year of Sunkist’s juice processing partnership with Ventura Coastal LLC, which has greatly increased efficiencies for Sunkist’s growers. Sunkist’s for-profit businesses also made positive advances in the past year. “Our licensing team continues scouring the globe for opportunities and, as a result, Sunkist signed five new licensees in 2013,” added Hanlin. With 49 licensees in total, the Sunkist brand is used to market 800 products in 86 countries. Another positive event for the cooperative during the past year was the sale of the Sherman Oaks headquarters property and the purchase of a new building in Valencia, California, to serve as the future home of Sunkist Growers and Fruit Growers Supply Company. “As with any business, the produce industry faces many challenges and opportunities − we try to remain focused on our opportunities,” said Sunkist’s Vice President of Sales and Marketing Kevin Fiori. “Sunkist is well positioned for growth in the years to come and we look forward to continuing to provide high-quality fruit to customers and consumers worldwide.” 2014-15 Board is seated The annual meeting elected 28 members as representatives from the California and Arizona exchanges for the 2014 – 2015 year. They are: Thomas L. Mazzetti and John Knaak (alternate)/Blue Banner Fruit Exchange; Gerald Denni, Burt Fugate, Curt Holmes, Russell Katayama, John Matthiessen, Jr., Eric Meling, Martin Mittman, Kevin R. Riddle and Tony Lombardi (alternate)/ California Citrus Growers Exchange; Mark D. Gillette and Leo McKinney (alternate)/ Central California Citrus Exchange; Samuel G. Mayhew, Scott A. McIntyre and Amy Fukutomi (alternate)/ Kaweah-Oxnard Fruit Exchange; Kevin Severns and Lee Bailey (alternate)/Mid-California Citrus Exchange; Cecilia A. Perry and Robert O. Curtis (alternate)/Mission Exchange, Inc.; Nick Bozick, Manuel Martinez and Ron Arnott (alternate)/Riverside- Arlington Heights Fruit Exchange; Allen F. Camp, James P. Finch, Richard W. Pidduck and Robert Grether (alternate)/Saticoy Fruit Exchange; Craig Armstrong and Dennis Jensen (alternate)/ Southern California Citrus Exchange; Gary Laux and Roy Bell (alternate)/Tulare County Fruit Exchange; Donald E. Dames, David Borchard and John B. Lamb (alternate)/Ventura County Citrus Exchange; Brad Leichtfuss, Robert Linderman and Warren Lyall/Villa Park Citrus Exchange; Steve Cutting, Randy Veeh and John Kalender (alternate)/Visalia Fruit Exchange. March 20: Citrus Freeze Damage is focus of UCLREC session The impacts of this season’s freeze – on trees, pests and fruit – is featured at a grower workshop Thursday, March 20 from 10am to noon in the packline building of the University of California Lindcove Research and Extension Center, 22968 Carson Avenue, Exeter. Participants should follow the signs from Carson Ave. to the packline parking area. Grower verification needed for 2014 cash distribution All Sunkist grower-members of record have been notified that the Sunkist Board of Directors at its February 19 meeting declared distributions totaling $9-million to be paid for the fiscal year ended October 31, 2013. A response verification of the grower’s tabulated distribution is expected by March 1, 2014. The cash distribution is derived from the profits earned during the past fiscal year by Global Licensing, Global Sourcing, Research & Technical Services, as well as our new joint venture with Ventura Coastal. Each grower’s distribution is based on his/her share of standard carton equivalents delivered to Sunkist affiliated packinghouses by grower number. Checks will be mailed around March 12. USDA Ag Outlook workshop underscores seriousness of HLB threat to U.S. citrus Vowing to help the U.S. citrus industry fight for its survival, a workshop during the U.S. Department of Agriculture’s February 21 outlook forum in Arlington, VA, dwelt on the seriousness of the bacterial disease Huanglongbing (HLB) to the industry’s future. First discovered in Florida in August, 2005, some believe the Florida citrus industry could be in serious peril of collapse within a few years. Florida’s citrus output has dropped from about 30 million field boxes in 2000 to about 15 million boxes in 2013-14. Up to 70% of the state’s citrus trees are now infected. Some reports indicate up to 40% of the Florida citrus crop dropped from trees before harvest last season. Yield losses attributed to HLB in Florida have been pegged at $300 million annually and growers are spending $500 per acre to fight the disease-spreading Asian citrus psyllids.
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