FRUIT AND TREE NUTS YEARBOOK -- SUMMARY October 21, 2003 October 2003, ERS FTS-2003S Approved by the World Agricultural Outlook Board -------------------------------------------------------- This SUMMARY is published by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036-5831. The complete report will be available electronically about 1 week following this summary release. October 21, 2003 Noncitrus Fruit and Tree Nut Production Up in 2002, Citrus Crop Down Total fruit and tree nut production was up 2 percent in 2002 from 2001, due to bigger noncitrus and tree nut crops. The noncitrus crop was up 3 percent, while the tree nut crop increased 11 percent. Citrus production in 2002 was marginally lower than the previous year, and was the smallest crop since a freeze damaged the California crop in 1999. While tree nuts account for only 4 percent of total fruit and tree nut production, they have the fastest growing production of all the industries. Much of the increase in noncitrus production came from a 12 percent increase in grape production in 2002, making that crop the second largest on record. Grape production accounted for 43 percent of all noncitrus production in 2002, up from 20 percent in 2001. Production was also higher for peaches, prunes/plums, apricots, figs, strawberries, nectarines, cranberries, and dates. Citrus production declined as a result of lower grapefruit and lemon production for the 2001/02 marketing season. Lemon production declined in both California and Arizona, the 2 major lemon-production States. Grapefruit production fell as a result of declining bearing acreage in Florida and California along with lower yields in Texas and Arizona. While grapefruit acreage has been declining in Florida, the biggest grapefruit producer, increased yields per acre since 1997/98 have moderated the production decline. Tree nut production continued to expand in 2002. Because most nut trees produce crops on an alternate bearing cycle with large crops one year followed by a much smaller crop the next, production was down for hazelnuts, pecans, walnuts, and macadamias. Pistachio production was on its up cycle and production increased 83 percent from the previous year. While alternate bearing accounts for much of the change in the pistachio nut crop size, increased bearing acreage also contributed. The biggest contribution to the larger 2002 nut crop was the continually expanding almond production. The almond crop increased for the second consecutive year in 2002, producing a record-large crop, 31 percent bigger than in 2001 and in 1999, the previous record crop. The bigger crop was largely due to increased bearing acreage, but improvements in production practices have also contributed to modify the alternate bearing cycle. The value of all fruit and tree nut crops increased 9 percent in 2002 from the previous year. At $12.8 billion, it was the highest value since 1997. Crop value increased for all three categories, citrus and noncitrus fruit, and tree nuts. Smaller crops pushed up prices and overall grower returns for apples, cultivated blueberries, cherries, pears, California plums, and Hawaiian pineapples. Increased production along with increased prices boosted grower revenues for apricots, Oregon blackberries, cranberries, dates, and kiwifruit. Loganberry growers also received higher prices for their fruit in 2002. With production unchanged from the previous year, grower returns rose. Among citrus growers, orange, grapefruit, lemon, tangerine, and Temple crop returns were higher in 2001/02 than the previous season. Despite larger crops, prices were higher in 2002 for almonds and pistachio nuts. Prices were also higher for hazelnuts and pecans but lower for macadamia nuts and walnuts. The increase in value of the larger tree nut crops was sufficient to offset the declining value of the macadamia and walnut crops, and the total value of the 2002/2003 tree nut crop rose 35 percent above the previous season, totaling $2.0 billion, the second highest on record. Bearing Acreage Declines For the Second Year The number of fruit-bearing acres declined in 2002, for the second straight year. Reduced acreage producing citrus and major noncitrus fruit crops drove down the overall number of fruitbearing acres in the United States. At 4.0 million acres, the number of acres producing fruit in 2002 was the lowest since 1996. Low returns in recent years have resulted in growers removing acreage from the production of apples, pears, tart cherries, grapefruit, tangelos, and Temples. Some growers are removing acreage from one variety and planting other varieties that hopefully may boost demand and prices. Other are not replanting crops to the same commodity, or at all. Commercial apple bearing-acreage was at its lowest in at least 20 years in 2002. All the major production States experienced a decline in acreage, except New York where the 2002 level was unchanged from the previous year. Some of the acreage is being replanted with different varieties, which may yield higher prices. These acres, however, have not yet come into commercial production. Also contributing to a decline in apple acreage is the increased planting density of trees per acre, especially in Washington. Growers do not need as many acres to increase production as they increase the number of trees per acre. As a result, although Washington apple-bearing acres declined 2 percent between 2001 and 2002, yields per acre rose 4 percent and production in the State increased 2 percent. Orange-bearing acreage declined mostly as a result of diseases. Growers remove diseased plantings to prevent spread or because of reduced productivity of the trees. When possible, new plantings take place. However, when trees are removed because of an infestation of citrus canker, that land cannot be replanted to citrus for several years. Lime production is almost completely gone in the United States because of citrus canker. Lime trees are very susceptible to the disease and plantings were concentrated in the area where citrus canker was prevalent. Since producers cannot replant limes on the same land for several years, and other parts of Florida and the United States are less suitable to lime production, commercial production is now limited to only a few producers. Tree nut bearing acres continue to climb, as it has since 1993. In 2002, there were 858,600 acres producing tree nuts in the United States, 2 percent more than in 2001. Acreage increased for almonds, walnuts, and pistachios, but declined for hazelnuts and remained unchanged for macadamias. Data are unavailable for pecans. While almond-bearing acreage increased only 1 percent in 2002 from the previous year, these acres accounted for 62 percent of all nut-bearing acres in 2002. With its continued expansion, the number of acres bearing commercial almond crops exceeded any other fruit or tree nut crops except oranges and grapes. Strong returns from domestic and international markets, despite continually big crops over the past several years, have driven the growth in plantings. Prices Received by Growers Up in 2002 The index of prices received by growers rose 3 percent in 2002 from the previous year to 112 (1990-92=100), the highest since 1999. The index was driven up by higher prices for some major crops, such as oranges, grapefruit, lemons, apples, cherries, peaches, and pears. As a result of higher retail prices for most fresh fruit in 2002, the Consumer Price Index rose 3 percent to 276.5 (1982-84=100), the highest ever. Consumers paid more at retail stores for fresh lemons, oranges, bananas, Red Delicious apples, Anjou pears, and Thompson seedless grapes. Only grapefruit prices were lower at the retail level in 2002 among the major fruit commodities. Fruit Consumption Up in 2002 Americans consumed more fresh, dried, and frozen fruit as well as fruit juices in 2002 than in 2001. In 2002, the average American consumed 284.4 pounds of fruit, 99.2 pounds of fresh fruit, and the equivalent of 185.2 pounds of processed fruit (including juices, canned, frozen, and dried). Consumers ate more noncitrus fruit, both fresh and processed, than the year before, but less citrus fruit. The smaller Florida orange crop in 2001/02 was largely responsible for the fall in citrus consumption. Oranges, in the form of orange juice, account for the bulk of citrus consumption in the United States. Tree nut consumption increased 10 percent between 2001 and 2002. In 2002, Americans averaged 3.04 pounds of nuts per person. Consumers ate more almonds, pistachios and walnuts, as well as "other nuts," which are mostly imported varieties, especially cashews and pine nuts (pignolias). Fresh fruit: Fresh fruit consumption increased 2 percent in 2002 from a year earlier. While higher than a year ago at 99.4 pounds per person, 2002 consumption is still lower than the levels of the late 1990s. Bananas continued to be the number one fresh fruit consumed by Americans. In 2002, Americans averaged 26.73 pounds of bananas per person. While this is only fractionally higher than in 2001, bananas still accounted for over a quarter of all fresh fruit consumption. Consumption of apples, the second most popular fresh fruit among Americans, increased in 2002, after 3 consecutive years of decline. While domestic production was lower in 2002, record large imports and the lowest exports since 1992 left more apples for domestic consumption. Per capita apple consumption rose 2 percent to 15.97 pounds. This is still considerably lower than the 1980s, when per capita consumption was almost 20 pounds annually. While oranges continued to be the third most popular fresh fruit in 2002, per capita consumption dropped almost 11 percent to just 10.63 pounds, the lowest since 1999. A 4- percent smaller crop, coupled with strong export demand, reduced the amount of oranges available for domestic use in 2001/02, driving down per capita consumption. Fresh grape consumption rose 13 percent to 8.58 pounds per person in 2002, the highest on record. Supplies were at a record-high due to both record production and imports. The increase in consumption occurred despite the fact that the 2002 retail prices were high. Americans also increased their consumption of fresh tangerines, lemons, apricots, avocados, blueberries, mangos, peaches and nectarines, pineapples, papayas, and strawberries. Per capita consumption fell for limes, grapefruit, kiwifruit, pears, plums and prunes, cherries, and cranberries. The sharp decline in cherry consumption in 2002 reflects the major crop decline due to adverse weather conditions. Cherry consumption is anticipated to improve in 2003, with a good domestic crop. Canned fruit: Americans continue to consume less canned fruit products than in the past. Consumption increased for canned pineapple and peaches in 2002, while all other canned fruit products experienced a decline. Overall per capita canned fruit consumption declined 5 percent to 14.7 pounds, product weight, the lowest in at least 20 years. Because storage data are not available for consumption calculations, a 2-year average of the per capita consumption data helps compensate for some of the fluctuation in the data. When 2001/02 and 2002/03 averaged and compared with the previous 2 years, per capita canned consumption fell 6 percent. Using the 2-year average, canned olive per capita consumption rose 19 percent to an average of 1.43 pounds, product weight. Canned olive consumption appears to be trending slightly upward over the past few years. Increased domestic production (despite the cyclical nature of the crop) along with increasing imports has increased supplies available. The continued popularity of Mediterranean cuisine in the United States has helped promote consumption. Much of the canned olives produced in the United States go into pizzas, while those that are imported are preserved in various ways and have many uses. Frozen fruit: Frozen fruit per capita consumption in 2002 rose 2 percent to 4.26 pounds, product weight, the third straight year of increased consumption. Berries, including blackberries, raspberries, blueberries, and strawberries, accounted for about 59 percent of frozen fruit consumption. Per capita frozen strawberry consumption in 2002 was 1.9 pounds, product weight, the highest among all the frozen fruit. In response to strong demand for fresh and frozen strawberries, strawberry production has been increasing in recent years, and growers received their highest returns in 2002. Cherries are the second most popular frozen fruit in the United States, with the average consumer using 0.83 pounds in 2002. About three-quarters of frozen cherry consumption is tart cherries, often used in pies. The higher consumption in 2002 coincided with the marked decline in the tart cherry crop due to freezing temperatures in Michigan. While production was down, the quantity packed was not as low as other years and imports were at a record high. Together, these two factors help meet strong demand. Dried fruit: Per capita dried fruit consumption rose 9 percent in 2002 to 2.64 pounds, product weight. This is the largest amount consumed since the 1998/99 season. While raisins accounted for 56 percent of dried fruit consumption, its share of the total has decline in recent years. In 2002, dried raisin consumption increased slightly from the previous year to 1.48 pounds per person. Over the past 4 years, raisin consumption has fallen about 17 percent from levels in the mid-1980s to the early 1990s. Prune consumption reached 0.61 pounds per person in 2002, its highest amount since 1996/97. Prune consumption was at its peak in the late 1980s and early 1990s when it averaged 0.65 pounds per person annually. Since the mid-1990s, it has averaged 0.52 pounds per person annually. Consumption was also higher for dried apples, dates, and figs in 2002, but lower for apricots. Fruit juice: Fruit juice consumption averaged 8.11 gallons per person in 2002, 3 percent lower than 2001. Consumption increased for all the major fruit juices, except grapefruit and lemon. Grapefruit juice per capita consumption averaged 0.39 gallons in 2002, the lowest since 1987/88. About two- thirds of Florida's grapefruit is used for juice. (Florida is the major producer of grapefruit in the United States.) With declining demand for grapefruit juice by Americans, grower prices have been declining and acreage has been removed from production. In recent years, grapefruit juice has received some negative publicity implying that grapefruit juice consumption can have an adverse affect on some medications. Because it is not always clear which medications are affected, many consumers just totally avoid grapefruit juice. This is especially true among senior citizens, the major consumers of medications and reportedly the major grapefruit juice consumers. Orange juice consumption, the number one fruit juice consumed in the United States, dropped 6 percent to 4.87 gallons per person in 2002/03. Increased movement of not- from-concentrate orange juice in 2002/03 over the previous season was not sufficient to offset the decreased movement of frozen concentrated orange juice, and overall consumption declined. Apple juice consumption continued to trend upward in 2002/03. While Americans averaged 1.8 gallons of apple juice for the season, that was 2 percent higher than last season and a record high. Much of the increase in apple juice consumption can be attributed to the increased supply due to imports. Domestic production of apples for juice has remained relatively constant, but imports have grown since the mid-1980s. Tree nuts: Tree nut consumption increased in 2002/03 to set a record for the second year in a row. Per capita consumption in 2002/03 reached 3.04 pounds, 10 percent higher than last season's crop. Nut consumption strongly reflects production, which is very cyclical for most of the nut crops. Consumption is higher during years of high production because processors will buy bigger supplies during those years and store the excess to use during the low production years. As a result, consumption data show declines in per capita use of hazelnuts, pecans, and macadamias, all crops that had production declines in 2002. Walnut consumption rose in 2002/03 to 0.45 pounds per person with the help of large carryover stocks from the previous season's record big crop. Almond per capita consumption was primarily responsible for the record tree nut consumption since it accounts for about a third of all nuts consumed. In 2002/03 almond consumption averaged 1 pound per person, 22 percent over the previous season. Despite a record crop in 2002/03, almond grower prices were higher than the previous season due to strong demand both domestically and internationally. The very large crop allowed for increased shipments both domestically and abroad and exports rose 15 percent to 670 million pounds. Although demand was very strong in 2002/03, the crop was so large that the season ended with high ending stocks. Pistachio nut consumption was also up in 2002/03, increasing 11 percent to 0.22 pounds per capita. A record crop and strong exports pushed grower prices up to the second highest in the past 5 years. Consumption of imported tree nuts also rose in 2002/03 to a record 0.82 pounds per person. Americans consumed more cashews, pine nuts, and imported mixed nut products in 2002/03 than a season earlier.