FRUIT AND TREE NUTS YEARBOOK -- SUMMARY October 17, 2001 October 2001, ERS-FTS-294 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 text of FRUIT AND TREE NUTS YEARBOOK will be available electronically about a week following this summary release. --------------------------------------------------------------------------- Fruit and Nut Production Tops 37 Million Tons in 2000 Large citrus and record noncitrus production pushed total fruit production up in 2000. Although nut production was lower than last year, overall production reached a record 37.2-million short tons, 15 percent more than the 1999 crop. The citrus crop had the greatest increase, rising 27 percent. The increase can partially be attributed to the orange crop returning to normal after a severe freeze in 1999 which drastically reduced the size of the crop and to 2000 being the second largest crop on record. Noncitrus production grew 9 percent over the previous season due to bigger crops of apples, peaches, grapes, tart cherries, prunes/plums, apricots, figs, strawberries, other berries, avocados, kiwifruit, papayas, and Hawaiian bananas and pineapples. The grape crop accounted for about 41 percent of noncitrus production in 2000, and the 23-percent increase in the grape crop was a major contributing factor in the overall growth of all noncitrus fruit. The tree nut crop, however, declined 16 percent in 2000, mostly because it was an off year in the cyclical nature of most of the nut trees. Crop size fell for all major U.S. produced nut crops, except for pistachio nuts, which had a record crop. Nut production totaled 1.1 million tons, in- shell equivalent. The value of the 2000 fruit and tree nut production totaled $11.9 billion, 1 percent smaller than the 1999 crop. The strong presence of oranges among citrus fruit boosted overall citrus revenues to $2.5 billion, a 3-percent increase over the previous year. Noncitrus fruit revenues fell 2 percent to $7.9 billion. In terms of annual cash receipts, revenues were higher for apple producers in 2000 after three consecutive years of declining returns. At $1.5 billion, total apple cash receipts were still nowhere near the record $1.8-billion in 1996. Cash receipts were also higher for producers of avocados, cherries, grapes, peaches, Hawaiian pineapples, plums/prunes, and blueberries. Receipts declined, however, for producers of nectarines, olives, pears, strawberries, and cranberries. The 2000 nut crop was valued at $1.5 billion, just slightly lower than the previous season and 10 percent higher than two seasons ago. Strong revenues earned by pistachio and walnut growers help offset declining returns to almond, pecan, hazelnut, and macadamia nut growers. Bearing Acreage Continued To Increase in 2000 The number of bearing acres producing fruit and tree nuts grew annually throughout the nineties and continued into 2000. Growth during this period averaged 2 percent annually, but began slowing down in 1998. Since 1998, the growth rate has slowed to less than 1 percent annually. Citrus bearing acreage expanded more rapidly than noncitrus or nut acreage during the early nineties as new trees were planted in response to losses in the late eighties. Bearing acreage, however, began declining in 1998, when growers began removing grapefruit acreage in response to low grower prices. Between 1998 and 2000, citrus acreage declined almost 2 percent each year. Noncitrus bearing acreage grew an average of 1 percent annually throughout the nineties and continued about the same in 2000. Among the major noncitrus crops, grape bearing acreage showed the greatest growth, increasing annually since 1992. Growers responded to strong prices, in particular for wine grapes, by planting more vines. Other noncitrus fruit bearing acreage that increased in 2000 included California prunes, figs, strawberries, Hawaiian bananas, and mangos. Tree nut bearing acreage grew 2 percent annually since the early nineties. Almonds and pistachio nut bearing acreage grew the most consistently throughout the nineties. Hazelnut acreage grew throughout most of the nineties but declined in 1999 and again in 2000. Walnut acreage remained relatively stable over the second half of the nineties. Macadamia nut acreage started to slowly decline in the mid-nineties and fell 6 percent between 1999 and 2000. Prices Received by Growers Fell in 2000 The index of prices received by fruit and tree nut growers declined 12 percent in 2000 to 103, the lowest level since 1995. Prices were driven down because of large supplies for most major fruit crops. The producer price index for fresh fruit fell but the index for dried and canned fruit and juices rose. In response to lower grower prices, retail prices for fresh fruit also declined in 2000. Strong demand at the retail level, however, kept consumer price declines to only 3 percent, much less than the 11-percent decline experienced by growers for their fresh market crops. Annual average retail prices rose in 2000 for Red Delicious apples, bananas, Thompson seedless grapes, and fresh lemons, but were lower for Anjou pears, grapefruit, and oranges. Big Citrus Crops Boost Fruit Consumption in 2000 Fruit consumption rose to 307.1 pounds (fresh-weight equivalent) per person in 2000, the second highest in history. Consumption increased 3 percent over 1999, but was fractionally lower than 1998, a record year. Citrus consumption increased 8 percent to 128.8 pounds per capita. Larger supplies of citrus during its 1999/2000 marketing season contributed to the increased utilization. Noncitrus and tree nut consumption, however, fell 1 percent to 178.2 pounds per capita. Fresh fruit: Fresh fruit consumption rose 1 percent in 2000 to an average of 103.2 pounds per person. Citrus consumption was up 17 percent to 24.5 pounds per capita. Noncitrus consumption fell 4 percent to 78.7 pounds, however, it is the second highest on record. Consumption was higher for fresh oranges, tangerines and tangelos, and limes, but lower for lemons and grapefruit. The fresh orange crop returned to a more normal level of production in 2000 after almost half the crop was lost the preceding season. Since orange consumption accounted for almost half of all fresh citrus consumption, the increase in per capita use of fresh oranges boosted overall citrus use. Consumption has not returned to 1997 and 1998 quantities despite the larger crop produced during the 1999/2000 season because of strong export demand. Bananas continued to be the number one consumed fresh fruit in 2000, however, per capita banana consumption declined 7 percent from the previous year to 29.2 pounds. Fresh apples remained the second most popular fresh fruit even though per capita consumption fell 6 percent to 17.9 pounds. Consumption also fell for grapes, pears, and prunes/plums. Record-high use was recorded for strawberries, mangos, kiwifruit, papayas, and pineapples. The growing popularity of these mostly imported fruit shows the increasing importance of imports in the fresh fruit market. Canned fruit: In 2000, Americans consumed an average of 16.1 pounds of canned fruit per person (product-weight equivalent). This is a 6-percent decline from the previous year. Canned fruit consumption estimates, however, are incomplete since carryover stock data became unavailable in 1988. Consumption trends tend to follow an alternating pattern, increasing one year and decreasing the next. This fluctuating pattern can be attributed to the lack of inventory data. To compensate for the fluctuation, if canned fruit consumption is examined using a 2-year average, then consumption would have declined only 1 percent to 16.6 pounds per capita. More canned peaches are consumed in the United States than any other canned fruit. Canned peach consumption rose in 2000 to 4.7 pounds per person, up 7 percent from the previous year. Increased domestic production coupled with an 83-percent jump in imports boosted domestic supply by 7 percent. Strong domestic demand and weak exports led to the higher consumption. Canned apple consumption remained almost stable in 2000. Higher imports helped compensate for the smaller crop this year to keep consumption constant. The United States exports only a negligible amount of canned apples, leaving all production for domestic use. A continuing increase in imports throughout the nineties indicates there is strong demand for canned apples in the United States. As might be expected due mostly to the cyclical nature of the data, consumption declined for apricots, tart cherries, olives, pears, and pineapples. Consumption remained constant, however, for sweet cherries and plums and prunes. Frozen fruit: Frozen fruit consumption rose 3 percent in 2000 to 3.5 pounds per capita. Frozen berry consumption, which makes up the bulk of frozen fruit, remained constant with the previous year. While strawberry and blackberry consumption remained unchanged, frozen raspberry consumption rose 45 percent to 0.16 pound per person. Consumption also rose for frozen cherries and peaches, but fell for frozen apples and apricots. Dried fruit: Dried fruit consumption declined 2 percent to 2.5 pounds per person in 2000/01. Raisin use, which constituted almost two-thirds of dried fruit consumption, accounted for much of the decline. Raisin consumption fell 4 percent to 1.55 pounds per person, the lowest level since the early eighties. Although the amount of grapes used to make raisins increased in 2000/01, a sharp decline in imports along with an even greater increase in exports reduced the amount of raisins available for domestic consumption. Although prunes rank second among dried fruit consumption, prune consumption was about a third of raisin consumption in 2000/01. At 0.47 pound per person, prune consumption increased 18 percent over 1999/2000. Prune production was up in the 2000/01 season, providing more fruit for the market. Exports were also up during the season, moderating the increase in consumption. Per capita consumption was also higher for dried apricots and figs, but lower for apples, dates, peaches, and pears. Fruit juice: Fruit juice consumption declined 7 percent in 2000/01 to 8.9 gallons a person. A decline in orange juice consumption, the most popular juice among Americans, brought down overall use. Orange juice consumption declined from the 1999/2000 record mostly because of the reduced quantity of juice produced in 2000/01. Although beginning stocks were at a record-high going into the marketing year, lower production along with lower imports reduced total supply. Weak market demand also contributed to the lower consumption of 5.25 gallons per person, 10 percent below the previous season. Because of weak demand, ending stocks are projected to reach a near-record high. Grapefruit juice consumption increased 3 percent in 2000/01 from the previous season to 0.68 gallon per person. Although production was down from 1999/2000, it was still higher than the two seasons prior to 1999/2000. Exports are projected to also be higher for the 2000/01 season. As a result, ending stocks are expected to fall 40 percent. Among the other citrus juices, lemon juice consumption rose in 2000/01 and lime juice use remained unchanged. Consumption of noncitrus juices fell 5 percent to 2.73 gallons per person in 2000/01. While demand for the major noncitrus juice, apple juice, remained strong, demand dropped for grape, pineapple, and cranberry juices. Prune juice consumption remained unchanged. Tree nuts: Tree nut consumption fell in 2000/01 as it usually does every other year due to the alternate-bearing nature of the trees. All tree nuts, except pistachio nuts, were on their off year, reducing the amount of nuts available for consumption. While stocks help minimize the effects of the lower production, they are at times not enough to bring consumption up to on year quantities. As a result, nut consumption fell 9 percent to 2.36 pounds per person. Pistachio nut consumption increased 39 percent in 2000/01 from the previous season. Increased production due to the trees being on their on year, and more bearing acreage, helped drive consumption up. As a result, Americans consumed about one-quarter of a pound of pistachio nuts (shelled basis) each. Despite the record consumption, ending stocks are projected to be at an all- time high, which should help maintain consumption next season when a much smaller crop is expected. Pecan consumption also rose in 2000/01, even though production dropped by 42 percent from the previous season. Record-high beginning stocks buffered the sharp decline in production, and as a result total supply fell only 6 percent. Because exports were also off for the year, there were more pecans available for domestic consumption. As a result, consumption rose 8 percent to 0.42 pound per person. Large beginning stocks for almonds helped keep consumption stable in 2000/01, despite the smaller crop. Consumption of walnuts, hazelnuts, and macadamia nuts, however, declined. Lower production and increased exports of walnuts and hazelnuts reduced total consumption. Printed copies of the Fruit and Tree Nuts Situation and Outlook Yearbook will be available in about 2 weeks. For more information, contact Susan Pollack 202-694-5251. The full text of the report will also be available electronically via the ERS website at www.ers.usda.gov. END_OF_FILE