Fruit and Tree Nuts YEARBOOK -- SUMMARY October 27, 2005 October 2005, ERS-FTS-2005 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 text of the yearbook will be available electronically about 1 week following this summary release. --------------------------------------------------------------------------- Fruit and Tree Nut Production Strong In 2004 Total fruit and tree nut production was 4 percent higher in 2004 than in 2003. A big 2003/04 citrus crop along with record-high tree nut production offset a slightly smaller noncitrus crop. In 2004, the orange crop was up 11 percent from the previous year, and the biggest since 2000. The tangerine and grapefruit crops were also bigger, up 9 and 5 percent respectively. The lemon crop, however, declined 22 percent. The United States no longer has commercial lime production. The 2004 noncitrus crop was down less than 1 percent from 2003, with utilized production at 16.8 million tons. Among the major noncitrus crops, apple production was the highest in 4 years and peach production was the highest in 7 years. Production was also higher in 2004 for sweet cherries, apricots, figs, strawberries, and kiwifruit. Grape production, on the other hand, which is the biggest noncitrus crop, fell 6 percent from 2003 and was at a 5-year low. Production was also lower in 2004 for pears, tart cherries, Hawaiian pineapples, avocados, nectarines, cranberries, Hawaiian bananas, dates, and papayas. Prune and plum production was the lowest since 1992, and at 325,000 tons, it was less than half the size of the crops for the previous 2 years. Tree nut production has been growing rapidly throughout the new century and increased 5 percent between 2003 and 2004. While production has been on a declining trend for citrus and noncitrus fruit since 2000, tree nut crops have grown at an average of 9 percent annually over the 4-year period. Increasing domestic demand and strong international demand continue to boost the growth. Although production has shown an upward trend for many of the tree nuts, weather and the alternate-bearing nature of the trees result in up-and-down volume shifts from year to year. In 2004, for example, adverse weather conditions contributed to a smaller almond crop than in 2003, while the alternate-bearing nature of the trees resulted in smaller pecan and hazelnut crops. On an inshell basis, lower production of almonds, pecans, walnuts, and hazelnuts was offset in 2004 by increased production of pistachios and macadamia nuts. The value of the 2004 fruit and tree nuts crops reached $14.9 billion, 12 percent above 2003 and the highest on record. The citrus crop was valued at $2.5 billion, noncitrus at $8.9 billion, and tree nuts at $3.5 billion. Although returns were higher for all fruit and tree nut categories, the tree nut industry saw the highest increase in returns, with the value of the crop 42 percent above 2003. In 2004, the noncitrus crop accounted for 60 percent of the total, citrus for another 17 percent, and tree nuts for the remaining 23 percent. The noncitrus and citrus crops share of the total returns was the lowest in more than 10 years. At the same time, the tree nut crops share of the total continued to grow, jumping from just about 12 percent in the late 1990s early 2000s to almost a quarter of the returns in 2004. Bearing Acreage Continues To Decline for Citrus and Noncitrus Crops, but Not for Tree Nuts The number of bearing acres planted to citrus and noncitrus trees declined in 2004, as they have since the turn of the century. In 2004, there were 983,600 acres with commercially productive citrus trees, the lowest since 1994 and down 5 percent from 2003. The biggest decline was among grapefruit acreage which fell 11 percent to 114,800 acres. Orange acreage fell 4 percent to 761,400 acres. Despite the decline in orange acreage, oranges still account for about 25 percent of all fruit bearing acreage and still ranked second behind grapes. Lemon, tangelo, tangerine, and Temple acreage also declined between 2003 and 2004. Tangerine acreage, however, declined only fractionally and is expected to increase in the coming years as some Valencia orange acreage in California has been converted to tangerine production. Noncitrus acreage declined 1 percent between 2003 and 2004, to 2,105,000 acres. While acreage for peaches, pears, sweet cherries, strawberries, avocados, and dates increased in 2004, those increases were offset by declines in acreage for apples, grapes, plums and prunes, apricots, figs, cranberries, and Hawaiian pineapples, bananas, and papayas. Grape acreage accounted for over 30 percent of all fruit bearing acreage over the past 3 years; grape acreage declined 2 percent between 2003 and 2004 to 933,000 acres. Tree nut acreage continued to increase, as it has since 1996. Between 2003 and 2004, bearing acreage was up 2 percent for hazelnuts and walnuts, up 6 percent higher for pistachio nuts, and unchanged for almonds and macadamia nuts. There is no acreage information for pecans. Almonds accounted for 61 percent of tree nut acreage (excluding pecans), while walnuts accounted for 24 percent. Hazelnuts accounted for 3 percent of the total and macadamia nuts accounted for 2 percent. While almond acreage dominates tree nuts, its share of the total declined slightly from 62 percent in 2001 and 2002. Pistachio nut tree acreage, however, has continued to grow, increasing its share of total acreage from 8 percent in the early 1990s to 10 percent in 2004. While acreage planted to almonds grew rapidly throughout the 1990s, the increase has slowed since 2000, increasing at an average of 3 percent annually. Walnut acreage increased at rate of 2 percent annually, while hazelnut and macadamia nut acreage showed no real growth, each with bearing acreage at or near the same level in 2004 as in 2000. Pistachio acreage, however, has been growing rapidly since 2000, averaging about 6 percent annually. Growers’ Cash Receipts Hit All-Time High in 2004 Total cash receipts by fruit and tree nut growers reached $15.5 billion in 2004, 15 percent above 2003 and the highest on record. Growers of most commodities received higher returns except for avocados, nectarines, Hawaiian pineapples, and plums and prunes. At the retail level, higher prices drove the Consumer Price Index (CPI) for fresh fruit up 3 percent in 2004 to 286.8 (1982-84=100). Consumers paid higher prices for Red Delicious apples, Anjou pears, Thompson seedless grapes, grapefruit, and navel and Valencia oranges. Among the fresh fruits surveyed by the Department of Labor’s Bureau of Labor Statistics for the CPI data, only fresh banana and lemon prices declined in 2004. Fruit Consumption Up Slightly in 2004 U.S. fruit consumption averaged 285.19 pounds per person (fresh-weight equivalent) in 2004, up fractionally from 2003. Americans consumed more fresh and processed noncitrus products in 2004, but reduced their consumption of all citrus fruit. Fresh fruit consumption averaged 101.97 pounds per person, 1 percent higher than in 2003. Noncitrus fruit accounted for 78 percent of all fresh fruit consumption and showed the strongest increase, rising 2 percent to 79.29 pounds per person, the highest in 5 years. At the same time, fresh citrus consumption declined 5 percent to 22.68 pounds per person, the lowest since 1999, when bad weather damaged California’s orange crop. In 2004, processed fruit consumption averaged 183.22 pounds per person (fresh-weight equivalent), up marginally from 2003. Processed fruit includes juices, canned, frozen, and dried fruit. While consumption of processed noncitrus products rose 1 percent in 2004 to 99.37 pounds per person, consumption of processed citrus products, mostly juice, remained almost unchanged from the previous year at 83.84 pounds per person. Fresh fruit: Fresh fruit consumption rose 1 percent in 2004 to 101.97 pounds per person, the highest on record. Increased consumption of fresh apples, grapefruit, tangerines/tangelos, avocados, blueberries, cherries, cranberries, table grapes, kiwifruit, papayas, and strawberries offset declines in consumption of fresh oranges, lemons, limes, bananas, mangos, peaches and nectarines, pears, pineapples, and plums and prunes. Americans still consume more bananas than any other fresh fruit. Banana consumption, however, dropped to 25.76 pounds per person in 2004, down 1 percent from 2003, the second straight year that consumption declined. Even with that decline, Americans still consume more bananas than all citrus fruit combined. Fresh apples remained America’s second favorite fresh fruit. Their consumption was very strong in 2004, increasing 10 percent from the previous year due to big crops from the top two producers, Washington and New York. Apples accounted for almost a quarter of all fresh noncitrus fruit consumption. Fresh oranges still ranks third among all fresh fruit, and number 1 among all fresh citrus, despite a 10-percent decline between 2003 and 2004. A 19-percent smaller orange crop in California in 2003/04, where most of the fresh-market oranges are produced, drove consumption down. For the first time in 2004, there was a slight downturn in tropical fruit consumption. After many years of growth, mango consumption fell 2 percent to 2.01 pounds per person, still the second highest mango consumption on record. Pineapple consumption also declined slightly in 2004 by 1 percent to 4.33 pounds per person. Papaya consumption, however, grew 18 percent to 1.03 pounds. Canned fruit: Canned fruit consumption averaged 14.77 pounds per person in 2004 (product-weight equivalent). Since there are no stock data for canned fruit, consumption data appear on a cyclical basis. Consumption for 2003 and 2004 averaged 14.89 pounds per person, down 2 percent from the previous 2-year cycle, 2001-2002. Peaches are the number one canned fruit consumed in the United States. On average, canned peaches account for about 29 percent of all canned fruit consumption. While 2004 canned peach consumption rose 6 percent from 2003, it was 7-percent below 2002. When examined on a 2-year basis to take into account missing inventory data, canned peach consumption has been trending downward since the late 1990s. Canned apple consumption, including apple sauce, averaged 3.57 pounds per person in 2004, down 1 percent from 2003 but up 12 percent from 2002. Canned apples rank second in canned fruit consumption. On a 2-year average basis, consumption during 2003/04-2004/05 was 5 percent higher than 2001/02-2002/03. Consumption of canned olives, after slight increases in previous years, appears to have taken a downward turn over the last 2 years. During that period, olive consumption averaged 1.39 pounds per person, down 3 percent from the previous 2-year period (2001/02-2002/03), but 7 percent higher than in 1995/96-1996/97. Frozen fruit: Per capita consumption of frozen fruit declined 7 percent in 2004 from the previous year, averaging 3.89 pounds (processed weight). Increased consumption of cherries and apricots was offset by decreased consumption of berries, apples, and peaches. Berries accounted for 59 percent of all frozen fruit consumed in 2004. Frozen strawberry consumption fell 11 percent to 1.73 pounds per person, likely due to the greater consumption of fresh strawberries. Dried fruit: In 2004, dried fruit consumption declined to the lowest amount in at least the last 20 years, averaging 2.29 pounds per person (processed weight), 5 percent less than in 2003. Consumption rose for dried apples and figs but declined for apricots, dates, prunes (dried plums), and raisins. Dried peach consumption in 2004 remained unchanged from 2003. Raisin consumption, which accounted for 63 percent of all dried fruit consumed in 2004, fell 1 percent to 1.44 pounds per person. Prune consumption accounted for 16 percent of all dried fruit consumed, down from 18 percent in 2003. In 2004, Americans consumed on average 0.37 pound of prunes per person, 16 percent less than in 2003. A 74-percent drop in the production of plums dried for prunes drove down the available supply. Dried apricot consumption fell 23 percent between 2003 and 2004. Although the production of domestic apricots used for drying was up 81 percent in 2004, most dried apricots consumed in the United States are imported. In 2004, imports fell 31 percent, reducing supplies by 26 percent. Fruit juice: Americans drank 2 percent less fruit juice in 2004/05 than in 2003/04, consuming 8.2 gallons per person, the smallest amount since 1991/92. While consumption of orange and grapefruit juice declined, consumption of apple juice rose. While orange juice continues to be the number one fruit juice consumed in the United States, consumption has been declining in recent years. In the late 1990s, orange juice accounted for two-thirds of all fruit juice consumption. In 2003 and 2004, its share had fallen below 60 percent. In the past few seasons, ample production, coupled with weak demand, drove up juice stocks. In 2004/05, despite all- time-high beginning stocks, a decline in production of orange juice due to a hurricane-shortened Florida oranges crop, reduced consumption by 3 percent to an average of 4.77 gallons per person. Grapefruit juice consumption fell 37 percent and has been on the decline since the turn of the century. In 2004/05, Americans consumed an average of 0.24 gallon of grapefruit juice, about half the amount they drank in 2000/01. While orange and grapefruit juice consumption declined in 2004/05, consumption of lemon juice increased and lime juice remained unchanged. The United States is increasingly reliant on imported lemon juice to meet consumer demand. Most of the lemons produced domestically go to fresh use, where growers receive higher returns. All lime juice is imported, since there is no longer a domestic lime industry. With increased demand for both of these juices, especially as ingredients for other drinks such as sodas, imports rose in 2004/05. Although total citrus juice consumption declined in 2004/05, total noncitrus juice consumption rose 3 percent. Prune and cranberry juice consumption remained at the same level as the preceding two seasons, and grape and pineapple juice consumption fell. On the other hand, apple juice consumption increased 10 percent, the third straight year of increased demand. Both domestic production and imports were higher in 2004/05, providing sufficient supplies to meet demand. Tree nuts: Tree nut consumption rose 5 percent to 3.58 pounds per person in 2004/05, another record year. Americans ate more walnuts, pistachio nuts, macadamia nuts, hazelnuts, and other nuts--mostly imports such as cashews, Brazil nuts, and pine nuts. Almond and pecan consumption both fell due to adverse weather conditions affecting the almond crop and an off year in the alternate bearing cycle of the pecan crop. While most of the major, domestically produced tree nut crops are exported, Americans are increasing their consumption of the different variety of nuts as more evidence points to their health benefits. Increased nut consumption can also be attributed to the expanding variety of foods Americans are eating, some dishes using nuts as ingredients in cooking, as well as the traditional use of nuts in baking, confections, and other dessert-type foods.