Fruit and Tree Nuts YEARBOOK -- SUMMARY October 30, 2008 October 2008, ERS-FTS-2008 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. ------------------------------------------------------------------------------------------------------------ Fruit-Bearing Acreage and Production Down in 2007; Crop Value Up Bearing acreage dropped 2 percent for citrus, almost 1 percent for major noncitrus crops, and 5 percent for miscellaneous noncitrus crops between 2006 and 2007 but increased 4 percent for tree nuts (table a-2). Bearing acreage declined for the 10th consecutive year for all major citrus fruit, mostly led by the loss of acreage in Florida (table a-4 and various C section tables). Orange acreage fell in both Florida and California. California growers increased plantings of navel oranges between 2005/06 and 2006/07, but reduced the number of acres planted to Valencia oranges. Most of the grapefruit acreage loss occurred in Florida, with acreage remaining the same between the two seasons in California and Arizona. Grapefruit bearing acreage has remained constant in Texas since 2002/03 at 18,500 acres. Lemon bearing acreage remained the same in Arizona at 13,500 acres, and increased by 1,000 acres in California to bring total U.S. lemon acreage to 58,500 acres. The 1-percent increase in total tangerine acreage was a result of a 14-percent increase in California plantings. Among noncitrus fruit crops, bearing acreage fell between 2006 and 2007 for apples, peaches, pears, grapes, figs, tart cherries, plums/prunes, cranberries, dates, and papayas. Some of the decline was offset by increased bearing acreage of sweet cherries, strawberries, and avocados. The number of bearing acres remained unchanged for apricots, nectarines, Hawaiian bananas, and kiwifruit. Data were not provided for Hawaiian pineapple acreage to avoid disclosing individual operations. Total fruit production declined 2 percent in 2007 from 2006, totaling 29.5 million tons, the smallest quantity produced since 1991 (table a-3). Citrus production was down 11 percent in 2007, the lowest since 1991, as Florida’s industry continues to deal with the effects of the hurricanes in 2004 and 2005 and diseases, such as citrus canker and citrus greening that have hindered its production. Noncitrus production rose 1 percent in 2007 from 2006, with 17 million tons produced. Bigger peach, pear, grape, sweet cherry, apricot, fig, strawberry, avocado, nectarine, and papaya crops contributed to the increase in noncitrus production (table a-5). Tree nut production increased 25 percent between 2006 and 2007 to 2 million tons (in- shell basis) (table a-3). Almond production set a new record high at 1.2 million tons (in- shell basis), 27 percent above 2006, another record crop year. Production was also higher in 2007 for pecans and pistachio nuts, but down for hazelnuts, walnuts, and macadamia nuts. The value of the 2007 fruit and tree nut crops reached $18.5 billion, 9 percent above 2006 and the sixth consecutive year of record high values (table a-3). The value of production rose for citrus and noncitrus fruit, as well as for tree nuts. Record high crop values were set for citrus at $3.1 billion and noncitrus at $11.4 billion, and were the second highest value for tree nuts at almost $4 billion. Grower and Consumer Prices Up in 2007 In 2007, the index of prices received by fruit and tree nut growers reached 157 (1990- 92=100), 2 percent above 2006 and the highest on record (table a-6). Among the major fruit used to create the index, smaller quantities of apples, oranges, and lemons helped drive up grower prices for these commodities. While prices for grapefruit and grapes were down from 2006, they were still relatively high compared with previous years. The higher grower prices for many citrus crops in 2007 resulted from a freeze in California that reduced the size of the orange and lemon crops almost halfway through the harvest. Partially in response to higher grower prices in 2007, the Consumer Price Index (CPI) for fresh fruit rose 5 percent from 2006 to 329.5 (1982-84=100) (table a-6). The CPI also was higher for frozen fruit and juices and for processed fruit. Among the fresh fruit surveyed by the Bureau of Labor Statistics, consumers paid more at retail for Red Delicious apples, bananas, Anjou pears, lemons, and navel and Valencia oranges (table a-7). On the other hand, prices declined between the 2 years for Thompson seedless grapes and grapefruit. Grower Cash Receipts Rise in 2007 To New Record High U.S. cash receipts for fruit and tree nuts rose 4 percent in 2007 from 2006 to set a new record high of $17.8 billion, up 2 percent from the last record high set in 2005 (table a-8). Receipts for grapefruit increased 7 percent from 2006. Although less than half the value of receipts in 2005, grapefruit growers received the highest receipts than any other year since 2000. Orange, lemon, and tangerine receipts all declined in 2007, with orange grower receipts dropping by 22 percent. Cash receipts for grapes rose 5 percent between 2006 and 2007, 1 percent below the record high of $3.5 billion set in 2005. Grapes continue to account for about a fifth of total fruit cash receipts. Almond cash receipts fell for the second consecutive year from $2.3 billion in 2006 to $2.1 billion in 2007, a 6- percent decline. On the other hand, cash receipts increased 8 percent for apples to $2.2 billion, making them the second-highest ranking in terms of cash receipts after grapes. Rounding out the top 5 were oranges, with cash receipts at $1.5 billion, 22 percent less than in 2006, and strawberries, with cash receipts of $1.7 billion, 15 percent above the previous year and the highest on record. Per Capita Fruit Consumption Down in 2007; Nut Consumption Up Total per capita fruit and nut consumption average 270.9 pounds in 2007, down 2 percent from 2006, and the lowest since 1992 (table a-1). The decline was led by reduced consumption of apple and orange products, 2 of the most popular fruit in the American diet. Contributing to the lower use for these fruit was lower production in 2007 which was not fully compensated for by imports. Fresh fruit: Per capita fresh fruit consumption averaged 97.5 pounds in 2007, 4 percent below the previous year (table f-36). Americans ate about the same amount of fresh noncitrus fruit between 2006 and 2007, but 16 percent less citrus due to smaller citrus crops in California, which produces most of the fresh oranges and lemons. Noncitrus fruit consumption averaged 79.5 pounds per person in 2007, the fourth highest on record. Strong demand for bananas and grapes, blueberries, cranberries, strawberries, cherries, apricots, and papayas helped offset weakened demand for fresh apples, peaches and nectarines, pears, kiwifruit, plums/prunes, pineapples, and avocados. Mango consumption remained unchanged from 2006 at 2.10 pounds per person, tying for the record high. Canned fruit: Canned fruit per capita consumption averaged 14.07 pounds (processed weight) in 2007/08, 7 percent higher than in 2006/07 (table f-37). Consumption increases for olives, apricots and peaches offset declines for apples, sweet and tart cherries, pears, pineapples, and plums/prunes. Canned olive consumption increased 87 percent between 2006/07 and 2007/08 to meet the record high set in 2005/06. Increased domestic production, coupled with near record imports contributed to the strong increase in canned olive availability. Demand for most canned-fruit products has been trending downward since 2000/01, and despite the increase in 2007/08, consumption for the year was still the second-lowest on record. Frozen fruit: Frozen fruit consumption declined 5 percent in 2007 from 2006, at an average of 3.99 pounds (processed weight) per person, the second consecutive decline, and the lowest level of per capita consumption since 1999 (table f-38). Berries, particularly strawberries, make up the bulk of frozen fruit. Although strawberry production was up in 2007, fewer strawberries went to processing. With beginning stocks down for the second consecutive year, the slight increase in imports was not sufficient to drive up supplies above last season, contributing to a consumption decline of 28 percent. Dried fruit: Americans consumed an average of 2.26 pounds (processed weight) of dried fruit in 2007/08, 3 percent less than in 2006/07, and the lowest per capita dried fruit consumption since the 1980s (table f-39). Raisins are the most popular dried fruit consumed in the United States, accounting for about two-thirds of total consumption, followed by prunes, which accounted for 13 percent of the total. Raisin demand declined in 2007/08 to 1.46 pounds, its lowest since 2003/04. While raisin demand has not been as strong in recent years as it was in the late 1980s to early 1990s when it was around 2 pounds per person each year, demand appears to have stabilized at around 1.5 pounds per person annually over the past four years. Demand for prunes, also called dried plums, remained unchanged between 2006/07 and 2007/08 at 0.30 pounds per person. U.S. production of prune variety plums fell 67 percent between 2006/07 and 2007/08. Beginning stocks, however, were more than 4 times greater in 2007/08, providing ample supplies to keep per capita consumption stable. Demand for dried apricots remained stable in 2007/08, at 0.12 pounds per person, lower than in 2005/06, but average for most of the 2000s. Consumption of dried peaches more than doubled between 2006/07 and 2007/08, showing the strongest demand growth among all dried fruit. While demand for dried peaches is still the lowest among all dried fruit, the quantity of peaches going to dried fruit increased the past three seasons, with imports remaining strong in 2007/08, indicating a possible upward trend in demand. Fruit juice: Per capita fruit juice consumption averaged 7.63 single-strength equivalent (sse) gallons in 2007/08, down 3 percent from 2006/0705, and below any other year since 1989/90 (table f-40). Citrus juices accounted for 57 percent of juice consumption. Consumption of orange juice, the most popular fruit juice in the United States, fell 8 percent in 2007/08 to 3.81 sse gallons per person. Grapefruit juice consumption, however, which had been declining throughout the 2000s, increased for the second consecutive season in 2007/08 by 5 percent to an average of 0.36 sse gallon per person. Noncitrus juice consumption increased 3 percent in 2007/08 to an average of 3.30 sse gallons per person. Apple juice consumption increased 3 percent to 2.26 sse gallons per person and grape juice consumption increased 25 percent to 0.55 sse gallons per person. On the other hand, pineapple juice consumption fell 19 percent to 0.22 sse gallons per person and cranberry juice consumption fell 8 percent to 0.23 sse gallons. Tree nuts: In 2007/08, U.S. tree nut consumption averaged 3.27 pounds per person, almost equal to 2006/07, and nearly matching the highest level in history of 3.29 pounds per person set last season. Increased availability of many domestically produced tree nuts contributed to strong consumption in 2007/08. The increase in availability was due to increased bearing acreage and yields of several of tree nut crops, particularly almonds. Large supplies of imported tree nuts, in particular cashews, Brazil nuts, and pine nuts (pignolias), which together accounted for 33 percent of all tree nut consumption for the year, were also an important factor in the increased consumption for 2007/08.