FRUIT AND TREE NUTS -- SUMMARY                               March 26, 1998
March 1998, FTS-282 
               Approved by the World Agricultural Outlook Board
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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 will be available within a week following release of this 
summary.
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Record Citrus Crop Holds Down 1997/98 Prices

Prices received by growers for fruit and nuts have been lower during January
and February 1998 than the same period of the last couple of years. Lower
prices for oranges, grapefruit, and lemons pulled down the overall average.
Retail prices for most fresh fruit in January and February were below a year
ago.

The 1997/98 orange crop is expected to produce a record 14.2 million short
tons, decreasing grower prices. Because of the large size of this year's
crop, rainstorms caused by El Nino appear to have had little noticeable
effect on the market.

California's orange production is forecast to increase 9 percent from a year
ago to 2.8 million tons. With the high quality and quantity of oranges this
year, shipments to domestic and export markets have been up.

Florida's orange crop is expected to produce 6.4 million tons of the early-
to mid-season varieties, and 4.9 million tons of Valencia, both records.
Orange juice production is also forecast to set a record at 1.6 billion
single-strength equivalent gallons. 

Grapefruit production is forecast at 2.6 million short tons, 9 percent below
last year's crop. Grapefruit grower prices have been lower than the previous
year for most of the 1997/98 marketing season. 

Lemon production is estimated to be 935,000 tons, up 9 percent in 1997/98
from the previous year.  Specialty citrus crops, such as tangerines,
tangelos, and temples are expected to be smaller than a year ago.
Tangerines, the largest crop among the specialty varieties, are expected
down about 17 percent to 347,000 tons.

El Nio-related storms which brought heavy rains, flooding, and windy
conditions to some regions, especially Florida and California, have hampered
production and harvesting activities and damaged strawberry crops.
Strawberry growers in both States have experienced variable fruit quality
and delayed marketing.

The preliminary 1997 estimate of utilized production of noncitrus fruit
(apples, grapes, and berries, for example) increased to about 18 million
tons, up 10 percent from 1996 and the largest on record. A relatively mild
winter and generally dry, mild spring, in the western portion of the United
States, was ideal for pollination and conducive to rapid crop development.

Production increased sharply in 1997 for all six of the major tree nuts
(almonds, hazelnuts, walnuts, pistachios, pecans, and macadamias) to a
record 1.16 million tons, in-shell equivalent, up 39 percent from the
previous season. The value of production for these six tree nut crops also
reached a record of $2.0 billion.

For more information contact Susan Pollack, 202-694-5251.

Printed copies of the Fruit and Tree Nuts Situation and Outlook report will
be available in about a week.

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