VOLUME 59, ISSUE NUMBER 21, SEPTEMBER 11, 2009
Florida Citrus Mutual Supports
State Research Order Proposal
New Fresh Fruit Rule
Shooting for December
The Florida citrus industry is
optimistic
the fresh fruit rule can
Florida Citrus Mutual’s Board of Directors supports the proposed State Citrus
Research Order which authorizes raising the cap on the “research box tax” from one be in place by December 1, maybe
earlier.
cent to three cents. “We’ve been in constant contact
In addition, FCM encourages the Florida Citrus Commission to reduce the advertising
assessment equivalent to any increase in the research assessment so it is ‘tax neutral’ with officials from the USDA and
on growers.
that’s what we are hearing,” said MiA three cent research assessment will generate roughly $5.5 million and under the chael W. Sparks, executive VP/CEO
proposal the money will be channeled to the newly formed Citrus Research and Devel- of Florida Citrus Mutual. “I want
opment Foundation (CRDF). The Florida Citrus Production Research Advisory Council growers to remember, however, that
(FCPRAC) will become an advisory committee to the Foundation. The Foundation will even when the rule becomes final,
annually evaluate research projects and award the grant money accordingly.
fruit with noticeable canker lesions
Florida citrus growers will have the opportunity to vote on the proposal in early
is still going to be graded defective.
2010 through a Florida Department of Agriculture and Consumer Services (FDACS)
administered referendum. To pass, 65 percent of voting growers representing 51 percent The grade standards are still in place
of the voting production would have to support the proposal. If approved, the industry so you may not be able to sell some
could then make the necessary changes to Chapter 573 Florida Statutes to codify the canker infected fruit as Grade A.”
An industry contingency is in
process.
Washington
this week discussing the
“As the industry ramped up HLB research over the past two years, FCPRAC – in
conjunction with the Florida Department of Citrus (FDOC) - did an excellent job coor- rule with the USDA.
Until the rule is in place, packers
(Please see Research Order continued on page 2.)
should remember that we are still
under the same canker regulations as
were in effect last year,” Sparks said.
Florida Citrus Mutual will continue to evaluate import data while investigating the
“And exporters will still be required
possibility of petitioning the U.S. Department of Commerce (DOC) to initiate a full antito undergo canker inspections if they
dumping investigation against Citrovita.
“Florida Citrus Mutual is committed to ensuring that Brazilian juice processors play by are sending product to countries
the rules and will closely scrutinize public trade records to strengthen our body of evidence where canker is a phytosanitary isagainst this particular exporter,” said Michael W. Sparks, executive VP/CEO of Florida sue.”
Plus, the USDA will still do
Citrus Mutual. “We have a strong case and despite the recent minor setback we aren’t going
checks on packinghouses to make
to just let it go. Florida growers are clearly being injured by Citrovita’s actions.”
In April, Mutual filed a petition claiming Sao Paulo-based Citrovita sold orange juice sure they are complying with rein the United States at well below its cost of production, a violation of trade law. In the fil- maining canker regulations such as
ing, Mutual asked the DOC to investigate the company through a “changed circumstances” decontamination.
petition that would add Citrovita to a current anti-dumping order that subjects four Brazilian
To view a summary chart of
exporters to federal pricing scrutiny.
canker regulations for the differThe current antidumping order is estimated to have increased the on-tree value of ent export markets put together by
Florida orange crops by 4 to 6 percent, or $85 to $125 million, over the 2005-06 and 2006the Animal Plant Health Inspection
07 seasons.
Service (APHIS) go to http://www.
Last month the DOC said that it would not add Citrovita to the current antidumping
order saying the scope of it can’t be modified under a changed circumstance review. The flcitrusmutual.com/industry-issues/
pestanddisease/citruscanker.aspx.
DOC did not say that the company was not dumping.
FCM Continues to Target OJ Dumping
(Research Order continued from page 1.)
dinating, prioritizing and funding research projects,” said Michael W. Sparks,
executive VP/CEO of Florida Citrus Mutual. “The ongoing push to defeat
HLB calls for Florida citrus to take management of the research effort to the
next level of efficacy. As such, the industry formed the Foundation which
under this proposal will become the guiding voice for citrus research.”
“The current State Research Order is set to expire in 2010 so now is a
perfect time to transition to this new structure. It is designed to seamlessly
bridge the gap until a Federal Research Order that collects on all domestic
and imported citrus products can be put in place. Growers take note: The
state research assessment ultimately becomes “tax neutral” if a Federal Research Order is created meaning growers won’t be taxed twice. The current
draft actually mandates a proportional reduction in the State assessment if a
Federal Research Order takes shape.”
The proposal is also supported by the CRDF and FCPRAC. For a Q &
A on the proposal and the preliminary statutory language, please go to http://
www.flcitrusmutual.com/industry-issues/research.aspx.
Tentative State Research Order Timeline
September-October….....Unveil proposal through industry organizations
October 29, 2009…..............................................Final Wording for Ballot
December 18, 2009.…Publish Formal Notice and Advertise Ballot and Vote
January 4, 2010….................................................Mail Ballots to Industry
January 22, 2010 (COB)…...................................Sealed Ballots Returned
February 1, 2010…........................................................Announce Results
March 2010….......................................................Legislative Work (TBD)
August 1, 2010…...........................................................................In Effect
Operation Cleansweep Offers Citrus
Growers Free Disposal of Pesticides
The Florida Department of Environmental Protection and the Florida
Department of Agriculture and Consumer Services are once again hosting “Operation Cleansweep.”
Operation Cleansweep is a mobile pesticide collection program that
provides a safe way to dispose of cancelled, suspended, and unusable
pesticides. Proper disposal can be costly and a regulatory burden for
small farmers and other pesticide users. This program offers an opportunity to avoid these formidable barriers and to promote safe and environmentally sound pesticide use, handling and disposal.
Collections will be made at no cost to farms and groves, nurseries,
pest control services, greenhouses, forestry entities and golf courses.
Pesticide dealers can participate for a fee.
For more information contact FDACS at [email protected] or tollfree at (877) 851-5285 or visit www.dep.state.fl.us/waste/categories/cleansweeppesticides/ .
Industry Asks USDA to
Purchase Florida OJ
Florida Citrus Mutual and the Florida
Department of Citrus (FDOC) have asked
the U.S. Department of Agriculture to purchase 10 million gallons of orange juice
to help bolster federal feeding programs
while reducing inventories.
In a September 10 letter, Michael W.
Sparks and Ken Keck, executive director
of the FDOC, made the request to U.S.
Agriculture Secretary Tom Vilsack.
“In addition to assisting a $9 billion
industry that creates 76,000 jobs, a significant USDA purchase will provide a
healthy beverage for students, the elderly,
mothers and their children across the
United States,” the letter states.
The request targets the USDA’s Section 32C “bonus purchase” program, a
discretionary fund used to make agricultural commodity purchases each year. The
purchases are used in feeding programs
such as school lunches. In FY ’09 the
USDA bought 7.3 million gallons of orange juice, or roughly $26 million, which
represented 16 percent of the total bonus
purchase funding
Mutual expects an answer to the request by sometime in January.
Annual Report Highlights
Mutual’s 2008-09 Activities
Florida Citrus Florida Citrus Mutual 2008/09 Annual Report
Mutual has prepared its Annual
Report to share
with
members
many of the activities, successes
and
challenges
the organization
faced during the
2008-09 season. The theme of this year’s report is “The Journey Continues.”
The full report can be viewed at http://
www.flcitrusmutual.com/about/fcmoverview.aspx.
For a hard copy, please call 863.682.1111 or
email [email protected].
The Journey Continues
No Changes to FDACS State Test House Nominations Sought
for Citrus Hall of Fame
Inspections at Processing Plants
The Florida Citrus Mutual Board of Directors wants no changes to the
current State Test House inspections process.
The Florida Citrus Processors Association (FCPA) had been pursuing an
alternate audit based initiative where at times no independent Florida Department of Agriculture and Consumer Services (FDACS) inspector would be
present in the test house.
On September 9, the Mutual Board voted to support the following:
• Continuing the option to utilize the CAP program (Customer Assisted
Certification Program), which keeps at least one state inspector in the
test house at all times. This reconfirmed FCM’s position of June 11,
2008.
• Not to pursue the Florida Processors Verification Program whereby
FDACS’ inspectors would spend a total of 40 hours per week in the
facility.
• FCPA’s review of the fees FDACS charges processing plants for inspection services.
• Keeping apprised of the advances in technology with hopes of making
the state test house fully automated.
Florida Citrus Mutual hosted a State Test House Alternate Inspection
Committee workshop in August to address the FCPA proposal. Several Mutual
Board members sat on the Committee which was charged with investigating
the FCPA’s proposal, including Bo Bentley, Dennis Broadaway and Steve
Sorrells.
2009-10 Season Outlook Presented to Mutual Board
On September 9, Bob Barber, Mutual’s economic consultant, presented
his outlook on fruit prices for the upcoming season. The prices below are
based on varied Florida crop sizes and FOB prices for imported Brazilian
juice.
Nominations are being sought for
potential inductees to The Citrus Hall
of Fame of Florida. The induction
ceremony is scheduled to take place
on Friday, March 5, 2010 at Florida
Southern College in Lakeland.
Eligible nominees are those distinguished leaders who have made
significant contributions to the Florida
citrus industry in any of the following
fields: pioneers, harvesting, packing,
processing, marketing, scientific and/
or educational areas.
Last year’s inductees were George
Austin, of Alva, Jerry Chicone, of
Orlando, Ben Hill Griffin, III, of
Frostproof and D. Victor Knight, Sr.
(deceased) of Vero Beach.
All nominations must be submitted
by December 1, 2009. Any nominations received after this date will be
considered for the following year.
Nomination forms are available online
at www.floridacitrushalloffame.com or
by contacting Florida Citrus Mutual,
(863) 682-1111.
Send completed applications to:
[email protected] or jewell@
flcitrusmutual.com. Hard copies should
be sent to: Citrus Hall of Fame, P. O.
Box 89, Lakeland , FL 33802 .
For more information, please contact either John Jackson at jackson71344@
yahoo.com or Brenda Eubanks Burnette at
(561) 351-4314 or [email protected].
Post Estimate Prices ($ per PS)
FL Crop
155
147.5
140
Brazil FOB
Low
Mid
High
E-Mids
$0.60 - .70
$0.90 - $0.95
$1.15 - $1.25
Valencias
$0.60 - .70
$0.95 - $1.00
$1.25 - $1.35
All
$0.66
$0.94
$1.25
U.S. Senator Bill Nelson joined several
Mutual members for lunch during a tour
of Polk County on August 31. The group
shared many of the Florida citrus industry’s
greatest concerns with Sen. Nelson including Brazilian dumping and HLB research.
In Memory
Crittenden - Longtime Mutual member and and citrus magnate Earl “Duke”
Crittenden passed away August 31 from
heart disease.
Crittenden, 79, rose to prominence in
the citrus industry nearly 50 years ago, establishing Crittenden Fruit Co., one of the
state’s largest citrus operations.
He also served on the Florida Citrus
Commission.
A graduate of the University of Florida,
Crittenden was also one of the Gators’ most
prominent supporters and was made an
honorary member of the Florida Blue Key,
the university’s prestigious public-service
fraternity.
Mutual sends its thoughts and sympathies to the Crittenden family.
Mason G. Smoak Foundation
5K Run & Family Fun Day
The Inaugural Mason G. Smoak
Foundation 5K Run & Family Fun Day
will be held Saturday, October 3 at DeVane Park in Lake Placid.
The event will feature a 5K run, onemile family fun walk, hands-on exhibits, food, live entertainment and much
more!
Visit www.masongsmoakfoundation.
org for more information or to register.
Registration forms are also available at
the Blueberry Patch in Lake Placid and
any Heartland National Bank.
2008-09 Season Pricing Averages
As growers prepare for the 2009-10 season, Mutual has put together an overview of the
2008-09 season averages for some of the price indexes that processors and handlers may base
fruit contracts on. If you would like further information or have any questions, please contact
Melanie Burns at 863.682.1111 or [email protected]
Price Index
Early &
Red
White
Mid
season Valencia Grapefruit Grapefruit
Florida Citrus Mutual’s Mostly Price
Simple average of weekly cash
$0.741667 $0.914722
market fruit prices from processing
plants.
$0.72
$0.70
Canners Average
FDOC Processor’s Statistical Reports
Spot & Contract Current Season (Line1)
Delivered in price, weighted average $0.938441 $1.073815 $0.585195 $0.648589
by number of boxes, current season
only. Reported weekly from processing
plants.
Canners Average
FDOC Processor’s Statistical Reports Final Line, Combined (Line 3)
Delivered in price, weighted aver- $1.010470 $1.133625
age, current season and long term
contracts combined - if price is
known at time of delivery. Reported
by plants.
New Canners Average
FDOC Post Estimate Fruit Price Report
Weighted average of fruit with fixed
$0.78661
final prices known at time of delivery,
purchased after the October USDA
crop foreccast. Reported by plants.
$0.89975
NA
NA
$0.67427
$0.67416
Triangle is published bi-weekly except in the months of July and August by Florida Citrus Mutual, 302 S. Mass. Ave., Lakeland, FL, 33801. Its purpose is to inform member
growers and handlers of events of interest in the citrus industry statewide, nationwide and internationally; and to provide members with information they can use to maximize
production and profits. Copyright 2009, all rights reserved. Reprint by permission only.
Florida Citrus Mutual
302 S. Massachusetts Ave.
Lakeland, FL 33801
COPYRIGHT © 2009 FLORIDA CITRUS MUTUAL
SEPTEMBER 11, 2009
ISSUE NUMBER 21
WWW.FLCITRUSMUTUAL.COM
(863) 682-1111