Citrus Nurseries Bank On New Varieties

Sugar Belle Orange

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Like most businesses, the success of citrus nurseries is based on having the right product at the right time. We know that grapefruit resets and block replacements will generate business for Florida citrus nurseries for the foreseeable future. We know that Florida needs to increase its production of processed orange varieties over the next decade, if Florida is to maintain or expand its share of the global juice market. Growers are beginning to recommit to planting acreage of grapefruit and oranges, motivated by myriad of rationales.

However, when it comes to fresh oranges and tangerines, there seems to be less certainly. Growers see large West Coast clementine and tangerine acreage coming into bearing and wonder if there is room in the market for a resurgence of the Florida tangerine and specialty fruit market. Florida had more than 50,000 acres of specialty fruit 20 years ago, but current estimates show fewer than 14,000 acres in production in 2011-2012.

Consumers now have far more options in the produce section than ever before. Shelf space is at a premium; it’s easily lost to substitute products and hard to reclaim. A close examination of retail sales data is needed to get a clear focus on the answer to this question. New Varieties Development & Management Corp. called on the Florida Department of Citrus (FDOC) for current fresh produce sales data. The FDOC provided current data from Freshlook – which highlights clear opportunity for Florida nurseries, growers and packers.

Picking Fruit

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Over the past year, plums showed a strong increase in volume and sales revenue (see chart below). Berry movement increased moderately, while sales revenue increased significantly. Apples, a competing product that we watch closely, decreased in volume but showed increasing revenue. New high-value apple varieties are making an impact. Oranges are holding steady in volume with moderately strong pricing. Grapefruit is holding steady in volume and revenue. The product that is showing the strongest performance is tangerines (including clementines), where movement and revenue are up more than 30%. The consumption of easy peel “convenience citrus” is outpacing all competitors and is showing no signs of slowing down.

Fruit Figures

Domestic market change from prior year (Nov. 2010-Nov. 2011)

Item Dollars Lbs.
Berries 6.2% 2.4%
Apples 4.6% -.8%
Grapes -1.5% -3%
Oranges 3.5% 1.1%
Peaches -2.6% -.8%
Grapefruit .6% 1.1%
Pears -1% -4.8%
Tangerines (incl. clementines) 31.6% 30.9%
Plums 10.1% 9%

New Citrus Varieties Will Pay Off

The chart below provides enhanced detail of the tangerine opportunity. This chart shows that the general category of zipper-skinned fruit (tangerines and clementines) showed strong increases in sales and movement over the past three years (averaged). However, movement and sales of clementines has far outpaced the tangerine category. This may be due to the positioning of certain high volume branded “convenience citrus” products — which market clementines and tangerines under the same product name (and same packaging). In this case, it is unlikely the retail data differentiates the actual varieties in the package. If this is so, the tangerine category is relegated to primarily old-line varieties that are, more often than not, seedy.

Citrus Sales

Percent change in sales revenue and volume sold, from previous year (domestic)

Tangerines & Clementines Clementines Tangerines
  $ Lbs. $ Lbs. $ Lbs.
07-08 12.15% 9.40% 14.59% 8.87% 6.21% 10.64%
08-09 6.33 1.99 11.42 6.34 -7.09 -8.02
09-10 21.76 22.39 27.54 29.46 3.51 3.55

Consumers are exhibiting a strong preference for convenient (seedless and low-seeded) easy peel citrus. This spells good news for Florida citrus nurseries. Tango orders are on the rise (on the River and interior) and U.S. Early Pride low-seeded tangerine will soon be commercially available, giving consumers two Florida convenience citrus choices. Sugar Belle is available, filling the specialty variety niche. The Florida citrus breeding programs are placing a strong emphasis on easy peel tangerine and specialty types, as is evidenced by the many new selections at this year’s UF/IFAS variety displays. New variety release models have now been approved that will speed these exciting selections to interested nurseries and growers for trial and possible commercial application. Nurseries would be wise to include “convenience citrus” in their plans.

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