International Flavor Impacting Domestic Citrus

Ruby Red Valencia

One of the core missions of New Varieties Development & Management Corp. (NVDMC) is global exploration for new citrus varieties that may have value in Florida fresh and processed citrus sectors. This is achieved through interaction with breeding programs, commercial agents, travel, and observation. International trends reveal dichotomous approaches to new variety introductions. It is important that citrus nurseries and the growers they serve remain abreast of these developments, as they will ultimately impact nurseries.

What was once foreign and far away, is getting closer to home. What once only affected fresh varieties, is now beginning to impact promising varieties for the processed sector. The September 2011 Citrus Nursery Source explored royalty models. This month we will explore four common approaches that variety owner/managers (public and private) are taking to variety commercialization. This information will be helpful to nurseries in a couple of ways: better understanding opportunities for nurseries as foreign varieties come to Florida; and planning for management of domestic varieties. Growers are facing increased risk and cost when making planting decisions in 2012. They now consider factors that will protect their investment and offer a greater assurance of a strong return. Nurseries aware of these factors will be in a better position to participate and to advise their grower base.

Model A: Isolation And Local Advantage

This approach is applied to some publicly developed varieties. Growers operating within the region where the variety was developed leverage political will to keep the variety close to home. The variety is not licensed outside the home region for evaluation or production. This is seen as an advantage to the local region, resulting in recognition and identity as the sole producers. Some of the disadvantages of this approach are: (1) the variety will have a shorter production window and a diminished market presence as it is limited to the maturity window of the home market; (2) revenues are lost that could have financially supported the breeding program; and (3) often the developing entity does not secure protection for the variety intellectual property (IP) in likely foreign production areas, leaving the variety vulnerable to theft and overall loss of control.

Model B: Extreme Exclusivity

This model is applied to certain private varieties with real or perceived unique attributes that are valued by the marketplace. The variety is generally propagated by one or two nurseries. Tree production is tightly limited to assure that variety demand far exceeds supply. The variety is marketed on an exclusive basis through one or few retail outlets. This plan gambles that the unique attributes of the variety will outweigh retail frustration resulting from limited production and availability. Once established, contra-seasonal production can be secured, extending the window for the committed exclusive retailers. These are high return for retail, high royalty for owners, and high margin for nurseries. What is unknown is staying power. These are all pretty new.

Model C: Controlled Movement Through Strategic Partners

In this model, IP protection is secured in likely global production areas and varieties are tested for suitability to conditions and consistency of characteristics. Production is generally managed in such a way as to balance variety availability in key markets and protect markets served by growers in its home country or state. Managers can balance production against competing varieties sharing the same harvest window. This approach can provide royalties to the variety owner, expand market presence through dual hemisphere production, and minimize the possibility of theft. It requires a professional level of oversight and verification. This model is suitable for public and private material. There may be initial resistance from growers in the home territory, for the variety to go global, but it does provide protections and encourages retail acceptance.

Model D: Broad Global Release

In this approach, IP protection is secured in all production areas that are interested in the variety and it is licensed for production (typically) without limitations or restrictions. Such a model also requires oversight and verification, and for a strong variety, can generate substantial short-term revenues for owner and partner nurseries. However, a good variety that is compatible with a wide range of growing conditions will undoubtedly be over-produced. Markets will become saturated and grower returns will decline. Though the marketplace will ultimately correct itself, the pace of change in global production of fresh citrus varieties does not have patience for natural corrections. Growers will rapidly grow weary of low returns and will refuse to pay royalties. One thing is clear globally: In return for royalties, growers expect to be protected from vast over-production and market saturation.
Thus far, U.S. domestic varieties have by and large been publicly developed. International distribution has sought to generate revenue and to some extent, protect home producers. There has been little conscious planning to protect returns and avoid market saturation (for public varieties, this must be done thoughtfully with equal access/opportunity). Florida citrus nurseries will be faced with many variety options in the next decade, having to make decisions on how their limited capacity and resources will be committed. As disease solutions or disease management plans come online, this pressure will intensify.

Leave a Reply

Featured Stories
SFWMD Big Cypress Basin pump station following Irma
Citrus
September 22, 2017
Water Management Concerns Flowing in Florida After Irma
Efforts mounted and executed to move gallons by the ton to protect property. Read More
Citrus display survey
Varieties & Rootstocks
September 22, 2017
Take Time to Survey the Latest Florida Citrus Varieties
The calendar is full of display day opportunities to learn, see, and do. Read More
Apples & Pears
September 22, 2017
Media Reflects Modern Society [Opinion]
Little about fruit growing — or any agriculture — appears because too few of us are willing to illuminate the media. Read More
Handfuls of Florida hops
Citrus
September 22, 2017
When it Comes to Growing, Florida Farmers Never Say Never
Let's raise a toast to the bold producers and researchers who are taking our industry beyond previously perceived crop viability boundaries to places once figured forbidden. Read More
Citrus
September 21, 2017
Hurricane Relief Fund Launched for Florida Farmworkers
Money raised will benefit Redlands Christian Migrant Association’s efforts to aid families in need. Read More
Paul and Derek Orsenigo
GenNext Growers
September 21, 2017
Advice for Taking Over the Family Farm
If you are considering joining and running your family business, here are some tips to ensure success. Read More
Picking fresh Florida blueberries
Berries
September 21, 2017
Ways Florida Blueberry Growers Can Elevate Their Message
Promotional efforts seek to harness power that drives the Sunshine State's ‘little blue dynamos.’ Read More
Inside the Horticulture field tour wagon at the 2016 Florida Ag Expo
Florida Ag Expo
September 21, 2017
Everything You Need to Know About the 2017 Florida Ag Expo
More education choices, flexible field tours, and networking opportunities to provide an enhanced attendee experience. Read More
Whiteflies on a leaf
Insect Control
September 20, 2017
Whitefly Troubles Go From Bad to Worse in Florida
Growers should have a plan for managing the pest from beginning to end of season. Read More
Grower Achievement Award
September 20, 2017
Ask Yourself: What Can I Do to Make Things Better?
Alan Jones, this year's recipient of American Vegetable Grower magazine's Grower Achievement Award, invites all growers to do what he does: Look in the mirror and ask," What can I do to make a positive impact on our industry?" Read More
Bacterial wilt symptoms on blueberry leaves
Berries
September 20, 2017
Getting to the Bottom of Bacterial Wilt in Blueberries
Prolific plant pathogen now presenting a new challenge for Florida producers and researchers. Read More
Citrus
September 19, 2017
Precision in Specialty Crops Gains Momentum
Here are some of the key drivers that may transform your farm in the years ahead. Read More
Fruits
September 19, 2017
EPA Mulls Restricting Dicamba Use
Proposal is a part of agency’s focus on reducing herbicide injury in vulnerable crops. Read More
Fruits
September 19, 2017
Washington State University Creates BMSB Management Resource Page
As populations grow in the state, university offers growers pest management advice. Read More
Berries
September 19, 2017
UC Davis Strawberry Lawuit Settled
Former university breeders to return any crosses that used unpatented varieties and agree the school owns rights to them. Read More
The Latest
Citrus
September 22, 2017
Water Management Concerns Flowing in Flo…
Efforts mounted and executed to move gallons by the ton to protect property. Read More
Varieties & Rootstocks
September 22, 2017
Take Time to Survey the Latest Florida C…
The calendar is full of display day opportunities to learn, see, and do. Read More
Apples & Pears
September 22, 2017
Media Reflects Modern Society [Opinion]
Little about fruit growing — or any agriculture — appears because too few of us are willing to illuminate the media. Read More
Citrus
September 22, 2017
When it Comes to Growing, Florida Farmer…
Let's raise a toast to the bold producers and researchers who are taking our industry beyond previously perceived crop viability boundaries to places once figured forbidden. Read More
Citrus
September 21, 2017
Hurricane Relief Fund Launched for Flori…
Money raised will benefit Redlands Christian Migrant Association’s efforts to aid families in need. Read More
GenNext Growers
September 21, 2017
Advice for Taking Over the Family Farm
If you are considering joining and running your family business, here are some tips to ensure success. Read More
Berries
September 21, 2017
Ways Florida Blueberry Growers Can Eleva…
Promotional efforts seek to harness power that drives the Sunshine State's ‘little blue dynamos.’ Read More
Florida Ag Expo
September 21, 2017
Everything You Need to Know About the 20…
More education choices, flexible field tours, and networking opportunities to provide an enhanced attendee experience. Read More
Insect Control
September 20, 2017
Whitefly Troubles Go From Bad to Worse i…
Growers should have a plan for managing the pest from beginning to end of season. Read More
Grower Achievement Award
September 20, 2017
Ask Yourself: What Can I Do to Make Thin…
Alan Jones, this year's recipient of American Vegetable Grower magazine's Grower Achievement Award, invites all growers to do what he does: Look in the mirror and ask," What can I do to make a positive impact on our industry?" Read More
Berries
September 20, 2017
Getting to the Bottom of Bacterial Wilt …
Prolific plant pathogen now presenting a new challenge for Florida producers and researchers. Read More
Citrus
September 19, 2017
Precision in Specialty Crops Gains Momen…
Here are some of the key drivers that may transform your farm in the years ahead. Read More
Fruits
September 19, 2017
EPA Mulls Restricting Dicamba Use
Proposal is a part of agency’s focus on reducing herbicide injury in vulnerable crops. Read More
Fruits
September 19, 2017
Washington State University Creates BMSB…
As populations grow in the state, university offers growers pest management advice. Read More
Berries
September 19, 2017
UC Davis Strawberry Lawuit Settled
Former university breeders to return any crosses that used unpatented varieties and agree the school owns rights to them. Read More
Citrus
September 19, 2017
Hopes High for Hops Fresh From Florida
When it comes to alternative crop solutions, something good is brewing in the Sunshine State. Do you have what it takes to tap in? Read More
Apples & Pears
September 16, 2017
Researcher Finds Bacteria Can Stop Blue …
The natural bacterium found in soil can survive in cold storage; this promising biocontrol offers an alternative to chemical treatments. Read More
Disease Control
September 15, 2017
Scientist Uncovers Chilling Side of Dead…
Lab tests indicate laurel wilt pathogen grows faster in the fall and winter. Read More