Study Shows True Value of Citrus to Florida Economy
June 4, 2021 The Florida citrus industry has certainly seen sunnier days. But despite ongoing challenges in production, the sector still shines bright and contributed more value to the state in 2019-2020 than the previous season. According to a study conducted by the University of Florida, the local citrus industry had an economic impact of $6.762 billion to the state .
The report indicates a majority of the industry’s value in 2019-2020 came from the manufacturing of citrus juice and byproducts at $4.741 billion. Citrus fruit production accounts for $1.816 billion and the process of moving fresh citrus from grower to the packinghouse door accounts for another $204 million.
The report also shows the industry supported 33,381 full-time and part-time jobs in 2019-2020 with labor income contributions amounting to $1.531 billion in wages, salaries, benefits, and business proprietor income.
This value leads to state and local tax contributions of $140 million, including property tax, sales, tax, water management district taxes, intangible taxes, motor fuel and vehicle taxes, excise taxes, and more. Total federal tax contributions equaled $360 million in 2019-2020.
Additionally, citrus juice shipped from Florida to other states and foreign countries was estimated at a value of $2.731 billion and select byproducts at $59.45 million.
“Even at a time when many industries faced economic uncertainty, the Florida Citrus industry continued to provide strong economic contributions to the state of Florida and the many small communities it serves and supports,” says Shannon Shepp, Executive Director of the Florida Department of Citrus (FDOC). “As consumers increasingly turned to Florida citrus for its health and wellness benefits in recent months, the Florida Citrus industry delivered the great tasting and quality products we are known for worldwide. While challenges remain, it is clear the Florida Citrus industry continues to create immense value for not only the state but all Floridians.”
Further economic contributions to the state are experienced in the forms of supply chain linkages and household spending of income.
While the economic impact to the state is significant, the value is most felt in our rural communities where citrus remains the backbone of the economy, according to Dr. Marisa Zansler, Economic and Market Research Director at the FDOC.
“Although the economic contributions of the citrus industry in some rural counties may account for a small portion of these figures, the study findings demonstrate that their contributions are more impactful for the economic health of the area in which they are located because these industries represent a higher share of total economic activity,” Zansler adds.
The economic impact study was conducted by the UF/IFAS Economic Impact Analysis Program, which creates similar studies for other agricultural commodities. Researchers sourced USDA, the Florida Department of Agriculture and Consumer Services, FDOC, the Florida Citrus Processors Association, and more to complete the analysis.
This study was last conducted for the 2018-2019 season and found the Florida citrus industry had an economic impact of $6.5 billion.
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