By Hayley Boriss, formerly of the Agricultural Issues Center, University of California.

Revised September 2011 by Diane Huntrods, AgMRC, Iowa State University.


Overview
Citrus, which originated in Southeast Asia, is characterized by fragrant flowers and edible juicy fruit. Today, the most important commercial varieties include oranges, grapefruit, lemons, tangerines and to a lesser extent, tangelos and temples. Oranges account for the greatest value in terms of production, followed by grapefruit, lemons and tangerines.

The major citrus producing states in the United States include Florida, California, Arizona and Texas. Of these four states, Florida produced 63 percent of the total U.S. citrus crop in 2010, California produced 33 percent, and Texas and Arizona produced the remaining 4 percent.

Florida is the largest producer of oranges, accounting for 69 percent of total U.S. production, and of grapefruit, producing 66 percent of total production. California is the largest producer of lemons, producing 89 percent of production, and of tangerines, accounting for 67 percent of production.

Demand
In the United States, per person consumption of oranges is higher than that of any other fruit. Grapefruits are the second highest citrus fruit consumed per capita, followed by lemons, tangerines and limes.

Citrus consumption per person in 2009 totaled 84.1 pounds. Of the total, 20.7 pounds was consumption of fresh citrus and 63.4 pounds was consumption of processed citrus.

Oranges
Fresh orange consumption was 9.1 pounds per capita in 2009. Much of the per person consumption of oranges is attributable to orange juice, which reached 34.1 pounds that year.

Grapefruit
While per person consumption of most citrus products has remained strong or increased in recent years, per person consumption of grapefruit has weakened. Per capita consumption of grapefruit peaked at nearly 24 pounds in 1976 and 1977. By 2009, fresh grapefruit accounted for 2.8 pounds per person and grapefruit juice accounted for another 2.3 pounds per person (ERS 2010). Part of the decline in grapefruit consumption is attributable to decade-old studies finding that grapefruit consumption intensified the effects of certain medication. Because a large percentage of grapefruit consumers are older and more prone to taking medication, this concern may have affected overall consumption (ERS 2005).

Lemon
Per person consumption of lemons has varied between 4 and 8.5 pounds since 1970. In 2009, per person consumption of fresh lemons was 3.1 pounds (ERS 2010). Most lemons are consumed as a cooking ingredient, a garnish or as juice in lemonade or other carbonated beverages or drinks (ERS 2004). Demand for lemons is highest in the summer, and U.S. imports of lemons peak in the summer months.

Tangerines
Per person consumption of tangerines has experienced periods of highs and lows over the last few decades. Consumption peaked in 1979 at 4.9 pounds and reached a low of 2.3 pounds in 1990. Since 1990, however, consumption of fresh tangerines has increased, reaching 3.1 pounds in 2009. The easy-to-peel skin of the tangerine and easy-to-separate sections has helped to increase the popularity of this citrus fruit.

Limes
Per person consumption of fresh limes increased from nearly 1 pound per person in 1989 to 2.5 pounds in 2009. Because the Florida-based U.S. lime industry no longer exists, imports account for 100 percent of lime consumption.

Production
The total quantity and value of U.S. citrus production is large in comparison to other U.S. fruits produced. Citrus production for the 2010 season totaled 11.7 million tons, up 7 percent from the 2009 season. The value of the 2010 citrus crop was up slightly from last season, at $2.98 billion. (NASS 2011).

Orange
U.S. orange production accounted for 67 percent of the total citrus crop value in 2010. The value of orange production fell almost 2 percent from the previous year, declining to $1.98 billion. However, the orange crop was 8 percent larger than 2009, reaching 203.7 million boxes or 8.9 million tons.

Florida is the top producer of oranges. The state's 2010 orange crop increased to 6.4 million tons, up 6 percent from last season. Because most of Florida’s orange production is intended for processing, orange production translates into increased juice production, which rose 8 percent from 2009 to 900 million gallons.

Grapefruit
U.S. grapefruit production for 2010 declined to 1.2 million tons, down 2 percent from 2009. While production has declined for the past 4 years, the decline is slowing; grapefruit production declined 6 percent in 2009 and 16 percent in 2008 compared to this year’s 2 percent. With less fruit being sent to processing, grapefruit juice production fell to 76 million gallons.

Higher unit prices led to the highest total value in several years for grapefruit, nearly $286 million.

Lemon
U.S. lemon production in 2010 totaled 23.5 million boxes or 940,000 tons, up 9 percent from last season. The crop was valued at $400.7 million. California is the leading producer of emons; its 2010 crop totaled 21.0 million boxes.

Tangerines
U.S. production of tangerines was up 2 percent in 2010 to 14.9 million boxes or 605,000 tons. The tangerine crop was valued at $316.5 million. California continues to lead the nation in production, with its 2010 crop reaching 9.9 million boxes, nearly 4 percent more than in 2009.

Limes
Historically, production of limes has also occurred entirely in Florida because lime production is best suited for tropical climates. However, the United States no longer has a commercial lime industry, due to citrus canker in combination with hurricanes.

The world’s largest citrus producer in 2009 was China, followed by Nigeria. Brazil leads the world in orange production, followed by the United States and the EU-27. China leads the world in grapefruit production, followed by the United States. World citrus production can fluctuate as a result of severe weather conditions. (FAS 2011)

Prices
Grower prices for most citrus products have been variable over the last two decades. Prices for processed citrus are generally much lower than those of fresh citrus.

Lemons typically receive the highest price per pound and grapefruit the lowest. In 2010, however, tangerines averaged $18.41 per box while lemons averaged $16.77 per box. Grapefruit were the lowest priced, averaging $$9.61 per box.

The price of fresh oranges has shown strong variation. However, the average price for the last few years has ranged from $9.22 per box to $9.96 per box.

Marketing
The marketing season for most citrus fruits begins in fall, as early as August for lemons, and lasts through spring until as late as July for Texas and Arizona grapefruits and for California lemons. Arizona and California have year-round production through the use of multiple varieties including navel and Valencia oranges. (NASS)

While aggregated national statistics suggest that most oranges are processed and most grapefruits, lemons and tangerines are sold fresh, the share varies by state. With regard to grapefruit, in 2004, 40 percent of Florida production was used for processing and 53 percent in Texas. In contrast, 10 percent of grapefruit production in California went to processing, and all of Arizona's production was used in the fresh market (ERS 2006). Texas producers have made attempts to differentiate their grapefruit production from Florida’s with patented alternative varieties including Ruby Sweet and Red Star. (ERS 2005).

Most citrus products have been marketed as a good source of vitamin C. Some citrus industry promotions and marketing programs are supported under the federal Market Access Program, helping U.S. exporters to expand global markets for U.S. citrus in other countries including Canada, France, the United Kingdom and Asia (FAS 2005).

Exports
In 2010, total U.S. citrus exports were valued at $2.9 billion, a 13 percent increase from 2009. In terms of value, fresh oranges and orange juice were the major U.S. citrus export items, followed by fresh grapefruit, lemons and grapefruit juice. Major overseas markets for U.S. citrus include Canada, Japan and the Netherlands.

Exports of fresh oranges were valued at $380.8 million, a 10 percent increase, while the volume of fresh orange exports increased 12 percent from last year, reaching nearly 487,000 metric tons (MT). Canada remains the top export market for U.S. fresh oranges, followed by China, South Korea and Japan.  (FAS 2010)

The increase in frozen orange juice exports during 2010, 49 percent, was significantly larger than the increase in fresh orange exports. Exports of  frozen orange juice were valued at $175.7 million. The largest export market was Belgium, followed by the Netherlands and Canada.  (FAS 2010)

Fresh grapefruit exports increased 8 percent compared to 2009, totaling $200.1 million. Japan remained the top export market for grapefruit, followed by Canada. Both of these markets were up but exports to France and the Netherlands declined.  (FAS 2010)

The value of fresh lemon exports reached $126.9 million, rising 15 percent compared with last year. Though Japan remained the biggest export market for U.S. lemons, exports to Canada posted a 21 percent increase in value. Exports to Australia, South Korea and China were also up compared to 2009.  (FAS 2010)

Imports
The United States imported nearly $3.7 billion worth of citrus fruit and products in 2010, up 8 percent form 2009. Fruit juices and processed fruit were the largest categories of imported citrus fruits, accounting for 70 percent of imports. Imports typically peak in the summer months of July through September.  (FAS 2010)

Fresh orange imports in 2010 totaled $98.7 million, a 6 percent increase from 2009. These imports originated mainly from South Africa and Chile, followed by Australia and Mexico. The latter two countries both experienced double-digit declines in market share.  (FAS 2010)

Orange juice imports also increased during 2010, rising by 8 percent to nearly $439.6 million. Brazil supplied 58 percent of the orange juice, followed by Mexico.  (FAS 2010)

Fresh grapefruit imports to the United States jumped 14 percent in 2010, rising to $2.2 million. Mexico was the top supplier of fresh grapefruit. The country supplied imports valued at $1.6 million, or 75 percent of all fresh grapefruit imports.  (FAS 2010)

Current Issues
Citrus canker is a major problem for commercial and residential citrus trees in Florida and poses a threat to all U.S. citrus growers. A devastating bacterial disease dispersed by wind, rain or contaminated equipment, citrus canker results in premature leaf and fruit drop and a decline in citrus tree health and production of fruit. In addition, lesions on the fruit make it unattractive. Although federal foreign quarantines are in place to protect against entrance of citrus canker at borders, hurricane winds introduced it to Florida in 1986, 1995 and 1997. In January 2006 USDA announced it would no longer fund the citrus tree removal program in Florida because it no longer considers it possible to eradicate citrus canker in Florida by removal of trees. For more information on citrus canker, see the Florida Department of Agriculture and Consumer Services website at:

A U.S. anti-dumping order against imports of orange juice from Brazil is still in effect. The Department of Commerce determined that four Brazilian citrus processors had sold orange juice in the U.S. market at well below its cost of production. The anti-dumping order requires the Brazilian processors to pay a deposit on the orange juice they are exporting to the United States. The deposit can only be refunded if the processors demonstrate that they have not dumped product. For more on this issue, see the United States International Trade Commission website at: www.usitc.gov/.
 

Sources
Background Statistics: Citrus Market, Economic Research Service (ERS), USDA.

Citrus Fruits, National Agricultural Statistical Service (NASS), USDA.

Citrus: World Markets and Trade, Foreign Agricultural Service (FAS), USDA.

Economic & Market Research, Florida Department of Citrus (FDOC) Grower.

Florida Department of Agriculture and Consumer Services.

Food Consumption (per capita) Data System, ERS, USDA.

Fruit and Tree Nut Yearbook, ERS, USDA.

Global Ag Trade System, FAS, USDA.

Lemon Production and Consumption, Fruit and Tree Nuts Outlook, ERS, USDA, 2004.

Oranges: The Most Consumed Fruit in America, Fruit and Tree Nuts Outlook, ERS, USDA, 2002 - This report gives an overview of U.S. orange production, consumption and usage.

Statistical Database, Agriculture, Food and Agricultural Organization (FAO), United Nations.

Tangerines: The Easy-Peel Citrus, Fruit and Tree Nuts Outlook, ERS, USDA, 2003.

U.S. Leads World in Grapefruit Production, Fruit and Tree Nuts Outlook, ERS, USDA, 2005.

Developed February 2006 and updated September 2011.