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Title: Florida''s Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida''s Specialty Citrus Fruit Market
Physical Description: Fact Sheet
Creator: Spreen, Thomas H.
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 2005
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Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "Published August 2005."
General Note: "FE535"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
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System ID: IR00002015:00001


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FE535 Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's Specialty Citrus Fruit Market1 Thomas H. Spreen, Marisa L. Zansler, and Ronald P. Muraro2 1. This is EDIS document FE535, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published August 2005. Please visit the EDIS website at http://edis.ifas.ufl.edu. Note: This article is one of a series of EDIS articles on the economic impacts of citrus canker on Florida's citrus industry. The series is available at http://edis.ifas.ufl.edu/TOPIC_CCEP. 2. Thomas H. Spreen, Professor and Chairman, Food and Resource Economics Department; Marisa L. Zansler, Economist, Policy Analysis and Development, APHIS-USDA; and Ronald P. Muraro, Professor and Extension Economist, Department of Food and Resource Economics, Citrus Research and Education Center, Lake Alfred, FL, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. U.S. Department of Agriculture, Cooperative Extension Service, University of Florida, IFAS, Florida A. & M. University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Larry Arrington, Dean Rapid expansion and integration of international trade, increased tourism, and changes in methods of production in recent decades have increased the likelihood of the introduction of invasive species to U.S. (United States) agriculture. Invasive species can have adverse environmental and/or economic impacts when introduced into a region. Economic impacts include marketing, production, and trade implications. One such invasive species imposing adverse economic impacts to the Florida citrus industry is a bacterial disease known as citrus canker (caused by Xanthomonas axanopodis pv. citri). Citrus canker causes lesions on the leaves, stems, and fruit of citrus trees. The disease adversely affects the proportion of fruit intended for the fresh market, serves to weaken citrus trees, and leads to a reduction in yields and higher costs of production. The Citrus Canker Eradication Program (CCEP) was implemented in the mid-1990s in an attempt to establish guidelines for averting the spread of the disease. Currently there is no biological or chemical cure for citrus canker. All infected trees and citrus trees within a radius of 1900 feet of an infected tree must be eradicated. On-site decontamination of grove workers, field equipment, and packinghouses is also mandatory to prevent the spread of the disease. The current effort to eradicate citrus canker from the industry, the Citrus Canker Eradication Program (CCEP), has been mired in controversy associated with public opinion and legal action. A benefit-cost analysis was conducted to determine if the CCEP is, indeed, a useful policy tool in combating the economic ramifications associated with citrus canker. In the analysis presented in this paper, the benefits of the Citrus Canker Eradication Program (CCEP) on Florida's specialty citrus fruit industry are estimated through an analysis of the Florida citrus industry under the scenario that citrus canker has become established, holding all other factors constant. The net change in revenue in the fresh and processed markets and the additional costs of

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 2 production were the measurements of the estimated benefits. Specialty Citrus Fruit Analysis Specialty fruit varieties include honey tangerines, early tangerines, tangelos, temple oranges, and navel oranges. It is assumed that total production of honey tangerines, early tangerines, and navel oranges is initially sent to the packinghouse. However, a portion of the total production of tangelos and temple oranges is shipped directly to the processing plant, making it difficult to measure the economic impact of reduced packout rates on these specialty varieties. Because of the way these varieties are segregated between the packinghouse and the processing plant, more fruit may be sent to the packinghouse to maintain supply on the fresh market in an industry with endemic citrus canker. Therefore, this study assumes that every attempt will be made to maintain supply on the fresh market due to the reduced availability of oranges for the fresh market. As such, it is assumed that citrus canker will not have an economic impact on fresh utilization of temples and tangelos. Annual Returns for the Fresh and Processed Speciality Citrus Fruit Market in Florida Results of the projected economic impact of endemic citrus canker on the annual per acre returns for Florida fresh and processed honey tangerines, early tangerines, and navel oranges are reported in Table 1. If citrus canker were to become endemic to Florida, total production of honey tangerines, early tangerines, and navel oranges could decrease by ten percent. As a result, fresh utilization of honey tangerines would decrease by 837 thousand boxes, from 1.8 million to 954 thousand boxes; fresh utilization of early tangerines would decrease by 1.1 million boxes, from 2.6 million to 1.5 million boxes; and fresh utilization of navel oranges would decrease by 1.7 million boxes, from 3.6 million to 1.9 million boxes. However, a significant increase in projected on-tree price per box could greatly offset the reduction in fresh utilization. For example, fresh on-tree revenue would increase from approximately $18.6 million to $32 million for honey tangerines, from approximately $25 million to $46.3 million for early tangerines, and from approximately $23.2 million to $32.6 million for navel oranges. Increased allocation of specialty fruit to the processing plant would increase processed revenue in an endemic canker situation since price is not expected to change. The redistribution of fruit for processed utilization would increase by 67 percent for honey tangerines, from 859 thousand boxes to 1.4 million boxes; by 37 percent for early tangerines, from 1.7 million boxes to 2.3 million boxes; and by 61 percent for navel oranges, from 1.8 million boxes to 2.9 million boxes. As a result, processed on-tree revenue would increase from $1.1 million to $1.9 million for honey tangerines, from $1.7 million to $2.4 million for early tangerines, and from $597,000 to $962,000 for honey tangerines. In addition, total on-tree revenue for specialty citrus fruit would increase from $19.7 million to $33.9 million for honey tangerines, from $26.7 million to $48.7 million for early tangerines, and from $23.7 million to $32.6 million for navel oranges. Overall gain in total on-tree revenue for fresh and processed utilization of honey tangerines, early tangerines, and navel oranges is estimated at $44.9 million. Results of the estimated economic impact of endemic citrus canker on the annual per acre returns for Florida fresh and processed tangelos and temple oranges are reported in Table 2. Note that fresh utilization will not experience an economic impact since supply will be sustained on the fresh market. If citrus canker were to become endemic to Florida, total production of tangelos and temple oranges could decrease ten percent, which would result in decreased on-tree revenues of processed tangelos and temple oranges. If these fruits were diverted from the fresh market, processed utilization of temple oranges would decrease slightly from 1.51 million boxes to 1.32 million boxes and processed utilization of tangelos would decrease slightly from 1.46 million boxes to 1.24 million boxes. As a result, processed on-tree revenue would decrease $206,000 for temple oranges, from approximately $2.5 million to $2.3 million, and $220,000 for tangelos, from approximately $1.5 million to $1.2 million.

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 3 Overall loss in on-tree revenue for fresh and processed utilization of temples and tangelos is estimated at $426,000. Overall gain in total on-tree revenue for fresh and processed utilization of honey tangerines, early tangerines, and navel oranges is estimated at $44.9 million. Overall revenue gain in revenue of specialty fruit in an endemic citrus canker industry is estimated at $44.5 million. Economic Impacts of Endemic Citrus Canker in Florida on Specialty Citrus Fruit F.O.B. Revenue Estimated economic impact of endemic citrus canker on specialty citrus fruit F.O.B. revenue is reported in Table 3 using the Florida Citrus Administrative Committee's (CAC, 2000) report on annual total marketings and F.O.B. (freight on board) prices, and the 1999-2000 season quantity and price information. While it is assumed that F.O.B. revenues for temple oranges and tangelos will remain unaffected, this is not the case for F.O.B. revenunes for early tangerines, honey tangerines, and navel oranges. The baseline model is adjusted to reflect a citrus canker endemic industry by reducing the packout rates by one-third and adjusting quantities to reflect a ten percent yield reduction. As a result, packout rates decline from 60.5 percent to 40.3 percent for early tangerines, from 67.5 percent to 45 percent for honey tangerines, and from 66.5 percent to 44.3 percent for navel oranges. A marketing margin for each variety is derived by dividing the difference between F.O.B. revenues and on-tree revenues. The marketing margin is then used to derive the on-tree price per carton. Demand elasticity for retail is estimated at -0.7 for on-tree fresh and processed specialty fruit, except honey tangeries and early tangerines whose demand elasticity at the grower level is estimated at -0.45 (Brown, 1993). Marketing margin is used to derive the on-tree price per carton. Results of the model estimate an increase in F.O.B. revenues for early tangerines and honey tangerines of $8.4 million and 6.1 million, respectively, and a decrease in F.O.B. revenues for navel oranges decrease of approximately $3.6 million annually. The total economic impact of endemic citrus canker on F.O.B. revenue for early tangerines, honey tangerines, and navel oranges is an estimated gain of $10.9 million. Economic Impact of Citrus Canker on Packinghouse Costs of Specialty Fruit F.O.B. costs of producing early tangerines, honey tangerines, navel oranges, temple oranges, and tangelos for the fresh market are estimated for a citrus canker endemic industry. The impact of citrus canker on the estimated F.O.B. packinghouse cost for early tangerines is reported in Table 4. The estimated production cost (which include growing, harvesting, hauling, and packing) of early tangerines is shown based on the figures provided by Muraro, Roka, and Rouse (2000). In those production budgets, early tangerine groves, under the assumption of 253 boxes per acre yield and a 60 percent fresh market (packout) at 60 percent yield, are analyzed (FASS, 2000). Assuming that citrus canker reduces fruit yield by ten percent, per acre yield declines from 253 boxes to 228 boxes per acre, total cartons of early tangerines that can be marketed from one acre with a 60 percent packout are 455 (two cartons per box). Furthermore, assuming the packout rate declines by one-third with citrus canker, per acre fresh market utilization with endemic citrus canker is reduced from 304 cartons to 182 cartons per acre. When adjusted to per carton, growing costs increase by approximately 67 percent, from $3.14 to $5.23 per carton. Other costs (which include interest on operating costs, management costs, taxes, and interest on capital investment) increase 67 percent from $1.82 per carton to $3.03 per carton. Harvesting costs (which include pick-and-haul) increase from $3.29 per carton to $4.93 per carton. Overall, total delivered-in costs (grove care and harvesting costs) are estimated to increase by approximately 60 percent, from $8.25 per carton to $13.19 per carton. Packing and selling costs increase from $3.71 per carton to $4.18 per carton with the addition of certification fees and decontamination costs. Certification fees and decontamination costs were obtained from a study on estimating grower costs associated with endemic citrus canker in Florida (Muraro, Roka, and Spreen, 2001). The delivered-in net value of fresh eliminations (fruit not acceptable for the fresh market) is the average yield of pound solids per box times price per pound solids minus the

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 4 packinghouse elimination charge of $1.03 per box. After factoring in the credit associated with net costs of eliminations, total F.O.B. costs at the packinghouse level for early tangerines increase by roughly 36 percent with endemic canker, from $10.98 per carton to $14.93 per carton. The impact of citrus canker on the estimated F.O.B. packinghouse cost for honey tangerines is reported in Table 5. The estimated production cost (which includes growing, harvesting, hauling, and packing) of honey tangerines is shown based on the figures provided by Muraro, Roka, and Rouse (2000). In those production budgets, honey tangerine production is 298 boxes per acre yield with a 60 percent fresh market packout yield, or 358 cartons (FASS, 2000). Assuming that citrus canker reduces fruit yield by ten percent to 268 boxes per acre and packout rate declines by one-third with citrus canker, fresh market utilization with endemic citrus canker is reduced from 358 cartons to 215 cartons per acre. When adjusted to per carton, growing costs increase by approximately 67 percent, from $3.06 per carton to $5.10 per carton. Other costs (which include interest on operating costs, management costs, taxes, and interest on capital investment) increase 66 percent, from $1.55 per carton to $2.58 per carton. Harvesting costs (which include pick-and-haul) increase from $2.79 per carton to $4.19 per carton. Overall, total delivered-in costs are projected to increase by approximately 60 percent, from $7.39 per carton to $11.86 per carton. Packing and selling costs increase from $3.71 per carton to $4.11 per carton with the addition of certification fees and decontamination costs. Certification fees and decontamination costs were obtained from a study on estimating grower costs associated with endemic citrus canker in Florida (Muraro, Roka, and Spreen, 2001). The net value of fresh eliminations is the average yield of pound solids per box times price per pound solids minus the packinghouse elimination charge of $1.03 per box. After factoring in the credit associated with net costs of eliminations, total F.O.B. costs at the packinghouse level for honey tangerines increase by roughly 34 percent with endemic canker, from $10.13 per carton to $13.52 per carton. The impact of citrus canker on the estimated F.O.B. packinghouse cost for navel oranges is reported in Table 6. The estimated production cost (which includes growing, harvesting, hauling, and packing) of navel oranges is shown based on the figures provided by Muraro, Roka, and Rouse (2000). In those production budgets, navel orange production is 240 boxes per acre yield with a 60 percent fresh market packout yield, or 288 cartons (FASS, 2000). Assuming that citrus canker reduces fruit yield by ten percent to 216 boxes per acre, the packout rate declines by one-third with citrus canker, fresh market utilization with endemic citrus canker is reduced from 288 cartons to 173 cartons per acre. Growing costs per acre increase through costs associated with additional copper applications, from $837.15 per acre to $869.51 per acre. When adjusted to per carton, growing costs increase by approximately 73 percent, from $2.91 per carton to $5.03 per carton. Other costs (which include interest on operating costs, management costs, taxes, and interest on capital investment) increase 67 percent, from $1.92 to $3.20 per carton. Harvesting costs (which include pick-and-haul) increase from $3.47 per carton to $5.20 per carton. Overall, total delivered-in costs are projected to increase by approximately 62 percent, from $8.29 per carton to $13.43 per carton. Packing and selling costs increase from $3.71 per carton to $4.37 per carton with the addition of certification fees and decontamination costs. Certification fees and decontamination costs were obtained from a study on estimating grower costs associated with endemic citrus canker in Florida (Muraro, Roka, and Spreen, 2001). The net value of fresh eliminations (fruit not acceptble for the fresh market) is the average yield of pound solids per box times price per pound solids minus the packinghouse elimination charge of $1.03 per box. After factoring in the credit associated with net costs of eliminations, total F.O.B. costs at the packinghouse level for navels increase by roughly 42 percent with endemic canker, from $11.34 per carton to $16.13 per carton. The impact of citrus canker on the estimated F.O.B. packinghouse cost for tangelos is reported in

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 5 Table 7. The estimated production cost (which includes growing, harvesting, hauling, and packing) of tangelos is shown based on the figures provided by Muraro, Roka, and Rouse (2000). In those production budgets, tangelo production is 195 boxes per acre yield with a 60 percent fresh market packout yield, or 234 cartons (FASS, 2000). Assuming that citrus canker reduces fruit yield by ten percent, per acre yield declines from 195 boxes to 176 boxes per acre. Furthermore, assuming the packout rate declines by one-third with citrus canker, fresh market utilization with endemic citrus canker is reduced from 234 cartons to 140 cartons per acre. Growing costs per acre increase through costs associated with additional copper applications, from $837.15 per acre to $869.51 per acre. When adjusted to per carton, growing costs increase by approximately 73 percent, from $2.58 to $6.19 per carton. Other costs (which include interest on operating costs, management costs, taxes, and interest on capital investment) increase 67 percent from $2.36 per carton to $3.94 per carton. Harvesting costs (which include pick-and-haul) increase from $4.27 per carton to $6.40 per carton. Overall, total delivered-in costs are estimated to increase by approximately 62 percent, from $10.20 per carton to $16.52 per carton. Packing and selling costs increase from $3.71 per carton to $4.32 per carton with the addition of certification fees and decontamination costs. Certification fees and decontamination costs were obtained from a study on estimating grower costs associated with endemic citrus canker in Florida (Muraro, Roka, and Spreen, 2001). The net value of fresh eliminations is the average yield of pound solids per box times price per pound solids minus the packinghouse elimination charge of $1.03 per box. After factoring in the credit associated with net costs of eliminations, total F.O.B. costs at the packinghouse level for tangelos increase by roughly 42 percent with endemic canker from $12.94 to $18.40 per carton. The impact of citrus canker on the estimated F.O.B. packinghouse cost for temple oranges is reported in Table 8. The estimated production cost (which includes growing, harvesting, hauling, and packing) of temple oranges is shown based on the figures provided by Muraro, Roka, and Rouse (2000). In those production budgets, temple orange production is 336 boxes per acre yield with a 60 percent fresh market packout yield, or 403 cartons (FASS, 2000). Assuming that citrus canker reduces fruit yield by ten percent, per acre yield declines from 336 boxes to 302 boxes per acre. Furthermore, assuming the packout rate declines by one-third with citrus canker, fresh market utilization with endemic citrus canker is reduced from 403 cartons to 242 cartons per acre. Growing costs per acre increase through costs associated with additional copper applications, from $837.15 per acre to $869.51 per acre. When adjusted to per carton, growing costs increase by approximately 73 percent, from $2.08 per carton to $3.59 per carton. Other costs (which include interest on operating costs, management costs, taxes, and interest on capital investment) increase 66 percent, from $1.37 to $2.28 per carton. Harvesting costs (which include pick-and-haul) increase from $2.48 per carton to $3.71 per carton. Overall, total delivered-in costs are estimated to increase by approximately 62 percent, from $5.92 per carton to $9.59 per carton. Packing and selling costs increase from $3.71 per carton to $4.06 per carton with the addition of certification fees and decontamination costs. Certification fees and decontamination costs were obtained from the study on estimating grower costs associated with endemic citrus canker in Florida (Muraro, Roka, and Spreen, 2001). The net value of fresh eliminations is the average yield of pound solids per box times price per pound solids minus the packinghouse elimination charge of $1.03 per box. After factoring in the credit associated with net costs of eliminations, total F.O.B. costs at the packinghouse level for temple oranges increase by roughly 30 percent with endemic canker, from $8.66 per carton to $11.21 per carton. Total Net Change in Cost of Production Estimated changes in packinghouse production costs for Florida early tangerines, honey tangerines, tangelos, navel oranges, and temple oranges in an

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 6 endemic citrus canker industry are reported in Table 9. Total packinghouse production of early tangerines is estimated to decrease from 5.3 million to approximately 4.8 million cartons in an endemic citrus canker industry. Referring to Table 4, total F.O.B. costs for early tangerines in an endemic citrus canker industry increase from $10.98 per carton to $14.93 per carton. As a result, F.O.B. costs for early tangerines increase by approximately $13 million, from $58.2 million to $71.2 million for the industry. Total packinghouse production of honey tangerines is estimated to decrease from 8.7 million to approximately 7.8 million cartons in an endemic citrus canker industry. Total F.O.B. costs for honey tangerines in an endemic citrus canker industry increase from $10.13 per carton to $13.52 per carton (Table 5). As a result, F.O.B. costs for honey tangerines increase by approximately $17.7 million, from $88.1 million to $105.9 million for the industry. Total packinghouse production of navel oranges is estimated to decrease from 10.8 million to approximately 9.7 million cartons in an endemic citrus canker industry. Total F.O.B. costs for navel oranges in an endemic citrus canker industry increase from $11.34 per carton to $16.13 per carton (Table 6). As a result, F.O.B. costs for navel oranges increase by approximately $34 million, from $122.5 million to $156.8 million for the industry. It is assumed that the portion of tangelos and temples shipped directly to the processing plant will remain unchanged. As such, it is difficult to measure the economic impact of a low packout rate. Prices for processed fruit are estimated to increase due to increased production costs. Total F.O.B. costs for tangelos and temple oranges in an endemic citrus canker industry increase from $12.94 per carton to $18.40 per carton (Table 7) and $8.66 per carton to $11.21 per carton (Table 8), respectively. As a result, industry F.O.B. costs for temple oranges and tangelos increase from approximately $12.7 million to $16.4 million for temple oranges and from approximately $31.8 million to $45.2 million for tangelos. The total change in F.O.B. costs for specialty varieties increases by $82 million. Summary of Benefits Table 10 summarizes the estimated net change in revenue of the fresh and processed specialty market when citrus canker is introduced. Under the conditions associated with endemic citrus canker, the fresh and processed specialty fruit market experiences gains in excess of $44.5 million due to a significant increase in prices. The fresh and processed markets for specialty fruits are estimated to experience net revenue gains of $43.1 million and $1.3 million, respectively. The estimated net change in F.O.B. revenue for specialty citrus fruit associated with endemic citrus canker is reported in Table 11. Early tangerines and honey tangerines are estimated to experience net gains in F.O.B. revenues of $8.4 million and $6.1 million, respectively. Navel oranges are estimated to experience a net loss of $3.6 million. Overall, F.O.B. revenue for specialty citrus is estimated to increase $10.9 million. Table 12 summarizes the estimated net change in the production costs of specialty fruit sent to the packinghouse in an endemic citrus canker industry. Packinghouse production costs of early tangerines, honey tangerines, navel oranges, temple oranges, and tangelos are projected to increase by $13 million, $17.8 million, $34.3 million, $3.7 million, and $13.4 million, respectively. The total change in F.O.B. costs of production for specialty varieties is estimated to increase by $82.2 million. The overall annual net economic benefits of the CCEP on Florida's specialty citrus fruit under an endemic citrus canker scenario are summarized in Table 13. Delivered-in costs are estimated to increase by $82.2 million. However, the combined annual on-tree and F.O.B. revenues are expected to increase $55.3 million. The annual net increase in costs for specialty citrus is estimated to be $26.8 million. The effects of the 2004 hurricane season add a new unknown in the CCEP economic analysis since the citrus canker bacteria disease is spread by rain-driven wind. Results for the economic analysis were developed in June of 2004 before Hurricanes

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 7 Charley, Francis, and Jeanne passed through Florida. Continuation of the CCEP beyond 2008 would require a new study to estimate the economic impact of the additional costs of the CCEP along with the losses incurred by Florida's citrus industry. References Brown, M.A., T.H. Spreen, and R.P. Muraro. 1999. Fresh versus Processed Utilization of Florida Grapefruit. Journal of Food Distribution Research 30(3):22-32. Citrus Administrative Committee (CAC). 2000. Specialty Fruit Annual Report. CAC, Lakeland, FL. Available online at http://citrusadminstrativecommittee.org and at http://www.citrusadministrativecommittee.org/ shippersreport/annualreport/annual_special.pdf Florida Agricultural Statistical Service (FASS). 2000. Citrus Summary 1999-2000. FASS, Orlando, FL. Muraro, R.P., J.W. Hebb, and E.W. Stover. 2000. Budgeting Costs and Returns for Indian River Citrus Production, 1999-2000. Economic Information Report EI-01-07. Department of Food and Resource Economics, University of Florida, Gainesville, FL (December). Muraro, R.P., F.M. Roka, and R.E. Rouse. 2000. Budgeting Costs and Returns for Southwest Florida Citrus Production, 1999-2000. Economic Information Report EI-00-07. Department of Food and Resource Economics, University of Florida, Gainesville, FL (December). Muraro, R. P., F. M. Roka, and T. H. Spreen. 2001a. An Overview of Argentinas Citrus Canker Control Program. Electronic Data Information Source (EDIS) FE285. Department of Food and Resource Economics, UF/IFAS, University of Florida, Gainesville, FL (June). Muraro, R. P., F. M. Roka, and T. H. Spreen. 2001b. Grower Costs of Having Citrus Canker in Florida. Electronic Data Information Source (EDIS) FE286. Department of Food and Resource Economics, UF/IFAS, University of Florida, Gainesville, FL (June).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 8 Table 1. Estimated economic impact of endemic citrus canker on annual returns of fresh and processed honey tangerines, early tangerines, and navel oranges, 1999-2000 season. Variety Fresh Fruit Processed Fruit On-Tree Revenue* Fresh Utilization Fresh On-Tree Price Fresh On-Tree Revenue Processed Utilization Processed On-Tree Price Processed On-Tree Revenue 1,000 boxes $/box1,000 dollars 1,000 boxes $/box1,000 dollars 1,000 dollars Baseline Early Tangerines 2,630 9.5024,985 1,7201.021,75426,734 Honey Tangerines1,79110.4018,626 8591.301,11719,743 Navel Oranges 3,591 6.4523,162 1,8090.33 59723,759 With Citrus Canker Early Tangerines 1,56629.5546,273 2,3491.022,39648,669 Honey Tangerines 95433.5632,015 1,4311.301,86033,876 Navel Oranges 1,944 16.28 31,648 2,916 0.33 962 32,607 On-Tree Revenue (farm gate price after harvesting/pick-and-haul cost have been subtracted). Table 2. Estimated economic impact of endemic citrus canker on annual returns of fresh and processed temple oranges and tangelos, 1999-2000 season. Variety Fresh Fruit Processed Fruit On-Tree Revenue* Fresh Utilization Fresh On-Tree Price Fresh On-Tree Revenue Processed Utilization Processed On-Tree Price Processed On-Tree Revenue 1,000 boxes $/box1,000 dollars 1,000 boxes $/box1,000 dollars 1,000 dollars Baseline Temples 4405.602,464 1,510 1.662,5074,971 Tangelos 7365.554,085 1,464 1.001,4645,549 With Citrus Canker Temples 4405.602,464 1,315 1.752,3014,765 Tangelos 736 5.55 4,085 1,244 1.00 1,244 5,329 On-Tree Revenue (farm gate price after harvesting/pick-and-haul cost have been subtracted).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 9 Table 3. Estimated economic impact of endemic citrus canker on F.O.B. revenue for early tangerines, honey tangerines, and navel oranges, 1999-2000 season. Variety Without Citrus Canker With Endemic Citrus Canker Net Effect Average F.O.B.* Price Marketings Total F.O.B. Revenue Average F.O.B. Price Marketings Total F.O.B. Revenue $/carton1,000 cartons 1,000 dollars $/carton1,000 cartons 1,000 dollars 1,000 dollars Early Tangerines 11.995,26063,06722.653,15671,4768,409 Honey Tangerines12.773,58045,71724.122,14851,8126,096 Navels 8.897,18263,84813.974,30960,200,648 F.O.B. Revenue 172,632 183,488 10,856 F.O.B. = freight on board. Table 4. Estimated economic impact of endemic citrus canker on F.O.B. cost for early tangerines, 1999-2000 season. Early Tangeries Without Citrus Canker With Endemic Citrus Cankera Total Yield (boxes/acre) 253 227.7 Total Yield (cartons/acre) 506 455.4 Percent Packout 60% 40% Fresh Market Utilization (cartons/acre) 303.6 182.16 Processed Juice Eliminations (boxes/acre) 101.2 136.62 Elimination Pound Solids Yield (p.s./box) 6.6 6.6 Elimination Processed Price (p.s.) $0.60 $0.65 Elimination Packinghouse Charge (per box) $1.03 $1.03 Harvesting/Pick-and-Haul Costs (per box) $3.94 $3.94 Growing Costs (per acre) $952.46 $952.46 $/Acre $/Box $/Carton $/Acre $/Box $/Carton Total Growing/Cultural Costs 952.466.2743.1372 952.4610.4575.2287 Other Costsb 552.703.6411.8205 552.706.0683.0341 Harvesting (Pick/Spot Pick, Haul, DOC Tax) 997.926.5743.2870 898.139.8614.9304 Total Delivered-In Costc 2,503.08 16.489 8.2447 2,403.29 26.387 13.1933 Packing & Selling 1,126.367.4203.7100 761.278.3584.1791 Net Eliminations Costd .52.953.9767 .38 .890.4450 Total F.O.B.* Costs 3,332.9221.95610.9780 2,719.1829.85514.9274 aAssume yield reduction of 10% in citrus canker endemic industry. b"Other Costs" (interest on operating costs & average capital investment, management, and taxes/regulatory cost). c Delivered-in Costs (total cost for fruit delivered to juice processor/fresh fruit packer; includes production/cultural costs and harvesting/pick-and-haul costs). d Net Eliminations Cost (the average yield of pound solids per box times price per pound solids less packinghouse elimination charge and cannery hauling charge per box). F.O.B. = freight on board. Source: Muraro, R.P., F.M. Roka, and R.E. Rouse. 2000. Budgeting Costs and Returns for Southwest Florida Citrus Production, 1999-2000. Economic Information Report EI-00-07. Department of Food and Resource Economics, University of Florida, Gainesville, FL (December).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 10 Table 5. Estimated economic impact of endemic citrus canker on F.O.B. cost for honey tangerines, 1999-2000 season. Honey Tangerines Without Citrus Canker With Endemic Citrus Cankera Total Yield (boxes/acre) 298 268.2 Total Yield (cartons/acre) 596 536.4 Percent Packout 60% 40% Fresh Market Utilization (cartons/acre) 357.6 214.56 Processed Juice Eliminations (boxes/acre) 119.2 160.92 Eliminatin Pound Solids Yield (p.s./box) 6.6 6.6 Elimination Processed Price (p.s.) $0.60 $0.65 Elimination Packinghouse Charge (per box) $1.03 $1.03 Harvesting/Pick-and-Haul Costs (per box) $3.35 $3.35 Growing Costs (per acre) $1,093.37 $1,093.37 $/Acre $/Box $/Carton $/Acre $/Box $/Carton Total Growing/Cultural Costs 1,093.376.1153.0575 1,093.3710.1925.0959 Other Costsb 552.703.0911.5456 552.705.1522.5760 Harvesting (Pick/Spot Pick, Haul, DOC Tax) 997.925.5812.7906 898.138.3724.1859 Total Delivered-In Costc 2,643.99 14.787 7.3937 2,544.20 23.715 11.8577 Packing & Selling 1,326.707.4203.7100 881.488.2174.1083 Net Eliminations Costd .26.953.9767 .60.890 .4450 Total F.O.B.* Costs 3,621.4320.25410.1270 2,901.0827.04213.5210 aAssume yield reduction of 10% in citrus canker endemic industry. b"Other Costs" (interest on operating/cultural costs & average capital investment, management, and taxes/regulatory costs). c Delivered-in Costs (total cost for fruit delivered to juice processor/fresh fruit packer; includes production/cultural costs and harvesting/pick-and-haul costs). d Net Eliminations Cost (the average yield of pound solids per box times price per pound solids less packinghouse elimination charge and cannery hauling charge per box). F.O.B. = freight on board. Source: Muraro, R.P., F.M. Roka, and R.E. Rouse. 2000. Budgeting Costs and Returns for Southwest Florida Citrus Production, 1999-2000. Economic Information Report EI-00-07. Department of Food and Resource Economics, University of Florida, Gainesville, FL (December).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 11 Table 6. Estimated economic impact of endemic citrus canker on F.O.B. cost for navel oranges, 1999-2000 season. Navel Oranges Without Citrus Canker With Endemic Citrus Cankera Total Yield (boxes/acre) 240 216 Total Yield (cartons/acre) 480 432 Percent Packout 60% 40% Fresh Market Utilization (cartons/acre) 288 172.8 Elimination Processed Juice (boxes/acre) 96 129.6 Elimination Pound Solids Yield (p.s./box) 5 5 Elimination Processed Price (p.s.) $0.60 $0.65 Elimination Packinghouse Charge (per box) $1.03 $1.03 Harvesting/Pick-and-Haul Costs (per box) $4.16 $4.16 Growing Costs (per acre) $837.15 $837.15 Additional Costs (per acre): Copper Application $32.36 $/Acre $/Box $/Carton $/Acre $/Box $/Carton Total Growing/Cultural Costs 837.155.8142.9068 869.5110.0645.0319 Other Costsb 552.703.8381.9191 552.706.3973.1985 Harvesting (Pick/Spot Pick, Haul, DOC Tax) 997.926.9303.4650 898.1310.3955.1975 Total Delivered-In Costc 2,387.77 16.582 8.2909 2,320.34 26.856 13.4279 Packing & Selling 1,068.487.4203.7100 755.038.7394.3694 Net Eliminations Costd .12.313.6567 .71.330.6650 Total F.O.B.* Costs 3,267.1322.68811.3442 2,787.6632.26516.1323 aAssume yield reduction of 10% in citrus canker endemic industry. b"Other Costs" (interest on operating/cultural costs & average capital investment, management, and taxes/regulatory costs). c Delivered-in Costs (total cost for fruit delivered to juice processor/fresh fruit packer; includes production/cultural costs and harvesting/pick-and-haul costs). d Net Eliminations Cost (the average yield of pound solids per box times price per pound solids less packinghouse elimination charge and cannery hauling charge per box). F.O.B. = freight on board. Source: Muraro, R.P., F.M. Roka, and R.E. Rouse. 2000. Budgeting Costs and Returns for Southwest Florida Citrus Production, 1999-2000. Economic Information Report EI-00-07. Department of Food and Resource Economics, University of Florida, Gainesville, FL (December).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 12 Table 7. Estimated economic impact of endemic citrus canker on F.O.B. cost for tangelos, 1999-2000 season. Tangelos Without Citrus Canker With Endemic Citrus Cankera Total Yield (boxes/acre) 195 175.5 Total Yield (cartons/acre) 390 351 Percent Packout 60% 40% Fresh Market Utilization (cartons/acre) 234 140.4 Elimination Processed Juice (boxes/acre) 78 105.3 Elimination Pound Solids Yield (p.s./box) 6.6 6.6 Elimination Processed Price (p.s.) $0.60 $0.65 Elimination Packinghouse Charge (per box) $1.03 $1.03 Harvesting/Pick-and-Haul Costs (per box) $5.12 $5.12 Growing Costs (per acre) $837.15 $837.15 Additional Costs (per acre): Copper Application $32.36 $/Acre $/Box $/Carton $/Acre $/Box $/Carton Total Growing/Cultural Costs 837.157.1553.5776 869.5112.3866.1931 Other Costsb 552.704.7242.3620 552.707.8733.9366 Harvesting (Pick/Spot Pick, Haul, DOC Tax) 997.928.5294.2646 898.1312.7946.3969 Total Delivered-In Costc 2,387.77 20.408 10.2041 2,320.34 33.053 16.5266 Packing & Selling 868.147.4203.7100 606.348.6374.3187 Net Eliminations Costd .54.953.9767 .28.890.4450 Total F.O.B.* Costs 3,027.3725.87512.9375 2,583.4036.80118.4003 aAssume yield reduction of 10% in citrus canker endemic industry. b"Other Costs" (interest on operating/cultural & average capital investment, management, and taxes/regulatory costs). c Delivered-in Costs (total cost for fruit delivered to juice processor/fresh fruit packer; includes production/cultural costs and harvesting/pick-and-haul costs). d Net Eliminations Cost (the average yield of pound solids per box times price per pound solids less packinghouse elimination charge and cannery hauling charge per box). F.O.B. = freight on board. Source: Muraro, R.P., F.M. Roka, and R.E. Rouse. 2000. Budgeting Costs and Returns for Southwest Florida Citrus Production, 1999-2000. Economic Information Report EI-00-07. Department of Food and Resource Economics, University of Florida, Gainesville, FL (December).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 13 Table 8. Estimated economic impact of endemic citrus canker on F.O.B. cost for temple oranges, 1999-2000 season. Temple Oranges Without Citrus Canker With Endemic Citrus Cankera Total Yield (boxes/acre) 336 302.4 Total Yield (cartons/acre) 672 604.8 Percent Packout 60% 40% Fresh Market Utilization (cartons/acre) 403.2 241.9 Elimination Processed Juice (boxes/acre) 134.4 181.44 Elimination Pound Solids Yield (p.s./box) 6.6 6.6 Elimination Processed Price (p.s.) $0.60 $0.65 Elimination Packinghouse Charge (per box) $1.03 $1.03 Harvesting/Pick-and-Haul Costs (per box) $2.97 $2.97 Growing Costs (per acre) $837.15 $837.15 Additional Costs (per acre): Copper Application $32.36 $/Acre $/Box $/Carton $/Acre $/Box $/Carton Total Growing/Cultural Costs 837.154.1532.0763 869.517.1883.5942 Other Costsb 552.702.7421.3708 552.704.5692.2846 Harvesting (Pick/Spot Pick, Haul, DOC Tax) 997.924.9502.4750 898.137.4253.7125 Total Delivered-In Costc 2,387.77 11.844 5.9220 2,320.34 19.183 9.5913 Packing & Selling 1,495.877.4203.7100 982.988.1274.0633 Net Eliminations Costd .79.953.9767 .49.890.4450 Total F.O.B.* Costs 3,489.8517.3118.6554 2,711.8322.41911.2096 aAssume yield reduction of 10% in citrus canker endemic industry. b"Other Costs" (interest on operating/cultural & average capital investment, management, and taxes/regulatory costs). c Delivered-in Costs (total cost for fruit delivered to juice processor/fresh fruit packer; includes production/cultural costs and harvesting/pick-and-haul costs). d Net Eliminations Cost (the average yield of pound solids per box times price per pound solids less packinghouse elimination charge and cannery hauling charge per box). F.O.B. = freight on board. Source: Muraro, R.P., F.M. Roka, and R.E. Rouse. 2000. Budgeting Costs and Returns for Southwest Florida Citrus Production, 1999-2000. Economic Information Report EI-00-07. Department of Food and Resource Economics, University of Florida, Gainesville, FL (December).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 14 Table 9. Estimated changes in F.O.B. production costs associated with endemic citrus canker in the Florida citrus industry for early tangerines, honey tangerines, navel oranges, tangelos, and temple oranges. Packinghouse Fruit Net Change in Costs Variety Production F.O.B.* Cost Total F.O.B. Cost Without Citrus Canker 1,000 boxes1,000 cartons$/carton1,000 dollars1,000 dollars Early Tangerine 2,650 5,300 10.98 58,194 Honey Tangerine 4,350 8,700 10.13 88,131 Navel 5,400 10,800 11.34 122,472 Temple 733 1,466 8.66 12,696 Tangelo 1,227 2,454 12.94 31,755 With Citrus Canker Early Tangerine 2,385 4,770 14.93 71,21613,022 Honey Tangerine 3,915 7,830 13.52 105,86217,731 Navel 4,860 9,720 16.13 156,78434,312 Temple 733 1,466 11.21 16,434 3,738 Tangelo 1,227 2,454 18.40 45,154 13,399 F.O.B. = freight on board. Table 10. Estimated net change in revenues for fresh and processed specialty fruit associated with endemic citrus canker. Variety On-tree Revenue* 1,000 dollars Without Citrus Canker With Citrus Canker Net Change in Revenue Fresh Market Early Tangerines 24,985 46,273 21,288 Honey Tangerines 18,626 32,015 13,389 Navel Oranges 23,162 31,645 8,483 Temples 2,464 2,464 0 Tangelos 4,085 4,085 0 Estimated Net Revenue Change: 43,160 Processed Market Early Tangerines 1,754 2,396 642 Honey Tangerines 1,117 1,860 743 Navel Oranges 598 962 365 Temples 2,507 2,301 Tangelos 1,464 1,244 Estimated Net Revenue Change: 1,323 On-Tree Revenue (farm gate price after harvesting/pick-and-haul cost have been subtracted).

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Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 15 Table 11. Estimated net change in F.O.B. revenues for specialty citrus fruit associated with endemic citrus canker. Variety F.O.B.* Revenue 1,000 dollars Without Citrus Canker With Citrus Canker Net Change in Revenue Early Tangerine 63,067 71,476 8,409 Honey Tangerine 45,717 51,812 6,096 Navel Oranges 63,848 60,200 ,648 Estimated Net F.O.B. Revenue Change: 10,856 F.O.B. = freight on board. Table 12. Estimated net change in production cost of specialty fruit. Variety Total Production Costs 1,000 dollars Without Citrus Canker With Citrus Canker Net Cost Change Packinghouse Early Tangerines 58,194 71,216 13,022 Honey Tangerines 88,131 105,862 17,731 Navel Oranges 122,472 156,784 34,312 Temples 12,696 16,434 3,738 Tangelos 31,755 45,154 13,399 Estimated Cost Change: 82,201 Table 13. Summary of annual net effect and economic impact of citrus canker on F.O.B. revenue and on delivered-in costs of Florida's specialty citrus fruit. Net Change 1,000 dollars Increase in Delivered-In Costs 82,201 Less Net Increase in Revenue Increase in On-Tree Revenue* 44,483 Increase in F.O.B.** Revenue 10,856 Total Net Increase in Revenue 55,339 Total Annual Net Increase Costs 26,862 On-Tree Revenue (farm gate price after harvesting/pick-and-haul cost have been subtracted). ** F.O.B. = freight on board.