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Title: Florida's Citrus Canker Eradication Program (CCEP): annual economic impact on Florida's processed orange industry
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 Material Information
Title: Florida's Citrus Canker Eradication Program (CCEP): annual economic impact on Florida's processed orange industry
Series Title: Florida Cooperative Extension Service FE533
Physical Description: Book
Language: English
Creator: Spreen, Thomas H.
Zansler, Marisa L.
Muraro, Ronald P.
Affiliation: University of Florida -- Florida Cooperative Extension Service -- Department of Food and Resource Economics -- Institute of Food and Agricultural Sciences
Publisher: Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Publication Date: 2005
 Subjects
Spatial Coverage: North America -- United States of America -- Florida
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Funding: Florida Historical Agriculture and Rural Life
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Bibliographic ID: UF00067309
Volume ID: VID00001
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Table of Contents
    Title Page
        Page 1
    Empirical results of model
        Page 2
    Additional costs of production
        Page 3
    Summary of benefits
        Page 4
    Reference
        Page 5
        Page 6
    Tables
        Page 7
        Page 8
        Page 9
Full Text





UNIVERSITY OF

FLORIDA


IFAS EXTENSION


Florida's Citrus Canker Eradication Program (CCEP):

Annual Economic Impact on Florida's Processed Orange

Industry1


Thomas H. Spreen, Marisa L. Zansler and Ronald

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


P. Muraro2


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 (1900-foot rule). On-site
decontamination of grove workers, field equipment,
and packinghouses is also mandatory.

The current effort to eradicate citrus canker from
the industry, the CCEP, has been mired in
controversy associated with public opinion and legal
action. A benefit-cost analysis was conducted to
determine whether the CCEP is, indeed, a useful
policy tool in combating the economic ramifications
associated with citrus canker.

A model of the world orange juice market was
originally developed at the University of Florida in
1989 by McClain and later modified in 2003 by
Spreen, Brewster, and Brown. This model is a spatial
equilibrium of the world orange juice market.
Approximately 96 percent of Florida's orange crop is


1. This is EDIS document FE533, 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 March 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 Chair, Department of Food and Resource Economics, University of Florida, Gainesville, FL; Marisa L. Zansler,
Economist, Policy Analysis and Development, USDA/APHIS, Washington, D.C.; 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


FE533






Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 2


sent to the processing sector; therefore, this model
considers only the world processed orange market
when considering Florida's orange crop (FASS,
2000). The predominant varieties in the processed
orange juice market are early-midseason and
Valencia varieties. Early-midseason varieties include
Hamlin and Pineapple oranges.

Sao Paulo, Brazil and Florida collectively
account for approximately 85 percent of the world's
orange juice production (FAO, 2001). As such,
events affecting Florida production impact its
competitive position vis-a-vis Sao Paulo in the
world orange juice market. The supply side of the
model includes Florida, Brazil (Sao Paulo),
California and Mexico. The demand side of the
model includes consumption in the United States, the
European Union, Canada, and Japan. In the United
States and Canada, demand is dis-aggregated into the
categories of frozen concentrated orange juice
(FCOJ) and not-from-concentrate (NFC), given that
NFC consumption accounts for 40 percent and 33
percent, respectively, of total orange juice
consumption in these two markets (Spreen, Brewster,
and Brown, 2003). In the European Union and Japan,
only FCOJ demand is considered. Tariffs imposed by
the United States, the European Union, and Japan are
also incorporated into the model.

In a citrus canker endemic situation, the baseline
model is adjusted to reflect the decline in yields.
Early-midseason varieties are adjusted with a ten
percent decrease in yields, and Valencia oranges are
adjusted with a five percent decrease in yields
(Graham and Gottwald, 1991).

Empirical Results of Model

The benefit of the Citrus Canker Eradication
Program (CCEP) to the revenue of the processed
orange sector is represented by the net change in
on-tree revenue and the net change in F.O.B. (freight
on board) revenue if citrus canker were to become
endemic to Florida. The empirical results of the
processed orange juice model are used to compute the
net effects in this section. The benefit to the processed
orange sector is represented by the loss of revenue
between the baseline model and the model adjusted
for yield losses under an endemic citrus canker
situation.


Empirical Results of Model

The estimated economic impact of citrus canker
on the annual per acre returns of processed Florida
oranges is reported in Table 1. If citrus canker were to
become endemic to Florida, total production of
early-midseason varieties could decrease ten percent.
If this occurs, it is estimated that processed utilization
of early-midseason varieties would decline 12.7
million boxes, from approximately 127.5 million
boxes to approximately 114.7 million boxes. The
average on-tree price of early-midseason varieties
would increase five percent, from $3.07 per box to
$3.23 per box, resulting in an estimated net revenue
loss of $20.3 million.

Again, if citrus canker were to become endemic
to Florida, total production of Valencia oranges could
decrease five percent. If this occurs, it is estimated
that processed utilization of Valencia oranges would
decline approximately 4.8 million boxes, from
approximately 96.1 million boxes to approximately
91.3 million boxes. The average on-tree price of
Valencia oranges would increase five percent, from
$4.31 per box to $4.54 per box, resulting in a net loss
of revenue estimated at $99,000.

Average on-tree prices would increase as a result
of the reduced processed utilization in Florida since
increased imports from Brazil would be insufficient
to offset the decline of Florida orange juice
production. Total estimated processed on-tree revenue
is expected to decline by $20.4 million as a result of
endemic citrus canker.

Net Effect of Citrus Canker to F.O.B.
Revenue of Processed Oranges

The estimated economic impact of endemic
citrus canker on F.O.B. revenue of processed Florida
oranges is the difference between the baseline model
and the model adjusted for yield losses under an
endemic citrus canker situation. The baseline
weighted average of the F.O.B. price of all processed
oranges in Florida is $1.123 per carton. The baseline
volume of early-midseason, Valencia, and temple
processed orange juice is approximately 781.9,
732.63, and 9.66 million pound solids, respectively.
The total baseline volume of processed oranges is
1,524.19 million pound solids. The baseline F.O.B.






Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 3


revenue for all processed oranges in Florida is
$1,711.7 million. Under an endemic citrus canker
scenario, the adjusted weighted average of the F.O.B.
price of all processed oranges in Florida is $1.167 per
carton. The adjusted volume of early-midseason,
Valencia, and temple processed orange juice is
approximately 717.19, 710.98, and 8.46 million
pound solids, respectively. The total adjusted volume
of processed oranges is 1,436.63 million pound
solids. The adjusted F.O.B. revenue for all processed
oranges in Florida is $1,676.6 million. Total
estimated processed F.O.B. revenue is expected to
decline by $35.1 million as a result of endemic citrus
canker.

Additional Costs of Production

In addition to the market analysis, partial
budgeting is used to document the impact of citrus
canker on the cost of production. Muraro, Roka, and
Rouse (2000) and Muraro, Hebb, and Stover (2000)
annually publish budgeting and costs of production
for oranges and grapefruit produced in three regions
of Florida. These studies are based on a survey of
custom operators, input suppliers, and growers
located in central Florida, southwest Florida, and the
Indian River area of Florida. In a study published by
Muraro, Roka, and Spreen (200 ib), grower costs
were estimated if citrus canker were to become
endemic to Florida. The study reviewed citrus canker
control programs implemented in Argentina as the
basis from which to estimate cultural costs. The
analysis identified six criteria for evaluating the
changes in the cost structure to manage the disease as
follows:

1. Capital investment cost of additional equipment
for spraying.

2. Additional costs of copper sprays.

3. Costs of establishing windbreaks for fresh
market varieties.

4. Value of fruit loss due to citrus canker infestation
(reduced yields).

5. Certification fees.


6. Decontamination fees.

Muraro, Roka, and Spreen (2001b) estimate that
two additional sprays would be required for fresh
fruit at a cost of $59.08 per acre. Producers of fresh
fruit varieties already include copper spraying as part
of their production practices; these estimated values
are additional sprays. These sprays would be applied
pre-bloom and at petal fall (Muraro et al., 200 Ib).
For processed fruit, one additional spray would be
needed at a cost of $32.36 per acre. For the more
susceptible varieties, an additional copper spray
would be required at petal fall. Growers would apply
additional sprays of copper in an attempt to mitigate
the adverse effect that canker has on both fruit
appearance and yield.

A major problem involving the potential spread
of citrus canker is the flat terrain within the primary
citrus production areas in Florida. Since the primary
vector for transmission of citrus canker is wind and
rain, it would be difficult for the Florida citrus
industry to keep citrus canker isolated to a confined
area. Establishing windbreaks to limit the spread of
canker from one grove to another will be a necessity
for Florida citrus grown for the fresh fruit market and
the more susceptible early processed orange varieties.
Muraro, Roka, and Spreen (200 Ib) estimate the
annual cost of establishing and maintaining a
windbreak at $44.89 per acre, which includes reduced
production due to removal of citrus tress for the
windbreaks.

Economic Impact of Citrus Canker on
Delivered-In Costs of Processed
Oranges

Delivered-in costs (production/cultural costs and
harvesting/pick-and-haul costs) of producing
early-midseason and Valencia oranges for the
processed market are estimated for a citrus canker
endemic industry. The impact of citrus canker on the
estimated processed costs for early-midseason
oranges is reported in Table 2. The estimated total
delivered-in cost for early-midseason varieties grown
for the processed market, including growing,
harvesting, hauling, and packing oranges, is based on
the figures provided by Muraro, Roka, and Rouse
(2000). Under the assumption that citrus canker






Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 4


reduces fruit yield by ten percent, per acre yields
decline from 504 boxes to 453.6 boxes per acre.
Grower costs increase from $758.85 to $791.21 per
acre due to the additional costs associated with the
extra copper spray cost of $32.36. When adjusted to
boxes per acre, grower costs increase approximately
16 percent, from $1.51 to $1.74 per box. Other costs
(which include interest on operating costs,
management costs, taxes, and interest on capital
investment) increase roughly 11 percent, from $1.02
to $1.14 per box. In a citrus canker endemic industry,
harvesting and Department of Citrus (DOC)
assessment costs (including pick-and-haul and DOC
taxes) increase from $1.98 per box to $2.20 per box.
The total delivered-in costs for Florida's
early-midseason varieties in an endemic citrus canker
situation increase from $4.51 to $5.08 per box.

The impact of citrus canker on the estimated
processed costs for Valencia oranges is reported in
Table 3. The estimated total delivered-in cost for
Valencia varieties grown for the processed market,
including growing, harvesting, hauling, and packing
oranges, is utilized based on the figures provided by
Muraro, Roka, and Rouse (2000). Under the
assumption that citrus canker reduces fruit yield by
five percent, per acre yields decline from 504 boxes
to 478.8 boxes per acre. Similar to the grower costs
for early-midseason varieties, growers incur an
increase from $758.85 to $791.21 per acre due to the
additional costs associated with the extra copper
spray cost of $32.36. When adjusted to boxes,
however, grower costs increase approximately ten
percent, from $1.51 to $1.65 per box. Other costs
(which include interest on operating costs,
management costs, taxes, and interest on capital
investment) increase roughly five percent, from
$1.02 to $1.08 per box. In a citrus canker endemic
industry, harvesting and DOC assessment costs
(which include pick-and-haul and DOC taxes)
increase from $1.98 per box to $2.08 per box. The
total delivered-in costs for Florida's Valencia oranges
in an endemic citrus canker situation increase from
$4.51 to $4.81 per box.

Summary of Benefits

In the analysis presented in this paper, the
benefits of the CCEP are predicted through an


analysis of the Florida citrus industry, under the
scenario that citrus canker has become established.
The estimated net change in revenue in the fresh and
processed markets and the additional costs of
production were the measurements of the predicted
benefits.

Table 4 summarizes the net change in revenue for
the processed orange juice market when citrus canker
is introduced and becomes widely dispersed. Under
the conditions associated with an industry with
endemic citrus canker, the processed orange juice
market is estimated to incur an overall revenue loss
of $20.4 million. Early-midseason varieties are
estimated to experience the greatest revenue loss of
$20.3 million, while Valencia oranges are estimated
to experience a net loss of $99,000.

Table 5 summarizes the net change in F.O.B.
revenue for the processed orange juice market when
citrus canker is endemic. Under the conditions
associated with an industry with endemic citrus
canker, the processed orange juice market is
estimated to incur an overall F.O.B. revenue loss of
$35 million.

Table 6 summarizes the estimated annual net
change in the costs of producing processed oranges in
an endemic citrus canker industry. Under such a
scenario, the overall cost of producing oranges
intended for the processed market are estimated to
increase by approximately $14.4 million. The cost of
producing early-midseason varieties, which are
highly susceptible to citrus canker, are estimated to
increase by roughly $8.2 million. The costs of
production of Valencia oranges are estimated to
increase by $6.2 million. A summary of the net effect
and economic impact if citrus canker was endemic is
shown in Table 7. The total annual net reduction in
on-tree and F.O.B. revenues and the net increase in
the production costs for Florida processed oranges is
estimated to be $69.9 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
Charley, Francis, and Jeanne passed through Florida.
Continuation of the CCEP beyond 2008 would






Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 5


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

Animal and Plant Health Inspection Service
(APHIS). 2003. Citrus Canker. Washington DC:
United States Department of Agriculture. Available
online at
http://www.aphis.usda.gov/ppq/ep/citruscanker.

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.

Campbell, H., and R. Brown. 2003. Benefit-Cost
Analysis: Financial and Economic Appraisal Using
Spreadsheets. Cambridge, MA: Cambridge
University Press.

Crawford, G.P. October 2000. Aggressive
Strategy Pays Off: Citrus Canker Eradication
Program Makes Progress. FloridAgriculture.
Available at
http://www.floridafarmbureau.org/flag/oct2k/
citrus.html.

Florida Agricultural Statistics Service (FASS).
2000. Citrus Summary 1999-2000. FASS, Orlando,
FL.

Florida Department of Agriculture and
Consumer Services (DACS). 2004. Report on Citrus
Canker Eradication Program in Florida. Division of
Plant Industry, University of Florida, Gainesville, FL.
Available online at
http://www.doacs.state.fl.us/pi/canker/
cankerflorida.pdf

Florida's E-Budget 2004-2005. 2005. Florida
Government, Tallahassee, FL. Available online at
http://www.ebudget.state.fl.us.

Food and Agriculture Organization of the United
Nations (FAO). 2001. Projections of World
Production and Consumption of Citrus to 2010.
China FAO Citrus Symposium, Beijing, China (May).


Gottwald, T.R., J.H. Graham, and T.S. Schubert.
2002. Citrus Canker: The Pathogen and Its Impact.
Plant Health Progress, doi:
10.1094/PHP-2002-0812-01-RV.

Graham, J.H. 2001. Varietal Susceptibility to
Citrus Canker: Observations from Southern Brazil.
Citrus Industry 82:15-17.

Graham, J.H., and T.R. Gottwald. 1991.
Research Perspectives on Eradication of Citrus
Bacterial Diseases in Florida. Plant Diseases
75:1193-1200.

McCarl, B.A., and T.H. Spreen. 1980. Price
Endogenous Mathematical Programming Models as a
Tool for Sector Analysis. American Journal of
Agricultural Economics 62:87-102.

McClain, E.A. 1989. A Monte Carlo Simulation
Model of the World Orange Juice Market. Ph.D.
dissertation. Department of Food and Resource
Economics, University of Florida, Gainesville, FL.

Muraro, R.P., J.W. Hebb, and E.W. Stover.
Budgeting Costs and Returns for Indian River Citrus
Production, 1999-2000. Economic Information
Report EI-00-08. Department of Food and Resource
Economics Department, 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 Argentina's 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).






Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 6

Spreen, T.H., C. Brewster, and M.G. Brown.
2003. The Free Trade Area of the Americas and the
Market for Processed Orange Products. Journal of
Agricultural and Applied Economics 35(1):107-126.

Zansler, M.L. 2004. The Economic Impacts to an
Industry Associated with an Invasive Species: The
Case of Citrus Canker in Florida. Ph.D. dissertation,
Department of Food and Resource Economics,
University of Florida, Gainesville, FL (August).







Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 7

Table 1. Estimated economic impact of endemic citrus canker on annual processed orange utilization in Florida, 1990-2000
season.


Variety Total Production Processed Average On-tree Processed Net
Utilization Price Revenue
1,000 boxes 1,000 boxes $/box 1,000 dollars
Without Citrus Canker

Early-Midseasona 134,000 127,495 3.07 391,410

Valencia 99,000 96,112 4.31 414,243

With Citrus Canker

Early-Midseason 120,600 114,746 3.23 371,071

Valencia 94,050 91,306 4.54 414,144

a The figures "without citrus canker" are actual statistics of the 1999-2000 season reported by Florida Agricultural
Statistics Service (Florida Agricultural Statistics Service. 2000. Citrus Summary 1999-2000. FASS, Orlando, FL).



Table 2. Estimated economic impact of endemic citrus canker on total delivered-in costs for early-midseason oranges grown
for processed market, 1999-2000 season.


Without Citrus Canker With Endemic Citrus Canker

Total Yield (boxes/acre) 504 453.6a

Growing Costs (per acre) $758.85 $758.85

Additional Costs (per acre): Copper Application $32.36

$/Acre $/Box $/Acre $/Box
Total Growing/Cultural Costs 758.85 1.506 791.21 1.744
Other Costsb 514.79 1.021 514.79 1.135
Total Grower Costs 1,273.64 2.527 1,306.00 2.879
Harvesting (Pick/Spot Pick, Haul, DOC Tax) 997.92 1.980 997.92 2.200
Total Delivered-in Costsc 2,271.56 4.507 2,303.92 5.079

a Assume yield reduction of 10% in citrus canker endemic industry.
b Other Costs (interest on operating (cultural costs), management, taxes/regulatory costs, and interest on average
capital investment).
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).
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 El-00-07. Department of Food and Resource Economics,
University of Florida, Gainesville, FL (December).







Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 8


Table 3. Estimated economic impact of endemic citrus canker on total delivered-in costs for Valencia oranges grown for
processed market, 1999-2000 season.


Without Citrus Canker With Endemic Citrus Canker
Total Yield (boxes/acre) 504 478.8a
Growing Costs (per acre) $758.85 $758.85
Additional Costs (per acre): Copper Application $32.36
$/Acre $/Box $/Acre $/Box
Total Growing/Cultural Costs 758.85 1.506 791.21 1.652
Other Costsb 514.79 1.021 514.79 1.075
Total Grower Costs 1,273.64 2.527 1,306.00 2.727
Harvesting (Pick/Spot Pick, Haul, DOC Tax) 997.92 1.980 997.92 2.084
Total Delivered-in Costsc 2,271.56 4.507 2,303.92 4.811
aAssume yield reduction of 5% in citrus canker endemic industry.
b Other Costs (interest on operating (cultural costs), management, taxes/regulatory costs, and interest on average
capital investment).
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).
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 El-00-07. Department of Food and Resource Economics,
University of Florida, Gainesville, FL (December).




Table 4. Estimated change in annual net revenues for Florida processed oranges associated with endemic citrus canker.


Variety Processed On-tree Revenue*
-------- ----1,000 dollars -------
Without Citrus Canker With Citrus Canker Net Change in Revenue

Early-Midseason $391,410 $371,071 (-20,339)

Valencia 414,243 414,144 (99)

Estimated Net Revenue Change: (-20,438)

On-Tree Revenue (farm gate price after harvesting/pick-and-haul cost have been subtracted).




Table 5. Estimated change in annual net F.O.B. revenues for Florida processed oranges associated with endemic citrus
canker.


Processed F.O.B.* Revenues
------ ----------------- 1, 000 dollars ------------
Without Citrus Canker With Citrus Canker Project Net Change in Revenue

1,711,670 1,676,550 (-35,120)







Florida's Citrus Canker Eradication Program (CCEP): Annual Economic Impact on Florida's.... 9


Table 6. Estimated annual net change in cost production associated with endemic citrus canker in the Florida citrus industry
for processed oranges.


Variety Total Processed Orange Production Costs
-------1----------- 1,000 dollars--------------

Without Citrus Canker With Citrus Canker Net Change in Cost

Early-Midseason 574,628 582,814 8,186

Valencia 433,183 439,354 6,171

Estimated Net Cost Change: 14,357




Table 7. Summary of annual net effect and economic impact of citrus canker on "on-tree" and F.O.B. revenues and on
delivered-in costs of processed oranges.


Net Change
1,000 dollars

Estimated Net Reduction in On-Tree Revenue 20,437

Estimated Net Reduction in F.O.B.* Revenue 35,120

Estimated Net Increase in Production Costs 14,357

Total Annual Reduced Revenues and Increased Costs 69,914

F.O.B. = freight on board.




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