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Annual report
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Permanent Link: http://ufdc.ufl.edu/UF00076084/00001
 Material Information
Title: Annual report
Physical Description: v. : ; 28 cm.
Language: English
Creator: Florida Citrus Commission -- Dept. of Citrus
Publisher: The Dept.
Place of Publication: Tallahassee?
Creation Date: 1970
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
serial   ( sobekcm )
 Notes
Statement of Responsibility: The Florida Department of Citrus.
Dates or Sequential Designation: 1969/70-
Numbering Peculiarities: Report year ends June 30.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 40694066
System ID: UF00076084:00001
 Related Items
Preceded by: Annual report

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FLORIDA CITRUS COMMISSION
In Memoriam


.-.






**ED H. PRICE *M. H. WALKER *W. R. SORRELLS
Chairman Vice Chairman (September 4, 1971)


***HENRY CRAGG


*A. N. JUMPER
*Appointed May 1971


***W. F. EDWARDS *B. H. GRIFFIN









***R. S. KAZAROS *J. T. LESLEY
** Appointed February 1971


*W. R. HANCOCK


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*KARICK PRICE
*** Appointed May 1l


*D. K. RICHARDSON


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Each Florida citrus season has been
characterized by a special challenge and an
appropriate solution, and the 1970-71 season was no different
from others.

This year, for instance, more fruit was grown and harvested than in any other season in
history, and more important, a record amount of fruit was marketed, making 1970-71 the
most successful selling season ever.

The success of the marketing effort was documented by the Nielsen Food Index for
April-May which revealed that sales of frozen concentrated and chilled orange juice are
expanding at a rate unmatched by any other food product. The rate of growth is so
spectacular that it would normally be related to the introduction of a new product rather
than chart the progress of established products.

Marketing strategies created by the Department of Citrus were responsible for the greater
part of this success as sales of processed orange juice during the two-month period totaled
86,000,000 gallons, 22 per cent ahead of last year's period, while dollar sales were






recorded at $105,000,000, an increase of 21 per cent. Dollar and gallon sales of FCOJ were 23 per cent
ahead of last year while gallon sales of chilled orange juice were up 32 per cent and dollar sales increased
30 per cent.

Another schedule of highly effective selling messages was delivered during the year through the media of radio,
television and magazines, gaining more consumer attention than ever before. This, coupled with trade incentive
promotions conducted under the direction of Department merchandising representatives, further expanded
the already considerable success image of Florida citrus in the eyes and minds of housewives everywhere.

This year the citrus crop totaled 197,100,000 boxes, the largest ever, and processors packed a record amount
of frozen concentrated orange juice, but still the industry is relying on the large carry-over from last season
to help satisfy consumer demand that is expected to continue through early Fall.

In March, Governor Reubin Askew appointed Ed H. Price, Jr., to the Commission to fill the vacancy of
Chairman O. D. Huff, Jr., created by Grand Jury action. Vice-Chairman W. F. Edwards was elevated
to Chairman and Commissioner Robert Kazaros served the remainder of the 1970-71 term as Vice-Chairman.

This is a brief introduction to the pages that follow and directs attention to the various functions of the
Department of Citrus which have helped create a strong market and demand for Florida citrus in all forms.
The results have been genuine and involve the many accomplishments of the Department of Citrus, its staff,
and those agencies serving the Department.




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The general administrative, fiscal, legal and regulatory activities
of the Department of Citrus all come under the responsibility
of the Administrative Department. During 1970-71, Depart-
ment of Citrus regulations were amended 26 times to update
16 different regulations in keeping pace with changing industry
requirements. These amendments covered a wide range of
subjects, including improved methods of measuring quality of
processed products, tighter controls on yield at processing
plants, increased minimum maturity standards for certain


fresh fruits, and a new procedure for control of experimental
fresh fruit containers. Two new regulations were adopted
covering the Department's newly developed "Florida Sunshine
Tree" marks, which, it is anticipated, will be important
adjunct to future marketing programs. An emergency rule
was adopted following the January freeze placing a seven-day
embargo on fresh fruit shipments to assure maintenance of the
quality image for Florida's citrus and to protect the consumer's
interest.

Five hundred and eighty-four fresh fruit brands were registered
and 23 new brands added to the processed product brand regis-
tration list. Processed were 1,536 citrus fruit dealers' license
applications, with 1,505 receiving approval by the Florida Citrus
Commission. Special permits issued included 2,170 for gift fruit
shipments, 420 for shipment to out-of-state processing plants,
32 for experimental fresh fruit containers, seven for shipments
to charitable institutions, and nine for experimental packs of
sugar-add and high density frozen concentrated orange juice.

Stringent controls on the more than half a million pieces of
mail sent out from Department headquarters, resulted in an
estimated savings of $7,500 in postage costs. Use of air mail was
all but eliminated and advantage taken of lower class mail rates
wherever possible.






Fiscal activities continued to expand with overall collections
totaling over $20,500,000, with no deliquent accounts. Interest
earnings through investments in U. S. Treasury Notes were in
excess of $950,000. In addition, some $45,200 was collected
on imported citrus processed in Florida in the first year
following imposition of this new tax. Improved procedures for
auditing service agency activities were implemented, along with
a number of other modifications in general accounting practices.

A comprehensive personnel program was administered for the
Department's 208 employees, over half of which are located
outside the Lakeland headquarters. Average number of vacant
positions was held to a minimum in spite of strong competitive
pressure from private industry. In addition to providing the
service functions of a corporate secretary to the Commission,
meeting notices were sent and appropriate records maintained
for 14 Commission committees and 12 industry committees,
appointed to advise the Commission in special areas of activity.






Consumer advertising completed another successful season by
stimulating new highs in consumer awareness of Department of
Citrus advertising and promotional activities.


The generic advertising of orange juice as a breakfast beverage
in frozen concentrated, chilled or canned forms won greater
recognition than ever before from the housewife. The theme



















line, "Breakfast Without Orange Juice is Like a Day Without
Sunshine," scored a record high of 81 per cent in consumer
awareness, twice the level reported two years earlier. Consumer
awareness of orange juice advertising remained at an all-time
78 per cent.

Anita Bryant, in her fourth year as industry spokeswoman,
was featured in radio and television commercials, print advertising,
point-of-purchase materials and special promotions. One
television commercial eclipsed the record recognition score






established a year before, and awareness of Miss Bryant in the
commercials climbed to 78 per cent.

Radio commercials delivered the processed orange message during
the summer months, and were followed by day and nighttime
television from mid-September through May, with the latter
conveying the sales idea to over 90 per cent of all U. S. women
on the average of 34 times during the year.

Almost 150,000,000 store coupons for processed orange products
were distributed by advertisements in newspapers, magazines
and supplements, by direct mail, and in breakfast product
packages.

Miss Bryant provided support for fresh oranges and specialty
fruits through three newspaper advertisements and two television
commercials, with the TV commercials averaging 150 per cent
above the consumer recall norm for all food commercials.

The continuing theme, "Shape Up With Grapefruit From Florida,"
also attained new highs in consumer awareness. Advertising in
eight leading women's magazines from January to May meant
exposure to more than two-thirds of the nation's women for
new ways to use fresh grapefruit and sections.

National recognition of Department of Citrus advertising for
grapefruit was recorded during the year. The Magazine Publishers


Association singled out "Shape Up America" as one of 38
outstanding magazine advertisements published the preceding
year, and a leading television reviewer selected a 30-second
commercial entitled "The Jogger" as an example of fresh and
imaginative advertising.

For the first time, network radio was used in support of grapefruit
juice on a national basis, emphasizing the healthful qualities of
frozen concentrated, chilled and canned juices.

More than 2,000 daily and weekly newspapers frequently carried
photographs and recipes featuring Florida citrus products, and
major women's service magazines with total circulation in excess
of 15,000,000 contained articles and photographs of citrus
products throughout the year.

Radio and television programming by local personalities using
Department prepared scripts brought 20,000 requests for more
information on various citrus products.

Full-page color exposure in many major newspapers was won for
Florida citrus through the presentation of specialized citrus recipes
during the annual Newspaper Food Editor's Conference, where the
Department of Citrus again hosted a citrus-oriented meal.

The influence of the mobile Rolling Orange and the Orange Juice
Break Queen encouraged a number of non-citrus organizations









STATEMENT OF RECEIPTS, DISBURSEMENTS AND OPERATING FU


t


0 BALANCE FOR FISCAL PERIOD JULY 1, 1970 JUNE 30, 1971


1970-71 Season
Investment Earnings
Transfer Between Funds


General Administration
General Projects & Overhead
Scientific & Economic Research
Sub-total Non Marketing
Marketing Administration
Research
Institutional
Foreign
Merchandising
Advertising
Public Relations
Rebate Claims
Sub-total Marketing & Publicity


Investments
Cash


$ 12,967,808

$ 21,268,648
822,304
-0-
$ 35,058,760

$ 208,780
906,209
613,814
1,728,803
47,667
514,405
554,746
1,084,839
1,981,559
9,249,455
707,297
131,921
14,271,889
$ 16,000,692
$ 17,831,036
1,227,032
$ 19,058,068


$ 19,058,068

$ 20,778,519
959,587
-0-
$ 40,796,174

$ 217,988
1,017,432
680,739
1,916,159
53,906
427,860
516,908
876,029
2,095,122
10,663,144
477,353
786,775
15,897,097
$ 17,813,256
$ 22,574,709
408,209
$ 22,982,918


$ 3,991.65;

$ 11,725,07
160,781
'4,293
$ 15951.801


$ 139.929 $
848 426
680 "39
1.719.094
53 906
427,860
432,961
876,029
1,889,869
5,502,528
477,353

9,660,506
$ 11,379,600 $


$ 3,484,877

$ 2,819,910
112,220

$ 6,417,007


58,660

58,660


$ 100,000

$ 100,000
4,017
(74,293)
$ 129,724


$ -0-

$ 2,497,537
6,435

$ 2,503,972


50,079

-0- 50,079


$ 250,704 $ 350,968 $ 10,880,867


$ 284,584
6,665
(129,681)
$ 412,272

$
5,825

5,825


$ 285,398
21,945
129,681
$ 787,992


6,131


6,131


$ 3,065,015
647,523

$ 14,593,405

$ 28,059
48,311

76,370


83,947


24,665
2,778,313

612,402
3,415,380
3,474,040


$ 4,572,202 $ 2.942.967


2,277,358


29,724
29,724
$ 29,724



$ 100.000


2,361,305
$ 2,411,384



$ 92.588


144,649
144,649
$ 150,474



$ 261,798


180,588
104,945


285,533
$ 291,664


-0-
$ 76,370


$ 496,328 $ 14,517,035


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census is prepared by the Crop and Livestock Reporting Service.

A computerized data storage and retrieval system is being developed
to assist the staff and industry in effectively utilizing market and
economic data.


Test marketing projects on college campuses, in commercial
marketing areas and in teenage markets proved successful and
will be expanded. These promotions involved tests on 14
campuses, a special program in Seventeen Magazine, and a 10-cents
coupon distributed in 10 markets. An interesting breakthrough
was the institution of a continental breakfast in a number of
leading drive-in restaurants. Orange juice was a feature of the
breakfast.

A total of 384 sales incentive promotions were conducted with
leading food service organizations, resulting in an average sales in-
crease of 25 per cent.

Outstanding school lunch workshops were conducted in
Chicago, Boston, and Denver with a total of 1,100 school
lunch officials in attendance.

Convention activities centered around outstanding food shows


sponsored by the American Home Economics Association, the
American Dietetic Association, and the National Restaurant
Association.


An institutional seminar for 23 leading food service operators
in the away-from-home market attracted more than 70 citrus
industry representatives for an exchange of ideas on marketing
concepts and potential for Florida citrus products in this area.

A Citrus Physical Fitness Olympics program was tested in
Washington, Chicago, Omaha, Minneapolis and Jersey City in
cooperation with Departments of Parks and Recreation and
local youth organizations. Special Department of Citrus Awards
were presented winners and citrus products served.

More than 300 television stations carried Department of Citrus
public service messages on "good nutrition for youth" in


to conduct special citrus events throughout Florida, and a new
activity resulted in the production of three public service films
for use by Florida television stations.


A number of major studies assisted the industry in deriving and
evaluating economic implications of short and long-range citrus
supply and demand conditions.

Among these was a project devoted to prorating Indian River
grapefruit shipments. This involved development of a series of
tables which provided estimates of changes in Indian River grape-
fruit prices and revenues associated with changes in grapefruit
shipments from the Indian River, Interior and Texas areas.


Research results suggested that the futures score change for
FCOJ would provide out-of-state processors and retailers with
an additional means of acquiring inventories. However, out-of-
state processing would not be expected to increase unless
out-of-state firms developed processing facilities more efficient
than those used in Florida.

The effect of price changes on citrus sales volume and revenue
was examined through numerous changes in supply and FOB price,
with a number of reports released to coincide with these changes.

Evaluations were made of numerous proposals presented in
October for removal of orange juice surplus when it appeared returns
to the grower would be almost nil because of a crop estimate of
174,500,000 boxes of round oranges and Temples. Investigations
in this general area are continuing.

Estimates were developed which describe the competitive position of
processed orange products in the fruit beverage market and periodic
revision of these estimates has led to suggested changes in citrus
marketing strategies.

Estimates of future crop sizes were provided for developing future
marketing plans, utilizing a technique that accounts for variations in
the age and numbers of trees, box yields by age of tree, and adverse
weather conditions. Estimates are revised each time a new tree







cooperation with the national YMCA-YWCA program on youth
activities. A survey indicated the commercials were utilized a
minimum of 10 times by each station.

A multi-lingual film strip was distributed for use by kitchen
workers in the mass feeding field, featuring handling, preparation
and serving of citrus products.

Leading professional magazines carried 125 feature articles
promoting the continuing use of citrus products in the restaurant
and institutional field.


During the year, marketing agreements were entered into with
32 Three Party Program participants in western Europe, resulting
in record sales and in increased demand for Florida citrus products.

This is illustrated by the fact that total export sales on a calendar
year basis reflected a 33 per cent increase in citrus juice volume
over the previous year. Sales of Florida citrus juices under the
Three Party Program exceeded 12,000,000 gallons this fiscal
year, compared with almost 10,000,000 gallons moved through
western European markets the previous season. Sweden was


the best customer for Florida citrus juices with purchases
amounting to more than 5,000,000 gallons.

Effectiveness of the Three Party Program is reflected in
decision by the United States Department of Agriculture's
Foreign Agricultural Service and the foreign distributors of
Florida citrus to increase financial responsibility for the 1970-71
season to 40 per cent each, while the Department of Citrus
will spend only 20 per cent. Each cooperator has contributed
one-third of the total cost previously. Based on preliminary
budget figures for the new season, the Department of Citrus
will spend $600,000 and receive benefits equivalent to
approximately $3,500,000 in promotional activities in the
western European markets.











During the year the continuing research capability was
expanded to cover the restaurant. field. The range
of services which measure effectiveness of Florida
Department of Citrus marketing programs also includes


retail food stores, consumer purchasing, consumer attitudes and
awareness, and pre- and post- advertising testing. The restaurant


information is obtained from the Audits and Surveys Company of
New York, which conducts an annual distribution audit covering
the entire public restaurant market, with a sample for each
major restaurant outlet type.

There are over 350,000 public eating establishments with a gross
volume of more than $30 billion annually. The first audit
report revealed that only 55 per cent of all restaurants serve
orange juice, ranging from a high of 81 per cent in hotels and
motels to a low of only 23 per cent in the drive-in field.

In the area of special projects, the most important study was the
frozen concentrated orange juice Expanded Display Test, the
latest in a merchandising research series that included Multi-Pack
and Larger Packaging and was designed to increase retail
movement of citrus products.

The expanded Display Test was conducted to measure the
effect on frozen concentrated orange juice sales when existing
space allotments were increased. The expansion of space in the
test stores resulted in very significant sales gains and the results
were published and distributed throughout the retail food
trade. As in previous studies, the Merchandising Department
made personal presentations to key chain store personnel
throughout the country.





























Principal merchandising objectives attained during the 1970-71
fiscal year were informing the food trade of new marketing
developments and trends, persuading the trade to recognize the
profit-making importance of Florida citrus, increasing the impact
of consumer advertising at the point of purchase, and expanding
space for Florida citrus in the marketplace.

These efforts were assisted considerably by participation in four
leading food conventions National Frozen, Foods, United Fresh
Fruit and Vegetable, Super Market Institute, and National Retail
Grocers.


Flip charts were prepared for presentation to food trade executives,
covering such subjects as results of research in freezer management,
and display space for frozen concentrated orange juice, multipacks
of frozen concentrated orange juice, and a fresh orange incentive
program.

The food trade participated in more than 1,000 incentive programs
conducted on local, regional and national levels, with assistance
from the merchandising field force. During the year, more than
331,000 kits of point-of-purchase materials were mailed to the foods
trade, with total pieces of materials adding up to more than
16,800,000. Merchandising representatives reported more than
108,000 contacts, plus assistance in constructing more than 14,000
displays.

Another outstanding accomplishment was recorded in the develop-
ment of fresh fruit sales programs in conjunction with school
vocational-agricultural organizations. A test in seven Pennsylvania
counties resulted in the sale of 6,100 cases of citrus and numerous
inquiries from other areas concerning the program. The Depart-
ment of Citrus placed special advertisements in two leading
Future Farmer of America publications and merchandising
representatives conducted special presentations at local, county
and state levels for organizations interested in fund-raising
programs.







PUBLICITY


New products and Walt Disney World represented major projects
for the 1970-71 fiscal year.

Among new products that emerged from experimentation by
the scientific research staff into the limelight provided by
publicity were a gelled salad, an, orange syrup, and a blended
juice. Each of the products was submitted to market tests on a
limited basis and the results were most encouraging.

The gelled salad attained enough acceptance to win a place in
Walt Disney World, along with a number of other products
and dishes containing Florida citrus.


Walt Disney World, which opens in October, 1971, will have a
definite citrus flavor, with the various citrus dishes and with a
proven attraction in the citrus industry-sponsored Sunshine
Pavilion. The Pavilion, modeled after one of the most popular
exhibits at California's Disneyland, will provide a facility for
dispensing citrus in many forms and an installation for the
market testing of new products.

Out of the many conferences to discuss plans for the citrus
exhibit appeared a new member of the Disney collection of
fanciful characters, the Orange Bird. This fledgling with a head
like an orange and no vocal chords, is to receive a great amount
of exposure by way of appearances in the Sunshine Pavilion's
Sunshine Terrace, and in such promotional aids as comic books,
identification buttons, and point-of-sale materials for use in
food stores.



SCHOOL MARKETING

Implementation of a school lunch room program under the
school lunch room marketing order adopted in December of
1968, is still awaiting termination of the law suit filed by C. V.
Griffin and C. V. Griffin Groves, Inc., seeking to invalidate
the marketing order. The Supreme Court of Florida, on July 22,






1970, unanimously reversed the Circuit Court of Lake County,
and held that the Orange Stabilization Act was constitutional, and
that the marketing order adopted by the Citrus Commission
was within the framework of that act. The Supreme Court sent


the case back to the Circuit Court of Lake County, for handling
consistent with the Supreme Court's opinion. Since that time,
Mr. Griffin's attorneys have taken the depositions of numerous
witnesses, including members of the Florida Citrus Commission
and the School Advisory Committee. A trial of the remaining
issues, as found by the Circuit Court in Lake County, was
scheduled for April 27, 1971, but was delayed when Mr. Griffin's
attorneys sought to subpoena the personal, business and


financial records of members of the Florida Citrus Commission
and the School Advisory Committee. It is anticipated that a new
trial date will be scheduled some time in the fall of 1971.
Monies collected from the tax imposed by the marketing order
now total 13,614,812.60 dollars, plus 1,069,133.12 dollars
interest accrued on the sums collected.


Major areas of emphasis were new food product development,
juice definition, and fruit harvesting.

The new food product effort recorded a significant advance through
the acceptance by Walt Disney World of Sunshine citrus salad,
gel coated grapefruit halves, and isotonic orange juice all
scheduled for exposure during the first year of the vacation
kingdom's operation. The use of instant orange juice in the
manned space program continued, and the product was to be
placed aboard the Apollo 15 moon craft. This product is now
being produced commercially for the institutional market.

An extensive orange juice definition study was introduced into
the processing research program. Fruit was harvested at two- week
intervals throughout the season and extracted, using both hard
























and soft squeeze settings, and each sample subjected to 23
different analyses.

The study of the chemical characteristics of citrus essences was
continued, an experimental automated test house was operated
under commercial conditions, for the first time, and the Hunter
Citrus Colorimeter was adopted as an equivalent method for the
determination of juice color.

Over 3,000 separate tests were conducted in abscission research
using chemical compounds with fruit loosening capabilities, and
additional new fruit looseners were discovered in this screening
program. Several demonstrations of the abscission chemical
cycloheximide (Actiaid) were arranged in cooperation with the


Florida Agricultural Extension Service. Studies of mechanical and
forced air shakers, with and without pick-up machines and
abscission chemicals, continued to highlight mechanical harvesting
research. In addition, liaison with equipment manufacturers and
industry harvesting organizations was furthered to promote greater
use of existing equipment.

The new fungicide, thiabendazole, studied for several years by the
fresh fruit research group, was introduced into about 50 per cent of
the major packinghouses, and evaluation of the new pre-harvest
fungicide benomyl (Benlate) was continued. Additional research on
the formation and accumulation of citrus fruit acids also was carried
out by the fresh fruit group.

















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