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Group Title: Annual report of the Florida Department of Citrus
Title: Annual report
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00086634/00004
 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?
Publication Date: 1975-1976
Frequency: annual
regular
 Subjects
Subject: Citrus fruit industry -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
 Notes
Statement of Responsibility: The Florida Department of Citrus.
Dates or Sequential Designation: 1969/70-
Numbering Peculiarities: Report year ends June 30.
General Note: Title varies slightly.
 Record Information
Bibliographic ID: UF00086634
Volume ID: VID00004
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 02397748
lccn - 76643586
 Related Items
Preceded by: Annual report

Table of Contents
    Front Cover
        Page i
        Page ii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
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        Page 8
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        Page 22
        Page 23
        Page 24
        Page 25
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        Page 27
        Page 28
    Back Cover
        Page 29
        Page 30
Full Text






THE IFLORIDA DEPARTMENT OF OITR8U
NNUL. REPORT
NUA

TIitCFsa, Juy1 O jm 3,17














Commission Members
1975-76


ALBIN CRUTCHFIELD
Wabasso, Florida
WILLIAM F. EDWARDS, Vice Chairman
Dade City, Florida
DAVID O. HAMRICK
Bradenton, Florida
W. R. "Buster" HANCOCK,
Leesburg, Florida
ARLEN N. JUMPER
Ocala, Florida
MARVIN D. KAHN
Sebring, Florida
JOHN T. LESLEY
Tampa, Florida
GEORGE McCLURE
Apopka, Florida
R. V. PHILLIPS
Haines City, Florida
KARICK PRICE
Orlando, Florida
DANFORTH K. RICHARDSON, Chairman
Vero Beach, Florida
CHARLES M. SHINN, JR.
Winter Haven, Florida














From the Desk of the

Executive Director























1


In a word, what has been and is hap-
pening within the Florida citrus industry is best
described as "dynamic." The only stability we've
been enjoying is stability in motion. At this parti-
cular point in early summer, few things are settled
on the marketing front for Florida citrus. After a
decade of record growth in sales of frozen concen-
trated orange juice, we are experiencing a tempor-
ary flattening of the consumer purchasing curve
for our primary product. Yet sales of other citrus
products continue to grow.
Sales of chilled juice have registered
dramatic gains over the previous season. Fresh
fruit sales, with the exception of round oranges,
also were up over last season, with specialty varie-
ties and grapefruit showing particularly good gains.
Exports were a bright spot for fresh fruit. Special
programs and emphasis were given to the export
market during the season.
A critical challenge facing the Depart-
ment is the rapidly escalating cost of television air
time for our commercials. Our estimated income
is dependent upon the crop size. Although we
expect an exceptionally heavy crop next year,
increased television costs will more than cover the
expected increased revenue. With administrative
costs also advancing, the result is fewer on-air
commercials for the same advertising dollars. The
staff and agency are searching constantly for other
opportunities to stretch our promotional dollars.
For example, during the past year, we were able to
underwrite the cost of one week of a popular day-
time variety show for the cost of one prime-time
spot. The show featured a great deal of citrus ex-
posure, including spokesperson Anita Bryant as
co-host. Of course, our product promotion must
be backed up with an aggressive field merchan-
dising force.
Concerned over our three-part field
operation and its effectiveness, the Florida Citrus
Commission approved our recommendation to con-







tract with a private consulting firm to investigate
our field marketing and make constructive recom-
mendations. The Commission and the industry
have endorsed our resulting reorganization plan
which combines all field personnel into one cohes-
ive force. I believe this change will give us greater
flexibility in the marketplace to help merchandise
our product. This brings me to another area.
With increased costs of advertising
overrunning revenue gains, it may well behoove us
to reexamine our marketing strategy. This will
only be done after extensive research of consumer
attitudes and buying habits by our economic and
market research staffs. Merchandising may take on
greater importance in the coming year. Nutritional
value may be the element to be promoted over
monetary value. New market opportunities will
have to be broached.
Meanwhile, our Anita Bryant campaign
continues its record of success. The industry's
image nationally is good.
The controversies within the industry
at this time are a healthy sign heightened by the
fact that the principals are sophisticated in market-
ing knowledge. The coming season is challenging,
but the outlook is optimistic.














Marketing


























3


In early 1976, the Department of
Citrus achieved a first-time, record break-through
of a billion retail dollars in total orange juice sales.
Beginning in March, frozen concentrated orange
juice exhibited a softening in consumer sales and
several research projects were immediately initiated
to determine the cause. The fact-gathering process
is continuing and only when it is complete will it
be possible to isolate the trouble spots in order to
take corrective action.
As a result of the Grapefruit Strategy
Study completed in early 1975, an entirely new
television advertising approach was developed for
fresh and processed products and placed in test
markets last fall. Awareness levels reached all-time
highs, indicating that the new formula is most pro-
ductive. Lack of funds, especially for fresh, con-
tinues to be a problem that prevents the mounting
of year-round or even adequate programs.
One marketing factor over which the
Department of Citrus exerts control is market re-
search. The recommendation and execution of
many decisions emanate from a variety of sophis-
ticated research services that provide checks and
balances on progress through the crop year.
Canada continued to be a strong
growth market for processed orange products with
imports from Florida during 1975 being 65 per cent
above the 1971 level and more than double the
volume in 1966. Fresh Florida orange imports
have shown modest increases over the last several
years and currently account for a 20 per cent share.
The merchandising staff, working with
an outside business consultant firm, conducted a
series of training seminars for field representatives.
These seminars have been most successful and have
resulted in substantial improvement in the per-
formance level of almost every individual.
Toward the end of the fiscal year, a
major Department of Citrus reorganization was
announced. Publicity, which formerly reported to







the executive director, was assigned to the market-
ing director, a logical step in effecting better co-
ordination and integration of activities into the De-
partment of Citrus overall marketing plans. Inter-
national marketing was reassigned to the office of
the marketing director where it was positioned a
year and a half earlier.
Formerly, the three field forces -
retail, school and institutional reported to each
of three different program heads at headquarters.
A major feature of the reorganization combines
these field groups, which will now report to reg-
ional managers in each of five territories. The
regional managers are responsible for administra-
tion, organization and deployment of all assigned
field personnel. This restructuring provides greater
maneuverability, plus greater depth, breadth and
scope in augmenting the efforts of retail field
representatives in more effectively exploiting
existing opportunities to move more Florida citrus.














Administrative

























5


During the year, W. Bernard Lester
was named deputy executive director of the Depart-
ment of Citrus, succeeding Marvin A. McNair, who
resigned in February after 14 years of service. Dr.
Lester, who previously was economic research di-
rector for the Department, also was appointed by
the Florida Citrus Commission to fill the post of
Secretary to the Commission for 1976-77.
Other items of interest included legal
activities associated with the proposed rule on man-
datory identification of Florida processed citrus
products, action that resulted in more than 2,000
pages of testimony through the end of the fiscal
year. Additional consideration is to be given this
proposed rule during the spring of 1977, when
results of the voluntary identification program for
processed grapefruit products will be evaluated.
Additionally, actionn was initiated to
seek exception for generic advertising from the
proposed Federal Trade Commission rule which
would severely limit the advertising programs for
Florida orange and grapefruit products conducted
by the Department of Citrus.
Also continued was correspondence
with the Federal Food and Drug Administration
regarding nutritional and other labeling problems
confronting the Florida citrus industry.
Nine industry-sponsored bills were
presented to the Florida Legislature, and passed,
with the Department of Citrus serving in the cap-
acity of liaison and assisting in development of the
bills as well as providing the appropriate legislative
committees with information regarding the bills.
Among the bills was one that dealt with a Grape-
fruit Export Indemnification Program and another
that specified that boundaries for the Indian River
and interior areas in the State Statutes will conform
to the boundaries set forth in the Federal Marketing
Orders relating to Florida fresh citrus. Other bills
related to clarifying existing statute language to
conform to current operating procedures in the







industry.
In terms of personnel, an important
decision marked removal by the legislature of the
pay freeze that had affected employee salaries for
more than a year. Other matters were the negotia-
tion of a new life insurance policy, assistance with
the recruitment of individuals for vacant positions,
and notification to employees in regard to general
personnel procedures.
The administrative office again ac-
counted for the collection and distribution of the
Department of Citrus budgetary funds, which
amounted to $28,000,000.
During the year, notices were distribu-
ed for 126 meetings. Some 800 thousand pieces of
mail were posted for such purposes as announce-
ments for marketing programs promoting Florida
citrus, research reports evaluating accomplishments
of the marketing programs, and news releases
describing industry events and actions of the
Florida Citrus Commission and its committees.
Additionally, 1,236 pages of proceed-
ings were recorded as permanent record of the
meetings of the Commission, committees and
industry groups.
Regulatory activities included the pro-
cessing of 119 contracts, 19 amendments to exist-
ing Department of Citrus rules and three emergency
rules. Also processed were 1,616 applications for
Citrus Fruit Dealer Licenses. The Commission
approved 1,586 and disapproved three, while 27
were withdrawn or cancelled.














Advertising


























7


Strong advertising programs were the
dynamic factor again this year in total market ef-
forts of the Department of Citrus.
Important in delivering orange juice
messages to the consumer was continuation of the
television campaign in which citrus spokesperson
Anita Bryant visited several different cities and
famous areas across the nation, singing and talking
about that city or region and Florida orange juice.
Anita was seen in such areas as Sun Valley, Virginia,
Boston, Oklahoma, Atlantic City and Walt Disney
World.
Network television conveyed Florida
orange juice messages to more than 90 per cent of
American housewives at least once per week. In
aided consumer awareness, a level of 88 per cent
recognition reported for Anita Bryant as spokes-
person for Florida orange juice was one of the
highest in advertising history. Total Florida recall
from the commercials was 57 per cent and total
orange juice advertising awareness 78 per cent -
both all-time highs.
In addition, 45 per cent of all house-
wives interviewed in the continuing Market Research
Corporation of America survey mentioned orange
juice as the first beverage called to mind in connec-
tion with breakfast for the family.
During the year, the following five
cents-off coupon promotions were conducted for
processed orange juice:
1) In the fall, a joint tie-in involving the Depart-
ment and General Mills distributed coupons on dry
cereal packages.
2) A joint promotion was also conducted with
Morton Donuts.
3) A special four-color spread in Reader's Digest
and several women's magazines carried orange
juice coupons.
4) A winter tie-in with Kimberly-Clark titled "The
Cold Fighters" had a magazine advertisement and
a television commercial featuring Anita Bryant.







5) A spring advertisement and coupon in news-
papers featured a premium offer of a Florida Sun-
shine Tree-embossed set of pitcher and tumblers.
Emphasis on the profits angle and
space allocation was heavy in orange juice adver-
tisements in food trade publications.
The program for fresh fruit began in
the fall with a radio schedule for tangerines, tangelos
and temples, followed by a television campaign for
round oranges based on the theme, "Florida Sends
You Her Best." Completing the program was a
sweepstakes promotion, "Fresh Is Best" for all
fresh Florida citrus products.
Based on the Grapefruit Strategy Study
of 1975, a full-scale market test was conducted to
measure effectiveness of advertising approaches for
grapefruit juice. As part of the test, the hidden
camera technique was used to produce new tele-
vision commercials of candid comments by shoppers
about Florida grapefruit juice. The average 24-hour
recall score of 17 was 55 per cent better than the
average food commercial broadcast during the
same period.
A recall score of 20, which was 82 per
cent higher than the average food commercial, was
reported for a fresh grapefruit commercial showing
different people enjoying grapefruit in different
ways.
In February and April, consumer cou-
pon promotions for grapefruit juice were conducted.
Sunday Supplements and daily newspapers were
utilized for these promotions.
Advertising for fresh and pro-
cessed grapefruit during the first six months of
1976 recorded overall consumer awareness of 26
per cent. Advertisements were placed during that
time in newspapers and in newspaper Sunday
Supplements to distribute 48 million consumer
coupons for grapefruit juice. 8














Merchandising


























9


The 1975-76 marketing year proved
one of change in merchandising, both at the head-
quarters level in Lakeland and afield with merchan-
dising specialists located in the United States and
Canada. Some organizational changes consisted of
greater specialization in marketing opportunities
for the product managers in the headquarters office
and in the planned participation of administrative
personnel in handling promotional programs in
which the Department of Citrus is involved. This
has resulted in more attention to the problems in
the field and to a closer working relationship with
the product managers and field managers.
The field organization was strengthened
by the establishment of a new regional office in the
New England area. This change ensures a greater
degree of supervision in New England and the
Middle Atlantic states. It also places responsi-
bilities of the two Canadian merchandising special-
ists under supervision of the New England regional
manager. A better ratio of supervision is provided
to field personnel and increased opportunity is
available for recognizing problems on a more
localized level.
The need for a better ratio of super-
vision also was the basis for the establishment of a
new district manager's position in Atlanta in an
effort to relieve some of the daily burden placed on
that regional office.
These changes resulted from recom-
mendations made by a New York management
consultant firm. Earlier changes have resulted in
greater manpower efficiencies and in increased
effectiveness in the spending of available merchan-
dising funds. The association with the consultant
firm will continue in an effort to strengthen the
development program for field personnel, with
particular emphasis upon the management level.
The major merchandising effort in the
fresh fruit area during the year was the implemen-
tation of rebate programs for oranges and grape-






fruit. Results indicate a great deal of trade activity
and favorable response, particularly with regard to
grapefruit. Merchandising programs of this descrip-
tion help generate greater merchandising support
from the retailer.
Due to increased problems attributed
to large grapefruit crops, programs have been de-
signed and tested during the year to determine how
best to increase sales and consumer acceptance of
chilled and frozen concentrated grapefruit juices.
These efforts resulted in expansion and further
implementation of the new advertising approach.
Early indications are that the staff has been provided
with new direction in merchandising these relatively
low volume products and that there will be an
increase in this activity by way of following up the
potential seen in these processed juices.
The merchandising staff also intends
to continue the aggressive promotion of processed
orange products, paying particular attention to
marketing problems and opportunities.
















10














Market Research


























11


A number of industry problems were
subjects of special market research efforts during
the year.
One of the more important of these
studies was conducted to measure the effects of
mandatory Florida identification on containers for
processed citrus products. Following presentation
of the report to the Florida Citrus Commission,
the Florida Canners Association proposed a volun-
tary identification program for processed grapefruit
juice. The recommendation was accepted by the
Commission, with the stipulation that the Florida
Sunshine Tree symbol or the word "Florida" be
the marks of identification. A continuing project
will determine the progress of the voluntary pro-
gram for the next two years.
Another study with industry-wide im-
plications was the market test of the new grapefruit
advertising alternatives, which were based upon the
strategy report presented by the marketing research
staff the previous year. Final data on the grape-
fruit advertising study will be available shortly and
its implementation should prove valuable in ex-
panding the market for grapefruit in the next few
years in an effort to compensate for increased
production.
A year-long evaluation of radio adver-
tising directed to consumers for the away-from-
home food service market was completed. The
study indicated that radio advertising was successful
in significantly increasing orange juice sales in
restaurants when media expenditures were high,
but that the advertising effort was relatively in-
effective when funds were reduced to lower levels.
An in-depth study currently is being
conducted on the subject of Florida fresh oranges.
The objectives of this work are to determine what
motivation can be provided for increased consump-
tion of Florida fruit and whether a combined ad-
vertising strategy with processed products would
be to the added advantage of both.






Currently underway is a three-part
analysis of consumer purchasing of frozen concen-
trated orange juice, a study to determine reasons
for recent declines in sales volume. Indications also
will be sought for marketing strategies that would
prove effective in re-establishing the growth trend
of the product in the past few years.
A third phase has been started in the
"back-up" advertising development project. This
research is being done to establish an effective
alternative advertising campaign in the event that
the Anita Bryant series no longer is available or
advisable.























12














International Marketing


























13


Florida exporters of Florida citrus
products this year continued strong marketing
techniques. As a result, movement of processed
products through the Three Party Market Develop-
ment Program was well ahead of the same period
last year, and will exceed last year's accomplish-
ments by the end of the marketing period.
In Europe, retail concentrate main-
tained a large volume of that market for Florida
processed products, followed closely by ready-to-
serve juice in paper cartons reconstituted from bulk
frozen concentrate. An assessment of the records
for all shipments of citrus juices this year under
the Three Party Program, which is administered by
the Department of Citrus, revealed that Scandinavia
accounted for approximately 55 per cent of all
shipments to Europe. Over 40 per cent of all ship-
ments of processed citrus products to Europe were
in retail sizes of frozen concentrated juice.
This sales achievement is an indication
that frozen foods, and in particular Florida frozen
concentrated citrus juices, is continuing to gain in
consumer acceptance. The fact that Scandinavia
plays a dominant role in total sales is evidence,
however, that more effort is needed to expand
such populous markets as Germany, France and the
United Kingdom.
In the area of fresh citrus exports,
Florida will move a record 10 million cartons of
fruit to overseas markets in the current season.
This amounts to approximately 15 per cent more
fresh fruit than was exported last season. Again,
grapefruit is responsible for this outstanding per-
formance.
In spite of early season problems with
the ink used in marking fruit and with having to
change to a waterbase wax for grapefruit shipped
to Japan, Florida's fresh fruit exporters moved
more than 6 million cartons of fresh grapefruit into
that market this year. Another 2 million cartons
of fresh grapefruit were sold into European mar-







kets. The remaining fresh fruit exports, oranges
and tangerines, went primarily to the European
continent.
Florida's citrus industry still is antici-
pating Japanese action in lifting restrictions on
imports of frozen concentrated orange juice. If
this occurs, plans are ready to market Florida
orange concentrate in a blend with juice from
Japan's Mikan oranges.
This year, as the first stages of the up-
coming trade negotiations in Geneva were taking
shape, the Florida citrus industry formed an
"Export Trade Advisory Committee." The Depart-
ment has been very active in voicing concern in
Washington about the various trade barriers that
must be overcome before exporting products to
overseas markets, such as the European Community
and Japan. Proposals and presentations were offered
the various committees in Washington in order that
the Special Trade Representative's office be aware
of Florida's interest. These negotiations will pro-
bably go on for several years, with the Department
continuing in an intermediary role.
As usual, world competition is a source
of concern for the Florida citrus industry. In par-
ticular, Brazil has continued to sell frozen concen-
trated orange juice, primarily into the European
market, compounding the problems of Florida pro-
cessors in marketing a superior product. However,
increased activity in behalf of processed citrus pro-
ducts from areas other than Florida, while creating
severe competition, also is stimulating consumer
awareness of pure juices. As this awareness in-
creases, Florida, with its high quality processed and
fresh products and its progressive market develop-
ment programs and energetic exporters, should
enjoy increased export sales.


14














Institutional


























15


In a recent survey, the question was
asked, "Who eats out?" And the answer found
most often in the interviews was, "Just about
everyone."
Consumer surveys conducted by the
National Restaurant Association indicate that young
marrieds, earning a middle-range income, frequently
eat out as a family unit and prefer a fast-food outlet
to all others. This information is significant inas-
much as a large percentage of institutional program
dollars is spent promoting all Florida citrus pro-
ducts to consumers associated with this demo-
graphic group.
More than 70 per cent of the highly
successful institutional trade incentive programs
conducted by the Department of Citrus are directed
to fast food operations. This year, for instance,
550 such promotional programs were completed
with an average of 19 per cent increase in the sales
of Florida citrus fruits and products.
The second annual citrus recipe con-
test, involving employees of eight of the nation's
more aggressive food service operators, attracted
3,000 entrants. The final competition among
representatives of six of the food service groups
was conducted in Orlando and produced excellent
coverage in the food pages of Florida daily news-
papers.
An extensive test of radio advertising
directed at the away-from-home food service mar-
ket was concluded during the year and the results
will be carefully considered in formulating recom-
mendations for planning and executing similar
advertising programs in the future.
Large numbers of outstanding pro-
fessional people again were attracted to the nutri-
tion education workshops. The program was
broadened this year to include two successful
conferences scheduled specifically for the medical
profession. The value of this type of conference
has been emphasized in communications from






leaders in fields of health, nutrition and school
feeding.
On the planning boards is a project to
introduce nutritional information to a new demo-
graphic group represented by more than 2 million
elderly persons presently residing in licensed nursing
homes. A definite need for educational programs
in this age group was discovered in studies con-
ducted by the institutional staff during the year.

























16














School Marketing


























17


The 197 5-76.fiscal year was the second
full year of operation for the school marketing pro-
gram, which is directed toward expanded use of
Florida orange juice and products in the nation's
school feeding systems.
During the year, the program proved
successful in increasing the quantity of fresh
oranges and processed orange juice purchased di-
rectly from distributors by schools throughout the
country. This, despite heavy purchases of orange
juice by the United States Department of Agricul-
ture's commodities agency for free distribution to
schools.
Work was continued through fresh
and processed incentive programs to encourage
private enterprise systems to supply schools with
high quality Florida orange products. In this re-
gard, payments to participants in the processed
incentive program increased by more than 260 per
cent over test programs of the previous year.
The second annual poster contest,
with competition opened to high school students,
attracted more than 5,000 entries from 47 states
and the quality of the art work was described as
superior by experts who served as contest judges.
Active contacts with local food distri-
butors and with school food service personnel were
maintained by the six dealer service representatives
and the three nutrition consultants comprising the
program's field force. Among the most effective
means for reaching distributors and food service
people were nutrition workshops and staff attend-
ance at state school food service conventions. The
workshops were especially beneficial in providing
opportunities to discuss school marketing programs
at the grass roots level.
A new area of activity for the year
was initiated with the launching of a combination
history and nutrition program revolving around
former president Teddy Roosevelt, as portrayed by
a professional actor. The presentation, which






featured the famed rough rider in a press conference
with students at the junior high school level, won
praise from school children, administrators, PTA
groups and school food service personnel. There
were reports of increased consumption of orange
juice in several schools where the program was
presented.
Another event of consequence during
the year was adoption of the Department of Citrus
school breakfast nutrition program as a project
by the 500,000-member General Federation of
Womens Clubs.


18














Economic Research


























19


This program services the economic
research needs of the Florida citrus industry in a
number of ways. Staff time is divided between
studies designed to answer questions of immediate
industry concern and to develop procedures for
measuring basic economic relationships within the
industry. Results and implications are disseminated
through a variety of publications and by personal
reports to various groups.
In response to a request by the Frozen
Concentrated Orange Juice Futures Advisory Com-
mittee, a handbook entitled "Hedging Strategies in
FCOJ Futures" was completed and distributed to
growers and processors. The handbook provides
detailed examples of how various entities within
the industry can use the futures market to limit
risk and improve profits.
A comprehensive research study of the
economic impacts of frozen concentrated orange
juice imports and exports was completed during
the year. The results show that the European de-
mand for frozen concentrated orange juice is about
four times as price responsive as United States and
Canadian demand. This implies that a two-pricing
system, with export prices lower than domestic
prices, is beneficial to the industry. Further analy-
sis suggests that using imports as a means to achieve
the two-price system may be less desirable for the
total industry than other means.
Agricultural labor is always of critical
concern to the Florida citrus industry, as well as to
the state and nation. During the year, a major
report entitled "Socioeconomic Dimensions of
Florida Citrus Harvesting Labor" was compiled
and published. This represents the first time de-
tailed information on citrus harvesting labor has
been made available to the public. The summary
information will help promote a better understand-
ing between labor and management and is of vital
importance to writers of agricultural labor legisla-
tion. A special project to determine the effects of






requiring citrus harvesters to have proof of citizen-
ship was completed for the Citrus Industrial Coun-
cil. Survey results indicated that over 90 per cent of
the workers could prove United States citizenship.
A very important function of the
Economic Research Program is the provision of
economic outlook information when official crop
estimates are released each month and when other
factors, such as prices, are adjusted. Special
studies, using outlook models, included an econo-
mic evaluation of a fresh grapefruit advertising
rebate program and an assessment of recent changes
in the price sensitivity of frozen concentrated and
chilled orange juice sales.
Other studies involved an analysis of
the economic impact of alternative levels of orange
juice in pulp wash; the economic ramifications of
a Florida identification program, and the outlook
for grapefruit sections, sales and prices.


20














Scientific Research


























21


Research on mechanical harvesting
and abscission again lead all areas of scientific
studies in terms of manpower and resources. High-
lighting the year's progress was the increased use of
three abscission chemicals for loosening fruit prior
to machine harvest of early and mid-season oranges
as well as machine and hand harvesting of Valencia
oranges. The three chemicals are Abbott Labora-
tory's "Release," Ciba-Geigy's "Pick-off' and
Upjohn's "Acti-Aid." Improved results were in-
dicated when these active materials were combined
with "Bravo," a surface-active agent marketed by
Diamond Shamrock.
Results in mechanical equipment de-
velopment have been steady, if not spectacular,
with each year bringing improved operating models
of air and mechanical shakers.
A new project was undertaken through
the Citrus Research Foundation with the object of
demonstrating the use of mechanical harvesting
under commercial conditions. Widespread, favor-
able comment was received from observers.
The processing staff continued the
task of accumulating data for nutritional labeling
on a product-by-product basis. Additional results
were obtained during the year for single strength
orange and grapefruit juices. Analysis of the results
of five years of study on juice definition was pur-
sued, with some effort made to apply the findings
to a standard for water-extracted soluble orange
solids.
The grapefruit quality program receiv-
ed high priority once more and definite recommen-
dations were made to the Grapefruit Quality Com-
mittee and to the Florida Citrus Commission.
Among these was a proposal to keep fruit on the
tree longer by requiring a 5per cent increase in
juice content and/or a 1/2 point increase in ratio.
Another proposal would restrict oversqueezing by
limiting the amount of the bitter principles,
limonin and naringin, permitted in processed grape-






fruit juice.
The medical and nutritional research
group at the University of Florida's College of
Medicine published findings that confirmed the
high level of bioavailability of vitamin C, folic acid
and Vitamin B6. The group also demonstrated
benefits to athletes from use of orange juice thirst
quencher and confirmed that orange juice ingestion
reduces common cold symptoms. The most recent
findings are in press in the Journal of Clinical
Nutrition, the Journal of Hygiene and the British
Journal of Nutrition.
Future studies by the group will be
broadened to include research on pectin and lipids,
while studies of grapefruit juice products will be
carried out for the first time.
The fresh fruit research maintained
studies of fungicides active against "Benlate"
resistant organisms and found two materials,
"Imazalil" and "Calixin" which exhibit promise.
Basic studies of chilling injury problems and of the
mechanism of action of decay organisms continued
to show progress.
Pollution abatement studies were con-
ducted in areas of packing house waste waters and
in ethylene dibromide fumigation facilities. A pilot
system for purifying waste waters was demonstra-
ted and methods developed for removal of ethylene
dibromide.
The pounds-solids research group con-
tinued a study of effects of extraction pressures on
grapefruit juice recovery and to cooperate in the
installation of completely automated systems for
determining degree of Brix, acid and juice yield in
the state test houses. Five new systems were
added, one at the research laboratory and four in
processing plants.


22














Publicity


























23


The Publicity program's activities
have been increasingly shifted into industry and
consumer informational projects, although not to
the exclusion of prime promotional opportunities.
A new industry film put into circula-
tion this year was viewed by an estimated 2.5 mil-
lion Florida citrus consumers. Distribution of the
film was limited to those states east of the Missi-
ssippi River. Now that the film has proven itself,
additional prints will be put into circulation and
scheduling expanded across the nation. Other in-
dustry films were shown on television and in
schools to 13.5 million consumers.
The Florida Citrus Commission ap-
proved underwriting a remote telecast of the Mike
Douglas Show from Walt Disney World. With Anita
Bryant as co-host, citrus was the subtle under-
current netting an estimated one million dollars
worth of exposure for the industry. This show
even included the first nationally televised shots of
mechanical citrus harvesters in operation.
Two special promotions were con-
ducted during the year at Walt Disney World. One
was held in the Theme Park and featured Anita
Bryant in concert along with a special citrus theme
throughout the park and discount tickets for all
citrus industry members, whether picker, grower,
shipper, or processor. In May, a second and differ-
ent promotion was conducted at the Lake Buena
Vista Shopping Village with fresh fruit sales, citrus
food demonstrations, a nutrition seminar for se-
condary school coaches, and a unique open citrus-
motif shopping area.
Sponsorship was provided to the varied
aspects of the annual Citrus Festival held in Winter
Haven at the Florida Citrus Showcase, including
the Citrus Queen Pageant, Fresh Citrus Fruit Com-
petition and the Future Farmers Identification
project.
During an audience with the Governor
arranged by the publicity staff, the Citrus Queen






served Hot O.J. Sipper, a spicy citrus tea developed
by the Scientific Research staff as a wintertime
drink at Walt Disney World. The Governor subse-
quently was serving the hot citrus beverage to
many of his official visitors.
The Sell Florida First program achieved
one of its major goals late in the fiscal year
when arrangements were completed to have frozen
concentrated grapefruit juice served along with the
traditional orange juice at the official State Wel-
come Stations. The increased exposure should
have a positive effect on the industry's overall
grapefruit marketing efforts.
The number of appearances of the
Florida Citrus Queen and the promotional/parade
vehicle was slightly increased over last year and
substantial increases in the quantity and quality of
appearances should be realized following a decision
to have Florida Citrus Showcase more directly in-
volved in the program.
"OJ Break" signs along the Florida
Turnpike were refurbished ensuring maximum
product promotion to tourists traveling this import-
ant north-south artery. Citrus sales materials were
distributed to the fruit shoppers at the Turnpike
Plazas. Repeating another successful promotion,
the Sell Florida First section again sponsored a
night at the WEDU public television station's
annual bid-by-phone auction gaining considerable
exposure for the industry and citrus in almost one
million central Florida homes.







24















Financial Report


The fiscal year's assessment receipts
of $24.9 million on 246.9 million boxes of fruit
reflected a 4 per cent increase over 1974-75, al-
though the total receipts increased less than 1 per
cent due to a 24 per cent reduction in investment
earnings. Treasury bills and certificates of deposit
earned an average of 7.8 per cent in 1974-75,
compared with 5.9 per cent in 1975-76.
Expenditures were up $2.6 million,
for a record high of $28.3 million. The major
areas of increase were in merchandising field
promotions, up 46 per cent; consumer advertising
and coupon redemption, up 19 per cent; research
in the mechanical harvesting of citrus fruit, up
25 per cent, and school marketing, up more than
100 per cent due primarily to the expansion of
school incentive programs. The only major de-
crease was in rebate programs, where the one-
year brand retail promotion for frozen concen-
trated orange juice was terminated May 31, 1975.
The assessments collected were based
on the following 1975-76 citrus taxes:


Fresh Processed


Orange
Grapefruit


(per box)
(per box)


10.3c
8.3c


Temple (per box) 7.3c
Tangerine (per box) 7.3c
Tangelo (per box) 7.3c
Honey Tangerine (per box) 7.3c


10.3c
10.3c
5.3c
5.3c
5.3c
5.3c


The Department of Citrus sustained a
loss of less than Si thousand from almost $25
million that was due from more than 1,000 active
accounts in 1975-76. In June, 1976, the Depart-
ment again received a favorable legislative audit
report for the 1974-75 fiscal year, which indicated
no major accounting procedural problems nor
fiscal discrepancies.


25









State of Florida Department of Citrus
Lakeland, Florida

FLORIDA CITRUS ADVERTISING TRUST FUND
1975-76 STATEMENT OF RECEIPTS AND EXPENDITURES ALL FUNDS

JULY 1, 1975 TO JUNE 30, 1976


TOTAL NET REVENUE BOXES:

FUND BALANCE JULY 1, 1975
RECEIPTS: Assessments
Other Income
TOTAL CURRENT YEAR RECEIPTS

TOTAL AVAILABLE

EXPENDITURES: Admin. & General Operations
State General Revenue Charge
Scientific Research
Economic Research

Sub-Total NON-MARKETING EXPENSE

School Marketing Program
Publicity
Marketing Administration
Marketing Research
Institutional
Merchandising
Export Programs

Advert. General Adv. & Admin.
P. O. S. Mat'ls. & Whse.
Gift Fruit Promotions
Consumer Advertising
Coupon Redemption
Rebates

Total Advertising & Rebates
Sub-Total MARKETING EXPENSE

Release of Cert. Funds (12/31/75)

Sub-Total CASH EXPENDITURES

Inventories & Deposits Net Change

TOTAL EXPENDITURES
FUND BALANCE JUNE 30, 1976


PRIOR YEAR
1974-75

233,716,500

$ 37,112,861
$ 23,909,647
2,889,143
$ 26,798,790

$ 63,911,651

$ 973,011
535,548
1,690,116
133,798

$ 3,332,473

$ 690,329
606,021
64,660
634,503
736,014
2,312,935
646,370

644,465
647,174
45,910
11,143,238
1,976,622
2,567,030

$ 17,024,439

$ 22,715,271

(311,934)

$ 25,735,810

74,215

$ 25,810,025
$ 38,101,626


INCREASE
(DECREASE)

13,202,971

$ 988,765
$ 961,884
(708,205)
$ 253,679

$ 1,242,444

$ 99,703
4,365
263,064
(14,397)

$ 352,735

$ 717,360
86,075
( 4,413)
38,666)
210,886
1,063,364
( 69,694)

(345,177)
(63,381)
42,473
1,584,050
899,097
(2,193,830)

$ ( 76,768)
$ 1,888,144

311,934

$ 2,552,813


CURRENT YEAR
1975-76

246,919,471

$ 38,101,626
$ 24,871,531
2,180,938
$ 27,052,469

$ 65,154,095

$ 1,072,714
539,913
1,953,180
119,401

$ 3,685,208

$ 1,407,689
692,096
60,247
595,837
946,900
3,376,299
576,676

299,288
583,793
88,383
12,727,288
2,875,719
373,200

$ 16,947,671

$ 24,603,415
-0-

$ 28,288,623

( 33,433)

$ 28,255,190
$ 36,898,905


26








State of Florida Department of Citrus
Lakeland, Florida
FLORIDA CITRUS ADVERTISING TRUST FUND

BALANCE SHEET JUNE 30, 1976


CURRENT ASSETS:
CASH:
Cash with Treasurer $1,064,379
Cash in Transit 733,174
Cash with State Board of Administration 516
Revolving Funds 12,000
Total Cash



ACCOUNTS RECEIVABLE:
State Board of Admin. Interest Earned $ 532,690
Miscellaneous 1,086
Total Accounts Receivable
INVENTORIES:
Display Materials $ 225,764
Tax Stamps 278
Disney World Tickets 4,222
Reproduction & Other Supplies 20,630
Total Inventories
INVESTMENTS BY STATE BOARD OF ADMIN.:
PREPAID EXPENSES:
TOTAL CURRENT ASSETS:
OTHER ASSETS:
Insurance Deposits (Workmen's Compensation)
TOTAL OTHER ASSETS:
TOTAL CITRUS ADVERTISING TRUST FUND


Fixed Assets:
Land
Buildings
Furniture & Equipment Office
Machinery & Equipment Scientific
Film
Automotive
TOTAL FIXED ASSETS:

TOTAL ALL ASSETS:


$ 1,810,069







533,776






250,894
37,730,784
15,239



$ 444


$ 246,125
602,583
273,341
1,073,141
116,830
30,717


CURRENT LIABILITIES:
ACCOUNTS PAYABLE:
Payables to Vendors
State General Revenue (2%)

Total Accounts Payable
DEPOSITS HELD IN TRUSTi
Tax Bond Deposits
Total Deposits
TOTAL CURRENT LIABILITIES:

RESERVE AND FUND BALANCES:
RESERVES:
Cancelled & Restored Warrants
Workmen's Compensation Deposits
Unemployment Compensation


Total Reserves
OPERATING FUND BALANCES:
Unencumbered Operating Funds
Unencumbered Cash Reserve Fund
Orange Stabilization Fund
$40,340,762 Reserve for 1976-77 Encumbrance
Inventories
Revolving Fund
Total Operating Fund Balances
444 TOTAL RESERVES AND FUND BALANCES
$40,341,206 TQTAL CITRUS ADVERTISING TRUST FUND







$ 2,342,737 TOTAL INVESTMENT IN FIXED ASSETSi

$42,683,943 TOTAL ALL LIABILITIES


$ 3,191,080
231.195

$ 3.422,275


$ 1.277
1,277


$ 3,423,552


$ 10,305
444
8,000

$ 18,749


$ 7,739,632
2,000,000
17,097,303
9,799,076
250,894
12,000
36,898,905
36,917,654
$40,341,206


$ 2,342,737

$42,683,943


27


ASSETS


LIABILITIES




































o FLORIDA DEPARTMENT OF CITRUS
This public document was promulgated at
an annual cost of $3,925 or a cost of $1.57
per copy for the purpose of reporting the
annual activities of the Florida Department
of Citrus.








EDWARD A. TAYLOR
Executive Director
DR. W. BERNARD LESTER
Deputy Executive Director
RICHARD MAY
Comptroller
Staff Members MONTEREY CAMPBELL
General Counsel
JAY B. HAVISER
Staff Attorney
TAD JEFFERY
Marketing Director
DR. JOHN ATTAWAY
Scientific Research Director
DR. LESTER MYERS
Economic Research Director
CARL P. SCHULER
Schop :Marketing Expansion
:Protgrs Efirector
W. ARTHUR DARLING
Publicity Director
VERNON S. MULLEN
Advertising Director
HOWARD J. CONNOLLY
Merchandising Director
DOUGLAS OFFER
Market Research Director
FRANCIS J. MULKEEN
Institutional Marketing Director
FRED S. FORESEE
International Marketing Manager




* ." *


At


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FLORIDA DEPARTMENT OF CITRUS

P. O. Box 148

Lakeland, Florida 33880





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