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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/UF00086634/00006
 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: 1978-1979
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: VID00006
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
    Front Matter
        Page iii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
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        Page 18
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        Page 24
        Page 25
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        Page 28
        Page 29
        Page 30
    Back Cover
        Page 31
        Page 32
Full Text







FRANK L. BOUIS
Leesburg
ALBIN P. CRUTCHFIELD
Deland
JOE L. DAVIS
Wauchula
WILLIAM F. EDWARDS
Dade City
DAVID O. HAMRICK
Vice Chairman
Bradenton
ARLEN N, JUMPER
Chairman
Ocala
MARGARET E. LOWRY
Tampa
GEORGE G. McCLURE
Apopka
R. V. PHILLIPS
Haines City
KARICK A. PRICE
Orlando
DANFORTH K. RICHARDSON
Vero Beach
CHARLES M. SHINN, JR.
Winter Haven


Commission Members


1978-79











From the Desk of the


Executive Director

Like other years in the history of the Florida
Department of Citrus and the Florida Citrus Com-
mission, 1978-79 was filled with a multiplicity of
challenges, changes and accomplishments. The
Department's table of organization was changed to
reflect the needs of the Department and the in-
dustry. A new group was organized in the ad-
ministrative area to consolidate all general services
operations. The efficiencies associated with the
change resulted in the general operating section of
the 1979-80 budget being held to an increase of
only 2/10 of one per cent.
A field operations manager was appointed
to coordinate merchandising activities of the field
representatives and the headquarters staff in
Lakeland, and thereby improve the operating effi-
ciency of the field staff and assure quick implemen-
tation of Commission and industry requests. Cur-
rently underway is a study designed to determine
the desired number and placement of the field force
members to reflect changes which have occurred in
the marketplace.
Changes also were made in the staff
organization to accommodate the elimination of the


previous three-year school incentive program and
the continued growth of the citrus fund-rising
activities participated in by many youth and civic
organization throughout the United States.
In the marketing area, the industry com-
pleted the second straight season in which em-
phasis devoted to the industry's two major pro-
ducts, oranges and grapefruit, was of a contrasting
nature. In the orange sector of the industry, the
challenge was to maintain dollar sales growth in an
environment of reduced Florida supplies, record
high prices and record high imports of foreign
frozen concentrated orange juice. The success of
the combined efforts of the Department and in-
dustry programs is indicated by the achievement of
$1.6 billion in sales of orange juice products-a
gain of 23 per cent over the previous season.
For the grapefruit sector of the industry, the
challenge was to continue gains of both volume and
dollar sales of fresh and processed products in
order to provide growers a reasonable return on in-
vestment. Whereas grapefruit returns still lag those
earned for oranges, considerable gains were
achieved as on-tree returns increased 22 per cent
for processed grapefruit and 21 per cent for fresh
grapefruit, compared to the previous season.

Critical challenges also surfaced In the area
of international trade. The Department was very In-
volved with other industry organizations in inform-
ing United States representatives to multilateral
trade negotiations as to the needs and interests of
the Florida citrus industry. Of utmost concern was
the matter of tariff structures administered by non-
citrus producing countries of Europe, trade re-
strictions maintained by Japan during the seasons





of the year when local citrus was unavailable and
efforts by other citrus-producing countries to per-
suade the United States to liberalize tariffs on im-
ported citrus products. While little was achieved in
negotiating with members of the European
Economic Community, first-step concessions were
granted by the Japanese government resulting in
small quota increases for fresh and processed citrus
imported by that country. Particularly significant for
improving exports of Florida fresh grapefruit to
Japan was the decision by Japanese officials to
permit the use of the fungicide TBZ, useful in ex-
tending the shelflife of fresh fruit.
The end result of this activity was to main-
tain reasonable protection for the Florida citrus
industry in the domestic market and to strengthen
the position of Florida citrus in the international
market where citrus is either not produced or
available only during limited times of the year.
Much of the success in the international negotia-
tions must be credited to Senators Richard Stone
and Lawton Chiles and Representative Andy
Ireland, who labored overtime in conveying the in-
terests of the citrus industry to members of the
United States negotiating team.
Research continued to play a strong role in
the operation of the Department during 1978-79.
Market research monitored the effectiveness of all
advertising efforts, continued to suggest needed
changes in Department marketing programs
associated with changing lifestyles of the nation's
consumers, and conducted various consumer
preference tests for numerous industry products.
Economic research continued its basic program of
maintaining current and future supply and demand
estimates for the industry's various products, in-


itiated studies to evaluate the effectiveness of the in-
dustry's commodity advertising programs and pro-
duced a detailed study of the Brazilian citrus in-
dustry and the capabilities of that industry to pro-
duce and market frozen concentrated orange juice
competitively with Florida in various markets.
Scientific research delved further into the benefits of
citrus in health and nutrition, continued to seek
feasible ways to mechanically harvest citrus,
assisted the industry with energy conservation pro-
grams and sought ways to utilize needed chemicals
within the increasingly stringent guidelines of
various government agencies.
Several major policy issues appeared at the
end of the fiscal year and will be subjects for much
industry discussion in the next and succeeding
years. Among these are the relative merits of frozen
concentrated orange juice packed at 41.8 degrees
and 44.8 degrees Brix, consumer reaction to frozen
concentrated orange juice packs that reconstitute
with four or more parts of water as compared to the
current industry standard of three parts of water to
one part of concentrate. Other issues include the
manner in which the Department's commodity
advertising and promotional program should inter-
face with the increasing number of brand advertis-
ing programs and how to provide adequate funds
to the Department for the programs which are con-
tinued, given that costs of doing business are
increasing substantially each year, yet the support-
ing tax rate for Department operations has been
maintained at a stable rate for many years.
The pages that follow in this Annual Report
for the 1978-79 fiscal year will summarize the ac-
tivities of departmental staff members in specialized
areas of endeavor.














Administrative and


Legal Affairs


Organization changes continued in fiscal
year 1978-79, resulting in the reassignment of
responsibilities directly affecting the administrative
operations of the Department of Citrus. Most
significant was the creation of a new general
services operation which centralized all general sup-
port services. This change has meant considerable
savings in costs associated with such areas as the
handling of point-of-sale materials, service con-
tracts, equipment and building maintenance,
reproduction and mail handling.
Legal attack on the Department of Citrus'
rule requiring Florida identification on all processed
grapefruit products was successfully defended and
an appeal of the court's decision is pending. Also
pending in court is a prior rule regarding the stamp-
ing of Florida identification on fresh citrus fruit.
Suit was initiated against the City of
Lakeland to resolve the issue of payment of the full
cost of utilities for the Department headquarters
building. Although the City of Lakeland agreed in
1954 to provide free utilities as inducement for the
Department to remain in Lakeland, the Depart-
ment subsequently agreed in 1961 to pay one-half
the costs. This year the City demanded full pay-
ment. The Department successfully defended its
position and the Circuit Court ruled in favor of the
Department continuing to pay one-half of the total
monthly utility bill.
The legal staff developed seven industry-
sponsored legislative bills and served as principal in-
dustry liaison as the bills moved through the state's
legislative process during the 1979 regular session.
Included among the enacted bills are provisions for
requiring that citrus trip tickets accompany all fruit





transported on highways; for increasing the penalty
for theft of 2,000 or more pieces of citrus fruit from
a misdemeanor to a felony, and for providing, sub-
ject to a grower referendum, a six-year extension of
the special tax for mechanical harvesting research
and development.
In addition to continued monitoring of pro-
posed trade regulation rules on food advertising
novw pending before the Federal Trade Commis-
sion, the legal staff attended a series of public hear-
ings on possible upcoming changes in current
federal food labeling and ingredient requirements
that could affect the citrus industry adversely.
Assistance was provided the industry
through the preparation for adoption by the Com-
mission of nine amendments to Department Rules
under the Administrative Procedures Act; by the
preparation of 97 contracts, and by the processing
of 1,679 citrus fruit dealer license applications.
Also, 2,429 permits authorized by law in six
separate areas were processed and handled.
A record number of 124 regular and special
meetings of the Commission and various standing
and advisory committees contributed 1,175 pages
of permanent records in the form of minutes.
Distribution was made of more than
500,000 pieces of mail within the citrus industry.
The reproduction unit processed over 1,400 work
orders resulting in more than 2.8 million im-
pressions, excluding reproductions from a new
photocopier. The reorganization and upgrading of
equipment in the reproduction shop has meant an
increased workload without an increase in per-
sonnel.














Marketing


The Florida citrus industry, which has just
begun to enjoy the fruits of a generation of sub-
stantial growth, now is facing a new marketing en-
vironment. The achievements of the last decade
have resulted, to some degree, from more-than-
adequate supply accompanied by low price, from
product improvement of frozen concentrated
orange juice and from effective commodity adver-
tising and promotion.
This measure of success has, in part, con-
tributed to the changing environment with higher
demand and prices and with inadequate pro-
duction encouraging imports of citrus fruits and
products. Consumers also are having a profound
impact on the marketing of citrus products. Chang-
ing family patterns, with a shift to smaller
households, working women and the rapid growth
of the away-from-home food market all are major
factors. The advent of the working wife, especially,
has meant rearranged priorities, with convenience
products now more important and price, partly due
to added income, of less importance.
Processed citrus products have, until
recently, been dominated by private label frozen
concentrated orange juice, but the rapid growth of
more convenient ready-to-serve juice has caused a
shift towards advertised brands and out-of-state
packaging. Competition among advertised brands
results in considerably more promotion, possibly
reducing, to some extent, the need for commodity
advertising and promotion, at least for ready-to-
serve juice, but increasing the problems of product
quality.
The changing environment means that the
Department of Citrus must carefully consider all
previous activities for continued effectiveness.





Plans are being made to study the entire merchan-
dising effort to assure that industry promotional
activities are geared to the proper markets. The
importance of each element-retail, institutional,
locality, number of field representatives, organi-
zation and the format of trade incentive pro-
grams-will be evaluated. Additional research on
alternatives to commodity advertising and promo-
tion will be proposed to determine whether brand-
related programs can be more productive than
those for commodities.
Products and packages must be developed
to fit the new lifestyles of the various consuming
segments and the rapid growth of advertised brands
in ready-to-serve juice should contribute to more
corporate research in this area. Improved distribu-
tion and delivery systems need to be developed to
make orange juice more readily available and con-
venient.
The new marketing environment also is in-
ternational in some aspects. Department of Citrus
commodity advertising in Canada has succeeded in
more than doubling the per capital consumption of
orange juice, but lower-priced imports have been
absorbing the gains in recent years. More industry
spending will be placed behind individual Florida
brands and a revised commodity strategy, tied to
Florida products, will be tested.














Advertising -


Grapefruit


The 1978-79 season was the first of three
"tax" years for the Grapefruit Marketing Order that
was approved by a vote of Florida grapefruit
growers in the previous season.
Grapefruit juice continued the heavied-up
advertising weight initiated in the spring of 1978,
benefiting from the new tax revenues and from a
loan from other Department of Citrus funds. With a
budget of almost $3 million, grapefruit juice was
advertised extensively on network television in day
and fringe time periods, with additional coverage
through spot television in the 25 top markets for the
product.
Due to a lower-than-anticipated crop
estimate and to escalating media costs, the national
support program was reduced somewhat in the
January-March period. And because of the very
tight budget situation, advertising in the April-June
quarter was limited to only the five largest markets
in the United States.
Just prior to the end of the season, two new
television commercials were produced which will be
scheduled for network and spot use initially during
the July-September period of 1979.
To the extent that the budget allowed, many
of the programs proposed for fresh grapefruit prior
to passage of the marketing order were im-
plemented.
Among promotions conducted was a series
of demonstrations in four major West German
markets. Results of these sampling programs were
productive and continued promotional activity in
that European marketing area is planned for next
season.





Both television advertising and a schedule of
demonstrations were conducted in Japan. Greatly
assisted by approval by the Japanese government
for the use of TBZ as a fungicide, Florida fresh
grapefruit arrived there in excellent condition, help-
ing to make this one of the best, if not the best,
years for Florida grapefruit in that marketing area.
Domestic fresh grapefruit sales were sup-
ported by a limited schedule in Reader's Digest
magazine and by spot television in key markets,
generally east of the Mississippi River. Contributing
to an increase in the domestic sales of Florida fresh
grapefruit was the expansion to some 27 markets of
a development program initiated last season in the
southeastern portion of the United States. The sup-
port this season consisted of two waves of spot
television and a newspaper advertisement contain-
ing a redemption coupon.
Overall, based on current crop estimates,
less funds will be available for all advertising and
promotion of Florida fresh and processed grapefruit
next season. For one thing, half of the loan from
other Department funds must be repaid with in-
terest in that season and the substantial increase in
the cost of all advertising media will eliminate any
net gain in advertising weight that was developed
by the addition of funds through the marketing
order.





During the 1978-79 year, the Department
of Citrus invested more than $7.8 million in the
television advertising of orange juice from Florida.
All of the television commercials ran on top-rated
programs in daytime, news and prime time slots.
The creative approach utilized was based on the
current strategy of expanding the usage of orange
juice beyond the breakfast table, while at the same
time protecting the valuable breakfast franchise.
Advertising Two different formats for the television com-
mercials were employed to project the expanded-
O, cause messages. The first continued the successful
rang S "Anita Bryant and the People" series in which Anita
interviews real consumers she meets at various
Florida attractions.

The second format featured prominent
celebrities, such as golfer Nancy Lopez, jockey
Steve Cauthen, opera star Roberta Peters, golfer
Arnold Palmer and television personality Peter
Marshall, explaining how orange juice fits into their
particular activities. Both formats included the com-
mon campaign theme line of "Orange Juice from
Florida It Isn't Just for Breakfast Anymore."

In addition to network television, the
Department placed eight insertions in the popular
Carolyn Davis "Buy Lines" section of the Reader's
Digest magazine. These small editorial-type adver-
tisements stressed the special nutritional benefits of
orange juice.

Consumer promotional activity during the
year was restricted because of the tight orange juice
inventory situation. During the month of May, a
newspaper coupon promotion was run in 140 of
the top orange juice markets in the United States.





The advertisement carried four consumer coupons,
with each coupon good for 15 cents off on the pur-
chase price of any form of Florida orange juice dur-
ing one specified week of the month.
The advertising program for fresh round
oranges implemented the new "eating" strategy
with three newspaper advertisements. The cam-
paign consisted of 1,000-line two-color adver-
tisements that appeared in the top 25 markets for
Florida fresh oranges. The first advertisement ex-
plained "Why the Florida orange is the Best Eating
Orange in the World;" the second told consumers
how to "Make a Florida Smile," and the third car-
ried a 10-cent consumer coupon to be redeemd in
the purchase of fresh oranges.
During the year, a series of advertisements
ran in leading food trade publications, emphasizing
the profitability of orange juice to the retailer. In ad-
dition, advertisements stressing the special nutri-
tional benefits of orange juice were carried in
leading medical trade journals.















Food Service


(Institutional)


An extensive advertising program in 12
leading nationally circulated trade magazines pro-
vided basic support during the year for all in-
stitutional activities of the Department of Citrus.
Emphasis was placed upon the profit approach,
along with a reminder of the expanded use strategy
headline "It Isn't Just for Breakfast Anymore."
This theme again was one of three packaged
promotional programs offered within the food-
service area to provide a well-balanced marketing
approach. The other themes were "O.J. On The
Rocks" and "Florida Citrus Carnival." Future
planning calls for two additional packaged pro-
grams in the next fiscal year to increase the scope of
foodservice activities.
One of the successful promotional programs
used to stimulate increased sales of all Florida citrus
products in the industrial feeding area was the Fifth
Annual Florida Sunshine Contest. This program
drew entries from organizations with more than
5,000 units. Winning recipes were featured in the
food sections of daily newspapers across the
country with color photographs enhancing full-
page articles in many instances.
A new colorful recipe book featuring the
winning recipes of the first four years of the contest
was prepared and is now being distributed to
foodservice operators.
Interest continued high throughout the year
in the nutrition education program and this was
exemplified in the number of responses and
favorable reactions of persons attending the eight
nutrition seminars conducted by the Department of
Citrus. The seminars offer an excellent opportunity





to communicate with officials charged with the
dissemination of nutrition educational materials
provided by the Department of Citrus.

Trade incentive programs continued to pro-
vide an excellent vehicle for the field staff in
promoting Florida citrus products at the institutional
level. A number of effective promotions were
developed, furnishing Florida citrus with a featured
spot on menus and in special events conducted by
prominent feeding groups.
These promotions contributed to the success
of institutional activities during the year and provide
the groundwork for implementing plans for next
year.
During the past year the institutional and
school marketing (food service) office assumed
responsibility for all nutritional education activities
of the school marketing expansion program.
This will include the extension of active pro-
grams and the development of new programs
directed toward increased consumption of Florida
fresh and processed oranges in the nation's
schools.














International


Marketing


European brand advertising conducted
under the Three Party Program of the Department
has slackened in growth because of the pressures of
higher prices and tighter product supplies.
Nonetheless, the program continues as a primary
instrument in building a consumer franchise for
Florida citrus and keeping Florida identification on
the shelves of European supermarkets.
Retail and institutional frozen concentrated
citrus juices maintained a dominant share of the
program's volume, representing 53 per cent of pro-
jected volume. Ready-to-serve juice in paper car-
tons, reconstituted in Europe from bulk concen-
trate, followed with 33 per cent of the volume.
Chilled juice in glass accounted for the remaining
14 per cent.
Although efforts have been made to in-
crease the market share for Florida citrus products
in larger European countries, Scandinavia remains
the strongest of all markets.
Total movement this year of processed
citrus products from Florida under auspices of the
Three Party Program is expected to equal or even
surpass last year's approximately 14.5 to 15 million
single-strength equivalent gallons.
Export movement of fresh citrus from the
state, primarily pink and red grapefruit varieties,
has shown marked increase. Excluding Canada,
this has exceeded 11 million cartons, with the
heaviest movement to Japanese and European
markets. In Europe, France remains a strong
market for Florida pink grapefruit, with Germany
and Holland showing increases over the previous
season's shipments.





Brand advertising for processed citrus pro-
ducts in Europe and in-store merchandising and
demonstrations for fresh grapefruit in both Europe
and Japan hopefully will boost exports.
Following visits by high-ranking Taiwanese
officials, sales totaling $1 million of Florida pro-
cessed citrus products were made to Taiwan.
Most of this volume has been shipped, with
the remaining portions to be purchased by the end
of the calendar year. It is possible that some form of
advertising activity will be conducted there to help
increase consumer awareness of Florida citrus.
Some fresh fruit shipments also will be made to
Taiwan this year.
Since 1975, when Multilateral Trade
Negotiations began, the Department and the
Florida citrus industry have succeeded in keeping
United States representatives aware of the needs of
Florida citrus. While negotiations still are being con-
sidered by Congress, the Florida citrus industry has
made major in-roads into the Japanese market. In
addition, Florida was not required to make tariff
concessions to citrus-producing countries wishing
easier access to the sensitive markets of the United
States.














Market Research


and Development


Among the marketing efforts of the Florida
citrus industry and its competitors measured and
evaluated by the Market Research and Develop-
ment staff during the year were several major pro-
jects associated with the marketing of grapefruit.
Three different areas of grapefruit quality were
evaluated in separate research studies.
The first of these projects was a taste test
designed to determine consumer acceptance of
sliced whole fruit as an alternative to sections.
Another taste test of grapefruit juice explored
preferences for a particular color in the product
while a second series of tests of grapefruit juice was
directed toward determining the bitterness levels at
which the product might become unacceptable.
The sliced grapefruit research study in-
dicated that the product as tested was not as
acceptable to consumers as the sectioned product.
While registering a degree of preference for a
yellowish-white product, the grapefruit juice color
test provided no proof that color was a strong factor
in influencing preferences for grapefruit juice. The
bitterness taste test, however, indicated a potential
for increased usage among light and infrequent
users if a less bitter product was available.
A new monthly report is being prepared,
using United States Department of Agriculture ship-
ping manifests to provide a measurement of move-
ment of fresh citrus products to more than 120
market areas in the United States and to foreign
markets for Florida fresh citrus.
Other special projects included an evalu-
ation of the effectiveness of increased advertising
efforts on the sales of fresh grapefruit in the
southeastern United States and a national survey to


15





determine the level of distribution of Department of
Citrus point-of-sale materials.
The effectiveness of Department of Citrus
advertising was monitored on a continuing basis
and efforts were made to develop new advertising
themes. Tests currently are underway to evaluate
two new series of print advertisements based on the
"lifestyle" concept.
All-time high levels were attained by the
Department of Citrus in the National Consumer
Study in areas of total aided Department of Citrus
advertising recall and grapefruit advertising
awareness. The same study gave evidence that
recall of the extended use slogan, "It Isn't Just for
Breakfast Anymore," continued to increase .
More than ever, Florida was seen as the
state of origin for fresh oranges purchased by
respondents in the National Consumer Study.

Data obtained from A. C. Nielsen Company
was restructured to provide more detailed informa-
tion on the market share of ready-to-serve orange
juice by type of container. The change provided in-
formation to industry marketing personnel in regard
to shifts in the type of packaging used for this par-
ticular form of orange juice.
The major services purchased by the
Department of Citrus are A. C. Nielsen Food In-
dex, Market Research Corporation of America,
Consumer Panel, Market Facts National Consumer
Study, Majers Retail Advertising Index, Audits and
Surveys Annual Restaurant Study, Audits and
Surveys Annual Public School Study, Mapes and
Ross Advertising Recall and International Surveys
of Canada Consumer Panel.















Merchandising


Through the use of data compiled by A. C.
Nielsen and the Majers Company, each of the 12
Department of Citrus merchandising field districts
was able to monitor retail promotions and sales of
Florida citrus products. In addition, fresh fruit
shipments to domestic and selected offshore
markets were reported on a regular basis. The latter
service aided field personnel in determining where
and when promotional help was needed for fresh
citrus.
During the season heavy trade incentive
promotional help was directed to retail outlets in the
southeastern states in support of a consumer pro-
gram designed to greatly increase the awareness of
Florida fresh grapefruit in that area.
Merchandising efforts during the fiscal year
included increased promotion of processed
grapefruit products through extensive trade incen-
tive activity involving major food trade factors
across the nation, as well as a national display con-
test for canned single strength citrus juices. Another
outstanding event was the first national display con-
test in four years for Florida fresh citrus. Both the
canned juice and fresh fruit display contests re-
ceived excellent support from the food trade.
Fund-raising projects were responsible for
the movement of more than 4 million cartons of
Florida fresh citrus in the fiscal year, with the
Department of Citrus creating and developing
materials for the first time to aid organizations in
promoting and selling Florida citrus fruit. This pro-
gram has become of sufficient importance to re-
quire the fulltime responsibility of a staff member
who will develop and implement fund-raising pro-
grams for interested organizations.





Another development during the year was
the increasing emphasis upon trade incentive pro-
grams involving the food trade. New guidelines for
allocating funds for these programs are being
developed along with a system for monitoring pro-
gram uses and results. Consideration is to be given
to special funds for TIP programs in Canada to pro-
mote Florida brands of orange juice.

The new position of field operating manager
for the merchandising staff was created to improve
the day-to-day working relationship between the
Lakeland headquarters and personnel in the field.
Major responsibilities will be the coordination of
special programs and the gathering of field informa-
tion.
During the year, all field men assigned to the
school marketing expansion program were trans-
ferred to foodservice or retail merchandising posi-
tions, with the eight nutrition consultants continuing
to serve the school feeding trade.















School Marketing


The school marketing expansion program
continued to show steady progress during the year
in encouraging the increased use of Florida orange
juice, orange products and fresh oranges in the
nation's school feeding systems. A survey of
primary participants in the processed incentive pro-
gram indicated that Florida citrus fruit and products
were being distributed to 84 per cent of major
school systems with enrollments of 10,000 or more
students. Projected further, this represented a pro-
gram reach of 45 per cent of the nation's school
pupils and students.

Distribution of an estimated 2 million gallons
of Florida frozen concentrated orange juice by the
end of the school year is anticipated, an increase of
30 per cent over the 1977-78 school year. Favorable
results posted for the fresh incentive program point
to an increase of 46 per cent over last year.

With many schools placing added emphasis
upon nutrition as part of the curriculum, demand
has grown for nutrition educational materials
developed and distributed by the Department of
Citrus. Very popular thus far are the monograph,
"Relationships of Hunger and Malnutrition to
Learning Ability and Behavior," and the "Nutrition
for Sports" booklets.

Requests have been received from dairies
for the technical manual prepared to provide infor-
mation and instruction on the proper reconstitu-
tion, packaging and distribution of Florida orange
juice.

The well-received Teddy Roosevelt press
conference program ended with an impressive
record. During the three years that actor Bob Boyd





portrayed the former president, the live show ap-
peared in 42 states for more than 1,200 perform-
ances. The show earned a special award last year in
the form of George Washington Honor Medal
presented by the Freedom Foundation of Valley
Forge for efforts in "preserving and perpetuating
the principles of the American system."

Trade incentive programs in the schools
resulted in the conduct of many poster, essay and
jingle contests in which students promoted Florida
citrus and nutrition. The Youth Advisory Council
program assisted many schools in developing better
nutritional habits among students.
With achievement of the original goal of
establishing an effective distribution system through
incentives for suppliers and distributors of foods to
schools, the school marketing program next year
will be directed toward in-school promotions and
nutrition education.














Public / Industry


Relations


The Department of Citrus utilized sports
events again this fiscal year to draw attention to
Florida citrus. This was accomplished through
sponsor roles in three events conducted in the
Orlando area, the Tangerine Bowl postseason foot-
ball contest for outstanding collegiate elevens, the
Bay Hill Citrus Classic on the tour schedule of the
Professional Golfers Association and the Lady
Citrus Open for members of the Ladies Professional
Golfers Association.
The Tangerine Bowl featured that fruit dur-
ing a full calendar that surrounded the football
game with such other collegiate events as soccer,
sailing, basketball and rugby. A television network
carried the football contest and halftime show that
featured Anita Bryant.
The Bay Hill Citrus Classic, which replaced
the Florida Citrus Open, profited from association
with the name of Arnold Palmer, the golfing great
who owns the course on which the tournament was
played and who appeared in a television commer-
cial that promoted the event and later was moved
into the Department of Citrus mix of television
commercials for Florida orange juice.
The Lady Citrus Open was a first on the
distaff golf tour and immediately won a place
among the outstanding tournaments staged by the
LPGA.
For a second successive year, Florida citrus
was featured on the Dinah Shore television talk
show, this time with Debra Faul, Dudley-Anderson-
Yutzy agency nutritionist, joining the hostess for
seven minutes to demonstrate the preparation of
special citrus dishes.





A popular children's television program,
"Romper Room," filmed a series of shows at Walt
Disney World in which Florida citrus was featured
in three-to-five minute segments. Appearing in the
shows was Orange Bird, the Walt Disney Produc-
tions creation for the citrus industry.
The Department of Citrus again was a spon-
sor for the Florida Citrus Showcase Festival and for
the annual pageant during which judges select the
Florida Citrus Queen.
Publicity helped launch a number of promo-
tions during the year in which the Florida Citrus
Queen made personal appearances in major
marketing areas of the nation. In each instance,
newspaper publicity helped build a welcome for the
Queen and other news media assisted in focusing
attention on her once she reached the marketplace.
In the state, the Department of Citrus used
more than three dozen billboards in central Florida
to encourage motorists along major highways to
"Take a Florida Orange Juice Break."
Orange juice again was furnished to the six
official welcome stations at the state line and the
Rolling Orange promotional vehicle and the Florida
Citrus Queen continued to participate in parades,
conventions and festivals.















Economic Research


International trade again was a subject of
concern for the Florida citrus industry in 1978-79,
with particular interest directed to the flow of frozen
concentrated orange juice from Brazil into North
American markets. The economic research staff
developed a series of reports on the situation, in-
cluding a detailed examination of current and
potential production levels of frozen concentrated
orange juice, processing capacity and cost com-
parisons with the Florida product. A major conclu-
sion was that Brazil probably would exceed Florida
production by the mid-1980's, but with costs to be
equated somewhat by high inflation rates in the
South American country.
An evaluation of the Department of Citrus
Three Party marketing program in Europe conclud-
ed that Florida growers have benefited from the
promotional effort. In conjunction with this study,
the staff investigated the import-export situation
and concluded that Florida would expect to
average larger volumes of imports the next five
years because of reduced growth in domestic pro-
duction and expanded supplies in Brazil. It was
pointed out that the reduction or elimination of the
Three Party Program would not significantly reduce
imports.
Considerable basic research effort was
devoted to the development of an economic model
of the Canadian market for orange juice in pro-
viding basis for evaluating the Department of Citrus
generic advertising program in Canada.
Another basic research effort was aimed
toward development of a model to evaluate the im-
pact of generic media advertising on the sales of
Florida processed grapefruit products. Further work





will provide information on the best advertising ex-
penditure patterns, expenditure rates and grower
assessment rates for grapefruit crop sizes projected
for the future.
A long-range biennial citrus production pro-
jection indicated a leveling off of round and Temple
orange production at about 200 million boxes by
the 1984-85 season. A production growth spurt
may be evidenced thereafter because of recent in-
creased planting rates fostered by higher orange
returns.
Consumer demand parameters for various
Florida citrus products were updated and re-
estimated during the year for use in future outlook
studies.
Other projects included development of
methods for estimating the costs of serving orange
juice in school markets; the feasibility of out-of-state
packing of canned grapefruit juice from frozen con-
centrated grapefruit juice; an evaluation of the im-
pact of changing the United States Department of
Agriculture crop estimate for seedy and seedless
grapefruit, and a determination of increases in costs
of workman's compensation to the citrus industry.














Scientific Research


The 1978-79 fiscal year was the sixth and
last for collection of the special tax to support
mechanical harvesting research and development,
including the study of abscission chemicals. Several
complete harvesting systems were active in the
field, with an air shaker, dripline rake and offset
pick-up system registering the most success.
The abscission chemical screening program
continued with no reduction in effort. More than
10,000 tests were conducted with active com-
pounds from earlier years as well as entirely new
chemicals. A combination of chemicals labeled
"Release" and "Actiaid" proved most satisfactory
for early and midseason oranges, with "Release"
providing best results with Valencia oranges.
Sponsored research grants, loans and in-
centive payments encouraged the accumulation of
data on the use of mechanical harvesting systems
and abscission chemicals. Under this program,
125,000 boxes of oranges were commercially
harvested with the combination of shaker systems
and abscission chemicals.
In the area of processing research, the study
on conserving energy was extended to two com-
mercial concentrate plants that will conduct tests on
evaporators of a system for automatic control for
optimal energy utilization.
High performance liquid chromatography
(HPLC) has been applied to the analyses of many
chemical constituents in citrus fruits and juices, such
as the several vitamin B complexes, polyphenols
and methoxylated flavones. Five methoxylated
flavones naturally occurring in citrus have been
found to have physiological effect in the reduction
of blood viscosity.





Methods for the incorporation of quinine
sulfate as a tracer in pulp wash concentrate and its
measurement were developed, along with a pro-
cedure for the detection of pulpwash solids in pro-
cessed orange juice products.
The medical and nutritional research group
at the University of Florida's School of Medicine
continued to explore the benefits of citrus pectin to
diabetics and expanded studies to include the ability
of pectin to reduce serum cholesterol levels.
The fresh fruit research staff made con-
siderable effort on refinements in ethylene
dibromide fumigation (essential for exports to
Japan) to satisfy increasingly stringent Environmen-
tal Protection Agency requirements.
Postharvest research was extended back to
preharvest conditions linking weather with the
susceptibility of grapefruit to chilling injury and with
the efficacy of abscission compounds for
mechanical harvesting. Unexpected trouble with
high diphenyl residues on export grapefruit and oc-
casion diphenyl-aggravated chilling injury has been
shown to be associated with fruit maturity.
The packinghouse industry has cooperated
on an energy use survey and the use of solar-
regenerated desiccants for drying fruit has reached
the pilot plant stage.
Biochemical studies will continue to explore
the possibility that, under suitable conditions, citrus
fruits can form fungicides in healing wounds.





The receipts for 1978-79 fiscal year indicate
a substantial increase in revenue of more than $6
million over the previous year, an increase of 19
per cent. Income from the import equalization tax
increased by more than $2 million; investment ear-
nings were up over $500,000, and a new assess-
ment on grapefruit, plus a larger orange crop,
added more than $3.2 million to the total income.


Financial Report


Receipts:
Assessments
Investment & Other
TOTAL


Expenditures:
Marketing
Non-Marketing
TOTAL


1977-78
$23,702,547
2,073,562
$25,776,109


$25,387,556
4,172,566
$29,560,122


1978-79
$29,190,693
2,690,568
$31,881,261


$28,451,276
3,649,265
$32,100,541


The net expenditures increased by over
$2.5 million, due to the expansion of the grapefruit
marketing program that was implemented under
the Citrus Stabilization Act's Grapefruit Marketing
Order.
The assessments collected were based on
the following 1978-79 citrus taxes:


Orange
Grapefruit
Temple
Tangerine
Tangelo
Honey Tangerine


(per box)
(per box)
(per box)
(per box)
(per box)
(per box)


Fresh
10.7C
13.7C
7.7C
7.7C
7.7C
7.7C


Processed
10.7C
13.7C
5.7C
5.7
5.7C
5.7C


The citrus industry supports the Department
of Citrus in its payments of assessments and the
Department continues to sustain a minimal annual
loss of less than $1,000. For the sixth consecutive
year, the Department received a very favorable
legislative audit report which reflected no major
accounting procedural problems nor fiscal dis-
crepancies.





STATE OF FLORIDA
DEPARTMENT OF CITRUS
Lakeland, Florida

FLORIDA CITRUS ADVERTISING TRUST FUND

SUMMARY STATEMENT OF RECEIPTS AND EXPENDITURES ALL FUNDS
JULY 1, 1978 TO JUNE 30, 1979


TOTAL NET REVENUE BOXES:
FUND BALANCE JULY 1, 1978
RECEIPTS: Assessments
Other Income
TOTAL CURRENT YEAR RECEIPTS
TOTAL AVAILABLE
EXPENDITURES: Admin. & Gen. Operations
State General Revenue Charge
Scientific Research
Economic Research
Sub-Total NON-MARKETING EXPENSE
School Marketing Program
Publicity
Marketing Administration
Market Research & Development
Institutional
Merchandising
International Programs
Advert.- General Adv. & Admin.
P.O.S. Mat'Is. & Whse.
Gift Fruit Promotions
Consumer Advertising
Coupon Redemption
Rebates
Total Advertising & Rebates
Sub-Total MARKETING EXPENSE
Release of Cert. Funds (12/31/78)
Sub-Total CASH EXPENDITURES
Inventories & Deposits Net Change
TOTAL EXPENDITURES
FUND BALANCE JUNE 30, 1979


PRIOR
YEAR
1977-78
223,108,416
$ 34,044,778
23,702,547
2,073,562
25,776,109
$ 59,820,887
1,302,430
515,199
2,185,402
169,535
4,172,566
4,504,340
823,577
68,435
639,981
212,625
3,310,841
740,415
286,717
912,627
41,075
13,316,011
564,192
353,250
15,473,872
25,774,086
(386,530)
29,560,122
( 56,892)
$ 29,503,230
$ 30,317,657


INCREASE
(DECREASE)
13,391,945
$ 3,727,121
5,488,146
617,006
6,105,152
$ 2,378,031
(415,794)
122,042
(255,580)
26,031
(523,301)
263,141
141,223
47,784
142,267
44,325
532,174
(73,265)
(57,455)
5,322
19,535
2,110,178
(515,044)
17,005
1,579,541
2,677,190
386,530
$ 2,540,419


CURRENT
YEAR
1978-79
236,500,361
$ 30,317,656
29,190,693
2,690,568
31,881,261
$ 62,198,918
886,636
637,241
1,929,822
195,566
3,649,265
4,767,481
964,800
116,219
782,248
256,950
3,843,015
667,150
229,262
917,949
60,610
15,426,189
49,148
370,255
17,053,413
28,451,276
-0-
32,100,541
1,937
$ 32,102,478
$ 30,096,440




CITRUS ADVERTISING TRUST FUND
June 30, 1979
BALANCE SHEET


ASSETS


CURRENT ASSETS:
CASH:
Cash with Treasurer
Cash In Transit
Cash with State Board of Administration
Revolving Funds
Total Cash

ACCOUNTS RECEIVABLE:
State Board of Admin.-lnterest Earned
Miscellaneous
Total Accounts Receivable

INVENTORIES:
Display Materials
Disney World Tickets
Reproduction & Other Supplies
Total Inventories


$ 694,231
172,369
187
12,000




$ 833,900
3,355



$ 278,480
4,390
22,618


INVESTMENTS BY STATE BOARD OF ADMINISTRATION:


PREPAID EXPENSES:
TOTAL CURRENT ASSETS:

OTHER ASSETS
Insurance & Utility Deposits

TOTAL OTHER ASSETS:


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


$ 878,787


,837,255





305,488

34,205,872

17,632



482


Total Accounts Payable
DEPOSITS HELD IN TRUST:
Tax Bond Deposits
Total Deposits


TOTAL CURRENT LIABILITIES:

RESERVE AND FUND BALANCES:

RESERVES:
Cancelled & Restored Warrants
Workmen's Comp. & Utility Deposits
Unemployment Compensation
Inventories
Revolving Funds
Coupon Redemptions
Total Reserves
$36,245,034 OPERATING FUND BALANCE: (Statements)
Encumbered Operating Funds (1979-80)
Unencumbered Cash Reserve Fund
Unencumbered Operating Funds
Unencumbered Special Funds:
482 Orange Stabilization Fund
Harvesting R & D Fund


LIABILITIES



$3,056,847
241,428


$ 3,298,275


$ 1,717
1,717


$ 3,299,992


$ 3,114
482
8,000
305,488
12,000
2,520,000



8,736.350
2,000,000
9,152,943

8,184,233
2,022,914


$ 2,849,084


TOTAL CITRUS ADVERTISING TRUST FUND

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

TOTAL ALL ASSETS


$36,245,516


Total Operating Fund Balances


TOTAL RESERVES AND FUND BALANCES

TOTAL CITRUS ADVERTISING TRUST FUND


$ 246,125
624,746
285,577
1,500,035
185,674
30,717


$ 2,872,874 TOTAL INVESTMENT IN FIXED ASSETS:

$39,118,390 TOTAL ALL LIABILITIES


$30,096,440


$32,945,524

$36,245,516



$ 2,872,874

39,118,390














Staff Members


DR. W. BERNARD LESTER
Executive Director
MONTEREY CAMPBELL
General Counsel
JAY B. HAVISER
Administrative and Legal Affairs Director
DOUGLAS OFFER
Marketing Director
DR. JOHN ATTAWAY
Scientific Research Director
DR. LESTER MYERS
Economic Research Director
RICHARD MAY
Finance and Accounting Director
THOMAS POBJECKY
Staff Attorney
WILLIAM F. JONES
Public/Industry Relations Director
VERNON S. MULLEN
Advertising/Promotion Director Orange
HERBERT GRAMSTORFF
Advertising/Promotion Director Grapefruit
FRED S. FORSEE
International Marketing Manager
HARRY RIXMAN
Merchandising Director
GEORGE deJAGER
Market Research Director
FRANCIS J. MULKEEN
Institutional and School Marketing Director
ROBERT E. HOLLIS
General Services Director










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