Packers remain concerned about future of USDA’s market access programme, as state contends with huge challenges at home and abroad
Florida’s citrus industry appears to be moving towards what might be classed as an ‘America first’ marketing strategy, as its export business faces increasingly tough challenges on the international market.
The state’s overseas sales have become less profitable in recent years due to higher costs, logistical disruptions, stronger competition, and market access challenges in Europe and Asia.
And its citrus output is also shrinking due to disease, storms, and fruit drop. This season, the USDA expects a further downward revision in its Valencia orange crop following an extended period of freezing cold weather in February.
Last month, industry association Florida Citrus Packers (FCP) wrote to the Florida Department of Citrus asking it to “seek sensible adjustments” to the USDA’s Market Access Programme (MAP) – essentially calling for export-focused programmes to continue – and in particular to sustain promotional efforts in Canada.
But although the Florida Citrus Commission – which oversees the Florida Department of Citrus – says it plans to continue its strategic marketing programme to encourage sales, its chairman Steve Johnson also believes growers must accept a new reality.
“Keeping a minimal market presence in Japan, Korea and Europe is not a decision made lightly,” he said in an open letter to the industry. “The bottom line is that we’re seeing a need to move to a more domestic-heavy fresh marketing model to give growers every chance to meet margins.”
The commission plans to discuss FCP’s request with the USDA, and share any findings at a planned meeting in May.
“As a legacy crop with a very strong historical and present relationship with USDA FAS, we believe that we can openly work with them to keep the doors open for future MAP activities in these markets,” Johnson added.
“It’s important to note that we will aim to keep a minimum presence in these international markets, so that when supply is restored, we will still have the relationships needed to increase exports again. In regard to Canada, as The Florida Citrus Packers requested, our export programmes will continue.”
