Friday, September 24, 2010

"Florida orange groves still shrinking, USDA says"

The "breakfast" commodities (coffee, OJ, sugar, cocoa) have definitely had some nice moves.
Here's the chart for OJ futures, the move from Feb 2009 to Feb 2010 was pretty dramatic. The stall this year is partly attributable to the lack of landfalling hurricanes. Via StockTwits Chart.Ly:

Here's the headline story from Reuters:
Florida's orange groves are still shrinking as the state battles the tree-killing citrus greening disease and farmers sell their land, the annual Department of Agriculture census showed on Thursday.

The number of commercial orange trees and total acreage devoted to orange groves have steadily shrunk over the last five years in Florida, which accounts for two-thirds of U.S. citrus fruit production.

The state has 63.78 million commercial orange trees, down about 1.9 percent from 2009, the USDA said.
About 93 percent of those are fruit-bearing trees, unchanged from recent years, while the rest are newer plantings. Orange trees typically start bearing fruit three or four years after being planted.

Florida has 483,418 acres planted with commercial orange trees, down more than 1.8 percent from a year ago, the USDA said.

The report gave no reason for the decline. But Florida's $9 billion citrus fruit industry is battling citrus greening, an insect-borne bacterial disease that kills trees and has spread widely since it first appeared in the state in 2005.

Despite the collapse of the real estate market, some farmers are still selling off their land for a variety of reasons, said Andrew Meadows, a spokesman for the growers and processors group Florida Citrus Mutual....MORE