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Citrus

The term citrus is inclusive of a wide variety of plants and fruits: oranges, tangerines, grapefruit, lemon, lime, even pomelos, clementines, and bergamot. However, in terms of production and sales, the most dominant member of the citrus genus is the sweet orange, followed by tangerines, grapefruit, and lemon.

World Production of Citrus Fruit: 1961-2021

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Source: World Citrus Production and Research

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Market Size

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Global Citrus Production

The Food and Agriculture Organization of the United Nations data indicates that world production of citrus in 2022 was approximately 200 million tons, produced on 13.3 million hectares. This figure includes citrus for all uses, which includes a significant quantity of citrus grown for juicing. Countries tend to be dominant within a specific sub-citrus— China grows a significant portion of the world’s tangerines, while Brazil is the world’s largest grower of oranges (and exporter of orange juice). 51% of world citrus is grown in Asia.

According to the USDA Foreign Agricultural Service’s Citrus: World Markets and Trade, in 2023, the world production of oranges was expected to be 47.4 million tons. The world production of mandarines/tangerines in 2023 was to be about 38.2 million tons, up slightly over the previous year due to increased production in China and Turkey. The world production of limes and lemons in 2023 is expected to be approximately 10.1 million tons, up slightly from the previous season. The world production of grapefruit in 2023 is expected to be 6.9 million tons. Oranges represent nearly 50% of global citrus production.

According to the 2022 Citrus World Statistics report, the world production of citrus in 2021 was 158.5 million tons, with production led by China, Brazil, India, and Mexico.

Oranges

The total global orange production, according to FAO, was 84.1 million metric tons in 2022 across 4.4 million hectares. The top 10 producing countries in 2022 grew approximately 55.85 million tons, or 66% of the global orange production total.

Country
Production 2022 (Tons)
Area Harvest, 2022 (hectares)
Yield, 2022 (100 g/ha)
Estimated Gross Production Value (USD)
Percentage of total global crop production (2022)
Brazil
16,929,631
568,132
297,988
$2,782,164,000
20%
India
10,198,000
683,000
149,312
—*
12%
China
7,706,852
402,970
191,251
—*
9%
Mexico
4,850,083
335,541
144,545
$720,750,000
6%
Egypt
3,392,819
143,376
236,638
$1,281,005,000
4%
US
3,148,840
187,614
167,836
$1,460,335,000
4%
Spain
2,817,400
144,200
195,381
—*
3%
Indonesia
2,684,978
69,271
387,606
$1,740,054,000
3%
Iran
2,321,124
47,779
485,807
$3,222,494,000
3%
Viet Nam
1,807,859
45,250
240,246
$1,530,771,000
2%
TOTAL
55,857,586
66%

*Some gross production value figures are not yet available for 2022

Source: FAOSTAT, find the data we pulled here. Note that there is often meaningful discrepancies between USDA data, FAO data, and other data sources. This is a trend in specialty crop data reporting in general. As with all data, there’s an acceptable error range here that should be considered when manipulating these figures to calculate addressable market projections.

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Domestic Citrus Production

According to the US Department of Agriculture, the US produced about 5.24 million tons of citrus in 2023-2024, representing about 532,500 acres of production. Within the US, four states—California, Florida, Texas, and Arizona— are home to essentially all domestic citrus production. California is responsible for 79% of the US’s citrus in the 2023-2024 season, with Florida producing 17%, and Texas and Arizona producing the remaining 4%. Texas and Arizona are both more prominent in the alternate citrus categories, with Texas boasting relatively high grapefruit acreage and Arizona specializing more in lemons.

Oranges

California has overtaken Florida as the as the state producing the largest volume of oranges, largely due to the dramatic impacts of citrus greening disease in Florida, which has devastated orchards and caused yields and production to decline precipitously in recent decades. (See Current Challenges & Opportunities for details.) Floridian growers primarily produce Valencia oranges for juicing, whereas California growers primarily grow Navel oranges for the fresh market.

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Source: AFBF

In the 2022-2023 season, California’s orange production stood at 47.5 million boxes, whereas Florida’s stood around 18.0 million boxes. Orange boxes or cartons contain between 35-40 lbs of oranges. The total value of the US’s crop in the 2023-24 season was $1.07 billion (packinghouse door equivalent.) US orange production occupied approximately 372,100 acres in 2023-34, with an average yield of 179 boxes per acre. The average price per box was $16.00, or $23.26 on average for fresh oranges.

Varietals

Though the exact number and mix of citrus varieties grown in the US changes from year to year, there are about approximately seven commercial classes of varieties that are commonly planted at significant scale. Among oranges, there are primarily Valencia and Navel (or other early/midseason varieties). Among grapefruits, there are white, pink, and red varieties. Then there are lemons, tangerines, mandarins, and miscellaneous citrus varieties.

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Top Citrus Varieties in the US

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Valencia Oranges

Valencia oranges are the most popular variety of oranges in the US for commercial cultivation, primarily for juice, though they are also available fresh during the summer months. Valencia oranges are medium to large, round to oblate fruit with bright orange coloring and thin, smooth peels. They are often seedless. Valencias are a subtropical to tropical variety, requiring longer periods of warmth to fully develop and are more heat tolerant than other varieties. Valencias are common in the US (both California and Florida, and dominant in Florida), Spain, Mexico, Brazil, and Egypt. There are many common varietals of Valencia oranges in the US including Burris, Coarse, Cutter, and Delta. Hamlin oranges, which are similar to Valencias, are also used for juicing.

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Valencias have one of the longer growing seasons of the common orange varieties and so are considered a late-season variety. Harvest usually begins in late winter or early spring and continues into the summer.

According to USDA, In the 2023-2024 crop year, 897,000 tons of Valencia oranges were grown across the US, approximately 2/3rds of which were grown in Florida, with 174,300 acres planted to Valencias across the country. The average domestic price for Valencias in 2021 was just over $19 per box. The total value of the Valencia crop is $356,062,000.

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Navel oranges

Navels are a popular fresh orange variety, known for being sweet, seedless, and easy-to-peel, and are therefore the primary fresh, eating orange. Navel oranges are common in both California and Florida, though dominant in California. The trees are medium in size and vigor and sensitive to heat and aridity during bloom and fruit-setting, and fruit are generally ready for harvest in the early or mid-season. There are many distinct varietals of navel oranges (though many originate from Brazilian varieties that have been in the US for over 100 years) including Glen, Washington, Thompson, Fisher, Lane Late, Cara Cara, and others. Cara Cara is the variety that’s most commonly planted.

According to USDA, In the 2023-2024 crop year, 1,861,000 tons of early, midseason, and Navel oranges were grown across the US on 197,800 acres. Though the number of non-Valencia acres of orange grove are similar in California and Florida, in recent years, California’s yield has jumped to as much as five times Florida’s yield for these varieties. Over the last few years, prices for a 40 pound carton of navel oranges has oscillated between $11-$20. The total value of the non-Valencia orange crop is $710,507,000.

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Grapefruits

There are many grapefruits that are commonly grown in the US, including pink, red, and white varieties. Grapefruits are harvest fully ripe when skin is shiny and smooth, and is usually picked by hand, except among the least delicate varieties, and fruit that will be used for juicing.

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Source: Produce Blue Book

Fruits range from 100 to 150 mm (4 to 6 inches) in diameter depending on variety and growing conditions. Pulp is usually tender, juicy, and mildly acidic in flavor. Grapefruit trees tend to thrive on sandy, fertile soils, and tend to come into bearing early— between the fourth and sixth year of an orchard. Mature trees produce as much 1,490 pounds of fruit per tree. There is a market for both fresh grapefruit and grapefruit for juicing, among other more minor applications. Varieties include: Duncan, Marsh, Ruby Red, Rio Red, Star Ruby, Flame, TR-1. Grapefruit groves have been negatively affected by citrus greening diseases, and though grapefruit acreage in Florida has declined substantially, it is still the state where most grapefruits are grown in the US. Today, China grows more than half of the world’s supply of grapefruit.

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According to USDA, In the 2023-2024 crop year, 344,000 tons of grapefruit were grown across the US, with 29,600 acres planted to grapefruit across the country. The average price per box was $18.46, and the total value of the US grapefruit crop was $179,751,000.

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Lemons

Lemons typically earn the highest price per box of all citrus fruits, and are used for a wide variety of applications— from juice to garnish to industrial applications. Mexico is the top producer of lemons globally, followed by Argentina and the EU. The state of California leads in production of lemons in the US.

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Source: Produce Blue Book

Many common lemon varieties are grown in the US, though Eureka or Lisbon may be the most common. Eureka types produce primarily in spring and summer and are not well suited to Floridian conditions, where Lisbon types bear more in summer and fall. Some varieties are commonly seedless and generally have smooth, thin skin. Bonnie Brae is another common variety. There are also lemon varieties that are not “true” lemons (the later category described as “rough” lemons) but citrus hybrids, including the Meyer and Ponderosa lemons. Lemons are native to Asia, with trees bearing a yellow fruit, the juice of which is about 5-6% citric acid, creating the distinctive sour taste, leading to both culinary and non-culinary applications.

According to USDA, In the 2023-2024 crop year, 1,022,000 tons of lemons were grown across the US, with 56,100 acres planted to lemons across the country. The total value of the lemon crop is $698,343,000. The average price per box was $22.26 in 2021-22.

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Tangerines and Mandarins

Popular tangerine varieties like Clementine, Dancy, Ponkan, Changsha, Fortune, and Honey are cultivated in the US (mostly in California), though the vast majority of growth in global tangerine production is concentrated in Asia.

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Source: Produce Blue Book

The mandarin sub-category is vast and growing as this group of fruits becomes increasingly popular as a snack food given their thin, easy-to-remove peals and sweet taste. Popular mandarin varieties include the Willowleaf or Mediterranean, King, and Satsumas (or Unshu mandarins, also called Owari, Obawase, Okitsu, Kimbrough, Big Early, and Armstrong Early).

Additionally, this group may also include tangors (tangerine orange hybrids), tangelos, including the common Minneola (tangerine grapefruit hybrids), and tantangelos (double tangelo hybrids).

Though tangerines and mandarins can be highly productive, they are subject to strong alternate bearing, which can result in tree/limb damage during heavy crop seasons. Most tangerines and mandarins grown in the US are destined for fresh consumption, with only about 30% processed for juice and other uses.

According to USDA, In the 2023-2024 crop year, 1,117,000 tons of tangerines and mandarins (and tangelos) were grown across the US, with 74,700 acres in production across the country. The average price per box was $38.53 in 2021-22, and the overall value of the US crop is around $1,034,664,000.

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Other Varieties

Specialty citrus varieties vary widely, from buddha’s hand lemons:

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to kumquats:

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Sub-types of oranges are another category of citrus that’s growing in popularity. Blood oranges, which have red flesh and strong flavor, are grown in Florida:

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Bergamot, which has an appearance more similar to a lemon or lime, is also gaining in popularity for is aromatic floral scent.

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Addressable Market

Based on the Research and Markets Report, the global citrus market is currently worth $7.61 billion in 2023, and will grow to more than $10 billion (at a CAGR of 4.1%) by 2030. Though there is consistent and growing demand for citrus products around the world, production (and growth) are generally limited by natural phenomenon, not least because citrus is most productive in regions increasingly vulnerable to extreme weather (especially flooding and hurricanes).

According to the United States Department of Agriculture (USDA), the total (sales) value of citrus production in the US in 2023 was $2.98 billion. US producers exported $793 million of fresh citrus in 2022, while continuing the trend of net importation of citrus products.

The true addressable market for citrus harvest and management technologies will be approximately equal to the cost of labor needed to manage and harvest citrus. So to determine the value of a specific technology to the citrus sector, it’s necessary to understand the costs associated with citrus production.

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Anatomy of a Citrus Farm

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Citrus Production

Successful citrus growers manage a complex production system that takes careful and continuous management over a variety of shifting plant life-stages. From the origination of a citrus production business, the planning process until the first harvest can be anywhere from 3 to 8 years (as few as 3 for oranges, versus an average of 8 for lemons), and a grove can remain productive for more than 50 years— with lemon trees in particular taking about 40 years to reach fruit bearing capacity. Managing production and cash flow over that time horizon is often a challenge.

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Grove Establishment and Planting
  • There are many factors to consider when planning and establishing a citrus grove, including; citrus variety, pest and disease history, soil fertility, soil moisture, water access and quality, and weather (freeze risk).
  • Grove design is of particular importance, as determining orientation and spacing is vital to optimizing sunlight. Other considerations include; the vigor of the rootstock, the expected lifespan of the grove, possible row length, and direction of water drainage.
  • Row spacing is the chief infrastructure priority. Rows must be wide enough for equipment to access without damaging trees or limbs, typically 18-22 feet, but should be kept as narrow as equipment allows to maximize trees per acre. For example, spacing 18’ between rows and 8’ within rows allows for 302 trees per acre (typical) whereas 22’ rows with 12’ within rows cuts the tree/acre count to 165. However, fewer trees per acre might be necessary due to climate, soil, scion variety, rootstock, or expected disease pressure.
  • Mandarin/tangerine groves usually average 180 trees/acre with 12’-20’ spacing. Some citrus trees are self-pollinating, others require pollinizer trees to be planted within the grove.
  • More densely planted groves have been shown to return more fruit earlier in the life of the grove, though the overall potential yield of each tree may be lower, and the grove may require more pruning throughout its life.
  • According to one cost study in California in 2021, the establishment cost of an acre of orange grove is around $10,407, with the cost of orange trees (207/acre) and tree aids (ie. foam-type tree wraps) alone totaling $3,870/acre.
  • Different types of citrus trees have meaningfully different characteristics. Grapefruit trees tends to grow to 20’ in height, whereas lemon trees might reach anywhere from 10’-20’ with sharp, thorny branches. Mature mandarin or tangerine trees reach up to 25’, and tend to have weaker limbs.
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Rootstock and Scion Selection
  • Tree rootstock affects scion vigor, canopy architecture, yield, fruit size and quality, disease susceptibility, and pest tolerance.
  • When selecting a rootstock; soil type, soil pH, pest and disease pressure, desired tree space, and other horticultural traits must be considered. Selection of scions add an additional layer of complexity, because scion varieties effect field performance, disease tolerance, and fruit quality. The rootstock/scion interaction is also a key factor to consider.
  • Matching rootstock to unique soil types is critical, especially considering soil nutrients, drainage, and a rootstocks tolerance for high pH and salinity.
  • Some rootstocks are also much more tolerant than others to diseases. HLB (Huanglongbing/Citrus Greening Disease) is currently the biggest concern to the citrus sector in the US, and though no rootstock has shown high levels of tolerance to HLB, some rootstock cultivars have been identified that produce good yields under high HLB pressure. Rootstock selection can be particular important for navel orange production in Florida.
  • Rootstock has a significant bearing on the final size and productivity of the citrus tree, and therefore goals around tree spacing and size are important to consider when looking at rootstocks.
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Grove Pruning, Hedging, Topping, & Canopy Management
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Source: University of Florida

  • The citrus pruning process adjust tree shape, adjusts key ratios (between framework/fruit bearing canopy and top/root), and alters the food storage status for the tree. Pruning is generally required to avoid overcrowding or excessively tall trees, and therefore more pruning is required the more densely planted the grove.
  • Pruning activities in groves mainly consist of heading back and thinning out. Heading back removes the terminal portion of a shoot, stimulating lateral bud breaks to create a more compact tree. This can be done with mechanical hedging and topping. Thinning out involves the removal of complete branches and generally must be done with hand-held equipment, and therefore is less frequently carried out as it is considered too labor intensive.
  • Most trees do not need pruning in the first few years, especially if protective wraps (which reduce sprouting) are utilized.
  • Mature trees need relatively limited pruning until they reach containment size, or the total planned sized of the mature canopy, at which point the tree will be hedged to contain trees and alleviate crowding.
  • Hedging is usually done at an angle so that sunlight can reach even the lowest levels (or ‘skirts’) of the tree. A 10 to 15 degree angle is generally considered satisfactory, though wider angles may lead to better spray coverage and more efficient harvesting (since more fruit is accessible to ground-level pickers).
  • Topping is also critical to ensure that trees do not become overly tall, and must be managed carefully. Topping trees increases light penetration, reduces harvesting costs, enhances spray coverage, and can increase fruit quality and size. Common topping heights are 15’-16’ at the peak.
  • Adopting a regular pruning program protects trees, yields, and reduces costs. Tree health is maintained due to the avoidance of heavy cutting and elimination of large cuts, in addition to the avoidance of excessive vegetative growth that can limit fruit production. Reducing the amount of material removed also reduces costs related to removal of limbs and brush from the grove. Common pruning programs are 2-, 3-, or 4-year programs, where one side of a row is trimmed some years, the other the next, and the top in the next.
  • Hedging is generally done sometime between the end of harvest and the next bloom, though it is important to avoid hedging or topping when freezing temperatures are still a danger.
  • Skirt pruning is sometimes necessary to allow equipment (like herbicide booms) to move more freely through a row (or middle). Skirt pruning can also help avoid damage to low lying limbs and decrease the incidence of footrot, which is caused by poor air circulation under the tree canopy.
  • Pruning is also a strategy to be utilized after freeze damage has occurred, or to induce new vigor in older groves.
  • Root health management is a related consideration.
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Grove Irrigation
  • Tree water usage depends on the tree’s age, size, species, climate, and soil type. Research has found that mature citrus trees consume about 60” of water per year.
  • Growers in different areas in the US tend to utilize different standard irrigation systems. Growers in more water abundant landscapes often utilize basin or flood irrigation, whereas drip or microsprinkler emitters are more common in water constrained environments like those in Arizona or California.
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  • Salt build-up in citrus irrigation waters can cause root dieback and leaf loss, which is more of a problem the more poorly drained the soils.
  • “Recent research has further indicated that distributing irrigation across the week with more frequency and less volume increases water use efficiency and improves water uptake by HLB-affected trees, thus improving yield. For example, if 3 hours/week of water are required, irrigation should be distributed in daily 30-minute applications for five days.” —University of Florida Extension
  • Modern irrigation management generally involves water budgeting, soil water measurement (especially through the use of probes), and smartphone apps.
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Grove Fertilization and Pest Management
  • Fertilizer and soil amendments are applied in most groves annually, often through a drip line or through foliar application. Fertilization rates vary depending on a variety of factors, including soil type.
  • Leaf and tissue samples are regularly taken for nutritional analysis during the fall.
  • Some varieties of citrus, like mature Navel orange trees, may require a growth regulator treatment like Gibberellic acid, which can help minimize pre-harvest fruit drop.
  • Weeds on the grove floor are managed through spot sprays of herbicides, as well as discing the middles during the spring.
  • Insects in the grove are managed through foliar treatments, often multiple times per season. These are applied in late spring to early summer with a UTV and a small, pull-type sprayer, especially early in the groves’ lifecycle. Spot treatments will likely be required after that.
  • Disease in the orchard is managed with Kocide (copper) and hydrated lime applications. Growers often higher applicators to apply insect/disease materials with a ground-based air blast sprayer.
  • If the area has been planted to citrus in the past, it may be necessary to test for Nematodes and Phytophthora, which can be managed through resistant rootstocks, irrigation management, and chemical applications.
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Fruit Management
  • Due to the alternate-bearing nature of many citrus varieties (a year with heavy yields are followed by a year with a very light yield), it is important to manage pruning appropriately, especially with an eye to controlling fruit size during alternate bearing years. For example, hedging or topping after a light crop can reduce the number of fruit with a corresponding increase in fruit size and reduce the effects of alternate bearing.
  • Fruit size can be specifically managed through a number of different practices, including;
    • Flower suppression
    • Pruning
    • Chemical thinning
    • Hand thinning
    • Harvest timing
    • Manipulating nutrition and irrigation
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Citrus Harvest

Most citrus varieties are hand-harvested and field packed, and each field is usually picked 2-3 times, due to the fact that citrus fruits often ripen non-uniformly, meaning harvest on one farm with multiple varieties can last several months. Harvest is often carried out by a custom harvester— which is usually a farm labor contractor who hires workers directly and moves from farm to farm to harvest.

  • 1/3 of the orchard is picked in each of three harvests over the growing season (Navels, for example, are picked from November to June).
  • Oranges that are destined for fresh markets, for example, are picked by workers on ladder, placed in a bag, and when the bag is filled, the worker transfers the fruit to a field bin. Oranges that are destined for juicing markets are more likely to be harvested mechanically, though this practice has become less common in Florida because it can lead to damage amongst trees made vulnerable by citrus greening diseases.
  • A field bin holds 900 pounds (24 cartons) of oranges. One acre of orange grove at its peak yield might produce as many as 30 field bins, or 550 packed cartons/boxes (35-40 lbs each). When citrus is destined for processing/juicing, it is usually placed in a tub instead.
  • Once the field bins are full, they are collected and transported to a central location in the grove to be loaded into bulk trailers. This process is called Roadsiding.
  • Fruit is hauled to a packinghouse to be washed, graded, sized, and packed, and all costs related to picking, packing, hauling, and marketing are generally paid by the grower. Prices for these services vary considerably depending on the region, but one estimate put costs, all inclusive, at around $6.20 per carton.
  • Harvest and hauling practices and prices can vary depending on what kind of citrus is being harvested and in what region. Specialty varieties that need special handling due to stem-on or thin skin, or that need to be shipped in partially loaded trailers to prevent damage to fruit at the bottom of the load, are likely to cost growers more. Some regions, like Florida’s tarping requirement, also have additional requirements around harvest and transport to prevent the spread of disease.
  • Harvest timings and practices are dependent on the variety of citrus. Lemons, for example, are generally harvested when juice content reaches 25%. Due to the risk of oil spotting (bruising of lemon peels), hand harvest is generally necessary for fruit and cannot be carried out when fruit is wet. The maturity of mandarines/tangerines on the other hand is often measured using brix/sugar level, fruit firmness, or shine/gloss of the peel.
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Other Production Considerations That May Effect Practices & Decision-making
  • Frost protection. Though this is not a concern in many areas where citrus is grown, in parts of California, Texas, and northern Florida, it can be. To combat the impacts of frost on citrus trees, growers control grove ground cover, apply water, and utilize wind machines to raise the temperature in the grove and head off the worst impacts of frost.
  • Depending on the region, citrus growers may have to pay assessment fees. In California for example, growers much pay a fee of $0.08 per carton to support disease prevention, as well as $0.03/carton to the Citrus Research Board. Som growers also pay a small fee $10.56 per acre on average) to the Central California Tristeza Eradication Agency— though this assessment is optional.
  • The overall size and scale of the farming operation, and what other crops/varieties the farmer grows.
  • Whether the land is owned or managed by the grower.
  • Infrastructure availability (road access, irrigation systems, building locations, etc.
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Citrus Economics

Common Citrus Farm Business Model

Citrus growers sell fresh citrus for consumption and processing to wholesalers, retailers, and other buyers. The success of the business will depend on the yields achieved, the quality of produce, the price, and the distribution networks they are able to access. Additionally, citrus growers must consider other costs such as labor, fertilizer, pest management, land costs (including land rent if leasing), as well as the potential for unexpected weather or market conditions.

Growers sell citrus in the US in 35 to 40 pound boxes, which could contain anywhere from 30 individual fruits to hundreds, depending on the size of the fruits and variety.

There are a few different channels that growers commonly use to deliver citrus to market. The most common is to contract the sale of citrus, with a price per unit and total quantity determined in advance of harvest. These contracts may be with wholesale produce packers, shippers, or directly with retailers (especially in the case of larger farmers, packing and shipping functions may be carried out by the grower). Alternatively, growers can take (most commonly, excess) fruit to a terminal market, where they are sold based on a shifting and localized market price in bulk. Finally, citrus can be sold directly to consumers through on-farm sales, U-pick operations, or farm stands, though a very small amount of the total US crop is moved in this fashion.

The business model for citrus production requires significant upfront investment that must be earned back over the course of a grove’s productive life. Though trees will start producing fruit as early as the third or fourth year, they often don’t come into their productive prime until around their tenth year. As the grove ages, yield and quality generally decline, and there is an expectation that approximately 1% of plants will need to be replaced annually.

The yield of the average acre of citrus can vary significantly based on a number of factors, especially variety and geography. For commercial varieties of oranges in California in 2021-22, orange bearing acres yield 289 boxes per acre, down from 348 the previous year. For grapefruit groves in California in 2021-22, the average yield was 456 boxes per acre, down from 472 the previous year. For tangerines/mandarines in California in 2021-22, average yield per acres was 252 boxes, down from 430 boxes in the previous year. For California’s lemon groves in 2021-22, the average acre yield 479 boxes, up from 428 boxes, mirroring Arizona’s experience of 140 boxes/acre for lemons in 2021-22, up from 107 boxes/acre in the prior year. Many factors also determine the current price per unit of citrus, and thus predicting net revenue, or determining in which year a grove overall might become profitable, is not possible to generalize.

The price that a citrus producer receives is dependent upon variety, timing, quality, size, and other market factors. Specific quality standards vary by geography and purchaser.

  • More on USDA Grades & Standards
  • More on Produce Standards in the Produce Blue Book

Citrus Crop Budget

We highly recommend taking time to understand crop budgets before having a conversation with a citrus to better understand their needs and costs.

  • Crop Enterprise Budget Example #1: Navel Oranges | San Joaquin Valley (South)
  • Crop Enterprise Budget Example #2: Eureka Lemons | Ventura County
  • Crop Enterprise Budget Example #3: Lemons | San Joaquin Valley
  • Cost of Production for Processed Oranges in Southwest Florida (2021-22)

It is critical to understand that farm economics and budgets vary widely between individual farm operations, as well as by year, as a result of a landscape of factors, from water availability to input costs.

Regionally, costs of production also vary considerably. One estimate put per acre cultural costs in Florida at around $1,600, whereas per acre costs in California hovered closer to $2,100. Many different factors contribute to the cost variations, though notably, in these estimates, labor costs where very similar. Production costs also vary substantially depending on whether the fruit is destined for fresh or processing markets.

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Citrus Costs

Though there are many fairly standard expenses on in a citrus operation, the magnitude of related costs varies widely based on geography, varieties grown, and weather among others.

  • Capital costs may include;
    • Land (rent or purchase)
    • Property alterations (like laser-leveling prior to grove planting)
    • Irrigation systems (including installation)
    • Initial tree plantings
    • Production and harvest equipment, facilities, and vehicles (including wind machines, vehicles, gypsum machines, etc.)
  • Variable costs may include;
    • Water (generally calculated per acre-inch)
    • Replacement trees (1-2% annually)
    • Energy and fuel costs
    • Equipment/facilities maintenance
    • Inputs (including fertilizer, pesticides and other crop protection, etc.)
    • Auditing, compliance, and inspections (often charged either per box or per acre)
    • Property taxes
    • Insurance
  • Harvesting costs
    • In many regions of the US citrus industry, harvest (from picking and packing to hauling) are tasks that are hired out by the grower. Prices are often determined per box, and vary due to a number of key factors, though primarily by citrus variety.
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      Source: Harvesting Charges for Florida Citrus

  • Labor costs
    • Labor is a major expense on most citrus operations balance sheets, though notably, advances in mechanical harvesting have led to dramatic increases in productivity in harvesting in orchards where fruit is destined or juicing. Notably, not all machines complete the full harvest task, but instead shake fruit onto the ground, where they then must be retrieved by a hand crew.
    • A citrus farm’s labor force is usually composed of a mix of salaried managers, directly hired full-time, part-time, and H-2A temporary workers, and indirect laborers who work for a hired labor/harvest contractor. Additionally, growers may also hire contracts like pest control or crop protection advisors, accountants, and others.
    • In California, minimum wage for agricultural workers is $15.50 an hour, with additional requirements around overtime and days off. Actual labor costs as predicted by UC Davis in California citrus groves is around $26/hour for machine operators and $21/hour for general laborers, including employers’ share of federal and state payroll taxes, workers’ compensation, and other benefits.
    • Based on estimates of citrus production in California, harvest time spent averages at about 66 hours/acre for oranges and grapefruit, 132 hours/acre for lemons, mandarins, and tangerines.
    • In Florida, minimum wage for agricultural workers is $10.00/hour, though industry observers indicate that most of the Florida citrus crop is harvested by H-2A workers, who are subject to being paid the current Adverse Effect Wage Rate (AEWRs) of $14.33 as of January 1st, 2023. Sponsors (farmers or labor contractors) must also pay for housing and transportation for H-2A workers.
    • Between California and Florida, California citrus is much more oriented towards the fresh market, meaning that the demand for hand-harvesting remains high in California citrus.
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      Source: Economic Impact of California’s Citrus Industry in 2020

Key Pressures on Citrus Growers

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Citrus Greening and Citrus Canker

The combined effect of Citrus greening (commonly known as Huanglongbing or HLB) and citrus canker have wrecked havoc on the US citrus industry, especially in Florida, since the mid-2000s.

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Source: Citrusgreening.org

The abnormally hard fruits that develop on trees infected by citrus greening taste bitter, have an unusual green color, and are therefore not fit for consumption or processing. The disease is incurable and lethal to infected citrus trees, usually within a few years, and has wiped out millions of acres of groves around the world. HLB has been detected in all citrus-growing regions of the US, but has not become an issue in commercial orchards in California.

More than 90% of Florida’s citrus trees have been effected by HLB, reducing production for the juice market by 72%, and causing more than 5,000 (of around 7,000) citrus growers to exit the industry alongside 2/3rds of all citrus processors in the state.

There are strategies to control the spread of the disease, including replanting healthy saplings, removing diseased trees, controlling pests, and carefully managing soil nutrients, this dramatically increases the cost of production (by some estimates by as much as 3x), often making it impossible for growers to remain economically viable, especially in juicing markets.

Scientists are making progress towards a solution that might provide an antibacterial antidote to trees infected with citrus greening, though commercialization is likely still years away. Gene editing and breeding for resistance offer other possible solutions in the future.

Another possible solution is adaptation, especially through the adoption of advanced production systems (APS), which compensate for the smaller and lower yielding characteristics of effected trees by increasing the density of orchards. This strategy has been show to result in higher efficiencies related to advanced fertigation, greater canopy growth, and fruit yields for less water and fertilizer inputs compared to conventional production systems.

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Source: Citrus Industry, UFL

Citrus canker is another contagious bacterial disease that has effected lime and grapefruit trees in particular, and an outbreak began in Florida in 1995.

These two diseases have led to the abandonment of at least 64,000 acres of orange groves in Florida.

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Shifting Consumer Demand

In the past, demand for oranges and orange juice were the key driver of the citrus market, followed by demand for grapefruit. However, in recent years, consumers have preferred fruits that are easier to peel, are segmented, and seedless, which has led to a rise in tangerine demand and production even while demand for and production of oranges and grapefruits continue to decline, respectively by 71% and 80%.

However, the most relevant shift in consumer preferences and related demand in recent years has been the fall in demand for orange juice. Despite the fact that US consumers tend to consume more juice than fresh fruits, health concerns, especially related to sugar content, has caused demand to fall. Though that trend holds true for oranges and grapefruit, but lemons and other citrus have seen a positive trend in fresh fruit and juice consumption.

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Source: Choices Magazine, Trends and Challenges Facing the US Citrus Industry

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Freeze Events

Freezing temperatures, especially persistent freezing temperatures, can cause severe damage to citrus groves, drastically reducing yield and damaging trees such that production can be effected in subsequent years.

Winter freezes have caused significant deleterious effects to groves both in California and Florida, with as many as four freeze events in the last decade.

Lemon trees in particular are exceptionally sensitive to frost, which is a key reason why much US lemon production takes place in Arizona and California, and much less in Florida, due to the risks of yield loses due to freeze events.

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Labor Issues

Labor shortages and high wages pose a threat to the US citrus industry, as labor often makes up 40%+ of a citrus groves operating expenses.

The costs of utilizing the H-2A program, or alternatively, the risks of hiring undocumented workers, have increased in recent years in all citrus markets.

There is growing pressure in Florida in particular. Though mechanical harvesting was common in the past in groves where fruit was bound for the juice market, mechanical harvests tend to do more damage to trees already impacted by citrus greening/citrus canker, and so there has been a general return to hand harvesting.

A 2020 Citrus Industry magazine story titled, “Harvesting Labor a Concern” included the following excerpt:

Peace River Valley Citrus Growers Association Executive Director Kait Shaw said some citrus harvesters could leave later this season. “We will see a potential problem when the other commodity crops are ready to be picked and those workers who were originally contracted will not be able to cross the borders, therefore leading to a bidding war over the laborers who are already in the state of Florida,” she said. “As of right now, the majority of our members are good with their availability.”
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Competition from Foreign Markets

Though markets around the world have also been impacted by citrus greening and citrus canker, US producers have found it particularly expensive to manage the costs associated with responding to the issue.

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Source: US Citrus Production: An Uphill Battle to Survive

As global competitors like Brazil, India, and China have seized greater and greater shares of the global market for citrus, the US’s ability to find scale and compete on price has becoming increasingly inhibited.

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Consideration for Automation and Mechanization in the Citrus Industry

There is a role for harvest mechanization and/or automation to address some challenges in the citrus sector. Harvest mechanization tools currently exist to support the citrus industry and have been in use for decades. However, these tools still can cause damage, especially to vulnerable trees. There are no autonomous harvesting tools that are currently commercially available to the citrus industry. Technologists designing for key issues in this field should consider unique features of the industry.

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General Considerations
  • All automation or mechanization tools will likely require long battery lives, sturdy, rugged construction, and other reliability refinements to deal with dusty field conditions and being used around the clock to travel relatively long distances.
  • In most cases, farmers rely on mechanics on-site and do not have access to electronic/robotic engineers.
  • Crews often do not speak English fluently and may not be able to read or write. Crew members may also not be uniformly able to communicate to each other due to language barriers.
  • High-speed internet and high-bandwidth cellular services are far from a given in rural areas.
  • Grove factors including row and tree spacing will vary, based on (among other things); variety, grove architecture, climate, and preferred management practices. The amount of space between rows affects sunlight penetration, canopy management, and equipment access.
  • Different varieties can have highly variable growth habits, vine vigor, and healthy canopy sizes. This can affect everything from row spacing to harvest practices.
  • Equipment and labor access are factors that are commonly considered when determining row spacing during the grove planning process, however, altering row spacing during the productive life of the grove is nearly impossible.
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Harvest Automation
  • Mechanical harvesters that shake either the trunk, limbs, or canopies of citrus trees can be utilized to fell fruit into the harvester or onto the ground where fruit can be retrieved more easily with hand pickers. However, these fruits are much more likely to be damaged, and therefore this method is primarily reserved for juicing fruit. Mechanical harvesting is more common in countries like Brazil, which dominates the global juicing market.
  • Though citrus skins can be quite durable and resistant to damage as compared to other fruits, they are still susceptible to damage from rough handling, and the need for high quality and storability for the fresh fruit market means that automation of harvesting itself is extremely difficult.
  • Harvest aids can help improve the productivity of the current workforce and relieve the need to do many of the most physically demanding tasks, including lifting and carrying heavy bags of citrus. Despite some productivity gains from platforms, picking aids, man positioners, etc., these tools are not common in the modern US citrus industry. Mobile platforms have been experimented with in some settings, though results suggested that productivity gains were minimal.
  • When it comes to mechanization of the harvest process, the identification and production of a successful abscission chemical to loosen the fruit from the hold of the stem is increasingly important to reduce damage.
  • Special bins, and other tools utilized to increase the efficiency of post-hand harvesting activities (like moving picked fruit around the field) are becoming increasingly common.
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Post-Harvest Considerations
  • Citrus that are to be consumed fresh must enter a cold chain immediately after harvest to ensure freshness, taste, and appearance as they travel from the grove to consumer’s tables. Post-harvest losses in citrus can be unusually high amongst fruit, reaching as much as 30-50% of production. Careful management of the cold chain is key, because chilling injuries and damage due to inappropriate storage temperatures and handling are a key contributor to losses.
  • This process generally starts with pre-cooling, where temperatures are rapidly brought to around 0-4°C or 32-39°F, and then remain within that range as an optimal storage temperature range. Other solutions, including ambient loading, are currently being studied to bypass the pre-cooling process.
  • Maintaining proper humidity levels is also key during the storage process, typically at around 85-95%.
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    Source: ResearchGate

  • Oranges can be stored, though chilling injury can occur during storage at low temperatures, and is often avoided through waxing or film-wrapping. Oranges, like all citrus, must be stored away from foods that absorb odors like eggs, apples, and butter. Grades and requirements for oranges vary from state to state and variety to variety.
  • Grapefruit can be stored for up to 6 weeks at 54 to 57°F with 85 to 95% relative humidity. Temperatures below 50°F will cause chilling injury. Grapefruits can be part of mixed loads as long as temperature, humidity, and ethylene levels are carefully monitored. Grapefruit do not ripen post-harvest, but ethylene can de-green a fruit to a yellow hue, but extended exposure to ethylene can lead to decay.
  • Lemons generally require about three weeks of curing to reach ideal color, though green lemons can be kept even longer. Very mature lemons may need less than a week to cure. Once sorted at the packhouse, lemons are washed and coated with fungicide and a thin wax layer. Ethylene can be used to de-green lemons. Lemons can generally be kept for up to six months between 54 and 57°F with 90 to 95% relative humidity.
  • Tangerines/mandarins, with their soft, peel-able skins, tend to spoil more quickly than other citrus. They can generally be kept for 2-6 weeks when stored between 42 and 46°F with proper ventilation and 90 to 95% relative humidity. Chilling injury results from exposure to temperatures below 41°F. “Storage length depends on cultivar, ripeness at harvesting, and decay control. Removing ethylene from vehicles and facilities used to transport and store the fruit reduces decay. Limited ethylene exposure is used for degreening, not ripening.”
  • It is critical to minimize handling and movement of citrus during the packing and shipping process to maintain the highest quality in the final product that arrives on retail shelves.
  • There are also critical food safety requirements that must be followed, both for it destined for fresh consumption and for processing. GAP or HAACP programs should be in place to avoid biological, chemical, and physical threats to food products. Programs include worker training, health, and hygiene requirements.
  • Quality concerns vary depending on the type of citrus involved, and each of the US’s productions regions (Florida, Texas, California, and Arizona) have their own specific grade standards.
  • Some of these issues are caused by in field and production issues, while others are caused (or worsened) by poor handling practices.
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Pruning and Spraying Automation
  • Pruning tasks are more standardized and less risky than harvesting tasks, and therefore a better target for automation and mechanization innovation.
  • Machine vision will likely be a critical component of these types of innovations, which could also extend into crop protection spraying of weeds and other pests at the in-field level.
  • Mechanical pruning equipment is most commonly used for shearing and topping groves, and can significantly cut down on pruning time requirements.
  • Autonomous sprayers are also becoming more commercially available recently, promising producers more efficient use of resources with less labor hours spent.

Benefits of Automation vs Manual labor:

  1. Reduced labor costs: Automation solves a critical challenge in the ag labor industry, and allows farms and farmers to complete harvest when labor is scarce.
  2. Improved working conditions: Automated harvesters can reduce the physical strain and repetitive motions associated with manual picking, leading to improved working conditions for employees and potentially reducing the risk of injury.
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Consideration for Pests and Disease

Pests and Diseases

Citrus production is susceptible to a range of pests and diseases that can impact fruit quality and yield, as well as tree health and long term viability of a grove.

The most costly and pervasive diseases in the US citrus industry are citrus greening (HLB) and citrus canker. For more on these two issues, see “Key Pressures on Citrus Growers - Citrus Greening and Citrus Canker” above.

Beyond these two critical diseases, there are other common pests and diseases that effect citrus production. These include:

  • Fungus, Diseases, and Viruses
    • Citrus Greening and Citrus Canker (see above)
    • Molds, including green, blue (in particular for mandarins/tangerines), pink, grey, and phytophthora mold, infect the surface of fruit and can spread by air.
    • Rot, including brown rot, alternaria, root, wood, and stem end rot, tends to be associated with high rainfall, restricted air, or water drainage. Fungicide can be used to protect fruits.
    • Others include anthracnose, blight, damping-off, dieback, fusarium, felt fungus, scab, sooty blotch, and “spot” disorders like black, leaf, greasy, and tar spot.
  • Insects
    • General citrus pests include;
      • Aphids, including brown and black citrus aphids, spirea or green citrus aphid, and the melon or cotton aphid, Asian citrus Psyllid, Whiteflies, including the cloudy-wing whitefly, citrus whitefly, bayberry whitefly, and the whoolly whitefly, citrus blackfly, and citrus mealybugs.
    • Key Grapefruit pests include;
      • Citrus leafminers, which create shallow tunnels in young leaves, aphids, which secrete a sticky substance and attract ants, as well as beetles, fruit flies, mealybugs, mites, moths, and thrips.
    • Key Lemon pests include;
      • Caribbean fruit fly and Asian citrus psyllid, which feeds on young stems and leaves and is known to transmit citrus greening. Additionally California red scale, brown citrus aphids, citrus leafminers, rust, red mits, and nematodes in soil.
    • Key Mandarins/Tangerine pests include;
      • Asian citrus psyllid, root weevils, light brown apple moths, aphids, leafminers, citrus rust mites, European earwigs, rose beetles, scale insects, glassy-winged sharpshooters, snails, thrips and fireants.
  • Weeds
    • In citrus groves, weeds compete with trees for nutrients, water and light, and can contribute to the growth and spread of insect and disease problems. Weeds also tend to contribute to greater frost risk— because the bear ground has a warming influence on trees.
    • Common broadleaf weeds include; common beggars-tick, lambsquarters, mexian tea, rag weed, wild geranium, goatweed, and pigweed, among others. Vine-weeds, grasses and sedges are also common.
    • However, managing weeds in a grove requires care to ensure it doesn’t lead to soil erosion or compaction, which can also have deleterious impacts on nutrients and water penetration. Repeated use of herbicides with the same mode of action can also lead to herbicide resistance.
    • Many different kinds of plant life may be present in the grove; including persistent perennial grasses like johnsongrass and bermudagrass, as well as perennial broadleaf weeds.
    • Alternatives to herbicide use include mulching, ground cover, and in rare cases, cultivation.
  • Vertebrates
    • Citrus groves can also face threats from small and large mammals, rodents, and birds.
    • Damage can range from direct damage to fruit (chewing, droppings on fruit) to damage to grove infrastructure (damage to irrigation hoses).
    • Ground squirrels and gophers are common problem species in California, which feed on plants and roots and can girdle and kill young trees. Additional damage can be done by mice, rats, rabbits, coyote, feral hogs, and starlings. Less common vertebrate damage may be caused by bear or beaver.
  • Nutritional Deficiencies and Toxicities are also a key issue to keep an eye out for.
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Consideration for Climate Change

Climate change and weather are having a significant impact on citrus production both domestically and globally, though the exact nature of these impacts in any specific region are difficult to accurately predict.

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Source: The future of citrus fruit

  1. Shifts in Growing Regions and Frost - The growth of citrus trees is limited by low temperatures and frost. Though climate impacts that lead to higher global temperatures will likely allow citrus to migrate further north and south beyond their historical range, a reduction in climate predictability will also likely lead to more extreme variations in year-to-year global production.
  2. Heat Stress and High Radiation - Higher global temperatures will likely lead to lower rainfall, greater heat stress, and therefore a greater need for irrigation in citrus, especially within the historical range. The optimal temperature range for citrus is between 22-34 degrees Celsius, and temperatures above that range tend to lead to smaller fruit that are more likely to fall from the tree before harvest. Fruit quality factors are also likely to be affected.
  3. Water Stress - Water stress related to drought, flooding, increased salinity, and altered pH can have significant impacts on citrus tree health and yield, and all of these factors are likely to be impacted by a changing climate. Too little water during fruit formation in particular tends to lead to decreased quality and yield. High saline concentrations in irrigation water (which is likely to become more common the more irrigation is required) can lead to multiple adverse effects to tree health, from curbed vegetative growth to leaf abscission to reduced photosynthesis. Similarly, soil flooding often inhibits citrus plant growth and development due to the depravation of oxygen to the roots.

“An increase in temperature and water stress at critical phenological stages of citrus results in reduced tree fruit set, decrease in fruit growth and size, increase in fruit acidity, low tree yield, reduced fruit peel thickness, and pre-harvest fruit drop.” — Waqar Shafqat, Summar A. Naqvi, Rizwana Maqbool, Muhammad Salman Haider, Muhammad Jafar Jaskani and Iqrar A. Khan, Climate Change and Citrus.

Additional considerations when it comes to citrus like grapefruit— warmer temperatures also lead to shorter flowering periods, and particularly dry weather tends to lead to thicker, rough rinds and low juice versus tress grown in higher humidity conditions.

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Additional Resources

UF/IFAS Citrus Research 2023-2024 Production Guide

California Citrus Growers Association

California Citrus Quality Council

UC Davis Fruit and Nut Information Center - Citrus

University of Florida - Florida Citrus Resources

UF/IFAS Citrus Agents Website

Huanglongbing (HLB)/Citrus Greening Disease Information (Florida Department of Agriculture)

Citrus Crop production - USDA

Navel Oranges, Price Report

Commercial Citrus Industry Preliminary Report

USDA Citrus Crop Report

California Total Reported Citrus Acreage Up Slightly

World Citrus Organization 2021/22 Figures

USDA - Citrus: World Markets and Trade [Main Link]

USDA - Citrus: World Markets and Trade 2

FAO Markets and Trade - Citrus

Orange Market Size - Mordor Intelligence

US Citrus Production: Uphill battle to survive (FB)

World Citrus Organization Public Reports

Trends and Issues Facing the US Citrus Industry