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 Citrus
Commission Update
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The Florida Citrus Commission met Wednesday, March 16, 2005 at
the Department of Citrus in Lakeland. The following actions were
noted.
 The
FCC evaluation panel comprised of industry economists released a
lengthy technical report finding generic promotions of orange
juice beneficial to Florida citrus growers. The report provides
a cost benefit analysis at the delivered-in level and compares
citrus results with other generic advertising programs.
The
panel found the return to growers for every $1 spent on generic
advertising fell between $2 and $4.
One
model used by the panel shows generic advertising also creates
almost 10,000 jobs in Florida and for every dollar spent the
state receives nearly a $27 benefit.
Florida
growers get 70-80% of the benefits from generic advertising.
Free-riders,
entities such as Brazilian processors that don’t pay the box tax
yet received benefit of the advertising, get 20-30% of the
benefits.
The
generic advertising panel will finish the final version of its
study in the coming weeks. For copies contact the FDOC at (863)
499-2500.
The
recall of FDOC orange juice ads is increasing as demand is
growing, according to the Department’s director of economic and
market research. A recent update of the Data Development
Worldwide report showed recall of FDOC advertising was up to 67%
from 64%.
Recallers
of ads have a significantly higher intent to purchase than non-recallers,
indicating the ads are driving people to buy orange juice.
In
addition, the latest AC Nielsen report shows prices for
refrigerated juice jumped 2.2 percent versus the same period
last year while sales are down only .2%, indicating the market
is strengthening.
The
2005-2008 FDOC Strategic Plan was unveiled with an overall goal
of growing the market for Florida citrus products. The plan will
be sent to the industry for comment and the Commission will vote
on it in April. The plan details goals for FDOC marketing,
research, regulatory functions and fiscal responsibility.
The strategic plan also proposes a change in the FDOC mission
statement to: “Grow the market for the Florida citrus industry
to enhance the economic well-being of the Florida citrus grower,
citrus industry and the state of Florida.” The current mission
statement is “To enhance the welfare of the Florida citrus
grower and the groves they operate” was adopted march 17, 1993.
Commissioner Pat Carlton recognized this as an opportunity to
update how the department is funded, recognizing the benefit
received from the activities of the Department as presented in
the generic advertising report discussed earlier in the
meeting. Identified “free riders” such as the State of Florida
and both |
Brazilian
and domestic processors should be considered for a portion of
the cost, instead of growers solely through the box tax.
The
Florida Department of Citrus will offer the hundreds of media
personnel covering the Sun ‘n Fun Fly-In tours of the state’s
citrus industry. The free tours, which will take place in
mid-April coinciding with the Fly-In, will show the media citrus
packinghouses, processing plants and working groves. The goal is
to increase awareness of the Florida citrus industry and its
products.
The
FDOC’s international marketing team organized a successful
grapefruit media tour in Canada featuring public relations
manager with the Department. Canada is the 3rd
largest export market for Florida citrus fruit.
Florida
citrus growers have teamed up with fruit packers and sales
agents nationwide to raise funds for the Hurricane Farm Worker
Relief. Through the collaborative effort, a donation of up to
$1 million raised from $.25 per carton of specially-marked
Florida oranges sold at participating retailers will be
donated. The program provides participating retailers with
point of sale and public relations materials.
Mystery
diners from the Florida citrus industry are now visiting more
than 200 participating Denny’s and Perkins restaurants across
the state giving cash prizes to wait staff who offer customers
orange juice. If you would like to be a mystery diner or want
to know the location of participating restaurants please call
Amy Carpenter at (863) 499-2500.
The
America’s Breakfast Council public relations program is gaining
successful results. The Council’s advisory board consists of
expert medical professionals, researchers and nutritionists who
can serve as leading authorities on orange juice’s vital place
at the breakfast table. The Journal of the American Dietetic
Association has agreed to publish in its May edition a
comprehensive breakfast review paper authored by the advisory
board.
Grapefruit
juice sales are down 33% due to retail price increases.
Approximately 15% of drinkers have switched to purchasing
frozen concentrate grapefruit juice. Others have been lost to
competitive products.
The next Commission meeting will
be April 20, 2005 beginning at 9 am at the Department of Citrus
in Lakeland.
Expo Planning Begins
The Southwest Florida Expo
Committee has already begun its planning of the August 2005
Expo. The Expo is organized through a partnership of Gulf
Citrus Growers Association and Citrus Industry magazine. New
magazine owners, Southeast AgNet are excited about continuing
the tradition.
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