During the Florida Citrus Commission meeting, the Florida Department of Citrus's Director of Economic and Market Research, Marisa Zansler, discussed the economic framework for citrus replanting. The strategy emphasizes investment in grove restoration, supported by Florida-centric marketing and infrastructure, to stabilize and ensure the industry's longevity.
A replanting strategy is proposed, utilizing state funding to restore approximately 25,625 acres with nearly 4.5 million new orange trees over three years. The establishment cost is estimated at $4,176 per acre, with meaningful harvests expected by year five.
By year ten, the funding investment is projected to yield an annual output of 7 million boxes at full productivity. Over a 20-year perspective, average annual additional production is forecasted at 7.7 million boxes. The total estimated net block income from processed oranges is projected at $225.4 million over the period.
The analysis prioritizes the processed juice market, incorporating ongoing grower costs, such as caretaking and harvesting, which may reach nearly $2,000 per acre annually. This underscores growers' financial stake in the industry's long-term prospects.
The projections adopt a conservative stance, factoring in new yields from replanting efforts. Blocks with irrigation support higher-density plantings, potentially enhancing yields. The current projections focus on processed orange utilization; future analyses will include the fresh sector for all varieties. The framework sees replanting as a public/private capital collaboration.
Source: Citrus Industry