Fruit and Tree Nuts YEARBOOK -- SUMMARY October 26, 2006 October 2006, ERS-FTS-2006 Approved by the World Agricultural Outlook Board --------------------------------------------------------------------------- This SUMMARY is published by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036-5831. The text of the yearbook will be available electronically shortly after this summary release. --------------------------------------------------------------------------- Fruit and Tree Nut Production At 13-Year Low in 2005 Total fruit and tree nut production, at 31.4 million tons, was down 10 percent in 2005 from 2004 and the lowest in 13 years. Smaller citrus and tree nut crops offset a 9-percent increase in the noncitrus crop. In 2005, the orange crop was down 28 percent and grapefruit crop was down 53 percent from the previous year. Apple, peach, and pear crops were also smaller in 2005 than 2004. At the same time, grape and strawberry crops set record highs. Tree nut production has been growing rapidly throughout the new century, but slowed in 2005. While the total crop was down 3 percent from 2004, it was still bigger than any crop prior to 2002/03. A 9-percent drop in the 2005 almond crop due to adverse weather conditions contributed strongly to the overall decline. The almond crop typically accounts for about two-thirds of total tree nut production in a given year. Hazelnut and pistachio production was also down from the previous year. On the other hand, the walnut crop set a record high in 2005 with 316 million pounds produced, and the pecan crop was about one-and-a-half times the size of the previous crop. The value of the 2005 fruit and tree nuts crops reached a record $16.2 billion, 8 percent above 2004. The citrus crop was valued at $2.3 billion, noncitrus at $10 billion, and tree nuts at $4 billion. Although returns were down for citrus despite generally higher grower prices, tree nut and noncitrus returns were record highs. In 2005, the noncitrus crop accounted for 61 percent of the total value, citrus for 14 percent, and tree nuts for the remaining 24 percent. The citrus crop's share of the total returns continued to decline since the start of the new century. At the same time, the tree nut crops share of the total continued to grow, jumping from just about 12 percent in the late 1990s and early 2000s to almost a quarter of the returns in 2004 and 2005. Bearing Acreage Continues To Decline for Citrus and Noncitrus Crops, but Not for Tree Nuts The number of bearing acres planted to citrus and noncitrus trees declined in 2005, as they have throughout the 2000s. In 2005, there were 945,700 acres with commercially productive citrus trees, the lowest since 1992 and down 4 percent from 2004. Grapefruit acreage fell 10 percent to 103,000 acres, the eighth consecutive year of decline. Orange acreage fell 3 percent to 737,600 acres, and lemon acreage fell 2 percent to 58,500 acres. Tangerine acreage, however, increased 3 percent to 37,300 acres and is expected to increase in the coming years in California as recent plantings of various varieties of tangerine and tangelo trees come into production. Noncitrus acreage declined less than 1 percent between 2004 and 2005 to 2,094,950 acres. Increased acreage in 2005 for grapes, sweet and tart cherries, strawberries, Hawaiian pineapples and papayas, and nectarines offset declining acreage for apples, peaches, pears, plums and prunes, apricots, cranberries, Hawaiian bananas, and California figs, avocados, and dates. Acreage remained the same between the 2 years for California kiwifruit and olives. Tree nut acreage continued to increase, as it has since 1996. Between 2004 and 2005, bearing acreage was up 3 percent for all tree nuts. Almond acreage increased 2 percent to a record 580,000 acres, 61 percent of all reported tree nut acreage (acreage data are not available for pecans). Pistachio acreage increased 13 percent to 105,000, the highest ever. Macadamia nut and walnut acreage each increased about 1 percent between 2004 and 2005, and hazelnut acreage declined fractionally. Growers' Cash Receipts Hit All-Time High in 2005 Total cash receipts by fruit and tree nut growers reached $16.8 billion in 2005, 6 percent above 2004 and the third consecutive year of record highs. Most growers received higher returns except for oranges, apples, avocados, plums and prunes, strawberries, and Hawaiian pineapples. At the retail level, the Consumer Price Index (CPI) for fresh fruit was up 4 percent in 2005 to 297.4 (1982-84=100). Consumers paid higher prices for all fresh citrus--grapefruit, lemons, navel oranges, and Valencia oranges, as well as Thompson seedless grapes and peaches. Among the fresh fruits surveyed by the Department of Labor's Bureau of Labor Statistics for the CPI data, fresh banana, Red delicious apple, and fresh strawberry prices declined in 2005. Anjou pear price data were not available in 2004 to make a comparison. Fruit Consumption Down in 2005 U.S. fruit consumption averaged 281.8 pounds per person (fresh-weight equivalent) in 2005, down 2 percent from 2004. Americans consumed more noncitrus fruit products in 2005, but reduced their consumption of citrus fruit. Noncitrus fruit accounted for 63 percent of all fruit and nut consumption and showed the strongest increase, rising 2 percent to 179.4 pounds per person. At the same time, citrus fruit consumption declined 7 percent to 99.7 pounds per person. (Data for this analysis are based on the 2004/05 marketing year for citrus fruit and the 2005/06 marketing year for noncitrus fruit.) Fresh fruit: Fresh fruit consumption fell 4 percent in 2005 to 99.6 pounds per person, the lowest since 2002. Increased consumption of fresh oranges, limes, apricots, avocados, table grapes, kiwifruit, pineapples, and strawberries were not enough to offset decreased consumption of fresh bananas, apples, grapefruit, lemons, tangerines and tangelos, blueberries, cranberries, cherries, mangos, peaches and nectarines, pears, papayas, and plums and prunes. Americans still consume more bananas than any other fresh fruit. Banana consumption, however, declined for the third consecutive year, dropping to 25.14 pounds per person in 2005, down 2 percent from 2004. Even with the decline, banana consumption accounts for about one-third of all fresh fruit consumed by the average American. Fresh apples remained America's second favorite fresh fruit. Apple consumption declined 10 percent between 2004 and 2005, but at 16.92 pounds per person it still held its second place ranking among fresh fruit consumed in the 2000s. Apples accounted for almost a quarter of all fresh noncitrus fruit consumption, and 17 percent of all fresh fruit consumption. Fresh oranges still are the third most consumed fresh fruit, and are the number one fresh citrus. Orange consumption increased between 2003/04 and 2004/05 by 6 percent. A 28-percent bigger orange crop in California in 2004/05, where most of the fresh-market oranges are produced, drove up the amount of fruit available for consumption. Canned fruit: Canned fruit consumption averaged 14.46 pounds per person in 2005 (product-weight equivalent). Since there are no stock data for canned fruit, consumption data is best analyzed on a 2-year basis. Consumption for 2004-05 averaged 14.65 pounds per person, down 2 percent from 2002-2003 and the lowest consumption in at least the past 25 years. Based on the 2-year average, the overall decline in canned fruit consumption can be attributed to lower use of canned peaches, pineapples, and pears, three of the top four canned fruit consumed in the United States. Canned apples, mostly in the form of apple sauce or apple slices for pie filling increased 6 percent to 3.62 pounds per person in 2004-05. Canned olive consumption also increased during this time to an average of 1.44 pounds per person, the highest in 14 years. Frozen fruit: Per capita frozen fruit consumption rose 17 percent in 2005 from the previous year, averaging 4.25 pounds (processed weight). Consumption of all frozen fruit except apricots and peaches increased compared with the previous year. Frozen peach consumption remained unchanged and apricot consumption fell 20 percent. Berries accounted for 67 percent of all the frozen fruit consumed in 2005. Consumption of frozen strawberries, the major frozen berry category, increased 20 percent to a record 2.07 pounds per person. Consumption rose for all other frozen berries as well. Dried fruit: In 2005/06, dried fruit consumption declined to 2.23 pounds per person (processed weight), 5 percent less than in 2004/05. On a 2-year basis to account for a lack of stock data for many of the dried fruit, consumption declined 6 percent between 2002/03-2003/04 and 2004/05-2005/06. Consumption increased 2 percent for raisins (which typically account for about two-thirds of all dried fruit consumed), 14 percent for dried apricots, and 60 percent for dried peaches. These increases, however, were not sufficient to offset the declines in prune, fig, and date consumption during this time period. Fruit juice: Americans drank 8 percent less fruit juice in 2005/06 than in 2004/05, consuming 7.6 gallons per person, the lowest quantity since 1989/90. Consumption fell for all fruit juices except grape and lime. While orange juice continues to be the number one fruit juice consumed in the United States, consumption has been declining in recent years. In 2005/06, low beginning stocks, a decline in production of orange juice due to a hurricane-shortened Florida orange crop, and strong export demand reduced consumption by 11 percent to an average of 4.3 gallons per person. Grape juice consumption, on the other hand, increased 36 percent to 0.53 gallon per person. A 56-percent increase in the production of grapes for juice, along with strong imports, increased supplies in 2005/06 to set record consumption. Tree nuts: Tree nut consumption fell 22 percent to 2.7 pounds per person (shelled basis) in 2005/06, the lowest since 2000/01. Americans ate fewer almonds, walnuts, pistachio nuts, macadamia nuts, hazelnuts, and other nuts--mostly imports such as cashews, Brazil nuts, and pine nuts. Only pecan consumption rose due to larger supplies from the on-cycle of the trees' alternate-bearing nature and near-record imports. Adverse weather conditions in California in 2005 reduced the almond crop to its lowest amount since 2001/02. At the same time, export demand was very strong, further reducing the availability of almonds for domestic consumption. As a result, U.S. almond consumption fell 40 percent between 2004/05 and 2005/06 to 0.53 pound per person. Pistachio consumption fell 18 percent between the two seasons to 0.23 pounds per person, mostly due to the smaller crop during the nut trees' off cycle. On the other hand, while the walnut crop in 2005/06 was the biggest on record, very strong demand from Europe (due to crop shortages there) drove up exports 51 percent and drew down domestic supplies by 20 percent, leaving 126 million pounds available for the domestic market, the smallest quantity since 2001/02.