Florida Citrus Industry Wants U.S. Bailout: 90 million gallons of orange juice

AP ^ | 10/30/03 | Mike Schneider

[Pikamax]

Florida Citrus Industry Wants U.S. Bailout of Oversupply Problem By Mike Schneider Associated Press Writer

LAKELAND, Fla. (AP) - The Florida Department of Citrus wants the federal government to buy 90 million gallons of orange juice to help ease an oversupply problem caused by the largest orange crop in the state's history. The agency wants the federal government to buy the juice under the USDA Commodity Purchase Program, which has a $1.14 billion budget to help growers and farmers, Bob Crawford, executive director of the Florida Department of Citrus, told members of the Florida Citrus Commission on Wednesday.

Because of the bumper crop, growers are expected to get a lot less for their fruit this season. Last season, growers got 90 cents per pounds solid of juice. This season, they're only expected to get in the range of 65 cents to 85 cents per pounds solid.

The federal government would then send the juice to schools for free lunch programs or ship it overseas for aid programs. The federal government purchased 34 million gallons of Florida orange juice last year.

"There are a lot of people in Iraq who have never had orange juice," Crawford said.

The citrus department has enlisted Gov. Jeb Bush to persuade federal agriculture officials to approve the purchase, which is estimated to cost $240 million. Bush's connections as the president's brother will be helpful, Crawford said.

"It is the governor's brother's department," he said.

Florida growers are expected to produce 252 million 90-pound boxes of oranges this season, almost 25 percent more than last year. On top of the large crop, the industry has about six months worth of inventory carried over from last season.

Meanwhile, orange juice sales from major retailers have declined from 654 million gallons in 2000 to 602 million gallons last year.

"If we don't start to dig our way out of this situation, the weight is going to be greater next year," said Andrew Taylor, chairman of the Citrus Commission.

The purchase of 90 million gallons of orange juice would be the equivalent of between 14 million and 15 million boxes.

"This pulls potentially 15 million boxes of stranded fruit off the market," said Christopher Gargano, a commission member.

Commission members were exploring other ways to help growers. A vote to reduce by a half a cent a 15 cents-per-box tax on oranges headed for the juice processor was postponed until next month. Money generated from the tax on Florida growers pays for a large portion of the Department of Citrus' proposed $71 million operating budget.

"The half cent reduction ... would let growers know we understand what they're going through," said J.D. Alexander, a commission member.

AP-ES-10-29-03 2154EST

[dagar]

Two words for the whiners: triple-sec

[farmfriend]

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[secretagent]

No.

[Paleo Conservative]

Grand Marnier

[xrp]

I'll try to help them out and buy more orange juice and oranges.

[July 4th]

"There are a lot of people in Iraq who have never had orange juice," Crawford said.

Well, we are probably providing food to some Iraqis anyways. If the government is going to be buying something anyhow, we might as well have it serve a dual purpose. The question is, would they even like it? Certain cultures just don't get some Western foods. For example, the Chinese people I know come close to vomiting when I eat yogurt.

[sandpit]

I haven't seen the prices go down much.

[tubebender]

That's a lot of Vodka Screwdrivers but I'm willing to do my part...

[longtermmemmory]

In the meantime the industry also wants all privatly held florida citrus trees cut down (with no reimbursement/compensation or warrants).

[lelio]

Money generated from the tax on Florida growers pays for a large portion of the Department of Citrus' proposed $71 million operating budget.

What is the "Department of Citrus"? Do they define what an orange is? Why do they need $71M a year to do so?

[byteback]

Looks like a supply and demand issue. Reduce prices and get more people to eat Oranges. How 'bout the gov't using the already funded school luch program to feed kids OJ?

[Chancellor Palpatine]

The Florida Department of Citrus is an incredible boondoggle. It is a government entity which has the conflicting missions of marketing Florida Citrus products by lumping everyone into a price fixed cartel, all while regulating standards of production. It is a true monopoly in every sense of the word. It isn't a respecter of political parties, either, both Reps and Dems in Florida have to grovel before it.

[Chancellor Palpatine]

I forgot the best part - the FDOC has pretty well locked up every possible trade name involving the words "Florida", "Orange", "Citrus", "Fresh" and anything else involving that industry, so a producer can't even wildcat it if he expects to be able to sell outside the state.

[kenth]

Lower the prices and I'll buy a lot more orange juice. But, I guess that's not the answer they're looking for is it. Why lower the prices when they can sell it for their asking price by hijacking us through government force.

[glorgau]

Farmers with their hands out again.

[Ron in Acreage]

Hey OJ growers! Quit producing so much. Will the gov buy anything else that is over produced? How about TVs, cars, boats, PCs? The pres should tell Jeb to start drinking and cut prices to incite more sales. Not forced sales with my tax dollars.

[ETERNAL WARMING]

Two more words: Corporate welfare.

[polemikos]

I'll buy a couple gallons.

[E.G.C.]

BTTT!!!!