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VOLUME 63, ISSUE NUMBER 12, APRIL 5, 2013 Florida Citrus Mutual is working to help growers take advantage of the demand for citrus in Korea and Japan as tariffs in those markets decline and make Florida citrus more marketable. Since the U.S.-Korea Free Trade Agreement (KORUS) became effective in March 2012, U.S. sales of Florida orange juice have increased sharply because the tariff on FCOJ dropped from 52% to zero making it an economi- cal option to Brazilian juice. Consequently, U.S. exports of orange juice to Korea more than tripled in the six-month period after KORUS (from $8.2 to $23.6 million). Because this tariff benefit applies strictly to juice made from 100% U.S. fruit, Ko- rean customs officials have raised issues about proof of origin. Mutual’s legal counsel is assisting our members in satisfying those documentation requirements. On another Far Eastern trade front, Japan has notified the United States of its intent to join the Trade Partnership of the Pacific (TPP) negotiations, which should be completed by the end of 2013. The TPP is a regional free trade agreement which includes the U.S., Australia, New Zealand, Canada, Mexico, Peru, Singapore, and Vietnam. The negotiations could result in re- ciprocal tariff elimination including the 10% fresh grapefruit tariff. Getting rid of the tariff could lead to an increase in fresh Florida grapefruit exports. Mutual continues to monitor the negotiations. In addition, Mutual has been working with other trade associations to implement rapid dispute resolution based on sound science for any sanitary and phytosanitary restrictions. Mutual Working on Trade Issues Affecting Florida Citrus From The Florida Current A bill that was shaping up to be the most controversial fight over water in the legislative session now has support from environmental groups that were opposing it. SB 948 by Sen. Denise Grimsley, R-Sebring, would place the Depart- ment of Agriculture and Consumer Services on par with utilities in water supply planning. The bill is a priority of Agriculture Commissioner Adam Putnam. Agriculture department officials said the bill would help ensure water is available to support agricultural jobs and to ensure that estimates of water use are standard across water district lines. Environmental groups, though, said they were concerned the bill would place a priority on agricultural water use at the expense of springs, Grimsley’s Ag Water Bill Wins Support from Former Foes June 12-14, 2013 Hyatt Regency Coconut Point, Bonita Springs, FL Hotel rooms can also be booked by calling 888.421.1442 9th Annual Florida Citrus Industry Annual Conference (Please see Water continued on page 2)
Transcript
Page 1: Florida Citrus Industry Annual Conference · 2013-04-05 · Florida Citrus Mutual is led by a 21-member board of directors from across the state that set the organization’s direction

VOLUME 63, ISSUE NUMBER 12, APRIL 5, 2013

Florida Citrus Mutual is working to help growers take advantage of the demand for citrus in Korea and Japan as tariffs in those markets decline and make Florida citrus more marketable.

Since the U.S.-Korea Free Trade Agreement (KORUS) became effective in March 2012, U.S. sales of Florida orange juice have increased sharply because the tariff on FCOJ dropped from 52% to zero making it an economi-cal option to Brazilian juice.

Consequently, U.S. exports of orange juice to Korea more than tripled in the six-month period after KORUS (from $8.2 to $23.6 million). Because this tariff benefit applies strictly to juice made from 100% U.S. fruit, Ko-rean customs officials have raised issues about proof of origin. Mutual’s legal counsel is assisting our members in satisfying those documentation requirements.

On another Far Eastern trade front, Japan has notified the United States of its intent to join the Trade Partnership of the Pacific (TPP) negotiations, which should be completed by the end of 2013. The TPP is a regional free trade agreement which includes the U.S., Australia, New Zealand, Canada, Mexico, Peru, Singapore, and Vietnam. The negotiations could result in re-ciprocal tariff elimination including the 10% fresh grapefruit tariff. Getting rid of the tariff could lead to an increase in fresh Florida grapefruit exports. Mutual continues to monitor the negotiations. In addition, Mutual has been working with other trade associations to implement rapid dispute resolution based on sound science for any sanitary and phytosanitary restrictions.

Mutual Working on Trade Issues Affecting Florida Citrus

From The Florida Current A bill that was shaping up to be the

most controversial fight over water in the legislative session now has support from environmental groups that were opposing it.

SB 948 by Sen. Denise Grimsley, R-Sebring, would place the Depart-ment of Agriculture and Consumer Services on par with utilities in water supply planning. The bill is a priority of Agriculture Commissioner Adam Putnam.

Agriculture department officials said the bill would help ensure water is available to support agricultural jobs and to ensure that estimates of water use are standard across water district lines. Environmental groups, though, said they were concerned the bill would place a priority on agricultural water use at the expense of springs,

Grimsley’s Ag Water Bill Wins Support from

Former Foes

June 12-14, 2013 Hyatt Regency Coconut Point, Bonita Springs, FL

Hotel rooms can also be booked by calling 888.421.1442

9th Annual

Florida Citrus Industry Annual Conference

Register Online Now for the Conference & Hotel Rooms at www.flcitrusmutual.com!

Make your hotel reservation before May 1st for the $138 per night rate! After May 1st rates increase to $159 per night!

(Please see Water continued on page 2)

Page 2: Florida Citrus Industry Annual Conference · 2013-04-05 · Florida Citrus Mutual is led by a 21-member board of directors from across the state that set the organization’s direction

Florida Citrus Mutual is led by a 21-member board of directors from across the state that set the organization’s direction and policies. Elected in May, Directors serve one-year terms and are formally inducted each year at Mutual’s Annual Meeting in June. Over the next year, the Triangle will feature each Director in order to offer members a glimpse in to the lives and businesses of these important industry volunteers. Louis Haverlock, owner and president of Lou Ross Citrus, Inc., has represented growers in Pinellas and Hillsborough counties in the District 5 seat since 2000.

Originally from Maine, Haverlock has lived in Florida for the past 42 years. He and his wife of 20 years, Rosslynn, live in Brandon just outside of Tampa.

A father of six and grandfather of fourteen, Haverlock likes all sports and played high school football, along with competing in track and field. Along with his grandsons, Haverlock has been participated competitively in shooting and archery disciplines.

Triangle: Can you give us some background on your involvement in the citrus industry, as well as on your company/organization and your position within the company?Haverlock: I’ve managed citrus throughout Florida, specializing in lemons and grape-fruit in the early years. I worked with Ken-Way Groves and Big Cypress Citrus for eighteen years, living on the Seminole Indian Reservation in Hendry County. In 1988 Agriculture Management Service took over the groves and I went on to FPL before going to Turner Food Corp., which moved me to Stuart, FL. In 1997 I started my own management company, Lou Ross Citrus, Inc., becoming the owner/president and a citrus grove owner myself. Lou Ross diversified with some row crops between 2001 and 2011, growing green beans and adding a cattle ranch in Volusia County. We’re currently growing about 5,000 plants of High Bush Blueberries as well. Triangle: What led you to want to serve on the Florida Citrus Mutual Board?Haverlock: In 1994 I went to work for Grady Sweat (Balm Grove Services, Inc.) and became VP of harvesting operations, where I met a lot of people from the west coast. One person I met was Bill McMullen, a longtime director of Mutual. As Bill slowed down and planned to retire in 1999, he asked me if I would accompany him to a board meeting, which I was glad to do.

Triangle: What has been the most challenging aspect of being on Mutual’s Board?Haverlock: My biggest pet peeve is growers not paying their dues year after year but still taking advantage of other grower members, creating free riders. Triangle: Where do you see Mutual and our industry in the next five years?Haverlock: Acreage and membership will be reduced by governmental regulations, and effective safety programs will make big growers bigger and small growers unable to keep pace financially. Mutual will survive, maybe not with quite as big of a war chest, but with support from its members, board and staff, Mutual can and will take care of the industry’s problems one after another, day after day. Triangle: Please tell our growers something about Mutual that only an insider may know.Haverlock: Somthing that everybody knows, but may not want to talk about, is the little clicques within Mutual; like Fresh vs. Processor, Grapefruit vs. Orange, East vs. West and DOC vs. Mutual. Over the 13 years on the board it’s gotten a lot better.

wetlands and streams during droughts.Florida Citrus Mutual supports the bill.A series of amendments offered by Grims-

ley on Monday in the Senate Committee on Agriculture won support from opponents. The bill passed with support from The Nature Con-servancy, Sierra Club Florida, Audubon Florida and the Florida Wildlife Federation.

“The sponsor, Denise Grimsley, took a con-troversial subject and brought people together to resolve the other issues and demonstrated what is often missing in these environmental debates: a willingness to really sit down and give people a chance to talk through things,” said Eric Draper, executive director of Audubon Florida.

The amendments put forth by Grimsley en-sured that water conservation be factored into projections of agricultural water use and water projects on private lands. They also ensured that water supply projects on private lands meet the state “public interest” test for water use and don’t harm existing users.

District 1 (Old District 1 & 2 Combined): 1 p m on Tuesday, April 16, 2013 at the W H Stuart Ag Center in Bartow

District 1 is composed of Hillsborough, Pinellas, Pasco, Polk, Hernando, Citrus, Sumter, Lake, Orange, Osceola, Seminole, Marion and that part of the Counties of Brevard and Volu-sia not included in Regulation Area II (Indian River District)

District 2: 1 p m on Wednesday, April 17, 2013 at the Linda Lou Ranch, 3810 Hwy 17 South, Zolfo Springs, Florida

District 2 is composed of Manatee, Sarasota, Hardee, Highlands, Okeechobee, Glades, De Soto, Charlotte, Lee, Hendry, Collier, Monroe, Dade and Broward.

District 3: 1 p m on Tuesday, April 30, 2013 at the Indian River Citrus League Office in Vero Beach

District 3 is composed of St. Lucie County and that part of the Counties of Brevard, Indian River, Martin, Palm Beach and Volusia

Any questions contact Duke Chadwell at 863-670-0278 or [email protected]

CAC Sets Grower Nomination Meetings

(Water continued from page 2)

Page 3: Florida Citrus Industry Annual Conference · 2013-04-05 · Florida Citrus Mutual is led by a 21-member board of directors from across the state that set the organization’s direction

Report #24 for Week Ending 3/16/13Florida Processor Report Summary (Oct-Sep)

The nominees for the 2013-14 Florida Citrus Mutual Board of Directors have been submit ted and certified. Mutual members will vote on the following nominees at the upcoming elections which will coincide with Mutual’s yearly Area Meetings across the state in late April and early May.

District 1 (1 Director): David Evans, Sr.

District 2 (1 Director): George Neukom, III

District 3 (1 Director): Rex Clonts

District 4 (2 Directors): Robert E. Battaglia and Richard H. Freeman

District 5 (1 Director): Louis Haverlock

District 6 (4 Directors): Larry Black, Dennis Broadaway, Kenny DeVane and Vic Story

District 7 (3 Directors): Kevin Bynum, Michael Monroe, and Trey Smith

District 8 (2 Directors): Fran Becker and Steve Sorrells

District 9 (3 Directors): John Barben, Steve Johnson, and Charles J. Wilson, III

District 10 (3 Directors): Bryan Beer, Paul Meador, and Mark Wheeler

All seats for the 2013-14 Board of Directors are uncontested.

Grower members unable to attend the elections may request an absentee ballot by calling 863.682.1111 or writing to Florida Citrus Mutual, 411 E. Orange St., Lakeland FL 33801 before April 10th. All absentee ballots must be completed and returned to Mutual by April 15th.

This year’s Area Meetings and elections will begin at 11:30 a.m. with lunch served, and will be held at the following locations:

April 16th – Districts 5 & 6 – WH Stuart Ag Center, 1702 US Hwy. 17 South, Bartow

April 17th – Districts 8 & 9 – Jay Clark’s Ranch ‘The Linda Lou’, Zolfo Springs

April 25th – Districts 1, 2, 3 & 4 – Lake County Ag Center, 30205 SR 19, Tavares

April 30th - District 7- Indian River Citrus League, 505 66th Ave. SW, Vero Beach

May 2nd – District 10 – TBD

For more information on the Area Meetings and elec tions, please call 863.682.1111.

Slate Set for 2013-14 FCM Board Elections Florida Processor Report Summary (Oct-Sep)

Report #24 for Week Ending 3/16/13

2012-13 2011-12 2012-13 2011-12CONCENTRATE FCOJ(42 Brix) FCGJ(40 Brix)

Week To Date Week To Date Week To Date Week To Date1000 box 1376 31347 2696 41737 418 3856 530 5672Gals/box 1.728 1.533 1.666 1.547 1.214 1.254 1.303 1.342Pack from (1,000 Gallons)Fruit 2,375 48,039 4,492 64,564 510 4,837 691 7,612Imports 823 24,752 585 14,389 0 3 0 0Chilled Juice 0 804 63 784 3 15 0 186Other* 2 298 (14) 1,076 8 (36) 13 (13)Movement (Includes bulk concentrate converted to Chilled Recon)Export 168 7,182 111 5,794 74 1,111 133 1,786Domestic 2,101 45,180 2,288 48,294 150 2,390 64 2,250Total 2,269 52,363 2,399 54,088 224 3,502 196 4,037Package 532 10,852 573 11,499 0 48 3 54Bulk 1,737 41,511 1,826 42,589 224 3,453 194 3,983Inventory 82,678 78,354 6,947 8,438

Bulk White 2,671 3,568* Includes domestic receipts, Reprocessing gain(loss), FCTJ Bulk Red 4,256 4,857

CHILLED JUICE OJ(11.8 Brix) (SSE) GJ(10.0Brix)Week To Date Week To Date Week To Date Week To Date

1000 box 1486 40046 2595 43679 327 2988 166 3544Gals./box 6.511 6.113 6.590 6.214 5.641 5.672 5.723 5.988Pack fromFruit 9,670 244,684 17,094 271,409 1,850 16,925 960 21,225Imports 117 27,551 49 17,240 0 0 0 0Concentrate 554 11,788 330 8,805 0 671 0 266Other* (97) (7,250) (350) (2,371) 0 486 92 855Movement (Excludes bulk NFC converted to concentrate)Export 272 7,182 428 9,621 58 2,405 35 1,561Domestic 10,282 242,595 9,747 227,396 590 8,647 370 7,977Total 10,554 249,776 10,175 237,017 647 11,052 405 9,538Package 9,329 221,302 8,950 211,283 324 8,277 347 7,653Bulk 1,224 28,474 1,224 25,734 324 2,775 58 1,884Inventory 210,330 237,619 20,983 26,289

DELIVERED-IN PRICES for PROCESSED FRUIT* (Only prices that are final at delivery) ORANGES ($ per pound of solids) GRAPEFRUIT

Week To Date Week To Date Week To Date Week To DateCannerAvg All 1.63 1.52

E-Mids 1.36 1.77 Red 1.06 1.11 1.67 1.55Vals Wht 1.59 1.49

CurrSeasn 1.53 1.37 2.03 1.80E-Mids 1.36 1.77 Nearby FCOJ Futures Contract*

Vals 1.53 1.49 2.03 2.00 2012-13 $/ps 2011-12Multi-Year Week To Date Week To Date

E-Mids 1.37 1.80 1.26 1.19 1.96 1.82Vals * Average daily closing price Oct-Sep

Monthly US OJ Imports (Oct-Sep) 2012-13 2011-12 2012-13 2011-12

Million SSE Gals $/SSE gal.*Jan. To Date Jan. To Date Jan. To Date Jan. To Date

Brazil 27.0 116.2 4.3 77.0 NFC 2.0 27.7 1.3 26.2 1.28 1.54 1.56 1.70 FCOJ 25.0 88.6 3.0 50.8 1.14 1.14 1.38 1.57All Others 17.0 43.8 13.6 37.1 NFC 0.5 0.6 0.5 0.7 2.18 2.26 2.52 2.48 FCOJ 16.5 43.2 13.2 36.4 1.43 1.65 1.83 1.74* FOB does not include freight, tariff or US port costs. Tarrif codes-NFC 2009.12, FCOJ 2009.11 & 2009.19

AC Nielsen Retail Orange Juice Sales (Oct-Sep)Report #6 for 4-weeks Ending 3/16/13

2012-13 2011-12 2012-13 2011-12 Million SSE Gals (All Outlets) $/SSE gal.*

4Wks To Date 4Wks To Date 4Wks To Date 4Wks To DateAll OJ 46.2 279.4 45.9 279.8 6.23 6.22 6.21 6.15 NFC 26.0 158.6 25.8 152.4 7.33 7.26 7.10 7.09 Recon 17.9 106.0 17.5 110.3 4.81 4.85 5.11 5.05

Sources: Fl. Dept. of Citrus, US Dept. of Commerce, Int. Commodity Exchange(ICE)

Page 4: Florida Citrus Industry Annual Conference · 2013-04-05 · Florida Citrus Mutual is led by a 21-member board of directors from across the state that set the organization’s direction

Florida Citrus Mutual411 E. Orange StreetLakeland, FL 33801

APRIL 5, 2013ISSUE NUMBER 12WWW.FLCITRUSMUTUAL.COM(863) 682-1111 COPYRIGHT © 2013 FLORIDA CITRUS MUTUAL

Triangle is a newsletter published bi-weekly except in the months of July and August by Florida Citrus Mutual, 411 E. Orange St., Lakeland, FL, 33801. Its purpose is to inform members of events of interest in the citrus industry statewide, nationwide and internationally; and to provide members with information they can use to maximize production and profits. Copyright 2012, all rights reserved. Reprint by permission only.

Fresh Citrus UpdateSeason through 3/17/2013

In MemoryFormer Florida Citrus Mutual Board member, Jack

Ross, passed away March 23 at the age of 84. Ross was a fifth generation West Orange County resi-

dent. After graduating from Lakeview High School in 1946, Ross attended the University of Florida where he earned his BS in agriculture. Upon graduation, he returned to the West Orange County area to run the family citrus business.

Throughout the years, Ross served as president of the Orange County Farm Bureau, and on the boards of Florida Citrus Mutual, South Lake Apopka Citrus Growers Associa-tion, Growers Advisory Committee, and the Orange County Planning and Zoning Committee.

Mutual sends its thoughts and sympathies to the Ross family.

HB 137/SB 298: “Glitch bill” that reverts certain references to Department of Citrus that were changed to reference DOACS by ch. 2012-182, LOF; provides for retroactive application; provides for transfer of specified DOACS rules to Department of Citrus; provides for retroactive application of such rules; provides legislative intent with respect to transfer of rules.HB 203/SB 1190: Revises definition of “governmental entity”; prohibits governmental entity from adopting or enforcing any prohibition, restriction, regulation, or other limitation or from charging assessment or fee on activity of bona fide farm operation on land classified as agricultural land.SB 948/HB 1063: Providing a legislative declaration that efforts to adequately and dependably meet water needs require the cooperation of utility companies, private landowners, water consumers, and the Department of Agriculture and Consumer Services; providing that the governing board of a water management district shall assist self-suppliers, among others, in meeting water supply demands in a manner that will give priority to encourag-ing conservation and reducing adverse environmental effects.HB 971/SB 1122: Exempts certain local governments from specified minimum fire-flow requirements in code; exempts certain businesses from 2-hour or longer fire-rated wall requirement in code; exempts certain agricultural operations from code.HB 7065/SB 768 : Modifying the definition of “Long-Term Plan” as it applies to Everglades improvement and management; deleting references to Plan phasesFor a full list, go to the Tallahassee page under “Issues” at www.flcitrusmutual.com.

A Few of the Bills FCM is Tracking During the 2013 Session

Fresh Citrus Update Season through 3/31/2013

ORANGES** GRAPEFRUIT 2012-13***** 2011-12 2012-13***** 2011-12

UTILIZATION (1,000 1-3/5 bushel boxes)Week To Date Week To Date Week To Date Week To Date

Fresh 91 3323 80 3537 157 6516 92 7158Process 4945 79706 5740 96027 573 8236 525 10628Total 5036 83029 5820 99564 730 14752 617 17786Crop Est 139000 146500 17000 18800Non-Cert 1500 1108 700 628Remaining 54471 45828 1548 386

FRESH SHIPMENTS*** (1,000 4/5 bu. Cartons)Week To Date Week To Date Week To Date Week To Date

E-Mids** 2 2,818 0 2,652 AllRed 278 11,381 183 12,380Navels 4 2,622 4 3,302 Exprt* 114 5,472 17 6,177Valencia 176 1,206 156 1,120 AllWht 36 1,650 2 1,936Total 182 6,646 160 7,074 Exprt* 29 1,525 0 1,789

FRESH DOMESTIC FOB PRICES*** ($ per 4/5 bu. Carton - US #1 Grade)Week To Date Week To Date Week To Date Week To Date

E-Mids 11.37 11.46 RedGft 10.59 11.88 10.97 10.22Navels 14.07 13.19 WhtGft 11.44 12.74 10.72Valencia 10.90 10.64 12.34 12.76

* Offshore Exports, ** Includes Temples, *** Average price across all sizes, **** Certified through 2/24Source: Citrus Admin. Committee


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