How Much Can Florida Growers Afford to Spend on Caretaking Processed Orange Groves?

Abstract

The likely decrease in prices for processed oranges this season presents growers with challenging management decisions. Last October, the Florida Department of Citrus (FDOC) projected an average 2019/20 price for early and mid-season oranges of $1.62 per pound solids, while for valencia oranges the forecast was $1.78 per pound solids. Those projected prices represent a 26% and 25% decline for each variety relative to their average spot prices for 2018/19, which were $2.20 and $2.38 per pound solids, respectively. In addition, some growers have recently reported that at least some of their crop has not been contracted for yet. A key question for growers then becomes: How much they can afford to spend on the caretaking of their groves?