Florida's Fresh Orange Industry: Selected Marketing Practices, Costs, and Margins

Florida produced 76 percent of a record 8.5-million-ton U.S. orange crop in 1971/72. Over 90 percent of Florida's crop was processed, mainly into frozen concentrated orange juice. Florida supplied 89 percent of all U.S. oranges processed, but only 32 percent of all U.S. oranges sold fresh. Production in Florida increased substantially during 1958/59-1971/72. Although the retail value of Florida oranges sold fresh in Chicago and New York City trended upward during that time, the marketing margin increased faster. Derived grower returns for these oranges trended downward during the period. Consumers in the two cities paid more for an equivalent quantity of juice from fresh oranges than from frozen concentrate. Both the marketing margin and grower returns were generally higher for fresh oranges than for frozen concentrate.