VOLUME 60, ISSUE NUMBER 2, OCTOBER 23, 2009

Variety Del-In Price

Juice Yield

Del-In Price

Pick & Haul Cost

On-Tree Price

$/ps ps/box - - - - - - $/box - - - - - -

E & M 1.33 6.12 8.14 2.60 5.54

Valencia 1.46 6.92 10.11 2.70 7.41

White Gft. 1.04 4.88 5.09 2.96 2.13

Red Gft. 1.15 4.88 5.60 3.26 2.34

Estimated 2009-10 Processed On-Tree Prices(Courtesy of the Florida Department of Citrus)

Dr. Mark Brown presented his 2009-2010 Citrus Outlook at the October Florida Citrus Commission meeting. Please visit www.fdocgrow-er.com for the entire report. To receive a hard copy, contact Vera Sodek at the FDOC - (863) 499-2500.

Keep in mind, the estimated delivered-in prices for 2009-10 are weighted averages of priced (spot and contract) and non-priced fruit (long-term, cooperative, processor-owned).

Several citrus organizations are now encouraging growers to vote “yes” on the State Citrus Research Order.

The Florida Citrus Commission unanimously passed a resolution in support of the order at its October meeting. The vote follows similar actions by Florida Citrus Mutual, Highlands County CGA and the Peace River Valley CGA. Gulf CGA and the Indian River Citrus League are expected to address the issue at their November meetings.

The Florida Citrus Production Research Advisory Council (FCPRAC) and the Citrus Research and Development Foundation (CRDF) also back the research order.

“This is great news that so many citrus organizations are telling growers to vote “yes” on the state citrus research order,” said Michael W. Sparks, executive VP/CEO of Florida Citrus Mutual. “The future of our industry’s aggressive research effort against canker and greening is at stake so it is important growers get proactive and return their ballots.”

The Florida Department of Agriculture and Consumer Services (FDACS) is scheduled to mail ballots to growers in mid-November. Growers have until December 4 to postmark them.

Growers who want to learn more about the State Citrus Research Order referendum should take part in a statewide conference call hosted by Florida Citrus Mutual on November 12, 2009 at 10 a.m.

On the call Sparks, Tom Jerkins, chairman of the Citrus Research and Development Foundation (CRDF) and FDACS will field questions. To participate, growers should dial 1-866-544-4631.

If the referendum passes, the cap on the “research box tax” will increase from one cent to three cents. In addition, the CRDF, a non-profit corporation affiliated with the University of Florida, will replace FCPRAC as manager of the box tax funds. The new structure would be instituted on August 1, 2010.

An important point: The Florida Citrus Commission has agreed to reduce the advertising assessment (starting for the 2010-2011 season if the referendum is approved) equivalent to any increase in the research assessment so it is ‘tax neutral’ on growers. This is a one-year agreement. Future Commissions would have to make the same deal.

For more information, please go to www.flcitrusmutual.com.

Citrus Groups Telling Growers to Vote “Yes” on State Research Order

The final fresh fruit shipping rule governing Florida citrus took effect on October 22, nearly six weeks sooner than the industry expected.

Although certain standard regulations must still be followed, citrus fruit from Florida is now permitted to be shipped to all US states and territories, including AZ, CA, HI, LA, TX and American Sa-moa, Guam, Northern Mariana Islands, Puerto Rico and Virgin Islands of the United States.

“USDA-APHIS should be commended for publishing this final rule in such an expeditious manner,” said Michael W. Sparks, executive VP/CEO of Florida Citrus Mutual. “We’ve had ongoing discussions with them about how important it is to have the rule in place at the start of the season and they heard our message and understood.”

“Dan Richey of Riverfront Groves, Richard Kinney of the Florida Citrus Packers and Doug Bournique of the Indi-an River Citrus League all did yeoman’s work on communicating the industry’s position on this rule. Great job.”

Citrus fruit may now be shipped in-terstate from a quarantine area under a Federal Certificate provided the fruit:

Is packed in a commercial pack-•inghouse whose owner or opera-tor has entered into a compliance agreement with APHISIs treated with an APHIS ap-•proved disinfectantIs free of leaves, twigs and other •plant parts

The requirement that fruit originate in a grove inspected and found free of canker remains in effect for shipments to the European Union. To view a sum-mary chart of canker regulations for the different export markets go to http://www.flcitrusmutual.com/industry-issues/pestanddisease/citruscanker.aspx.

To see the final rule go to http://www.flcitrusmutual.com/industry-issues/pestanddisease/citruscanker.aspx.

USDA Fresh Fruit Shipping Rule is Final

2009-10 Citrus Outlook Presented to FCC

An exclusive l icense for the long awaited UF-IFAS Sugar Belle ™ mandarin hy-brid has been is-sued to New Varieties Development & Manage-ment Corp. (NVDMC) by Florida Foundation Seed Producers, Inc.

This new high quality hybrid resembles a Minneola Tangelo, but with better external and internal color scores. The Sugar Belle ™ ma-tures four to six weeks earlier than the Minneola (Honeybell) and in most cases can be packed for the holiday market. The strongest trait of the Sugar Belle™ is its flavor – which is best described as robust and complex. This is not a mild mannered fruit. The Sugar Belle™ was highly praised by consumers when tested against Clementine and other mandarin type varieties. Horticultural practices and crop location can result in low-seeded fruit, while fruit in mixed blocks or strongly cross pollinated will have more seeds.

Sugar Belle™ shows greater tolerance of Alternaria than Minneola, minimizing fungicide applications, while trees are quite vigorous and will require some manipulation to control size and cropping.

The Sugar Belle™ is the first variety released by the UF-IFAS citrus plant improvement pro-gram. It is patented and royalties are associated with the planting of trees and the packing/sale of fruit. There are separate license agreements for growers, nurseries and packers. Interested grow-ers should contact Peter Chaires at NVDMC (407.302.3510 or 863.682.0151) (pchaires@flcitruspackers.org).

The Triangle is going in the grove and on the record with Mutual members around the state. This edition’s profile features Marc Craen, COO of Lambeth Groves Juice Company.

Wearing the hats of both grower and processor, Craen has spent twenty years learning the ins and outs of the Florida citrus industry.

Triangle: Who or what were the key influ-ences in your life related to your involve-ment in the citrus industry? Craen: Gilbert Bowen and Ric Freeman have both been mentors to me with regard to the fruit business. And in my early days as a fruit buyer, a number of growers gave me some pretty expensive lessons!

Triangle: What do you find the most challenging about being in the Florida citrus industry? Craen: Initially my biggest challenge was not being born in Florida. Twenty years ago having an English accent meant it was hard to be taken seriously in citrus, but now there are many different accents heard in the industry. Today though the challenges are the same that everyone faces, disease, movement and the economy.

Triangle: What do you think will change about the Florida citrus industry in the next five years? Craen: It is increasingly difficult for smaller growers and smaller processors to do business. The costs of fighting disease, complying with regulations, battling for market share are tough obstacles. All this and an uncertain economy may result in further shrinking or consolidation in the industry. Fortunately, Lambeth is fairing pretty well in these difficult times.

Triangle: How do you balance being both a grower and a processor? What is the biggest challenge in that respect? Craen: Surprisingly it’s not too hard. It’s just a question of balance, understanding that both pieces need to make a margin in order to survive. In the bigger picture the citrus industry is the same. Both sides need each other; it won’t work if only one side gets the home run every year.

To learn more about Craen and read more of his interview, visit http://www.flcitrusmutual.com/about/ontherecord.aspx.

In the Grove & On the RecordExclusive License Issued for

New Sugar Belle Hybrid

U.S. Citizenship and Immigration Services (USCIS) has issued a new version of the form I-9, bearing a revision date of August 7, 2009. The new form will remain valid until August 31, 2012. The current version of the I-9 form can be downloaded from http://www.uscis.gov.

Because no substantive changes were introduced with the new revision, employers are permitted to continue using the prior form I-9 with a revision date of February 2, 2009. The February 2, 2009 version of the form is likely to ultimately be retired, however, so employers are advised to begin using the August 7, 2009 revision as soon as possible.

For more information, please contact Melanie Burns at 863.682.1111 or melanieb@flcitrusmutual.com.

USCIS Issues New I-9 Form for Employers

FCM recently hosted a Florida citrus tour for the top Citrus Health Response Program (CHRP) administrator designed to educate him about the industry’s concerns as we continue to battle canker and HLB.

The two-day tour included a day at the Port of Miami – both the maritime and air cargo facilities - where the group was able to view the pest interdiction efforts of the U.S. Customs and Border Protection (CBP) and the USDA’s Animal Plant Health Inspection Service (APHIS).

“It was very important to get the top CHRP manager down here to let him see the devastation greening can cause first hand,” said Michael W. Sparks, executive VP/CEO of Florida Citrus Mutual. “We also were able to get a feel for the magnitude of the job the agriculture inspectors at the Port of Miami are facing. We’ve got other serious non-native citrus pests and diseases lurking

and it is essential the industry and regulators are working together to keep them out of Florida.

Osama El-Lissy, who has headed CHRP since August, was receptive to various ideas on how to re-direct CHRP funds to better accommodate Florida citrus growers. He said a cost share program to fund area-wide spraying is a possibility. However, he cautioned that sort of program would trigger a rigorous environmental review that could take up to two years.

El-Lissy reiterated the fact that APHIS is committed to doing anything it takes to help keep greening at bay.

On Thursday the tour visited a grove managed by Story Citrus of Lake Wales. At one point, the group was able to see the intersection of an abandoned grove, an organic grove and a traditional grove.

In addition, Steve Caruso and Dave Crumbly of Florida’s Natural educated El-Lissy about orange juice processing; Peter McClure of Evans Properties showed him greening and the removal of an infected tree in a St. Lucie County grove. The tour finished on Thursday at Riverfront Groves where Dan Richey informed El-Lissy how grapefruit is packed under the current APHIS protocols.

For a slide show of the two-day tour please visit http://www.flcitrusmutual.com/news/photos.aspx

The FDOC’s Advertising Agency Review Evaluation Committee has iden-tified five semi-finalists for the Department’s advertising contract. Starting in late November, the Committee will begin site visits to the firms. They will then select finalists who will be required to make a live presentation to the Commit-tee. The Committee is expected to pick a finalist at its January 19 meeting. The next day the full Commission will vote on the Committee’s recommendation. The Richards Group of Dallas, TX is the current FDOC advertising agency. The ’09-’10 budget anticipates the orange juice and grapefruit advertising contract to total $20.2 million with $1.1 million being agency fee.

For more information on the Committee and the review of the advertising contract go to www.flcitrusmutual.com/industry-issues/fdoc_fcc.aspx.

BBDO – Atlanta•Division of Omnicom – 58 years in business •Clients include ATT, Georgia Lottery, REI (outdoor retailer)•Campbell-Ewald – Warren, MI•Division of Interpublic Group – 98 years in business•Clients include Chevrolet, USPS, US Navy•Fry Hammond Barr – Orlando•Independent - 52 years in business•Clients include Bright House, Stein Mart, Nemours•J Walter Thompson – Atlanta•Division of WPP – 64 years in business•Clients include Ford SE Dealers, USMC, FEMA•The Richards Group – Dallas•Independent, Incumbent agency – 57 years in business•Clients include The Home Depot, Red Lobster, Chick-fil-A•

FDOC Advertising Agency Semi-Finalists

In late-August, the U.S. Environmental Protection Agency (EPA) announced it will develop numeric nutrient standards for Flor-ida waters over the next two years as a result of a consent decree filed in the U.S. District Court for the Northern District of Florida (Florida Wildlife Federation v. Johnson, N.D. FL, No. 4:08-CV-324, 8/19/09).

The proposed consent decree sets out the EPAs commitment to developing the stan-dards it thinks are necessary and is meant to settle a lawsuit filed by five activist groups in July 2008.

The EPA said it would propose numeric nutrient water quality standards for lakes and flowing waters in Florida by January 2010 and issue final standards by October 2010. It will propose standards for the state’s estuarine and coastal waters by Janu-ary 2011 and finalize them by October 2011. The EPA believes standards are necessary to protect Florida waters from the impacts of nitrogen and phosphorus.

Since the beginning of the year, scien-tists from EPA and the Florida Department of Environmental Protection (DEP) have collaborated in the collection and analysis of data and information necessary for the development of the standards. The Florida DEP has started its own rulemaking on the issue and proposed rules with nutrient cri-teria for streams and lakes in June.

The agricultural sector is believed to be the source of much nitrogen and phosphorus – but the EPA’s authority to regulate agricul-ture is limited. The Clean Water Act does not allow EPA to require permits for runoff from irrigation and storm water from farms, although states may choose to control those forms of runoff to meet federal water quality standards. For more information contact Laurie Hurner at (863) 381-4135.

EPA Settlement Affects Florida

FDOC Identifies Five Semi-Finalists for Advertising Contract

CHRP Czar Gets Tour of Florida Citrus

The PorT of MiaMi aT a GlanceThe Port of Miami accounts for 79 percent of the pest interceptions in the US•

80percentoftheflowersand60percentofthefruitandvegetablesimportedinto•theUSmovethroughthePortofMiami

Agriculturalinspectorsarelookingformorethan25,000differentpests•APHISprocessedalmost1billionplantunitsinMiamiin08-09•

Grower Kyle Story shows Osama El-Lissy of CHRP the intersection of an organic, abandoned and traditional

grove outside of Lake Wales.

Osama El-Lissy, the top CHRP administrator, studies a wood borer

found in a cargo container from China. Gerard Russo of Customs and

Border Protection looks on.

Florida Citrus Mutual302 S. Massachusetts Ave.

Lakeland, FL 33801

Triangle is published bi-weekly except in the months of July and August by Florida Citrus Mutual, 302 S. Mass. Ave., Lakeland, FL, 33801. Its purpose is to inform member growers and handlers 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 2009, all rights reserved. Reprint by permission only.

OCTOBER 23, 2009ISSUE NUMBER 2WWW.FLCITRUSMUTUAL.COM(863) 682-1111COPYRIGHT © 2009 FLORIDA CITRUS MUTUAL

Test House Factor - Grapefruit 91% Effective Sept. 1 - Dec. 31 Total U.S. Imports of FCOJ Jan. - July 2009

53.6 (mil. gal. 42’ Brix-rounded)* Does not include advertising taxes or inspection fees, does not

include participation returns.** Includes Exports *** Citrus Administrative Committee -

Weekly numbers are preliminaryFresh season-to-date numbers are certified through 7/31/09.

Weekly Citrus UpdatePROCESSED CITRUS

Week Ending 10/3/09 (1,000 gallons) FCOJ (420 brix) FCGJ (400 brix ) 2008-09 2007-08 2008-09 2007-08 Season Season Season SeasonPack Week To Date Week To Date Week To Date Week To Date From Fruit 0 120,790 0 135,186 0 10,731 0 13,687Foreign Import 522 26,134 0 46,442 0 0 0 0Movement 2,173 148,957 0 137,737 110 13,065 0 14,961Retail 190 14,784 0 14,708 4 166 0 191Institutional 309 18,303 0 18,443 1 51 0 49Bulk 1,674 115,870 0 104,586 105 12,848 0 14,721Inventory ** 113,139 108,050 8,853 10,465 Bulk White 4,020 5,761 Bulk Red 4,798 4,674 Chilled OJ (SSE) Chilled GJ (SSE) Season Season Season SeasonPack Week To Date Week To Date Week To Date Week To DateFrom Fruit 0 536,866 0 552,263 0 21,867 0 30,995From Conc. 412 15,551 0 15,672 8 11 0 (1)Movement 9,294 585,230 0 562,454 411 30,022 0 26,625Inventory ** 202,179 187,764 10,268 17,431

FRESH SHIPMENTS**Week Ending 7/31/09 (1 thousand of 1-3/5 bu. boxes)

Oranges Grapefruit 2008-09*** 2007-08 2008-09*** 2007-08 Season Season Season Season Week To Date Week To Date Week To Date Week To DateE/Mid 1,424 1,160Navels 1,940 1,782 Colored 7,459 8,263Valencia 2,173 1,474 White 1,217 1,652Total 5,537 4,416 Total 8,676 9,915

DELIVERED-IN PRICES FOR PROCESSED FRUIT* ($ PER POUND SOLIDS)

Oranges Week Ending 9/26/09 Grapefruit 2008-09 2007-08 2008-09 2007-08 Season Season Season Season Week To Date Week To Date Week To Date Week To DateCanners Avg. 1.06 1.39 W & C 0.62 0.55 E/Mid 1.01 1.39 Colored 0.65 0.52 Valencia 1.13 1.39 White 0.59 0.58In-Season Spot and Contracts 1.00 1.39E/Mid 0.94 1.39 Valencia 1.07 1.40Multi-Year Contracts 1.31 1.36 E/Mid 1.26 1.38 Valencia 1.37 1.35

In MemoryMary Howe Brumback, 81, mother of

Mutual member and former Florida Cit-rus Commissioner Wes Brumback passed away October 13.

Mrs. Brumback was a devoted mother and active community volunteer.

Mutual sends its thoughts and sympa-thies to the Brumback family.

Three Florida citrus industry asso-ciations are marking major milestones in 2009.

Haines City Citrus Growers Associa-tion, South Lake Apopka Citrus Growers Association and Umatilla Citrus Growers Association are all celebrating 100 years in business.

Florida Citrus Mutual would like to of-fer a sincere congratulations to each of these great organizations on their anniversaries.

Associations Celebrate 100 Years

On October 14, 2009 the Florida Citrus Mutual Board of Directors set the ’09-’10 assessment at 3.9 cents per box.

Although ’09-’10 assessment represents an increase, the overall operating budget is the lowest in four years.

The move was necessitated by the 136 million box estimate announced by the USDA earlier this month.

Mutual Sets Assessmentfor 2009-10 Season