Florida citrus farming remains a vital economic engine in the state

Despite challenges from disease, land development trends and extreme weather conditions, Florida’s citrus industry contributed $6.935 million to the state’s economy in 2020/21. A report just published by economists from the University of Florida, entitled “2020-2021 Economic Contributions of the Florida Citrus Industry”, estimates the economic contribution of the latest citrus campaign for which data is available.

Citrus juice manufacturing continues to be the largest factor in the sector’s total economic contribution, according to the UF/IFAS Economic Impact Analysis Program (EIAP) report. The total contribution of 6,935 million dollars is broken down into:

  • 5,334 M$ from the manufacture of citrus juice,
  • 1,425 M$ of citrus production,
  • 177 M$ from the commercialization of fresh citrus.

The citrus sector maintains a total of 32,542 full-time and part-time jobs in the state. The total value-added contributions, estimated at 2,841 million dollars, represent the sector’s contribution to gross domestic product. Salary income contributions amounted to $1,606 million, that is, the earnings of employees and employers throughout the Florida economy.

The contribution of citrus to local communities continues to be significant as well, with total state and local tax contributions of $151 million.

If we compare the overall economic contributions of the Florida citrus industry in 2019/20 to the 2020/21 period using updated data and methods, employment increased 0.2%; labor income, 5.8%; value added, 3.4%, and industrial production, 2.8% in constant value terms.

“This report is prepared annually not only to measure the level of economic activity in the citrus sector, but also to demonstrate the importance of relations between this sector and other sectors of the economy,” says Julio Cruz, research assistant in the economics department. of UF/IFAS resources and food.

Christa Court, EIAP Director and Adjunct Professor of Regional Economics, adds that the true value of this year’s report lies in the story it will help tell next year.

“The estimates for the 2020/21 citrus season are particularly important because it can be considered a reference season before the numerous adverse weather events that the sector endured in 2022,” he indicates, referring to two cold waves and two hurricanes in the main citrus-producing areas of the state throughout the calendar year.

Although economic contributions were greatest in the agriculture (fruit production) and manufacturing (juice processing) sectors, citrus in general also has significant contributions in many other sectors due to supply chain relationships and spending of household income that is captured by the indirect and induced multiplier effects in the regional economic model. The estimates of the economic contribution are based on published values ​​and official statistics of the sector.

Estimates of the sector’s regional economic contributions include multiplier effects that measure economic activity in other sectors supported through supply chain spending and revenue spending directly or indirectly associated with the sale of Florida citrus products.

More information on the methodology and sources of the report at fred.ifas.ufl.edu/economicimpactanalysis.

The report is sponsored by the Florida Department of Citrus (FDOC).

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