Category: Economics

  • California Navel Orange Forecast Up from Last Year

    The initial 2024-25 California Navel orange forecast is 78.0 million cartons, up 2% from the previous year. These forecasts are based on the results of the 2024-25 Navel Orange Objective Measurement (O.M.) Survey, which was conducted from June 8 to August 25, 2024. Estimated fruit set per tree, fruit diameter, trees per acre, bearing acreage, and oranges per box were used in the statistical models estimating production.

    This forecast includes production of conventional, organic, and specialty Navel oranges (including Cara Cara and Blood orange varieties).

    Survey data indicated a fruit set per tree of 414, up 24% from the previous year. The average September 1 diameter was 2.063 inches, down 5% from last year. Bearing acreage is estimated at 110,000, which results in a forecasted yield of 709 cartons per acre.

    CARA CARA PRODUCTION FORECAST

    Cara Cara variety production is forecast at 9.0 million cartons. Survey data indicated a fruit set per tree of 301, up 10% from the previous year and 15% above the five-year average of 262. The average diameter on September 1 was 2.142 inches, 2% below the previous year and 2% below the five-year average of 2.180 inches.

    SURVEY SAMPLE

    A sample of 804 Navel orange groves was randomly selected proportional to county and variety bearing acreage, and 749 of the groves were utilized in this survey. Once a grove was randomly chosen and grower permission was granted, two trees were randomly selected.

    For each randomly selected tree, the trunk was measured along with all connected branches. A random number table was then used to select a branch, and then all connected branches from the randomly selected branch were measured.

    This process was repeated until a branch was reached with no significant limbs beyond this point. This randomly selected branch, called the terminal branch, was then closely inspected to count all fruit connected to this branch, as well as all of the fruit along the path from the trunk to the terminal branch. Since each selected path has a probability of selection associated with the path, a probability-based method was then applied to estimate a fruit count for the entire tree.

    In the last week of the survey period, fruit diameter measurements were made on the right quadrant of four trees surrounding the two trees of every third grove. These measurements were used to estimate an average fruit diameter per tree. Of the 749 utilized groves, 126 were in Fresno County, 425 were in Tulare County, 171 were in Kern County, and 27 were in the remaining counties.

    SURVEY HISTORY

    A Navel Orange Objective Measurement Survey has been conducted in the Central Valley every year since the 1984-85 crop year, except for the 1991-92 season due to a lack of funding. The data from the first two years were used for research purposes in developing crop-estimating models. The Cara Cara forecast was undertaken at the request of the California Citrus Advisory Committee starting with the 2018-19 crop year.

    Beginning in the 2023-24 crop year, only state level forecasts will be published, and the Central Valley forecasts will be discontinued.

  • Ag Processing Labor Contractor Thoughts on New Indoor Heat Illness Rule

    California has experienced an unusually hot Summer this year, which may have had influence in Cal/OSHA’s recent approval of a new regulation “Heat Illness Prevention in Indoor Places of Employment” that went into effect immediately, which impacts indoor workplaces in ag such as nut hulling and processing facilities, wineries, dairies, packinghouses and more. Key indoor temperature/heat index thresholds of 82 & 87 degrees F will mandate certain procedures to ensure the health and safety of employees. Looking into the impact of the new regulation, Matthew Malcolm visited with labor contractor Robert Heredia of H&R Labor, who specializes in meeting the labor needs of food processing facilities in one of the hottest regions in the nation — the Central Valley of California. Watch this brief interview as Heredia shares his thoughts on the recent changes.

    Special thanks to American Pistachio Growers for sponsoring this video.

  • Extensive Heat Waves Influence Drop in 2024 California Processing Tomato Forecast

    Contracted production for California processing tomatoes is forecast at 11.3 million tons, averaging 50.0 tons per acre. The current production forecast is 12 percent below last year’s contracted production of 12.8 million tons, and 2 percent below the May forecast. The projected harvested acreage of tomatoes grown under contract is 226,000 acres, down 11 percent from 2023.

    Mild spring temperatures and adequate water provided tomato growers with favorable planting conditions and a good start to the developing crop. However, extremely high temperatures throughout the summer and into harvest has negatively affected yields. There were concerns regarding curly top virus detected in the San Joaquin Valley, but no significant damage was reported.

    The processing tomato harvest began the first week of July in the southern Central Valley and progressed to the northern counties by the middle of August. Harvest is expected to finish in October, significantly earlier than last year. Quality is reported to be fairly good for the early crop, but the impact of the heat waves on late season plantings is uncertain.

    The Processing Tomato Advisory Board published shipments through August 24, 2024, showing a 29% increase compared to this time last year. However, shipments were significantly behind schedule in 2023 because the crop was delayed. Current shipments compared to the halfway point of last year indicate a decrease of 12%.

    This processing tomato estimate is funded by the California League of Food Producers.

  • Tapping into Growing Market Opportunities for U.S. Blueberries

    According to Kasey Cronquist, President of the North American Blueberry Council and the U.S. Highbush Blueberry Council, the global market potential for U.S. blueberries has been largely untapped, considering the tremendous growth opportunities he sees for the industry. The U.S. may reach a new record this year in blueberry production, and the increased supply is poised to meet the growing global demand for this nutrient-dense product. Watch Cronquist’s brief interview with Matthew Malcolm at California Ag Network and read more in California Fruit & Vegetable Magazine.

    Please thank this video’s sponsor Southern California Gas Company for their industry support.

  • Congressman Duarte Addresses Water Issues & Solutions for California Ag

    Despite the great rainfall and snowpack California has experienced in the last couple years, little of this abundance has been shared with agriculture or even saved for the inevitable times of drought that lay ahead.  Farmers are fed up with the state’s many years of mismanagement of our water resources and lack of practical investment in our water future.  This led a farmer to run for congress and bring some new, realistic solutions to the table.  Watch this brief interview with Representative John Duarte from the 13th Congressional District of California as he shares some of these priorities that offer relatively quick and longterm water availability benefits for farmers and all Californians.

    Special thanks to American Pistachio Growers for sponsoring this video.

  • Brendan O’Donnell Selected as President/CEO of DFA and Safe Food Alliance

    DFA of California and Safe Food Alliance are pleased to announce the appointment of Brendan O’Donnell as their new President and CEO, effective August 1st, 2024. Brendan brings over two decades of extensive leadership experience in the food and agriculture industry, marked by his commitment to innovation, food safety, and sustainable practices.

    Prior to joining DFA and Safe Food Alliance, Brendan served as Global Segment Director, Nuts & Citrus at TOMRA Food, where he led global teams and spearheaded customer-focused product development initiatives. His tenure at TOMRA showcased his strategic acumen and ability to drive growth through effective leadership and market insights.

    “Looking ahead, we are very pleased with the appointment of Brendan O’Donnell to succeed Vaughn as President & CEO. Brendan has demonstrated extraordinary communication and leadership skills in his roles at TOMRA and Monte Vista Farming Company. These skills, along with his technical background, make him an excellent fit to lead the DFA/Safe Food Alliance organization,” said Brian Dunning, President & CEO
    of ShoEi Foods USA and current Chair of the DFA Board. “His vision aligns perfectly with our commitment to supporting the dried fruit, tree nut, and specialty crop industries, and I am confident in his ability to enhance our member services and strengthen our industry partnerships.”

    Throughout his career, Brendan has held pivotal roles at Monte Vista Farming Company and Sun Valley Rice, where he contributed significantly to business growth and market expansion. He holds an Executive Certificate in Negotiation from the University of Notre Dame’s Mendoza College of Business and a B.S. in Agricultural Systems and Environment from the University of California, Davis.

    “I am honored to join DFA and Safe Food Alliance at such an exciting time in our industry,” said Brendan O’Donnell. “I look forward to leveraging my experience to drive innovation, strengthen food safety standards, and support our members and partners as we navigate new opportunities and challenges ahead.”

    In addition to his professional achievements, Brendan is dedicated to his family and enjoys exploring the outdoors with his wife, Erin, and their two teenage children.

    About DFA of California

    Founded in 1908, DFA of California is a non-profit trade association dedicated to supporting the dried fruit, tree nut, and specialty crop industries. DFA supports processors through rigorous inspection services, member benefits, food safety training, and provides support on numerous export related matters. For more information, visit DFA of California.

    About Safe Food Alliance

    Safe Food Alliance provides a comprehensive range of food safety services designed specifically for food processors and manufacturers throughout California. As a full service food safety company, Safe Food Alliance provides third-party laboratory testing, complemented by extensive food safety training, consulting services, and third-party certification audits offered through a separate company, Safe Food Certifications.

  • Big DPR Licensing Changes for Pest Control Advisers and Invitation to Gather for 50th Anniversary CAPCA Conference

    To help California Pest Control Advisers and qualified/aerial pesticide applicators prepare for several changes to their license renewals with DPR, Ruthann Anderson, President/CEO of the California Association of Pest Control Advisers (CAPCA), met with Matthew Malcolm on California Ag Network on August 5th to explain the changes. Among them is a significant renewal fee increase. While increasing costs are never welcome news, Anderson calls upon DPR for transparency and accountability in the use of the increased funds to better serve licensees. She also points out that 2024 is a milestone year for CAPCA, as they will be holding their 50th annual Conference this fall. Watch this brief interview to learn more specifics on California DPR license renewal changes, and some exciting things to expect in attending CAPCA’s 50th Conference this October.

    Please thank this video’s sponsor Southern California Gas Company for their industry support.

  • Economic Analysis Reveals Significant Impacts of Pesticide Policies on California Lettuce Production

    Today, Californians for Smart Pesticide Policy (CSPP) released a comprehensive economic analysis highlighting possible implications of elements of California’s proposed Sustainable Pest Management (SPM) framework that would result in impacts on the state’s lettuce production industry. The study, conducted by economists Jarrett Hart, Duncan MacEwan, Jay Noel, and Amrith Gunasekara, underscores the critical need for effective and timely pest management solutions to safeguard the state’s agricultural productivity.

    The economic impact of pesticide restrictions is profound, with projections indicating a 7.3 percent decrease in California’s lettuce production due to restrictions on key pesticides such as neonicotinoids and pyrethroids. This would result in an annual loss of $160.3 million to producers and an additional cost of $694.28 million to consumers. Additionally, the shift in production from California to other regions like Arizona and Mexico would increase production costs and consumer prices, further straining the state’s agricultural economy.

    The consequences of delays in pesticide registration are equally concerning. The study reveals that California’s stringent and lengthy registration process leads to a reduction in lettuce production, with producers losing $42.8 million and costing consumers $139.3 million annually. The state’s process, which can extend 1-3 years following federal approvals, hinders innovation and delays the availability of new, effective pest management products to California growers.

    Market shifts and regulatory leakage are anticipated as a result of these proposed policies. The economic analysis predicts a modest short-run decrease in lettuce prices and a production shift from California to Arizona and Mexico. In the long run, more stringent pesticide policies would drive a significant portion of lettuce production out of California, resulting in increased prices throughout the supply chain, including for consumers.

    The implications of the proposed SPM framework are significant. While the SPM framework aims to phase out harmful pesticides, without viable alternatives, this policy could undermine California’s agricultural sector.

    CSPP is dedicated to balanced pesticide policies that protect California’s agriculture and economy while ensuring environmental sustainability and public health. We strive to promote informed decision-making through comprehensive research and economic analysis. For more information on this study and CSPP’s initiatives, please visit our website at https://ca4pestpolicy.org/.

  • Fig Harvest is Here – California Fresh Fig Industry Poised for Growth

    Madera, California, is the nation’s capitol for fig production. Fresh fig harvest is well underway and growers are expecting the best crop they’ve had in years. Karla Stockli CEO of the California Fresh Fig Growers Association and California Fig Advisory Board met with Matthew Malcolm on California Ag Network to share an exciting outlook for the 2024 crop and bright future of the fig industry. Watch this brief interview and read more in California Fruit & Vegetable Magazine.

    Please thank this video’s sponsor Southern California Gas Company for their industry support.

  • Fruit Fly Quarantines Lifted in Contra Costa & Los Angeles Counties

    California Citrus Pest & Disease Prevention Program — The California Department of Food and Agriculture (CDFA) has officially declared an end to the Tau fruit fly quarantine in Los Angeles County, and an end to the Oriental fruit fly quarantine in Contra Costa County following the successful eradication of the invasive pests.

    Tau Fruit Fly Quarantine

    The Tau fruit fly quarantine, which was established in the Santa Clarita area of Los Angeles County, was the first-ever quarantine for the Tau fruit fly in the Western Hemisphere. It encompassed the city of Santa Clarita and surrounding areas in parts of Stevenson Ranch, Newhall, Castaic Junction, Oat Mountain and Del Valle.

    Thanks to the diligent efforts of Santa Clarita area residents, local agricultural officials, the Los Angeles County Department of Agricultural Commissioner/Weights and Measures, and officials from CDFA and the United States Department of Agriculture, the invasive pest has been successfully eradicated from the area as of June 28.

    “Following one of the largest statewide invasive fruit fly populations we’ve seen in a number of years in California, we’re incredibly proud that we’ve been able to successfully achieve eradication of the Tau fruit fly,” said Victoria Hornbaker, director of CDFA’s Plant Health and Pest Prevention Services Division. “The lifting of this quarantine proves that our efforts are working, and the responsiveness and cooperation of residents across California and our partners is critical to that success.”

    During the quarantine, crops that are hosts for the fruit fly — which include more than 300 varieties, such as citrus and other fruits, nuts, vegetables and berries — were not allowed to be moved from the properties where they were grown. Commercial crops were required to meet stringent treatment or processing standards before being harvested or moved.

    Oriental Fruit Fly Quarantine

    The announcement comes 10 months after officials first detected populations of the Oriental fruit fly in the area. This destructive pest has been eliminated through the cooperation and diligence of Contra Costa County residents and local agricultural officials, the California Department of Food and Agriculture (CDFA), working in coordination with the United States Department of Agriculture (USDA) and the Contra Costa County Agricultural Commissioner.

    “We’re pleased to report this is the third Oriental fruit fly quarantine lifted in California this year,” said Victoria Hornbaker, director of CDFA’s Plant Health and Pest Prevention Services Division. “These recent successes prove that through the cooperation of residents across the state and our partners, eradication of invasive species is possible.”

    While several fruit fly quarantines have now been lifted in California, additional quarantines remain and still threaten the state’s natural environment, agriculture and economy. To review all active quarantine maps, please visit CAFruitFly.com.

    When at home, residents are encouraged to stay vigilant for signs of invasive pests. To help prevent any future introductions of invasive species, residents should follow these guidelines:

    • Cooperate with agricultural officials and allow them access to your garden to place traps, inspect plants, conduct necessary treatments or remove potentially infested produce.
    • Determine if your property is located within an active quarantine area by visiting CAFruitFly.com.
    • Buy fruit trees and vegetable plants from licensed California nurseries. Purchasing agricultural goods from uncertified sources can spread invasive pests. Source your plants locally and responsibly. To find a licensed nursery near you, visit CDFA’s Directory of Licensed Nurseries.
    • Inspect your garden for signs of invasive fruit flies or maggots and report any findings to CDFA at 1-800-491-1899 or your local county agricultural commissioner’s office.
    • When entering the United States from another country, avoid bringing agricultural products — including fruits or vegetables. Help us protect our agricultural and natural resources and California’s unique biodiversity from invasive fruit flies — please Don’t Pack a Pest (dontpackapest.com) when traveling or mailing/receiving packages.

    To learn more about invasive species and how to protect the county’s fruits and vegetables, visit CAFruitFly.com or contracosta.ca.gov.