Can we get a handle on them June 18 2015 Florida Citrus Industry Annual Conference Bonita Springs FL Ariel Singerman Assistant Professor Extension Economist Citrus Research and Education Center CREC ID: 298476
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Citrus Production Costs: Can we get a handle on them?
June 18, 2015Florida Citrus Industry Annual ConferenceBonita Springs, FL Ariel SingermanAssistant Professor / Extension EconomistCitrus Research and Education Center (CREC)singerman@ufl.edu(863) 956-8870Slide2
1) Impact of HLB on Citrus Operations in Florida
2) 2014/15 Indian River Cultural Costs of Production for Fresh Grapefruit 3) Economic Benefit of Citrus Health Management Areas (CHMAs)
Presentation OutlineSlide3
Impact of HLB on Citrus Operation in Florida
In March 2015 conducted survey during growers’ day at CRECAimed at obtaining an estimate of the level of impact of HLB76 participants who represented 156,614 acres – approximately 30% of total citrus acreage in the stateSlide4
E
stimate the Percentage of Acres in your Operation Infected with HLB Slide5
E
stimate the Percentage of Trees in your Operation Infected with HLB Slide6
E
stimate the Average Percentage Yield Loss Per Acre you Attribute to HLB Slide7
Region
# Surveys
Average Acreage
Total Acreage
Average
% Infected Acres
Average
% Infected Trees
Average
% Yield Loss
Ridge
44
69328,414888345Ridge/SW111,96217,655907437SW FL215,818110,545927733 Total76156,614
Responses by RegionSlide8
Cost of Production
Survey conducted in March 2015 at Indian River Citrus League2014/15 Cultural cost of production per acre for growing Fresh Grapefruit in the Indian River region Other growers’ costs (management
, regulatory and opportunity
costs) not included
Participants accounted for 44% of fresh grapefruit acreage in Indian RiverSlide9
2014/15 Indian River Cultural Cost of Production per Acre
for Fresh Grapefruit Slide10
2014/15 Indian River Cultural Cost of Production per Acre
for Fresh Grapefruit Slide11
2014/15 Indian River Cultural Cost of Production per Acre
for Fresh Grapefruit
(1)
(2)
(3)
(4)
Cost
Standard deviation
per
acre ($)value-1 std dev.+1 std dev.Foliar Sprays $ per acre Insecticides299.6090.20209.40389.80 Fungicides240.0047.05192.95287.05 Nutritionals330.4091.77238.63422.17 Ground Application413.4051.75361.65465.15 Aerial Application17.005.1011.9022.10Total Foliar Sprays Costs1300.40 1014.521586.28
Fertilizer
Ground/Dry Fertilizer
267.00
180.69
86.31447.69 Application Cost20.606.1814.4226.78 Application Number 1.361.043.8 Fertigation/Liquid Fertilizer151.2077.1074.10228.30 Application Cost13.758.755.0022.50 Application Number 15.904.1035.90Total Fertilizer Costs452.55 179.82725.28 Other costs (Weed mgmt., Pruning, etc.) 725.66 725.66725.66Total Cultural Cost2478.61 1920.013037.21Slide12Slide13Slide14Slide15Slide16
Citrus Health Management Areas (
CHMAs) Categories Data Provided by grower that owns Valencia blocks in 2 different CHMAs5 blocks totaling 161 acres located in a “best” class CHMA
6
blocks comprising 221 acres located in a “moderate” class
CHMA
D
ata over
4
crop
years: 2001/02; 2008/09; 2012/13 and 2013/
14
What is the Economic Benefit of CHMAs?: A Case Study
Ariel Singerman and Brandon PageSlide17
Analysis
Objective: To examine whether blocks in those 2 CHMA classes attained different levels of yield and, if so, to quantify the differential economic benefitAnalyzed data using regression analysis. Obtained: Change in yield per acre through timeChange in yield by CHMA class: “best” vs.
“moderate” class CHMA
each year
Slide18
Results
“Best” CHMA yield (boxes per acre):2012/13: 364 - 105 + 83 = 3422013/14 : 364 - 184 + 145 = 325“Moderate” CHMA yield (boxes per acre):2012/13: 364 - 105 = 2592013/14 : 364 - 184
= 180Slide19
Discussion
Differential gross economic benefit of “best” over “moderate” class CHMAs:differential yield x on-tree price per box = differential gross benefit 2012/13: 83 boxes per acre
x
$8.60
per box =
$714
per acre
2013/14
: 145 boxes per acre x
$8.40 per box =
$1,218
per acreEvidence that CHMAs can contribute to enhance the individual grower’s profitability at a time when margins are becoming increasingly narrow Slide20
Thank you for attentionMy contact info:
Citrus Research and Education Center singerman@ufl.edu(863) 956-8870