Value of Florida’s Citrus Industry Is Up

Ernie Neff Economics

Photo by 金 运 on Unsplash

Despite a decrease in citrus production, the Florida citrus industry contributed more value to the state of Florida in 2019-20 than the previous season. According to a study conducted by the University of Florida Institute of Food and Agricultural Sciences (UF/IFAS), the industry had an economic impact of $6.762 billion to the state and supported more than 33,300 jobs.

The report indicates that the majority of the industry’s value in 2019-20 came from the manufacturing of citrus juice and byproducts at $4.741 billion. Citrus fruit production accounts for $1.816 billion and the process of moving fresh citrus from the grower to the packinghouse door accounts for another $204 million.

The report also shows that the industry supported 33,381 full-time and part-time jobs in 2019-20 with labor income contributions amounting to $1.531 billion in wages, salaries, benefits and business proprietor income.

This value leads to state and local tax contributions of $140 million, including property tax, sales tax, water management district taxes, intangible taxes, motor fuel and vehicle taxes, excise taxes and more. Total federal tax contributions equaled $360 million in 2019-20. Additionally, citrus juice shipped from Florida to other states and foreign countries was estimated at a value of $2.731 billion and select byproducts at $59.45 million.

Further economic contributions to the state are experienced in the forms of supply chain linkages and household spending of income.

While the economic impact to the state is significant, the value is most felt in rural communities where citrus remains the backbone of the economy, according to Marisa Zansler, economic and market research director at the Florida Department of Citrus.

“Although the economic contributions of the citrus industry in some rural counties may account for a small portion of these figures, the study findings demonstrate that their contributions are more impactful for the economic health of the area in which they are located because these industries represent a higher share of total economic activity,” Zansler said.

The study was conducted by the UF/IFAS Economic Impact Analysis Program, which creates similar studies for other agricultural commodities. Researchers used data from numerous sources to complete the analysis.

This study was last done for the 2018-19 season, when it found the Florida citrus industry had an economic impact of $6.5 billion.

Source: Florida Department of Citrus

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