New Articles

States Producing the Most Fruits & Vegetables

vegetable

States Producing the Most Fruits & Vegetables

Many sectors of the economy have struggled during the COVID-19 pandemic, but one of the sectors that has faced the greatest challenges in the U.S. is also one of the most critical: agriculture.

The early days and weeks of the pandemic were difficult for many agricultural businesses as shutdowns created major disruptions for some of their primary customers. Much of the food service industry shut down overnight in March 2020, drastically scaling back one of the primary sales markets for farmers. In response, more agricultural producers shifted their focus to retail grocery and wholesalers. However, they paid a steep price in the form of lost products and new costs in labor and logistics to adapt to different distribution channels.

Since then, agriculture has faced many of the same supply chain and labor challenges currently plaguing the rest of the economy. Supply chain breakdowns have meant that farms have been struggling to obtain supplies and equipment that they need and that it has become more difficult to transport their products to customers. Labor force participation remains below pre-pandemic levels, especially in low-wage occupations, which has contributed to a shortage of pickers and other agricultural workers. Because produce is perishable, these issues have caused millions of pounds of produce to go unharvested or spoil before reaching consumers.

These disruptions pose a problem for consumers, who may have less ability to access high-quality fresh food at a low price, but also for the economy at large. Fresh produce in the form of fruits, nuts, and vegetables represents nearly a quarter of the total production value of U.S. crops. These products are also part of a larger value chain in the food industry that includes food processing plants, distributors, restaurants and other food service businesses, and grocery. This means that challenges in growing, harvesting, and supplying fresh produce creates additional struggles downstream for other closely related businesses.

These issues are also likely to affect what crops farms choose to grow and in what amounts. Because crops take time to raise, farmers essentially must make decisions in the present based on predictions about what the market might look like months in advance. With continued uncertainty, agricultural producers may prefer to shift more of their focus to crops that have higher value to improve their margins. In general, tree nuts and fruits tend to have higher production value than vegetables.

The current state of the agricultural market also underscores the importance of domestic agricultural production. In recent years, the U.S. has been importing a large share of its fresh and frozen fruits and vegetables, with imports totaling more than $24 billion in 2019. But with ongoing supply chain challenges worldwide, production closer to home will be important in maintaining the supply of food.

These fruits and vegetables come from a relatively small number of states where agricultural production is highly concentrated. The leader among these states is California, which is responsible for nearly 70% of U.S. fruit and vegetable production by itself. California is joined by other Western states like Washington, Oregon, and Arizona among the leaders, along with highly agriculture-dependent states in the South and Midwest.

The data used in this analysis is from the USDA. All data shown is for the year 2019, the most recent available covering both fruits and vegetables. To identify the states producing the most fruits and vegetables, researchers at Commodity.com calculated the total production value of both fruit and nut crops as well as vegetable crops, measured in dollars. Researchers also calculated what percentage of total U.S. fruit, nut, and vegetable production is accounted for by each state. Only states with available agricultural data from the USDA were included in the study.

Here are the states producing the most fruits and vegetables.

State Rank Total fruit & vegetable production Share of U.S. total fruit & vegetable production Total fruit production Total vegetable production
California    1    $29,181,329,000    68.94%    $21,437,185,000    $7,744,144,000
Washington    2    $3,396,600,000    8.02%    $3,033,860,000    $362,740,000
Florida    3    $2,759,462,000    6.52%    $1,536,612,000    $1,222,850,000
Arizona    4    $1,825,539,000    4.31%    $197,188,000    $1,628,351,000
Georgia    5    $823,604,000    1.95%    $308,074,000    $515,530,000
Oregon    6    $650,912,000    1.54%    $456,326,000    $194,586,000
Michigan    7    $578,847,000    1.37%    $361,709,000    $217,138,000
North Carolina    8    $560,492,000    1.32%    $60,811,000    $499,681,000
New York    9    $503,842,000    1.19%    $276,937,000    $226,905,000
Texas    10    $348,246,000    0.82%    $163,350,000    $184,896,000
United States    –    $42,326,702,000    100.0%    $28,770,303,000    $13,556,399,000

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/most-fruits-vegetables/

citrus

Citrus Market Emerges Relatively Unscathed from the Covid Crisis

IndexBox has just published a new report: ‘World – Citrus Fruit – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Except for lemons and limes, the production of major types of citrus fruits grew in 2020 thanks to good weather conditions in most producing regions. Citrus fruit exports and demand indicated gains in all the categories considered.

Key Trends and Insights

According to USDA data, global orange production in 2020 increased to 49.4Ðœ tonnes (+3.6Ðœ tonnes y-o-y). As a result of the favourable weather conditions, crop yield figures remained robust in Brazil (16.9Ðœ tonnes, +14% y-o-y) and Mexico (4.0Ðœ tonnes, +58% y-o-y), thereby offsetting the decline in production in Turkey (1.4Ðœ tonnes, -20% y-o-y) and the USA (4Ðœ tonnes, -13% y-o-y).

Mandarine output increased to 33.1М tonnes (+3.7% y-o-y). China, boasting a production volume of 23.1М tonnes (0.5% y-o-y) currently leads the mandarine market.

The grapefruit harvest surged to 6.9М tonnes (+1.4 y-o-y), following the expansion of plantations in China (4.9М tonnes, +2% y-o-y) and Mexico (0.5М tonnes, +7.6% y-o-y).

The global output of lemons and limes fell slightly against the previous year figures, to 8.3М tonnes (-1.6% y-o-y). Declining production in the USA (0.9М tonnes, -5.8% y-o-y) and Argentina (1.0М tonnes, -30%) was partially offset by the strong crop yield in the EU (1.6М, +10.8% y-o-y) and (Mexico 2.9М, +5.6%).

Producers now digitally track the transportation of their goods, to ensure that the supply chain remains transparent and stable. This also improves the delivery process and allows trade disputes to be resolved efficiently, such as identifying which party is responsible for a possible delay in supplies.

In Europe, the Sustainability Initiative Fruit & Vegetables (SIFAV) was launched to ensure that the fruit trade remained sustainable and transparent, intending to make the product 100% safe. The initiative requires fruit suppliers to adhere to environmental and social standards, in terms of potential environmental impact and respecting individual employment rights.

During the pandemic, the demand for fruit juice soared: it is a rich source of Vitamin C, which is believed proved to keep immunity strong. The growth of the fruit juice market represents an additional driver in terms of increasing demand for citrus fruit.

In the period to 2030, the citrus market is forecast to expand to 200Ðœ tonnes (IndexBox estimates), as a result of population growth and increased levels of income. Strong output in 2020 to support producers in terms of revenues, making it feasible to invest in new plantations and improved agricultural techniques.

China to Consume the Most while Russia to Remain the Number One Importer

China (48M tonnes) constituted the country with the largest volume of citrus fruit consumption, comprising approx. 30% of total volume. Moreover, citrus fruit consumption in China exceeded the figures recorded by the second-largest consumer, Brazil (20M tonnes), twofold. The third position in this ranking was occupied by India (14M tonnes), with an 8.8% share.

In value terms, China ($52.7B) led the market, alone. The second position in the ranking was occupied by Brazil ($10B). It was followed by the U.S..

The countries with the highest levels of citrus fruit per capita consumption in 2019 were Brazil (92 kg per person), Argentina (73 kg per person) and Mexico (59 kg per person).

In 2019, the volume of citrus fruits imported worldwide contracted slightly to 17M tonnes, waning by -2.3% against the previous year’s figure. The total import volume increased at an average annual rate of +1.9% from 2012 to 2019.

In value terms, citrus fruit imports dropped slightly to $14.6B in 2019. The total import value increased at an average annual rate of +2.6% from 2012 to 2019.

In 2019, Russia (1,738K tonnes), the U.S. (1,305K tonnes), Germany (1,181K tonnes), the Netherlands (1,104K tonnes), France (1,068K tonnes), the UK (749K tonnes), China (619K tonnes), Saudi Arabia (594K tonnes), Canada (480K tonnes), Poland (475K tonnes), Italy (460K tonnes) and Iraq (445K tonnes) was the main importer of citrus fruits in the world, generating 61% of total import. Ukraine (359K tonnes) followed a long way behind the leaders.

In value terms, Russia ($1.3B), Germany ($1.2B) and the U.S. ($1.2B) appeared to be the countries with the highest levels of imports in 2019, together comprising 25% of global imports. France, the Netherlands, the UK, China, Canada, Poland, Italy, Saudi Arabia, Ukraine and Iraq lagged somewhat behind, together comprising a further 38%.

Source: IndexBox AI Platform