Fruit & Tree Nut Farming
Description
Companies in this industry grow fruits and tree nuts for commercial production. Major companies include Blue Diamond Growers, Chiquita Brands, Dole Food Company, Fresh Del Monte Produce, the National Grape Cooperative and its Welch's subsidiary, Ocean Spray, and Tropicana, all based in the US.
The global fruit and nut farming market is forecast to reach about $1.6 trillion in 2029, at a compound annual growth rate (CAGR) of 9%, according to the Business Research Company. Bananas, watermelon, apple, oranges, and grapes are the most produced crops, according to Statista. China, India, the US, and Brazil are the world's leading growers, according to the Food and Agriculture Organization of the United Nations (FAO).
The US fruit and tree nut farming industry includes about 110,000 farms with combined annual revenue of about $34 billion, according to the US Department of Agriculture. Separate industry profiles cover Vegetable & Melon Farming and Fruit & Vegetable Processing.
COMPETITIVE LANDSCAPE
Demand is driven by US population growth and consumer trends in food consumption. The profitability of individual companies depends on maximizing crop yield and minimizing risk of disease. Large companies and farm cooperatives have advantages in highly mechanized operations, branded food products, and access to low-cost labor. Small operations can compete effectively by specializing in agritourism as well as organic, heirloom, or unusual fruits and nuts.
The fruit and nut industry competes with grain, vegetable, and melon farming for crop acreage, as farmers tend to plant and harvest crops with the highest yield and payout.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major US products include grapes (20% of industry revenue), almonds (21%) and apples (10%). Other leading products include strawberries (9%) and oranges (6%).
A farmer commits to a crop based on available acreage, topography, soil, climate, and financial considerations. Fruit and nut farmers typically concentrate on a small handful of varietals that are the most commercially viable. For apples, there are more than 100 apple varieties in the US (9 varieties are most produced), according to the USApple Association. Three main types of strawberries dominate the market: June Bearing, Day Neutral, and Everbearing, according to Agricultural Marketing Resource Center (AgMRC). California and Arizona orange farmers specialize in navel and Valencia sold whole at retail. Florida's warm and humid weather produces a thin-skinned orange that blemishes easily; thus, most Florida oranges are processed into juice.
Most fruit and nut farms must invest either in expensive picking equipment or seasonal farm labor. Almost all fruits and berries are handpicked. Berry crops require a large pool of seasonal labor and must be harvested every one to three days to maximize yield and encourage additional fruit production.
The method of picking oranges hasn't changed much since the first grove was planted in Florida 300 years ago: workers handpick fruit from the lower branches and scale ladders up to 18 feet high, collecting the fruit into shoulder bags and filling large field tubs. Field workers can pick around 800 pounds of processed oranges an hour. Specially designed orange farm tractors, called "goats," transfer field tubs of oranges to truck trailers waiting at the edge of the field.
Mechanical tree "shakers" rustle the base of an almond tree, causing the shells to fall to the ground. The nuts dry on the ground, are swept into rows, and picked up by machine.
Fruit and nut trees typically require a long grow time before the first harvest. Almonds need at least seven years to grow from a sapling to a nut-producing tree. Navel oranges are seedless and sterile; the only way to produce new fruit is to graft cuttings onto other varieties of well-established citrus root stock. Grafted branches require at least five years before they start producing fruit. Because of the long time to harvest, crop rotation is much less common in fruit and nut farming than with most other types of agriculture. Tearing up a crop is a last resort, typically a result of disease, lack of profitability, or poor yield due to age.
Common inputs include irrigation systems, seed and root stock, chemicals for weed control, fuel, electricity, farm supplies, machinery, and crop nutrients. Operator labor is a significant input, although nearly half of all fruit and nut farms are run by an operator whose primary profession isn't farming.
The global fruit and nut farming market is forecast to reach about $1.6 trillion in 2029, at a compound annual growth rate (CAGR) of 9%, according to the Business Research Company. Bananas, watermelon, apple, oranges, and grapes are the most produced crops, according to Statista. China, India, the US, and Brazil are the world's leading growers, according to the Food and Agriculture Organization of the United Nations (FAO).
The US fruit and tree nut farming industry includes about 110,000 farms with combined annual revenue of about $34 billion, according to the US Department of Agriculture. Separate industry profiles cover Vegetable & Melon Farming and Fruit & Vegetable Processing.
COMPETITIVE LANDSCAPE
Demand is driven by US population growth and consumer trends in food consumption. The profitability of individual companies depends on maximizing crop yield and minimizing risk of disease. Large companies and farm cooperatives have advantages in highly mechanized operations, branded food products, and access to low-cost labor. Small operations can compete effectively by specializing in agritourism as well as organic, heirloom, or unusual fruits and nuts.
The fruit and nut industry competes with grain, vegetable, and melon farming for crop acreage, as farmers tend to plant and harvest crops with the highest yield and payout.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major US products include grapes (20% of industry revenue), almonds (21%) and apples (10%). Other leading products include strawberries (9%) and oranges (6%).
A farmer commits to a crop based on available acreage, topography, soil, climate, and financial considerations. Fruit and nut farmers typically concentrate on a small handful of varietals that are the most commercially viable. For apples, there are more than 100 apple varieties in the US (9 varieties are most produced), according to the USApple Association. Three main types of strawberries dominate the market: June Bearing, Day Neutral, and Everbearing, according to Agricultural Marketing Resource Center (AgMRC). California and Arizona orange farmers specialize in navel and Valencia sold whole at retail. Florida's warm and humid weather produces a thin-skinned orange that blemishes easily; thus, most Florida oranges are processed into juice.
Most fruit and nut farms must invest either in expensive picking equipment or seasonal farm labor. Almost all fruits and berries are handpicked. Berry crops require a large pool of seasonal labor and must be harvested every one to three days to maximize yield and encourage additional fruit production.
The method of picking oranges hasn't changed much since the first grove was planted in Florida 300 years ago: workers handpick fruit from the lower branches and scale ladders up to 18 feet high, collecting the fruit into shoulder bags and filling large field tubs. Field workers can pick around 800 pounds of processed oranges an hour. Specially designed orange farm tractors, called "goats," transfer field tubs of oranges to truck trailers waiting at the edge of the field.
Mechanical tree "shakers" rustle the base of an almond tree, causing the shells to fall to the ground. The nuts dry on the ground, are swept into rows, and picked up by machine.
Fruit and nut trees typically require a long grow time before the first harvest. Almonds need at least seven years to grow from a sapling to a nut-producing tree. Navel oranges are seedless and sterile; the only way to produce new fruit is to graft cuttings onto other varieties of well-established citrus root stock. Grafted branches require at least five years before they start producing fruit. Because of the long time to harvest, crop rotation is much less common in fruit and nut farming than with most other types of agriculture. Tearing up a crop is a last resort, typically a result of disease, lack of profitability, or poor yield due to age.
Common inputs include irrigation systems, seed and root stock, chemicals for weed control, fuel, electricity, farm supplies, machinery, and crop nutrients. Operator labor is a significant input, although nearly half of all fruit and nut farms are run by an operator whose primary profession isn't farming.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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