Friday, Jan. 27, 1967

Orange Crush

The way Florida's hyperproductive orange growers see it, 1962 was a blessed year. The season was remarkably free from pests and blight, but a severe two-day cold snap came along as a record harvest was under way. The freeze ruined 35% of the crop --and saved the industry from an oversupply that might have left it in the red. This year, by contrast, the growers face catastrophe.

Cursed by unrelieved warmth and sun, and by new production from south ern-Florida groves, the current crop will surpass last season's 100 million boxes (100 lbs. each) by 42 million. When the nine-month harvest ends in June, nearly 10 million boxes may be left to rot unsold. Oranges "on the tree" cost 75-c- a box to grow and last year brought a handsome $1.25. They are now going at a distress price of 35-c- a box, leaving growers with the prospect of a $50 million loss on the crop.

Frozen-concentrate processors, who buy 60% of the crop and thereby set the market, have slashed their prices by as much as 30%. In turn, supermarket chains in New York, Chicago and other areas last week cut frozen-juice prices from 180 or 20-c- to 15-c- per 6-oz. can. The end is nowhere in sight. "There's no way to stop the assembly line," wails Robert Rutledge, executive vice president of the Florida Citrus Mutual. "Only one power can pull the switch, and He hasn't sent us either frost or hurricane this year." Next to Him, the grower's best friend is Agriculture Secretary Orville Freeman, who has agreed to buy at least 10 million gallons of frozen orange concentrate.

The Florida Citrus Commission last month .doubled its advertising budget to $10 million. Hurt by competition from such sweet but orangeless substitutes as General Foods' Awake, the industry wants to start adding sugar and artificial colors, now banned by Florida law except for test-marketing purposes. Processors are also working on new convenience ideas, including dehydrated instant o.j.

Still, the big problem of too much is likely to keep growing. Attracted by ample federal tax writeoffs on the cost of developing new groves, growers will have increased Florida's orange acreage from 500,000 to 800,000 acres by 1970. Barring a godsend, that adds up to a 200-million-box disaster.

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