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Fruit & Tree Nut Farming
First Research, May 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US fruit and tree nut farming industry includes about 110,000 farms with combined annual revenue of about $19 billion. Major companies include Dole Food Company, almond cooperative Blue Diamond Growers, the National Grape Cooperative and its Welch's subsidiary, and citrus cooperative Florida's Natural Growers. The industry is concentrated: the top 8 percent of farms generate about 75 percent of revenue.
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 industry is labor-intensive: average annual revenue per employee is about $110,000.
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 products include grapes (20 percent of revenue) and tree nuts, such as almonds, cashews, and pecans (20 percent), along with apples, oranges, and strawberries (10 percent each). Other products include avocados, blueberries, cherries, peaches, pears, and lemons.
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...
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