Fruit and Tree Nut Farming

The US fruit and tree nut farming industry includes about 100,000 farms with combined annual revenue of $17 billion. Major US 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 fragmented: the top 5 percent of farms generate around 40 percent of industry 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 highly labor-intensive: average annual revenue per employee (both farm operators and workers) is less than $20,000.

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 (30 percent of the market) and apples, almonds, oranges, and strawberries (10 percent each). Other fruits and nuts include blueberries, walnuts, peaches, cherries, 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 ...