California’s citrus industry has a $7.12 billion economic impact, according to a study commissioned by the Citrus Research Board.
The state’s citrus industry added $1.7 billion to California’s Gross Domestic Product in 2016, according to the report, headed by Bruce Babcock, professor in the School of Public Policy at the University of California-Riverside.
The total direct value of California citrus production for the 2016-17 season was $3.4 billion, generating an additional $1.26 billion in economic activity from companies supplying goods and services to the industry, according to a news release.
In 2016-17, the most recent year for data compilation, 79% of the state’s citrus went to the fresh market, according to the release.
“The ‘wow’ factor in this report is something, as it relates to gross revenues and positive impact for the state, people and local communities,” California Citrus Mutual President Joel Nelsen said in the release.
The industry’s partnerships with government through grants and programs as growers fight huanglongbing (HLB) are key, Nelsen said. Brazil recently reported a 20% drop in production due to HLB, according to the report.
A similar situation in California could cost the state 7,350 jobs and $501 million in direct, indirect and “induced impacts,” according to the report.
“Reading how that would affect our family farmers, employees and the state is sobering,” Nelsen said in the release.
The Citrus Research Board administers the California Citrus Research Program, a grower-funded program established 50 years ago that undertakes research for the industry, according to the release. Most of those funds are devoted to battling HLB and the Asian citrus psyllid, which spreads the disease.
