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Florida Citrus Growers Expect Boom in Japan : Trade: Now that quotas on imported orange juice have expired, producers expect a $1-billion-a-year market to develop within the next decade.

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From Associated Press

Florida citrus growers see a rapidly expanding market for their orange juice in Japan now that the spigot has officially opened.

Quotas on imported orange juice expired last week under a U.S.-Japanese trade agreement signed in July, 1988.

Producers believe that once U.S. orange juice begins moving into Japan, exports will increase quickly and could top $1 billion a year within a decade.

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According to the Florida Department of Citrus, the United States is currently exporting about 10 million gallons of juice a year to Japan. The total projected market for orange juice in Japan is expected to be 250 million gallons by the year 2000.

“Japanese consumers already understand the superior quality and health benefits of Florida citrus products because of the availability of fresh Florida grapefruit and grapefruit juice,” said Dan Gunter, executive director of the Florida Department of Citrus.

Japan liberalized its import policies on grapefruit in 1971, and on grapefruit juice in 1984.

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“Florida supplies the lion’s share of the Japanese fresh grapefruit and grapefruit juice market, and we expect to dominate the Japanese market for premium, 100% orange juice. Many Japanese distributors already have announced plans to switch from their Brazilian orange juice sources to the all-Florida juice,” Gunter said.

He said the Florida Department of Citrus will spend $1.4 million on an advertising, public relations, merchandising and market research campaign beginning this spring to promote 100% Florida orange juice to Japanese consumers. He said the agency is planning to expand the size and scope of the marketing effort over the next few years.

The agency also plans spot-checks and sample tests in Japan to ensure that products carrying the Sunshine Tree logo are 100% Florida orange juice.

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Gunter said Florida is ready to meet an increase in orange juice demand.

“Our citrus growers have planted a record number of trees and adopted state-of-the-art agricultural practices, which will mean much larger crops in the near future,” he said.

He said the industry expects to set new production records in the 1990s.

The 1991-92 orange juice quota, which is now expiring, restricted orange juice imports to 50 million gallons annually.

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