USDA Lifts Citrus Limits

Outgoing Agriculture Secretary Edward R. Madigan on Monday lifted marketing orders that dictate how many California navel oranges and lemons can be sold to consumers for the remainder of the season, saying it could benefit consumers and producers.

The action, which applies to citrus harvested through next spring unless overturned by the incoming Clinton Administration, has been vigorously opposed by Sunkist, the large cooperative that represents about 60% of the 6,000 citrus growers in California and Arizona affected by the orders.

On Monday, supporters of the market orders said Madigan’s action would have long-term ramifications, possibly spelling the permanent end of the distinctive “prorated” order. And Sherman Oaks-based Sunkist said it was “perplexed and disappointed . . . that Madigan would dismantle a system that’s worked for 50 years.”

The suspension of the orders means that producers will be free to ship as much fruit to the market, and at whatever time, they choose. The marketing order--typically set by the Sunkist-dominated grower group and approved by the agriculture agency--specifies, week-to-week, the number of California and Arizona-grown oranges and lemons that each producer can ship.

While some growers and consumers groups have long advocated lifting the orders--contending more fruit would be available at lower prices--it is unclear whether consumers would actually see lower supermarket prices.

Last February, when the government lifted the marketing orders for the tail end of the harvest, prices dipped slightly for one week before recovering.

Monday’s decision, which many in the industry had been anticipating for weeks, was based in part on the anticipated large size and early maturation date of this year’s crop, according to spokesmen for the U.S. Department of Agriculture.

If the marketing orders remained in place, growers with large supplies of early ripening fruit would be forced to sell it to highly competitive foreign markets or low-paying juice makers, or allow the fruit to rot. One consumer group predicted that if left in place, this year’s marketing order would keep nearly 1.3 billion pounds of oranges from reaching produce bins.