Ruling Allows Suspension of Citrus Quotas

In an about-face, a U.S. District Court judge on Tuesday lifted a 12-day-old temporary restraining order that had kept in place a quota system for sales of California- and Arizona-grown navel oranges and lemons.

The ruling by Judge Gerhard Gesell frees the U.S. Department of Agriculture to again suspend a marketing order system that has determined since the Depression how much citrus grown in the two states can be sold each week by distributors.

It was unclear whether the quotas will remain in effect for the remainder of this week or will be lifted immediately. The judge’s action came late in the day Tuesday, and the department said it needs time to review the decision.

Gesell further disappointed growers who favor the quota system by refusing to issue a preliminary injunction against the Agriculture Department’s suspension of quotas earlier this month. Sunkist, the cooperative that represents 60% of the two states’ citrus growers, said its members would continue to pursue a court battle.

Growers represented by Dole and Sunkist support the marketing order system and contend that suspending the system will destabilize the market and cost producers $150 million.

Agriculture Secretary Edward R. Madigan announced Dec. 14 that the department was suspending the quota system on the two fruits for the rest of this year’s harvest, which could last into early summer. The decision was based in part on the large size of this year’s crop and its anticipated early maturation.

With the quotas lifted, growers will be able to harvest and ship their fruit whenever they choose. Under the quota system, a committee set a ceiling on shipments per week, allocating a share of the total to each distributor in an attempt to keep the supply and price consistent throughout the season.

In most years, navel oranges and lemons can be kept on the trees for long periods--sometimes well into summer. However, some growers say most of the fruit will ripen early this year and will have to be shipped by April; under the quotas, excess harvested fruit must be sold for animal feed, juice or export--or left to rot in the fields.