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Briefing Rooms

Fruit and Tree Nuts: Background

Contents
 

Fruit
Tree Nuts

Fruit and tree nuts are an important part of a person's diet. The typical American consumes over 280 pounds of fruit and tree nuts (fresh and processed products) each year, ranking third in per capita consumption of major food groups, next to dairy products and vegetables. Consisting of a wide array of crops and products, the U.S. fruit and tree nuts industry is an important component of the Nation's farm sector. Production is harvested from less than 2 percent of total harvested cropland but generates, on average, over $14 billion in U.S. farm cash receipts annually. During the 2000s, fruit and tree nut cash receipts averaged 13 percent of all crop receipts and 5 percent of all farm cash receipts (crops and livestock).

Domestic and international demand for fruit and tree nut products grew in the 1990s and through most of 2000s. Yet, according to the 2002 Census of Agriculture, the acres devoted to fruit and tree nut production and the number of farms declined between 1997 and 2002. Some of the factors driving this downward shift are higher labor costs relative to foreign competitors, higher land values, changing consumer preferences, technological innovation, increased costs associated with meeting the exacting requirements of export markets, and retail consolidation. Small, family, or individually run farm operations continue to dominate U.S. fruit and tree nut production. Most of the production and revenue, however, come from the few largest farms.

Fruit

Despite year-to-year fluctuations, utilized production in the United States during the 1990s and early 2000s averaged 10-20 percent higher than the 1980s. That growth was in response to several factors such as:

  • increased domestic consumption,
  • expanding export markets,
  • technological production changes, such as the adoption of close density planting,
  • new propagation methods that decrease the time needed for new trees to reach bearing age from 5-6 years to 2-3 years,
  • the use of disease or pest-resistant, high-yielding varieties, and
  • greater use of early- or late-season varieties that extended typical marketing seasons for specific fruits so that growers may take advantage of market windows.

Production declines in recent years may be attributed mainly to weather and disease problems, mostly affecting citrus production.

U.S. fruit and tree nuts: Utilized production

The Nation's largest fruit-producing States are California, Florida, and Washington. California accounts for nearly half of the harvested fruit acreage, Florida almost one-fourth, and Washington close to one-tenth. Michigan, New York, Oregon, and Pennsylvania are also important fruit-producing States and together these States account for one-tenth of the nation's fruit acreage.

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California is the largest producer of grapes, strawberries, peaches, nectarines, and kiwifruit. The State is also a major producer of a variety of other noncitrus fruit like apples, pears, plums, and sweet cherries and is second in citrus production. California's fruit-friendly climate gives it an advantage over other fruit-producing States. Florida's primary fruit crop is citrus. Washington is the largest apple producer and an important producer of grapes and pears.

Most fruits are grown to serve both fresh and processing markets. The fresh-market sector accounts for more than half the value of U.S. fruit production, with over three-quarters of that generated by noncitrus fruits. California's production accounts for more than half the value of all fresh fruits. The fresh market is the destination for over half the volume of all U.S. produced avocados, bananas, nectarines, kiwifruit, strawberries, tangerines, sweet cherries, apples, pears, and lemons. Meanwhile, some examples of fruit that have a larger percentage of production going into processing are oranges, grapefruit, grapes, apricots, figs, prunes, peaches, tart cherries, and most berries, including blueberries and cranberries.

Processed fruit products include canned, frozen, juice, and dried fruit, as well as wine. At packinghouses, fruits are inspected and graded for size, shape, and appearance. Some fruits intended for the fresh market are diverted to processors due to quality requirements. Most fruits for processing, on the other hand, are not easily diverted to the fresh market because of the same quality requirements. Most fruit destined for processing is grown under contractual arrangement between growers and processors.

oranges

Oranges, grapes, apples, bananas, and grapefruit are the top five consumed fruit in the United States during the 2000s (includes fresh and all processed products). While growth in fresh fruit consumption has been the strongest, juice remains the number one form in which fruit is consumed in the United States. Fruit juice accounts for nearly half of the total per capita fruit consumed annually, fresh use accounts for over one-third, and canned, dried, and frozen fruit each represent less than one-tenth.

Increased domestic and world supplies, rising disposable incomes, and a growing and more culturally diverse population will continue to pressure consumer demand for fruit and fruit products in the United States over the next decade. Another important stimulus is continued emphasis on health and nutrition. The fruit industry has been very active in promoting the health benefits of fruit consumption. In 1992, the fruit and vegetable industries, in conjunction with the National Cancer Institute, established the National 5-A-Day campaign. Such efforts, including plans to raise the recommended daily consumption for fruit and vegetables, will likely result in further gains in per capita use.

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Tree Nuts

U.S. tree nut production increased significantly over the past three decades, from 306.4 million pounds (shelled basis) in 1970 to nearly 2.0 billion pounds in the mid-2000s. That increase is being driven by greater domestic and foreign demand. U.S. per capita use of all tree nuts was over 3.0 pounds (shelled basis) in recent years, up from 1.7 pounds in 1977. Exports continued to gain a larger share of domestic supplies, increasing from an average of 24 percent during the 1970s to over 40 percent during the 1990s and 2000s.

U.S. tree nut production in the mid-2000s generated over $3 billion in farm cash receipts, with almonds, walnuts, pistachios, and pecans accounting for most of the sales. California is the nation's number one producer of tree nuts. Almost 90 percent of U.S. tree nut production is harvested from California orchards annually, including virtually all almonds, pistachios, and walnuts. Producing only pecans, Georgia, Texas, and New Mexico each make up 2-3 percent of total tree nut output. Together, these three States produce nearly three-quarters of the U.S. pecan crop. Although small in terms of total tree nut production, hazelnuts are grown in Oregon and macadamia nuts are grown in Hawaii.

Year-to-year tree nut production levels are erratic. In addition to weather-related factors, annual fluctuations in production are associated with the alternate-bearing nature of most nut trees. Trees producing a large crop in one year most often produce a smaller crop the next year to build back nutrient reserves. Over the last two decades, the alternate-bearing pattern in U.S. nut trees was strongest in pecans, walnuts, and pistachios.

Similar to fruit and vegetables, increased demand for tree nuts in the United States over the last several years can be attributed to rising population and incomes, and heightened interest in health and nutrition. Like fruit and vegetable growers, the U.S. tree nut industry has been active in promoting the health benefits of tree nuts. The top three nuts consumed in the United States are almonds, walnuts, and pecans.

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For more information, contact: Agnes Perez or Susan Pollack

Web administration: webadmin@ers.usda.gov

Updated date: March 13, 2008