TALLAHASSEE - A combination of overproduction and low-carb diets is threatening the citrus industry, already endangered by canker, the possible loss of a tax for advertising, and the threat that a tariff on Brazilian juice might be lifted, lawmakers were told Thursday.
In addition, the head of the Department of Citrus, Bob Crawford, had to deflect criticism that while sales of orange juice have dropped on his watch, the department hasn't kept a handle on how it's spending the tax dollars growers give the agency.
Several lawmakers at a joint meeting of the House and Senate Agriculture Committees questioned Crawford about an audit released in August that found that the department was sloppy in how it documented travel expenses and said it over paid in some areas, such as cell phone expenses.
Crawford also was questioned extensively about one of the department's primary advertising tools - a truck that travels around the country promoting orange juice.
Crawford, a former Senate president and commissioner of agriculture, said the department had taken steps to better account for its expenses and defended his watch over spending, noting that he's cut payroll by a third and travel by 56 percent.
"This kind of audit will never occur again at the Department of Citrus. I can assure you of that," he told the panel.
Meanwhile, an economist, Crawford and several growers said the situation for the industry is dire in Florida, the nation's largest producer of oranges.
Crawford said the most immediate threat is a downward trend in the number of people drinking orange juice. Industry research says it's related to increased popularity of low-carbohydrate diets, such as the Atkins diet.
Some low-carbohydrate proponents say orange juice shouldn't be part of such a diet because of its sugar content.
"If we let those statements stand, we will be out of business," Crawford said.
The industry is testing advertising aimed at countering that message, and Tropicana has introduced a low-carb orange juice.
"You will see additional low-carb orange juice products hitting the market very soon," said Dan Gunter, an economist and citrus industry consultant. He said retail sales of orange juice have declined 5 percent over the last two seasons.
While the Department of Citrus is hoping to meet the threat with advertising, not all growers are convinced that the tax they pay to the department to promote the product is the best way to help the industry.
"We'll never advertise our way out of the problem we're in today," Polk County grower Gilbert Bowen told the panel. He said a better response from government is some sort of answer to the overproduction, like government programs to buy the extra product.
"There's a glut," said Bowen, whose daughter, Rep. Marty Bowen, R-Haines City, is a member of the House Agriculture Committee.
Growers are expected to produce a record 10-million tons of oranges this year. The federal government already has agreed to make one move to help, saying it will purchase as much as $50-million worth of juice for USDA food programs for the needy.
