United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

June 2013

Final Regulatory Flexibility Analysis

Final Rule

APHIS-2011-0060

RIN 0579-0401

Importation of Fresh Citrus Fruit from 

Uruguay, including Citrus Hybrids and 

Fortunella spp., into the Continental United 

States

Policy & Program Development

Policy Analysis & Development
i

Summary

APHIS is amending the fruits and vegetables regulations to allow the importation of 

several varieties of fresh citrus fruit, as well as Citrus hybrids and the Citrus-related genus 

Fortunella, from Uruguay into the continental United States under specified conditions of entry

to protect against the introduction of quarantine pests. The United States commercially produces 

fresh citrus varieties comparable to the varieties Uruguay may export to the United States: 

oranges, lemons and specialty mandarin varieties of Citrus reticulata, such as tangerines and 

Satsuma mandarins. U.S. entities that may be impacted by imports of fresh citrus from Uruguay

are producers and packers of fresh oranges, lemons, tangerines, and mandarin varieties. Fresh 

oranges, including Navel, Valencia, Temple and other varieties, are produced in California (87 

percent), Florida (11 percent), and Texas (2 percent). Lemons are produced in California (90 

percent) and Arizona (10 percent). Tangerines and mandarins (including tangelos and tangors) 

are produced in California (71 percent), Florida (28 percent), and Arizona (1 percent). Louisiana 

commercially produces a variety of Satsuma that is mostly sold locally. 

Effects of the final rule on U.S. entities will depend on the quantity of fresh citrus 

imported from Uruguay into the continental United States, and the demand for the fruit relative 

to the demand for the same or similar citrus varieties produced domestically or imported from 

other countries. We expect the entry of fresh citrus from Uruguay to lead to an increase in the 

U.S. supply; the net increase will be determined by the quantity of citrus varieties imported from 

Uruguay and the extent to which those imports displace domestic production and imports from 

elsewhere.

An increase in supply will put downward pressure on producer prices of affected fresh 

citrus varieties, generating a loss in producer surplus. Concurrent consumer welfare gains due to 
ii

lower prices will exceed the producer surplus losses for a positive net benefit. However, these 

effects will be small. Total exports of fresh citrus from Uruguay to world markets are equivalent 

to less than 3 percent of U.S. production of fresh oranges, lemons, tangerines and mandarins. 

Only a fraction of Uruguay’s fresh citrus exports is likely to be diverted from established 

international markets, given the advantages of maintaining and expanding existing market 

linkages.

The majority of U.S. citrus producers and packinghouses are small entities. The systems 

approach under which fresh citrus will be imported from Uruguay will safeguard these 

businesses against the introduction of injurious plant pests. 
iii

Table of Contents

Importation of Fresh Citrus Fruit from Uruguay, including Citrus Hybrids and Fortunella 

spp., into the Continental United States........................................................................................... i

Summary.............................................................................................................................. i

Introduction......................................................................................................................... 1

Need for and Objectives of the Rule................................................................................... 1

Significant Issues raised by Public Comment in response to the Initial Regulatory

Flexibility Analysis......................................................................................................................... 2

Comments filed by the Small Business Administration in response to the Proposed Rule 5

Potentially Affected Small Entities..................................................................................... 5

U.S. Citrus Production and Trade............................................................. 6

Uruguay Citrus Production and Trade ................................................. 13

Prevalence of U.S. Small Entities........................................................... 17

Projected Reporting, Recordkeeping, and Other Compliance Requirements................... 20

Steps taken by APHIS to minimize Significant Economic Impacts on Small Entities .... 20
1

Introduction

Uruguay requested USDA authorization of market access for commercial shipments of its 

fresh citrus into the continental United States. In response to this request, APHIS prepared a pest 

risk assessment and a risk management analysis, and published a proposed rule on February 6, 

2013 (78 FR 8435-8441, Docket No. APHIS-2011-0060) to allow the importation of commercial 

shipments of fresh citrus from Uruguay. This final rule will allow the importation of several 

varieties of fresh citrus fruit, as well as Citrus hybrids and the Citrus-related genus Fortunella, 

from Uruguay into the continental United States under specified conditions of entry to protect 

against the introduction of quarantine pests.

Section 319.56-1 of Title 7 of the Code of Federal Regulations (CFR) grants the 

regulatory authority for imposing phytosanitary requirements on the importation of fruits and 

vegetables from foreign suppliers. The purpose of this final regulatory flexibility analysis is to 

evaluate the potential effects of the final rule on small businesses, small organizations and small 

governmental jurisdictions as required by section 604 of the Regulatory Flexibility Act. 

Need for and Objectives of the Rule

The national plant protection organization (NPPO) of Uruguay requested of USDA 

authorization to allow the importation into the continental United States of several varieties of 

fresh citrus fruit, as well as Citrus hybrids and the Citrus-related genus Fortunella. APHIS 

published a proposed measure to allow fresh citrus from Uruguay based on the findings of an 

assessment of the plant pest risks.

1

 APHIS determined that the current prohibition was 

 

1 USDA APHIS PPQ CPHST, “Importation of Fresh Citrus Fruit, including Sweet Orange (Citrus sinensis (L.) 

Osb.), Lemon (C. limon (L.) Burm.), Mandarin (C. reticulata Blanco, C. clementina Hort. ex Tan., C. deliciosa Ten., 
2

unnecessary given that any risks posed to U.S. agriculture by entry of these commodities could 

be successfully mitigated by a systems approach designed to prevent a number of pests, 

including fruit flies, from following the pathway. APHIS is committed, under the International 

Plant Protection Convention (IPPC), to consider allowing the importation of plants and plant 

products subject to the least restrictive measures consistent with ensuring phytosanitary security. 

The systems approach includes provisions for registration of production areas and 

packinghouses, orchard sanitation, fruit fly trapping, treatment and inspection, and a 

phytosanitary certificate with an additional declaration certifying the commercial shipment is 

free from all quarantine pests and has been produced in accordance with the systems approach.

The objective of the final rule is to amend the current regulations under 7 CFR 319.56 to 

allow the importation of fresh citrus fruit from Uruguay, including citrus hybrids and Fortunella

spp., into the continental United States. This section of the CFR grants regulatory authority for 

setting phytosanitary requirements for the importation of fruits and vegetables into the United 

States. 

Significant Issues raised by Public Comment in response to 

the Initial Regulatory Flexibility Analysis

Public comments referencing the initial regulatory flexibly analysis (the economic 

analysis) received during the comment period for the proposed rule are addressed in this section.

One commenter disagreed with our statement in the economic analysis that “any product 

displacement that may occur because of the proposed rule would be largely borne by other 

foreign suppliers of fresh citrus.” The commenter stated that because foreign suppliers will not 

 

C. unshiu (Mak.) Marc.), Citrus Hybrids, and the Citrus-Related Genus Fortunella (F. japonica Thunb., F. 

margarita (Lour.) Swing.), from Uruguay into the Continental United States,” February 2011.
3

abandon their market share when Uruguayan citrus fruit is imported into the United States, citrus 

supply will exceed demand, prices will fall, and domestic producers will suffer greater economic 

losses due to higher production cost requirements. 

We acknowledge the statement in the economic analysis for the proposed rule may have 

overstated the extent of possible reductions in market share (product displacement) for current 

foreign suppliers of fresh citrus to the United States. U.S. producers may also lose some portion 

of their market shares. All things equal, product displacement that may occur as a result of fresh 

citrus imports from Uruguay can be expected to be borne in proportion to domestic and foreign 

suppliers’ existing market shares. However, consumer preferences are influenced by factors 

other than price, such as product origin and quality perceptions. The size and pattern of product 

displacement will be determined in part by non-price attributes.

Product displacement, if any, will vary by citrus variety and will be moderated by 

expanding U.S. demand. During the same period, per capita consumption of fresh orange,

mandarin, and lemon varieties increased by an average of 0.21 percent, 3.42 percent, and 5.25 

percent, respectively. The entry of fresh citrus from a new source may displace citrus production 

in the United States, as well as fresh citrus imports from foreign sources like Mexico, Chile, 

Spain, and others. However, a sizeable displacement of fresh citrus from any source with an 

existing market share is unlikely given the increase in domestic consumption. Given these

considerations, we do not anticipate a significant economic impact associated with fresh citrus 

from Uruguay.

Under the Plant Protection Act (7 U.S.C. 7701 et. seq.), we have the authority to prohibit 

or restrict the importation of plants and plant products only when necessary to prevent the 

introduction into or dissemination of plant pests or noxious weeds within the United States. We 
4

do not have the authority to restrict imports solely on the grounds of potential negative economic 

effects on domestic entities that could result from increased imports. Nevertheless, we find it 

unlikely that the rule will have a significant economic impact on U.S. fresh citrus markets, given 

Uruguay’s recent history of citrus production and exports. Total citrus production in Uruguay in 

2011 was 270,367 metric tons, which is less than 3 percent of U.S. production. Uruguay’s total 

fresh orange and lemon exports in 2011 were 66,007 and 13,885 metric tons, respectively, which 

is less than 3.2 percent of U.S. production and 1 percent of total world exports of those same 

fresh varieties. Uruguay exported 37,542 metric tons of fresh mandarin varieties in 2011, which 

is approximately 8 percent of U.S. production and less than 1 percent of total world exports of 

fresh tangerine varieties. Only a fraction of Uruguay’s fresh citrus exports are likely to be 

diverted from established markets to the United States, particularly in the near term, given the 

advantages of maintaining and expanding its existing market linkages.

The commenter also stated that USDA has argued in previous import proposals that 

domestic production would be unaffected because the majority of domestic tonnage is harvested 

in the fall, winter, and spring months and would be unaffected by so-called “counter-seasonal” 

imports. The commenter stated that this argument is invalid due to the year-round marketing of 

citrus harvested domestically. The economic analysis made available with the proposed rule does 

not claim that counter-seasonal effects will reduce the impact on U.S. producers, nor does this

economic analysis.

Another commenter disagreed with our determination that the rule is “not significant” 

with regard to its economic effects on domestic growers of citrus. The commenter 

acknowledged that our use of the term “significant” is based on Executive Order 12866, which 

defines a significant regulatory action as one having an annual effect on the economy of $100 
5

million or more, but asked us to not to view the significance of potential economic impacts of the 

proposed rule using that definition. The commenter explained that the term “significant” is 

understood differently by producers in the U. S. citrus industry. 

We are making no changes in response to the comment. Executive Order 12866 gives the 

Office of Management and Budget the authority to review regulations from Federal agencies and 

determine their economic significance based on the use of that term within the order.

Comments filed by the Small Business Administration in 

response to the Proposed Rule

There were no comments filed by the Small Business Administration in response to the 

initial regulatory flexibility analysis.

Potentially Affected Small Entities

The United States commercially produces fresh citrus varieties comparable to the 

varieties Uruguay may export to the United States: oranges, lemons and specialty mandarin 

varieties of Citrus reticulata, such as tangerines and Satsuma mandarins. Fresh oranges, 

including Navel, Valencia, Temple and other varieties, are produced in California (87 percent), 

Florida (11 percent), and Texas (2 percent). Lemons are produced in California (90 percent) and 

Arizona (10 percent). Tangerines and mandarins (including tangelos and tangors) are produced 

in California (71 percent), Florida (28 percent), and Arizona (1 percent). Louisiana 

commercially produces a variety of Satsuma that is mostly sold locally. 

Effects of the final rule on U.S. entities will depend on the quantity of fresh citrus 

imported from Uruguay into the continental United States, and the demand for the fruit relative 

to the demand for the same or similar citrus varieties produced domestically or imported from 

other countries. We expect the entry of fresh citrus from Uruguay to lead to an increase in the 
6

U.S. supply; the net increase will be determined by the quantity of citrus varieties imported from 

Uruguay and the extent to which those imports displace domestic production and imports from 

elsewhere.

An increase in supply will put downward pressure on producer prices of affected fresh 

citrus varieties, generating a loss in producer surplus. Concurrent consumer welfare gains due to 

lower prices will exceed the producer surplus losses for a positive net benefit. However, these 

effects will be small. Total exports of fresh citrus from Uruguay to world markets are equivalent 

to less than 3 percent of U.S. production of fresh oranges, lemons, tangerines and mandarins. 

Only a fraction of Uruguay’s fresh citrus exports is likely to be diverted from established 

international markets.

We present here data on U.S. fresh orange, lemon, tangerine and mandarin production, 

trade, and consumption before describing potentially affected small entities.

U.S. Citrus Production and Trade

Fresh Oranges

The United States is traditionally a net exporter of fresh oranges. U.S. fresh orange 

production, net imports, and domestic supply, 2005-06 to 2011-12, are shown in table 1. In the 

2011-12 season,2the United States imported 248.7 million pounds of fresh oranges, primarily

from Chile (42 percent), South Africa (33 percent), Mexico (12.8 percent), and Australia (9.5

percent). During the same season, the United States exported approximately 1,530.8 million 

pounds of fresh oranges. South Korea was the largest importer of U.S. fresh oranges,

3

 

2

Season is year ending July 31st.

3

Surpassing Canada as the leading importer of fresh oranges.
7

accounting for approximately 26 percent of U.S. exports, followed by Canada (20 percent), 

Japan (15 percent), Hong Kong (12 percent), and China (7 percent).

4

 

Table 1. U.S. Fresh Orange Production, Net Imports, and Domestic Supply, Seasons 

2005-06 through 2011-12

Season ProductionaImports Exports Net Importsb Domestic 

Supplyc

------------ million pounds ------------

2005-06 4,104.0 158.2 1,198.1 (1,039.8) 3,064.2

2006-07 2,754.0 256.5 757.8 (501.3) 2,252.7

2007-08 4,208.0 169.6 1,350.9 (1,181.3) 3,026.7

2008-09 3,674.0 198.1 1,086.7 (888.6) 2,785.4

2009-10 4,242.9 233.4 1,476.8 (1,243.4) 2,999.5

2010-11 4,540.8 224.0 1,654.0 (1,430.0) 3,110.8

2011-12d4,634.9 248.7 1,530.8 (1,282.1) 3,352.9

Source: USDA Economic Research Service.

a Excludes processed fruit.

b Net imports equals imports minus exports

c U.S. production (excluding processed utilization) plus net imports.

d

Preliminary estimate.

About 67 percent of U.S. fresh orange production was consumed domestically in the 

2011-12 season.

5

 While fresh utilization of oranges accounts for only 4 percent of total orange 

production in Florida, fresh utilization of California and Texas production accounts, on average, 

for 84 and 89 percent, respectively, of total production each season.6 U.S. grower revenue from 

fresh orange production in 2011-12 was approximately $860.9 million.7 Imports average 

approximately 7 percent of domestic supply each season.

U.S. per capita consumption of fresh oranges and temples for the last decade is illustrated in 

figure 1. The available data show fluctuations year to year. Fresh orange consumption has remained 

 

4 U.S. Census Bureau, as reported by Global Trade Information Services, Inc.

5 The proportion of U.S. fresh orange production consumed domestically is the ratio of utilized fresh production less 

exports divided by utilized fresh production. Data Source: USDA ERS Briefing Room, Fruit and Tree Nut 

Yearbook, 2010.

6

Fresh utilization refers to the proportion of total fruit sold and/or consumed as fresh citrus. The remainder is 

considered to be utilized on the processed market.

7 National Agricultural Statistics Service (NASS), USDA, “Citrus Fruits 2012 Summary,” September 2012.
8

relatively flat over the last decade in developed countries largely due to competition from easy-peel 

citrus varieties, such as tangerines and other fresh fruits, and increased orange juice consumption. 

Figure 1. U.S. per capita consumption of fresh oranges and temples for seasons 2002-03 through 2011-12.

Source: USDA/Economic Research Service. Data last updated Feb. 1, 2012.

*2011-12 preliminary estimates.

According to 2007 Census of Agriculture data, there were a total of 12,116 orange 

producers in the United States in 2007, of which 11,573 were located within the continental 

United States.8 The remaining 543 orange producers were located in Hawaii. The majority of 

entities producing orange varieties are in Florida and California, with 5,561 and 5,254 

operations, respectively. Texas and Arizona had 458 and 163 entities, respectively, that 

produced orange varieties. 

 

8 The number of orange farms in the United States, as reported by the 2007 Census of Agriculture, includes 

operations that produced oranges for processed utilization; in Florida, the majority of oranges are processed.

11.9

10.80 11.42

10.25

7.46

9.93

9.06 9.67 9.94 10.71

0

2

4

6

8

10

12

14

pounds per capita

Crop Year

Fresh Oranges & Temples 

U.S. Per Capita Consumption 
9

Fresh Tangerines and Mandarins

The United States is a net importer of fresh mandarins (including Satsumas and 

tangerines), Clementines and other citrus hybrids. U.S. fresh tangerine production, net imports, 

and domestic supply are shown in table 2. In 2011, the United States imported 299.5 million 

pounds of mandarins (including Satsumas and tangerines), Clementines, and other citrus hybrids 

with approximately 37 percent, 31 percent, 12 percent, and 10 percent arriving from Chile, 

Spain, Peru, and Morocco, respectively. That same year, the United States exported 

approximately 80.7 million pounds of mandarins (including Satsumas and tangerines). Canada is 

the largest importer of U.S. fresh mandarins, accounting for 47 percent of U.S. exports. The 

second largest importer of U.S. mandarin varieties is Japan, accounting for approximately 35 

percent.9

 

9 U.S. Census Bureau, as reported by Global Trade Information Services, Inc.
10

Table 2. U.S. Fresh Tangerine Production, Net Imports, and Domestic Supply, Seasons 

2005-06 through 2011-12. 

Season ProductionaImports Exports Net Imports Domestic 

Supplyb

------------ million pounds ------------

2005-06 621.0 226.5 46.3 180.2 803.5

2006-07 540.2 266.8 35.3 231.5 771.7

2007-08 793.7 213.0 70.5 142.5 936.3

2008-09 745.8 288.9 65.0 223.9 969.7

2009-10 959.8 282.8 17.1 265.7 1,225.5

2010-11 1,068.2 329.0 113.6 215.4 1,283.6

2011-12d1,070.5 299.5 80.7 218.8 1,289.4

Data Source: USDA ERS Briefing Room, Fruit and Tree Nut Yearbook, 2010.

a Excludes processed fruit.

b Net imports equals imports minus exports.

c U.S. production (excluding processed utilization) plus net imports.

d

Preliminary estimate.

About 92 percent of U.S. fresh mandarin production was consumed domestically in 

2011.

10

 The United States relies on imports of tangerines and mandarins to supplement domestic 

production in satisfying domestic demand. U.S. mandarin and tangerine production is primarily

sold as fresh fruit with fresh utilization accounting, on average, for 76 percent of the total 

production. U.S. grower revenue from fresh tangerine production in 2011-12 was approximately

$336.2 million.11 Imports average approximately 25 percent of domestic supply each season.

U.S. per capita consumption of fresh tangerines and tangelos over the last decade is 

illustrated in figure 2. Over the last decade, per capita consumption of fresh tangerines and tangelos 

in the United States grew at an annual rate of 3.31 percent. The easy-peel, seedless varieties of fresh 

mandarin, such as tangerines and clementines, are particularly appealing to consumers. 

 

10 The proportion of U.S. fresh mandarin production consumed domestically is the ratio of utilized fresh production 

less exports divided by utilized fresh production. Data Source: Foreign Agricultural Service, Production, Supply, 

and Distribution Online.

11 National Agricultural Statistics Service (NASS), USDA, “Citrus Fruits 2012 Summary,” September 2012.
11

Figure 2. U.S. per capita consumption of fresh tangerines and tangelos for seasons 2002-03 through 2011-12.

Source: USDA/Economic Research Service. Data last updated Feb. 1, 2012.

*2011-12 preliminary estimates.

According to 2007 Census of Agriculture data, there were a total of 1,976 tangerine 

operations in the United States in 2007, of which 1,676 were located within the continental 

United States.12 The remaining 300 tangerine operations were located in Hawaii. The majority of 

entities producing tangerine varieties are in Florida and California with 839 and 706 operations, 

respectively. Texas and Arizona had 59 and 36 entities, respectively, that produced tangerine 

varieties. 

Fresh Lemons

The United States is a net exporter of fresh lemons. U.S. fresh lemon production, net 

imports, and domestic supply are shown in table 3. In the 2011-12 season, the United States 

imported 126.6 million pounds of fresh lemons, with nearly 60 percent supplied by Mexico and 

 

12 The number of tangerine farms in the United States, as reported by the 2007 Census of Agriculture, includes 

operations that produced tangerines for processing.

2.72 2.77

2.50 2.69 2.57

3.08 3.17

3.97 4.13

3.41

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

pounds per capita

Crop Year

Fresh Tangerine & Tangelo

U.S. Per Capita Consumption 
12

35 percent from Chile. That same season, the United States exported approximately 201.5 

million pounds of fresh lemons. Japan and Canada are the largest importers of U.S. fresh 

lemons, accounting for approximately 40.3 and 32.5 percent of U.S. exports, respectively.

13

 

Table 3. U.S. Fresh Lemon Production, Net Imports, and Domestic Supply, Seasons 

2005-06 through 2011-12. 

Season ProductionaImports Exports Net Importsb Domestic 

Supplyc

------------ million pounds ------------

2005-06 1,372.1 82.7 220.4 (137.7) 1,234.4

2006-07 980.0 122.4 258.5 (136.1) 843.9

2007-08 789.0 146.4 338.5 (192.1) 596.9

2008-09 1064.0 91.9 199.9 (108.0) 956.0

2009-10 968.0 92.4 199.0 (106.6) 861.3

2010-11 1,202.0 94.8 220.1 (125.2) 1076.8

2011-12 1,310.0 126.6 201.5 (74.9) 1,235.1

Data Source: USDA ERS Briefing Room, Fruit and Tree Nut Yearbook, 2010.

a Excludes processed fruit.

b Net imports equals imports minus exports

c U.S. production (excluding processed utilization) plus net imports.

About 85 percent of U.S. fresh lemon production was consumed domestically in 2011.

14

 

U.S. imports of fresh lemons serve to supplement domestic production to meet domestic demand. 

Depending on the season, fresh utilization of U.S. lemon production can account for, on average, 

between one-half and three-fourths of total production, with the remaining fruit being processed. 

U.S. grower revenue from total lemon production in 2011-12 was approximately $448.7

million.15 Imports average approximately 10 percent of domestic supply each season.

U.S. per capita consumption of fresh lemons for the last decade is illustrated in figure 3. 

Over the last decade, per capita consumption of fresh lemons in the United States fluctuated year to 

 

13 U.S. Census Bureau, as reported by Global Trade Information Services, Inc.

14 The proportion of U.S. fresh lemon production consumed domestically is the ratio of utilized fresh production less 

exports divided utilized fresh production. Data Source: USDA ERS Briefing Room, Fruit and Tree Nut Yearbook, 

2010.

15 National Agricultural Statistics Service (NASS), USDA, “Citrus Fruits 2012 Summary,” September 2012.
13

year while growing at an average annual rate of 5.83 percent, with a 2005-06 peak season of 4.15 

pounds per capita. 

Figure 3. U.S. per capita consumption of fresh lemons for seasons 2002-03 through 2011-12.

Source: USDA/Economic Research Service. Data last updated Feb. 1, 2012

*2011-12 preliminary estimates.

According to 2007 Census of Agriculture data, there were a total of 2,607 lemon 

operations in the United States in 2007, of which 2,201 were located within the continental 

United States.16 The remaining 406 lemon operations were located in Hawaii. The major lemon 

producing states are California and Arizona with 1,880 and 172 operations, respectively.

Uruguay Citrus Production and Trade

Uruguay is an emergent producer and exporter of fresh citrus on the world market, 

ranking in the top 20 countries of fresh citrus exports. Of its fresh citrus production, Uruguay

primarily exports oranges, mandarins, lemons, and some grapefruit. Among its top export 

 

16 The number of lemon farms in the United States, as reported by the 2007 Census of Agriculture, includes 

operations that produced lemons for processing.

3.33 3.12 2.95

4.15

2.81

1.97

3.12

2.79

3.46

3.94

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

pounds per capita

Crop Year

Fresh Lemons 

U.S. Per Capita Consumption 
14

markets are Netherlands, United Kingdom, Spain, Brazil, Russia, Italy, Saudi Arabia, Portugal,

and Canada. Uruguay’s Union of Fruit and Vegetable Growers and Exporters (UPEFRUY) 

international department has indicated an intention to export mandarins (primarily of the 

clementine variety) as well as some oranges to the continental United States by late 2013, with 

publication of the final rule.

Oranges from Uruguay

Uruguay is a net exporter of fresh oranges. Uruguay fresh orange production, net 

imports, and domestic supply from 2005 to 2011, are shown in table 4. In 2010, Uruguay

imported 1.2 million pounds of fresh oranges while exporting approximately 162.7 million 

pounds.17 The Netherlands was the largest importer of fresh oranges from Uruguay, accounting 

for approximately 36 percent of exports, followed by Spain (27 percent), Brazil (9 percent), Italy 

(6 percent), and United Kingdom (5 percent).

18 About 45 percent of fresh orange production was 

consumed domestically in 2010.

19

 

Table 4. Uruguay Fresh Orange Production, Net Imports, and Domestic Supply, 2005 through 

2011.

Year ProductionaImports Exports Net Importsb Domestic 

Supplyc

------------ million pounds ------------

2005 389.1 0.0 213.3 (213.3) 175.8

2006 304.9 0.6 173.5 (172.9) 132.0

2007 410.7 1.3 183.8 (182.5) 228.2

2008 284.2 0.1 156.1 (156.0) 128.2

2009 286.8 1.2 162.7 (161.4) 125.4

2010 340.0 1.2 186.3 (185.1) 154.9

2011d298.0 145.5

Source: FAOSTAT

a

Includes processed fruit and limes.

b Net imports equals imports minus exports

 

17 Data source: FAOSTAT

18 Central Bank, as reported by Global Trade Information Services, Inc. Ranking of export markets for fresh citrus 

varies each year.

19 The proportion of fresh orange production consumed domestically is the ratio of domestic supply less imports 

divided by production. 
15

c

Production plus net imports.

d Data incomplete. Source of export data from Central Bank via Global Trade Atlas.

Tangerines from Uruguay 

Uruguay is a net exporter of fresh mandarin varieties. Uruguay fresh mandarin 

production, net imports, and domestic supply from 2005 to 2011, are shown in table 5. In 2010,

Uruguay imported 400,000 pounds of fresh mandarin varieties while exporting approximately

107.6 million pounds.20 The United Kingdom was the largest importer of fresh mandarin 

varieties from Uruguay, accounting for approximately 28 percent of exports, followed by

Netherlands (26 percent), Brazil (8 percent), and Canada (5 percent), and Russia (4 percent).

21

 

About 60 percent of fresh mandarin production was consumed domestically in 2010.

22

Table 5. Uruguay Fresh Mandarin Production, Net Imports, and Domestic Supply, 2005 through 

2011.

Year ProductionaImports Exports Net Importsb Domestic 

Supplyc

------------ million pounds ------------

2005 208.1 0.0 99.0 (99.0) 109.1

2006 194.5 0.3 89.7 (89.4) 105.1

2007 259.4 0.0 102.7 (102.7) 156.7

2008 195.0 0.1 85.7 (85.6) 109.4

2009 204.5 0.7 92.8 (92.2) 112.4

2010 267.8 0.4 107.6 (107.2) 160.5

2011d205.9 82.8

Source: FAOSTAT

a

Includes processed fruit and limes.

b Net imports equals imports minus exports

c

Production plus net imports.

d Data incomplete. Source of export data from Central Bank via Global Trade Atlas.

Lemons from Uruguay

Uruguay is a net exporter of fresh lemons. Uruguay fresh lemon production, net imports, 

and domestic supply from 2005 to 2011, are shown in table 6. In 2010, Uruguay imported 

 

20 Data source: FAOSTAT

21 Central Bank, as reported by Global Trade Information Services, Inc. Ranking of export markets for fresh citrus 

varies each year.

22 The proportion of mandarin production consumed domestically is the ratio of domestic supply less imports 

divided production. 
16

800,000 pounds of fresh lemons while exporting approximately 33.8 million pounds.23 The 

Netherlands was the largest importer of fresh lemons from Uruguay, accounting for 

approximately 23 percent of exports, followed by Saudi Arabia (15 percent), Spain (15 percent), 

United Kingdom (11 percent), and Italy (8 percent). 24 About 59 percent of fresh mandarin 

production was consumed domestically in 2010.

25

 

Table 6. Uruguay Fresh Lemon Production, Net Imports, and Domestic Supply, 2005 through 

2011.

Year ProductionaImports Exports Net Importsb Domestic 

Supplyc

------------ million pounds ------------

2005 101.4 0.4 35.1 (34.6) 66.8

2006 94.5 0.3 31.6 (31.3) 63.2

2007 83.1 0.3 30.4 (30.0) 53.0

2008 72.8 0.5 32.6 (32.1) 40.7

2009 92.6 0.7 30.6 (29.9) 62.7

2010 83.0 0.8 33.8 (33.0) 50.0

2011d84.2 30.6

Source: FAOSTAT

a

Includes processed fruit and limes.

b Net imports equals imports minus exports

c

Production plus net imports.

d Data incomplete. Source of export data from Central Bank via Global Trade Atlas.

We anticipate that exports directed to the U.S. domestic market will be a small fraction of 

Uruguay’s total exports of these fresh citrus fruits based on availability and currently established 

export markets in Europe and Russia. Given the small quantity expected to be imported from 

Uruguay, it is very unlikely that there will be a significant impact on the U.S. markets for fresh 

oranges, lemons, tangerines and mandarin varieties. Given the sizable amounts of fresh lemons 

and mandarins, for example, imported by the United States, we anticipate that any product 

displacement that may occur as a result of fresh citrus imports from Uruguay can be expected to 

 

23 Data source: FAOSTAT

24 Central Bank, as reported by Global Trade Information Services, Inc. Ranking of export markets for fresh citrus 

varies each year.

25 The proportion of lemon production consumed domestically is the ratio of domestic supply less imports divided 

by production. 
17

be borne in proportion to domestic and foreign suppliers’ existing market shares. Additionally, 

consumer preferences are influenced by factors other than price, such as product origin and 

quality perceptions. The amount and pattern of product displacement will be determined in part 

by non-price attributes. Product displacement, if any, will vary by citrus variety and will be 

moderated by expanding U.S. demand. 

In the long run, expansion of Uruguayan production could lead to increased exports to the 

United States. However, foreign and domestic suppliers alike are price sensitive. We anticipate 

exports from Uruguay to the United States will increase market supply by less than 3 percent in 

the near term, given Uruguay’s production capacity and its currently established export markets. 

Only a fraction of Uruguay’s fresh citrus exports are likely to be diverted from established 

markets to the United States, particularly in the near term. Given the small quantity expected to 

be imported from Uruguay, it is very unlikely that there will be a significant impact on the U.S. 

markets for these varieties. 

Prevalence of U.S. Small Entities 

The final rule may affect domestic producers of fresh citrus, as well as firms responsible 

for packing and shipping these commodities to domestic and foreign markets. Citrus producers 

that may be affected are expected to be small, based on 2007 Census of Agriculture data and 

Small Business Administration (SBA) small-entity standards for entities classified within the 

farm categories of Orange Groves (NAICS 111310) and Citrus (except Orange) Groves (NAICS 

111320). SBA classifies producers in these categories with total annual sales of not more than 

$750,000 as small entities.

APHIS does not have information on the size distribution of U.S. citrus producers, but 

according to 2007 Census of Agriculture, there were a total of 98,281 Fruit and Tree Nut farms 
18

(NAICS 1113) in the United States in 2007.26 Of this number, nearly 94 percent had annual 

sales in 2007 of less than $500,000, which is well below the SBA’s small-entity threshold of 

$750,000.27 

According to the 2007 Census of Agriculture Summary and State Data report, that year 

there were a total of 15,658 citrus farms in the United States. We describe the prevalence of 

small farms among citrus producers using the example of U.S. lemon production. In 2007, there 

were 2,607 lemon farms (79 percent in California and Arizona, and the remaining in Florida, 

Hawaii, Louisiana, and Texas).28 There is little evidence to suggest that many of these producers 

operate on a large scale. For example, there were 49 lemon farms in Florida, according to the 

2002 Census of Agriculture.

29

 During that same year, Florida reported the total value of Florida 

lemons at approximately $2.1 million, with bearing acreage estimated at 800 acres, yielding 

average revenues per farm of less than $43,000.30 (The Florida Agricultural Statistic Service 

discontinued lemon estimates after the 2002-03 season; however, the 2007 Census of Agriculture 

Summary and State Data report indicates a 22 percent increase in lemon farms from 2002 to 

2007, when lemon farms numbered 60.)

While cash receipts by size for lemon farms were not reported in the 2007 Census of 

Agriculture, it is reasonable to assume that most of the 2,607 domestic lemon farms qualify as 

small entities. This conclusion holds as well for the producers of the other citrus species and 

varieties. 

 

26 This number includes farms producing citrus and those specifically producing lemons.

27 Source: SBA and 2007 Census of Agriculture.

28 National Agricultural Statistics Service (NASS), United States Department of Agriculture (USDA), “United 

States: Summary and State Data, Volume 1” 2007 Census of Agriculture, Issued February 2009.

29National Agricultural Statistics Service (NASS), United States Department of Agriculture (USDA), “United 

States: Summary and State Data, Volume 1” 2002 Census of Agriculture, Issued June 2004.

30 Florida Agricultural Statistic Service (FASS), National Agricultural Statistics Service (NASS), United States 

Department of Agriculture (USDA), “Citrus Summary 2006-07,” February 2008.
19

In the case of packinghouses, establishments engaged in Postharvest Crop Activities 

(NAICS 115114) are also predominantly small. The SBA small-entity standard for 

packinghouses is $6.5 million or less in annual receipts. In Florida, there were at least 142 

packinghouses registered in 2007.31 While the classification of these establishments by sales 

volume is not available, it is estimated that approximately 35 of the 142 registered 

packinghouses are large commercial citrus packinghouses with the remainder being small 

establishments known as gift packers in Florida. The Fresh Shippers Report, issued by Florida’s 

Citrus Administrative Committee, details quantities of fresh citrus shipments of the top 35 to 50 

shippers of each season.32 At least 95 percent of Florida fresh citrus shipments are packed by the 

top 35 to 50 packinghouses in the State.33 During the 2011-12 citrus season, annual sales for at 

least 30 of the top 44 shippers (68 percent) were below the SBA size standard of $6.5 million. It

is estimated that at least 85 percent of Florida’s citrus packers, including small gift packers, are 

small according to the SBA size standard.

In 2010, there were 74 packinghouses in California.34 Approximately 60 percent of these

packinghouses market the final product through such cooperatives as Sunkist Growers, Inc., the 

Central California Orange Growers Cooperative, and DNE World Fruit Sales.35 The remaining 

packinghouses market their final product independently. We do not have a definitive number of 

 

31 Florida Department of Agriculture and Consumer Services, Division of Fruit & Vegetable Inspection. 

<http://www.doacs.state.fl.us/fruits>

32 “Fresh Shippers Report: 2011-12 Season Through July 31, 2012,” Citrus Administrative Committee, August 10, 

2012. <http://www.citrusadministrativecommittee.org/> 

33 Ibid.

34 California Citrus Mutual Report to the CDFA Board- June 30, 2010. Bob Blakely, Director of Industry 

Relations.

<http://www.californiacitrusmutual.com/pdf/CDFA_Board_Report_6302010.pdf > Date accessed: September 9, 

2011.

35 United States International Trade Commission (USITC), “Conditions of Competition for Certain Oranges and 

Lemons in the U.S. Fresh Market, Inv 332-469,” Publication 3863, Washington, D.C., July 2006. 
20

small-entity packinghouses that may be affected by this rule, and did not receive public comment

on their number and size. We did receive undocumented comment that the California summer 

orange harvest had been reduced by 50 percent due to imports in recent years, which then 

resulted in idle packing houses and lost jobs for the workers associated with the packinghouses. 

Projected Reporting, Recordkeeping, and Other Compliance 

Requirements

Reporting and recordkeeping requirements associated with the final rule are discussed in 

the rule under the heading "Paperwork Reduction Act."

Steps taken by APHIS to minimize Significant Economic 

Impacts on Small Entities

Based on our review of available information, including the potential market share for 

Uruguay fresh citrus on the domestic market, APHIS does not expect the rule to have a 

significant economic impact on small entities. In the absence of significant economic impacts, 

we have not identified alternatives that would minimize such impacts.

We are allowing the importation of several varieties of citrus fruit from Uruguay into the 

continental United States when produced, handled, and shipped under a systems approach to 

mitigate risks posed by plant pests. The systems approach includes requirements for the 

importation of commercial consignments; the submission by the Uruguayan national plant 

protection organization of a workplan to APHIS that details the activities that the Uruguayan 

national plant protection organization will carry out, subject to approval by APHIS, to meet the 

requirements; orchard sanitation and packinghouse procedures designed to exclude the 

quarantine pests; and treatment requirements. The fruit will be required to be accompanied by a 

phytosanitary certificate issued by the national plant protection organization of Uruguay with an 
21

additional declaration confirming that the fruit is free from all quarantine pests and was produced 

in accordance with the systems approach. This action will allow for the importation of several 

varieties of fresh citrus fruit, including Citrus hybrids and the Citrus-related genus Fortunella, 

from Uruguay while continuing to provide protection against the introduction of injurious plant 

pests into the United States.