United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

March 2015

Analysis in Support of Certification that the 

Rule will not have a Significant Economic 

Impact on a Substantial Number of Small 

Entities

Proposed Rule

APHIS 2015-0005

RIN 0579-AE09

Expansion of Areas from where Fresh 

Commercial Citrus will be allowed to be 

imported from Peru to the Continental 

United States

Policy & Program Development

Policy Analysis & Development
i

Summary

Currently, the regulations allow the importation of fresh grapefruit, lime, mandarin, 

orange, tangerine or hybrids, sweet orange, and tangelo from approved citrus-producing zones in 

Peru to the continental United States. The proposed rule would allow the importation of these 

fruits from the entire country of Peru under the same conditions that are currently in place. The 

proposed rule is expected to increase the area in Peru approved to produce citrus for export to the 

United States to about 1,500 hectares over three years. Additional volumes of citrus expected to 

be shipped to the United States are 5,000 metric tons (MT) in the first year that the rule is in 

effect, 6,500 MT in the second year, and 8,000 MT in the third year. These quantities are 

equivalent to less than 1 percent of annual U.S. citrus production or U.S. citrus imports.

The primary entities that may be affected by the rule are citrus producers, citrus 

importers, and support industries such as packing houses. Based on data from the 2012 Census of 

Agriculture and Small Business Administration small-entity standards, the majority of these 

operations are small. 

Although most entities that may be affected are small, the economic effects of the 

proposed rule would be minimal. The APHIS Administrator certifies that the proposed rule, if 

promulgated, will not have a significant economic impact on a substantial number of small 

entities.
ii

Table of Contents

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

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

U.S. Citrus Production and Trade ....................................................................................... 1

Fresh Oranges ............................................................................................................. 2

Fresh Grapefruit.......................................................................................................... 2

Fresh Tangerines, Tangelos, Mandarins, Clementines, and Similar Citrus Hybrids.. 3

Fresh Limes................................................................................................................. 4

Peru Citrus Exports............................................................................................................. 4

Potential Impact on Small Entities...................................................................................... 5
1

Introduction 

This analysis provides the basis, as required by the Regulatory Flexibility Act, for 

certification by the APHIS Administrator that the proposed rule, if promulgated, will not have a 

significant economic impact on a substantial number of small entities.

Currently, 7 CFR 319.56-41 allows the importation of fresh grapefruit, lime, mandarin, 

orange, tangerine or hybrids, sweet orange, and tangelo from approved citrus-producing zones in 

Peru to the continental United States. The proposed rule would allow importation of these fruits 

from the entire country of Peru under the same conditions as are currently in place. The proposed 

rule is expected to increase the area in Peru approved to produce citrus for export to the United 

States to about 1,500 hectares over three years. Additional volumes of citrus expected to be 

shipped to the United States are 5,000 metric tons (MT) in the first year that the rule is in effect, 

6,500 MT in the second, and 8,000 MT in the third year.

U.S. Citrus Production and Trade

Citrus, particularly oranges are among the most popular fresh fruits consumed in the 

United States and are a significant source of U.S. farm income. In 2012, oranges generated $2.2 

billion in farm cash receipts. Lemons generated $430 million, tangerines another $414 million, 

and grapefruit another $269 million.1 Fresh citrus imports account for about 7 percent of U.S. 

fresh fruit imports. The major suppliers of fresh citrus are Mexico (42 percent), Chile (17 

percent), Spain (16 percent), and South Africa (9 percent).2

 

1 USDA, Economic Research Service. Fruit and Tree Nuts, Table A-8: U.S. Cash Receipts 1980 to date.

2 Huang, Sophia W., “Imports Contribute to Year-Round Fresh Fruit Availability.” Economic Research Service. 

USDA 2013. http://www.ers.usda.gov/publications/fts-fruit-and-tree-nuts-outlook/fts-356-01.aspx
2

Fresh Oranges

 The United States is a net exporter of fresh oranges, exporting an average of 8 percent 

and importing an average of 3 percent of the fresh oranges traded worldwide, 2008/09 through 

2012/13. Over this five-year period, U.S. fresh orange exports averaged 657,800 metric tons 

(MT) and imports averaged 111,000 MT. The United States is the third largest exporter of fresh 

oranges, and its primary foreign markets are South Korea, Canada, Japan, Hong Kong, and 

China. Eight percent of the fresh oranges consumed in the United States are imported. Chile 

and South Africa, followed by Mexico and Australia, supply the largest shares of U.S. fresh 

orange imports.3 

While showing fluctuations year to year, U.S. fresh orange per capita consumption has 

steadily declined over the last 30 years and remained relatively flat over the past decade. In 

2012/13, U.S. per capita fresh orange consumption was 10.9 pounds, down from a high of 14.6 

pounds in 1997/98.4 As with other developed countries, competition from easy-peel citrus 

varieties and increased orange juice consumption have contributed to this per capita decline.

About one-fourth of U.S. produced oranges are sold for fresh consumption, both 

domestically and internationally. While only 4 percent of orange production in Florida is 

utilized fresh, the percentages for California and Texas are 83 and 86 percent, respectively.5

Fresh Grapefruit

The United States is a large net exporter of grapefruit. The United States imported about 

1 percent and exported about 27 percent of the world’s traded grapefruit, 2008/09 through 

 

3 Global Trade Information Services, Inc. 

4 USDA/ Economic Research Service, preliminary estimate.

5 Fresh utilization refers to the proportion of total fruit sold as fresh citrus. The remainder is considered to be 

utilized on the processed market.
3

2012/13. Over the period, U.S. exports averaged approximately 222,000 MT. Primary foreign 

markets for U.S. fresh grapefruit are Japan, Canada, France, the Netherlands, and South Korea. 

The United States imports comparatively little fresh grapefruit, given extensive domestic 

production. Over the period 2008/09 through 2012/13, fresh grapefruit imports by the United 

States averaged 7,800 MT per year, or less than 1 percent of domestic consumption. Mexico, 

Israel, and South Africa supplied 83 percent, 9 percent, and 3 percent of imports, respectively, 

during the 2012/13 season. 

About 80 percent of U.S. fresh grapefruit production was consumed domestically in the 

2012/13 season and U.S. per capita fresh grapefruit consumption was 2.6 pounds.6 As with fresh 

oranges, U.S. fresh grapefruit consumption has remained relatively flat over the last decade. 

Fresh Tangerines, Tangelos, Mandarins, Clementines, and Similar Citrus 

Hybrids

U.S. demand for tangerine and mandarin varieties has increased rapidly in recent years. 

Over the last decade, U.S. per capita consumption of these fruits increased from 2.73 pounds in 

2002/03, to 4.5 pounds in 2012/13.7 The United States produced 661,000 MT of tangerine and 

mandarin varieties in 2012/13, an increase of 47 percent from 2008/09. Over that same time 

period, imports increased by 18 percent and total domestic supply increased by 40 percent. 

About 92 percent of U.S. fresh tangerine and mandarin variety production was consumed 

domestically in 2012/13, including processed production.

8

 

 

6 USDA/ Economic Research Service, preliminary estimate.

7 USDA/Economic Research Service, preliminary estimate for 2012/13.

8 The proportion of U.S. fresh tangerine and mandarin variety production consumed domestically is the ratio of 

utilized fresh production minus exports divided by utilized fresh production. Data Source: Foreign Agricultural 

Service, Production, Supply, and Distribution Online.
4

The United States is a net importer of tangerine and mandarin varieties. During 2011/12, 

the United States imported 154,296 MT of tangerine and mandarin varieties (including satsumas, 

clementines, and similar citrus hybrids) with approximately 39 percent, 31 percent, 13 percent, 

and 9 percent arriving from Chile, Spain, Peru, and Morocco, respectively. That same season, 

the United States exported approximately 42,175 MT of tangerine and mandarin varieties. 

Canada is the largest importer of U.S. fresh tangerine and mandarin varieties, accounting for 48 

percent of U.S. exports. The second largest importer is Japan, accounting for approximately 25

percent.9

Fresh Limes

The U.S. lime industry once thrived as a niche market. However, due to citrus canker 

disease and other issues, the lime industry has contracted significantly, with little commercial 

production after 2002. 

U.S. per capita consumption of limes increased from 0.42 pounds in 1980/81 to 2.96 

pounds in 2012/13. From 2011 to 2013, the United States imported over 413,000 MT of limes. 

Mexico is our largest supplier with over 90 percent of the U.S. import market, followed by 

Guatemala, Honduras, and the Bahamas among other countries.10

Peru’s Citrus Exports

Peru emerged as an important fruit and vegetable exporter beginning in the mid-1980s.

From 2011 to 2013, Peru exported an average of 92,000 MT of citrus fruit, with Great Britain 

accounting for 33 percent of the shipments; the Netherlands, 23 percent; the United States, 20 

 

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

10Plattner, Kristy, “Fresh-market Limes.” Fruit and Tree Nuts Outlook: Economic Insight. Economic Research 

Service, USDA 2014 http://www.ers.usda.gov/media/1679187/fresh-market-limes-special-article.pdf
5

percent; and Canada, 12 percent. Fifty-six percent of the shipments were tangerines, 31 percent

were tangelos, 10 percent were oranges, and 3 percent were grapefruit and lemons.

11

Potential Impact on Small Entities

The entities that could be affected by the proposed rule are U.S. producers of fresh citrus. 

Other stakeholders that could be affected include industries that support the production and 

distribution of fresh citrus in the United States, and importers of fresh citrus. 

More specifically, entities potentially affected by the rule are classified within the 

following industries, according to the North American Industry Classification System (NAICS): 

Orange Groves (NAICS 111310), Citrus Groves (except orange groves) (NAICS 111320), 

Postharvest Crop Activities (except cotton ginning) (NAICS 115114), Fresh Fruit and Vegetable 

Merchant Wholesalers (NAICS 424480), Pesticide and Other Agricultural Chemical 

Manufacturing (NAICS 325320), Farm Product Warehousing and Storage (NAICS 493130), 

Nursery and Tree Production (NAICS 111421), Fruit and Vegetable Markets (NAICS 445230), 

Packing and Crating (NAICS 488991), General Freight Trucking, local (NAICS 484110), and 

Wood Container and Pallet Manufacturing (NAICS 321920). 

According to 2012 Census of Agriculture data, there were a total of 9,437 operations 

producing oranges in the United States that year. In the same year, 6,141 farms produced 

oranges as their primary product and were thus classified as Orange Groves according to the 

NAICS. More than 72 percent of orange producers had fewer than 25 acres, and 2 percent had 

500 or more acres. The farms with fewer than 25 acres accounted for less than 6 percent of the 

total acreage devoted to orange production, while those with 500 or more acres accounted for 

 

11 Global Trade Information Services, Inc. These Global Trade Atlas estimates include dried citrus, as well as fresh 

citrus. 
6

over 58 percent. The national average acreage for orange producers was 71 acres in 2012; for 

orange producers with fewer than 25 acres, the average was 5.3 acres per farm. 

Establishments classified as Orange Groves are considered small by the Small Business 

Administration (SBA) if annual sales are not more than $750,000. The average market value of 

crops sold by orange growers in 2012 was approximately $318,000, well below the small-entity 

standard of $750,000. Clearly, orange growers are predominantly small entities. 

According to Census of Agriculture data, there were a total of 1,395 operations producing 

tangerine and mandarin varieties and 2,144 operations producing grapefruit in the United States 

in 2012.12 In the same year, a total of 2,839 farms produced citrus other than oranges as their 

primary product and were thus classified as Citrus Groves (except orange groves) according to 

the NAICS. Establishments classified within NAICS Citrus Groves (except orange groves) are 

considered small by the SBA standards if annual sales are not more than $750,000. The average 

market value of crops sold by non-orange citrus groves in 2012 was about $223,000, which is 

well below the small-entity standard of $750,000. 

Similarly, all of the other industries identified above are predominantly composed of 

small entities, including over 95 percent of establishments classified as Fresh Fruit and 

Vegetable Merchant Wholesalers, over 85 percent of establishments classified within Pesticide 

and Other Agricultural Chemical Manufacturing, about 48 percent of establishments classified 

within Farm Product Warehousing and Storage, more than 92 percent of establishments 

classified within Fruit and Vegetable Markets, virtually all establishments classified within

Nursery and Tree Production, over 90 percent of establishments classified within Packing and 

 

12 The number of citrus farms in the United States, as reported by the 2012 Census of Agriculture, includes

operations that produced citrus for processing as well as fresh utilization.
7

Crating, about 95 percent of establishments classified within General Freight Trucking (local), 

and virtually all establishments classified within Wood Container and Pallet Manufacturing.

Peru’s citrus exports to the United States are expected to increase by an additional 5,000, 

6,500, and 8,000 MT, respectively, during the first three years that the proposed rule would be in 

effect. These quantities are equivalent to 0.56, 0.73, and 0.89 percent of U.S. average annual 

citrus production, and 1.18, 2.4, and 2.9 percent of U.S. average citrus imports (2011/12 to 

2013/14)13. These relatively small additional import quantities would have a minor impact on the 

citrus industry; all the more so given that at least some share of the increase in citrus imports 

from Peru can be expected to displace imports from other sources.

The APHIS Administrator has determined that this action, if promulgated, will not have a 

significant economic impact on a substantial number of small entities.

 

13 Average citrus production, 2011/12 to 2013/14 is approximately 8,961,565 metric tons and average citrus 

imports 2011/12 to 2013/14 is approximately 273,000 metric tons.