Fruit - Nut Farming in The US Industry Report PDF

US INDUSTRY (NAICS) REPORT 11135
Fruit & Nut Farming in the US

Off the vine: Increasing demand for higher margin products will likely support revenue
growth
Nick Masters | August 2020
IBISWorld.com +1-800-330-3772 info@IBISWorld.com

Fruit & Nut Farming in the US 11135 August 2020
Contents
About This Industry...........................................5 Competitive Landscape...................................27
Industry Definition..........................................................5 Market Share Concentration....................................... 27

Major Players................................................................. 5 Key Success Factors................................................... 27
Main Activities................................................................5 Cost Structure Benchmarks........................................ 28
Supply Chain...................................................................6 Basis of Competition................................................... 32
Similar Industries........................................................... 6 Barriers to Entry........................................................... 33
Related International Industries....................................6 Industry Globalization..................................................34
Industry at a Glance.......................................... 7 Major Companies............................................ 36
Executive Summary....................................................... 9 Major Players............................................................... 36

Other Players................................................................36
Industry Performance..................................... 10
Operating Conditions...................................... 38
Key External Drivers.....................................................10
Current Performance................................................... 11 Capital Intensity........................................................... 38
Technology And Systems........................................... 39
Industry Outlook............................................. 15 Revenue Volatility........................................................ 41
Regulation & Policy...................................................... 42
Outlook......................................................................... 15
Industry Assistance..................................................... 43
Performance Outlook Data......................................... 17
Industry Life Cycle....................................................... 17 Key Statistics.................................................. 46
Products and Markets..................................... 19 Industry Data................................................................46

Annual Change.............................................................46
Supply Chain................................................................ 19
Key Ratios.................................................................... 46
Products and Services.................................................19
Industry Financial Ratios............................................. 47
Demand Determinants................................................ 21
Major Markets..............................................................22 Additional Resources...................................... 48
International Trade.......................................................23
Business Locations..................................................... 25 Additional Resources.................................................. 48
Industry Jargon............................................................ 48
Glossary Terms............................................................48
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About IBISWorld
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Covid-19
Coronavirus IBISWorld's analysts constantly monitor the industry impacts of current events in
real-time – here is an update of how this industry is likely to be impacted as a result
Impact Update of the global COVID-19 pandemic:
• The Fruit and Nut Farming industry is expected to contract in 2020 due to a
significant slowdown in demand from food service industries.
• The industry is expected to nonetheless benefit from high volumes of food

purchases stemming from retail channels.
• Most industry operators qualify for federally-funded small business relief

programs, thus mitigating the effect of the COVID-19 (coronavirus) pandemic on the
industry's operations.
Note: The content in this report is currently being updated to reflect the trends
outlined above.
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About This Industry

Industry Definition Farmers in this industry grow nuts such as almonds and peanuts, as well as fruits
such as apples, berries, grapes and other noncitrus goods. Operators in this
industry sell their crops to downstream processors and fresh produce wholesalers
and retailers.
Major Players There are no major players in this industry
Main Activities The primary activities of this industry:

Growing grapes
Growing berries
Growing apples
Growing almonds
Growing peanuts
Growing pecans and walnuts
The major products and services in this industry:

Grapes
Almonds
Apples
Pecans and walnuts
Strawberries
Peanuts
Cherries, blueberries and cranberries
Other (including pistachios)
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Supply Chain
SIMILAR INDUSTRIES
Oilseed Farming in the US Vegetable Farming in the US Orange & Citrus Groves in Canned Fruit & Vegetable
the US Processing in the US
RELATED INTERNATIONAL INDUSTRIES
Apple, Pear and Stone Fruit Grape Growing in Australia Citrus Fruit, Nut and Other Fruit and Nut Growing in
Growing in Australia Fruit Growing in Australia China
Fruit Growing in the UK Fruit & Nut Farming in Grape Growing in New Kiwifruit and Berry Growing
Canada Zealand in New Zealand
Apple, Citrus and Other Fruit

and Nut Growing in New
Zealand
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Industry at a Glance
Key Statistics Key External Drivers % = 2015-2020 Annual Growth
$27.5bn 0.0%
Demand from canned fruit and vegetable
3.6%
Demand from wineries
Revenue processing
Annual Growth Annual Growth Annual Growth 1.4% 0.3%

Trade-weighted index Per capita fruit and vegetable consumption
2015-2020 2020-2025 2015-2025
1.9%
Price of fruit
-0.9% 2.8%
Industry Structure
$2.5bn
Profit POSITIVE IMPACT
Annual Growth Annual Growth
Industry Assistance Concentration
2015-2020 2015-2025 High Low
0.3%
MIXED IMPACT
9.0% Life Cycle

Mature
Revenue Volatility
Medium
Profit Margin
Capital Intensity Regulation
Annual Growth Annual Growth
Medium Medium
2015-2020 2015-2025
Technology Change Barriers to Entry
0.5% Medium Medium
NEGATIVE IMPACT
114k
Businesses Globalization Competition
High High
Annual Growth Annual Growth Annual Growth
2015-2020 2020-2025 2015-2025
Key Trends
-0.1% 1.2%
Despite increased production volumes, revenue for the
industry has been volatile
166k Government support has gradually increased over the past

decade
Employment
Due in part to revenue volatility, the industry's level of
profitability is expected to decline
2015-2020 2020-2025 2015-2025
More consumers are expected to spend on premium food
-2.5% 1.7% items, including organic fruits and nuts.
The industry is not expected to develop new types of fruits or
nuts over the next five years
$5.3bn Export markets will likely continue to grow over the next five
Wages years
Despite challenges, the industry's production output has
increased marginally
2015-2020 2020-2025 2015-2025
-0.7% 1.9%
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Products & Services Segmentation
20.5% 21.8% 9.8% 6.3% 9.1% 4.2%
Grapes Almonds Apples Pecans and walnuts Strawberries Peanuts
Fruit & Nut Farming

Source: IBISWorld
Major Players % = share of industry revenue SWOT
STRENGTHS
High & Increasing Level of Assistance
High Profit vs. Sector Average
Low Customer Class Concentration
Low Product/Service Concentration
WEAKNESSES
High Competition
High Imports
Low Revenue per Employee
High Capital Requirements
OPPORTUNITIES
High Revenue Growth (2020-2025)
Trade-weighted index
THREATS
Low Revenue Growth (2005-2020)
Low Revenue Growth (2015-2020)
Low Outlier Growth
Low Performance Drivers
Price of fruit
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Executive The economic output of the Fruit and Nut Farming industry, which
Summary excludes citrus fruits, has declined over the five years to 2020.
While general fruit prices were nearly stagnant before experiencing significant
growth in 2016, demand for certain segments, including major tree nut crops such
as almonds and walnuts, remained consistently high during the current period.
However, the period has been characterized by rare, adverse events including
drought and the COVID-19 (coronavirus) pandemic. In 2015, severe drought
conditions in major fruit and nut crop areas in the west caused the industry's
economic output to decline. In 2020, the industry is contending with major shifts in
downstream demand channels as the pandemic has caused food services
establishments to close temporarily. Overall, IBISWorld expects industry revenue to
decrease an annualized 0.9% to $27.5 billion over the five years to 2020, including a
projected decline of 4.0% in 2020 alone.
Despite challenges at the outset of the period, the industry's production output
increased marginally given more favorable weather conditions in recent years.
However, changes in industry operations occur on a marginal and lagging basis as
agricultural operations often receive government subsidies during periods of low
prices. In addition to growth in industry output, industry profitability is expected to
increase from 2015 levels due to recovering prices and a favorable interest rate
environment. IBISWorld expects the average industry profit margin, measured as
earnings before interest and taxes, to total 9.0% in 2020.
Industry revenue is anticipated to grow over the five years to 2025 due to increasing
demand for higher margin products, such as almonds and pistachios, and strong
retail prices for fruit. In addition, a rebound in consumer confidence and continued
advancements in transportation technology are expected to result in higher sales of
high-quality, high-value domestically grown fruit and nuts in the global market.
Moreover, the ratification of the 2018 Farm Bill will extend funding over the next four
years for research and subsidy programs affecting fruit and nut producers. Overall,
IBISWorld forecasts industry revenue to increase an annualized 2.8% to $31.5 billion
over the five years to 2025.
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Industry Performance
Key External Price of fruit

Drivers An increase in the price of fruit positively affects the industry. Price fluctuations
reflect supply levels, downstream processing activity, global demand and other
factors. The price of fruit is expected to increase in 2020.
Demand from canned fruit and vegetable processing

A large portion of the industry's products goes toward processed foods, one of the
industry's major markets. As downstream processors demand more fruits from
farmers, industry revenue grows. Canned fruit and vegetable processing revenue is
expected to grow slowly in 2020, presenting a threat to the industry.
Demand from wineries

Wineries represent a significant market for fruit farmers. Grapes are the industry's
largest product segment, and wine producers buy the largest share of grapes. An
increase in demand from this industry will boost revenue for fruit farmers,
particularly from vineyard operators. Revenue from wineries is expected to increase
in 2020, presenting a potential opportunity to the industry.
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Per capita fruit and vegetable consumption

Increased public concern about nutrition and diet has a positive influence on fruit
and nut consumption. However, according to health experts, fruit consumption in
the United States still needs to greatly increase to meet recommended standards.
Per capita fruit and vegetable consumption is expected to decrease marginally in
2020.
Trade-weighted index
Since exports account for about half of revenue, exchange rates determine the price
competitiveness of US products. When the US dollar appreciates, US fruit and nut
exports are relatively more expensive on the global market and less attractive to
purchase, hampering export demand. The trade-weighted index is expected to
increase in 2020.
Current Farmers in the Fruit and Nut Farming industry grow foods in three
Performance broad categories: non-citrus fruits, such as grapes, apples and
berries; tree nuts, including almonds, pecans and walnuts; and
peanuts, which, unlike tree nut varieties, are classified as legumes.
Industry products are sold to wholesalers and retailers for resale as fresh produce,
as well as to food processors to be packaged or made into products such as juice,
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wine or butters. Similar to other crop industries, revenue for the Fruit and Nut
Farming industry is dependent on harvest volume and selling price. When farmers
produce and sell greater volumes of fruits and nuts, or are able to sell them at
higher prices, industry revenue increases; when the opposite occurs, revenue falls.
Despite increased production volumes for several fruits and nuts during the middle
of the current period, revenue for the industry has been volatile. The overall volatility
in industry revenue is attributable to severe weather events that occurred during the
latter half of the period and the sudden shift in downstream demand due to the
effects of the COVID-19 (coronavirus) pandemic. Most notable of adverse weather
events are those that struck California at the outset of the period. The state
experienced record-setting drought conditions in 2014 and 2015 that ultimately
yielded costly wildfires in the state's northern grape producing region.
Despite volatility, consistent performance in some of the largest product segments

drove industry growth over the past five years. For example, demand for grapes, the
largest product segment, has increased with expanding global wine production and
rising consumer awareness of the benefits of maintaining a healthy diet. Therefore,
while grape production by volume has risen only modestly, the price received for
grapes has grown considerably with grape production reaching 6.8 million tons in
2019 (latest data available). Volatile performance in these segments and others has
contributed to inconsistent growth in industry output. Adverse weather conditions
in regions of high productivity increased the severity of this volatility. In turn, the
industry's performance over the five years to 2020 is characterized by a slight
decline as sharp declines throughout the period have offset periods of growth on an
annualized basis. Overall, IBISWorld forecasts industry revenue to decrease an
annualized 0.9% to $27.5 billion over the five years to 2020, including an anticipated
decline of 4.0% in 2020 alone.
International trade
Exports remain a major source of industry revenue and are expected

to account for 42.7% of total revenue in 2020.
During the current period, improved transportation and supply chain management
technology made shipping industry products to other countries more efficient.
However, the dollar's appreciation over the past five years slowed export growth
because US goods became relatively more expensive on the global market, making
them less attractive to foreign consumers. Nevertheless, total industry exports are
forecast to increase an annualized 0.2% to $11.7 billion over the five years to 2020.
The industry's largest export destination is Canada.
Imports provide off-season non-citrus fruits to consumers, enabling them to bring

home the same fresh fruits year-round. Supermarkets and other retailers have
ramped up imports from counter-seasonal countries, such as Chile, to meet off-
season demand. Additionally, the growing and diversifying US population has
expanded its palette, favoring more tropical varieties that are not easily cultivated in
the United States. Therefore, US consumers rely on imports to satisfy this demand,
and as a result, imports are expected to increase an annualized 1.7% to $19.1 billion
over the five years to 2020.
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Government support
Operators within the industry rely in part on government programs

and subsidies that directly assist farmers and protect operators
from price volatility.
Government support has gradually increased over the past decade, with US
Department of Agriculture funding levels for specialty crops and organic agriculture
increasing under both the 2008 Food, Conservation and Energy Act (2008 Farm Bill)
and the Agricultural Act of 2014 (2014 Farm Bill). In particular, under the 2014 Farm
Bill, an estimated $739.0 million in annual funding was allocated toward thirteen
specialty crop programs, such as the Technical Assistance for Specialty Crops
program and the Specialty Crop Research Initiative. This represents an estimated
9.3% increase from the 2008 Farm Bill's $676.0 million in annual funding for
specialty crop programs. Furthermore, 2018 was a pivotal year for the Fruit and Nut
Farming industry as the 2014 Farm Bill expired in September of 2018 and the 2018
Farm Bill became law in December 2018. The 2018 Farm Bill largely extends
funding for existing specialty crop programs from the 2014 Farm Bill, such as the
Specialty Crop Research Initiative.
Industry characteristics
The makeup of the industry remained relatively stable during the

five-year period to 2020, in line with a slight decline in revenue.
Farmers that produce tree fruits (e.g. apples, pears and cherries) or tree nuts (e.g.
pecans) require four years before their plantings produce market-ready fruit. Since
these fruit and nut farms require significant commitments of time and land, it is
difficult to quickly enter or exit the industry. Furthermore, these major planting
obligations make it such that operators cannot easily switch between crop
industries or even between different types of fruit. As a result, the number of farms
participating in the industry is expected to decrease gradually at an annualized rate
of 0.1% to 114,130 operators during the current period. Additionally, employment is
expected to decline at an annualized rate of 2.5% to 166,161 workers over the five
years to 2020. Farmers hire seasonal labor as needed, depending on the harvest
size; therefore, annual fluctuations in employment are normal and expected.
Due in part to revenue volatility and extra costs stemming from extraordinary events
during the period, the industry's level of profitability is expected to decline in 2020.
The average profit margin, measured as earnings before interest and taxes, is
anticipated to account for 9.0% of industry revenue in 2020. However, this
represents an increased from five years prior; in 2015, the average industry profit
margin was 8.5%.
Historical Performance Data

Year Revenue IVA Estab. Enterprises Employment Exports Imports Wages Domestic Agricultural
Demand Price Index
($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) (Index)
2011 25,798 8,898 116,331 111,305 175,384 8,601 15,672 4,528 32,868 100.0
2012 30,272 10,758 112,096 110,126 180,348 10,124 14,673 4,838 34,822 105
2013 31,289 10,664 113,743 111,089 184,277 11,542 14,476 5,094 34,224 107
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Demand Price Index
2014 32,479 11,423 115,334 112,693 186,986 11,826 16,352 5,292 37,005 110
2015 28,688 9,724 116,889 114,673 188,804 11,604 17,519 5,532 34,603 100
2016 29,930 10,869 118,180 115,320 186,022 11,411 18,444 5,691 36,963 89.5
2017 30,479 9,628 120,109 117,471 182,903 12,075 20,285 5,709 38,690 92.9
2018 27,818 9,610 116,177 114,052 178,201 11,935 20,141 5,636 36,024 89.9
2019 28,634 9,855 117,544 115,301 170,977 12,420 20,678 5,498 36,891 96.7
2020 27,474 9,352 116,130 114,130 166,161 11,735 19,073 5,330 34,813 98.0
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Industry Outlook
Outlook The Fruit and Nut Farming industry is forecast to expand over the
five years to 2025, due to an expected increase in consumer
demand and the extension of healthy eating programs under the
Agriculture Improvement Act of 2018 (2018 Farm Bill).
In turn, fruit production is expected
to increase modestly over the next
five years. Per capita disposable
income is projected to recover from
2020 lows, which will likely
encourage consumers to buy more
fresh fruit and unprocessed nuts.
Consequently, revenue is projected
to increase at an annualized rate of
2.8% to $31.5 billion over the five
years to 2025. Fruit prices are
expected to increase slightly as
major cost inputs, such as the price
of oil, are expected to recover from
2020 lows. Overall, as prices for
these products continue to grow,
profit is expected to follow suit.
Healthy habits
Over the next five years, consumers will likely be more inclined to
purchase higher-priced fresh fruits than less expensive canned,
frozen and processed varieties.
Per capita disposable income is expected to increase over the five years to 2025,
and more consumers are expected to spend on premium food items, including
organic fruits and nuts.
Government-backed programs, such as the Centers for Disease Control and

Prevention's Fruits and Veggies – More Matters campaign, are expected to continue
to educate Americans about the nutritional importance of eating fruits and
vegetables. As these programs resonate with consumers, they will likely gradually
demand more fruits and vegetables, benefiting the industry. Additionally, various
federal programs implemented under the Agricultural Act of 2014, including the
Fresh Fruit and Vegetable Program, have been extended under the 2018 Farm Bill,
which is expected to continue to encourage schools to buy fruits and vegetables
and prepare healthier lunches to meet national standards.
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Improved production
As demand for industry crops grows over the next five years, farms
will likely increase planting, which will result in higher yields during
the harvest and higher returns per acre for farmers.
The ongoing development of harvesting equipment, herbicides and farm
management practices will likely continue to facilitate these higher yields by
enhancing efficiency. However, farmers are expected to continue to contend with
unfavorable weather patterns, which could hinder annual production volumes.
Moreover, the industry is not expected to develop new types of fruits or nuts over
the next five years because the market already offers a wide array of products.
Instead, farmers are expected to focus their research efforts on increasing
production efficiency. The potential for genetically modified (GM) fruits and nuts is
on the horizon, but most farmers are expected to avoid major GM crop production
due to public opposition. Nonetheless, research into the potential of genetic
modification to enhance a fruit's nutritional value or pest resistance will occur at a
minor level.
Trade and participation
The already significant role that international trade has in the

industry is projected to rise over the next five years.
Imports are expected to grow in line with industry revenue and an anticipated
economic rebound from 2020 lows. Furthermore, the trade-weighted index, a
measure of the value US dollar compared with currencies of major trading partners,
is expected to decline an annualized 1.0% over the next five years. The US dollar's
depreciation will make foreign goods relatively more expensive in domestic
markets and will likely result in slowed growth in imports over the next five years
relative to the five-year period to 2025. Overall, IBISWorld expects imports to
increase an annualized 3.5% to $22.6 billion over the five years to 2025.
Furthermore, export markets will likely continue to grow over the next five years.
Continuing improvements in transportation will make deliveries of undamaged
fresh fruit more efficient and feasible. These improvements are important because
US-grown fruits and nuts are perceived to be of high quality and are in high demand
worldwide. Additionally, federal initiatives, such as the National Export Initiative, will
likely continue to assist producers in exporting their goods. Due to these factors,
exports are projected to increase an annualized 3.2% to $13.7 billion over the five
years to 2025.
Existing participants will benefit from improvements in domestic yields and

expanding overseas presence. However, only a small number of fruit and nut
farmers are expected to enter the mature industry because of the limited growth
opportunities available to new farmers. The lack of entrants, combined with larger
farmers' efforts to expand and increase their market share, will lead to a negligible
increase in the number of farms in the industry. Therefore, IBISWorld expects the
number of farms to rise an annualized 1.2% to 121,165 operators over the five years
to 2025. Moreover, an anticipated increase in production is expected to drive
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employment growth in the industry. Consequently, employment is forecast to

increase an annualized 1.7% to 180,886 workers over the next five years.
Performance Outlook Data

Demand Price Index
2020 27,474 9,352 116,130 114,130 166,161 11,735 19,073 5,330 34,813 98.0
2021 28,341 9,631 117,812 115,664 169,304 12,057 19,622 5,444 35,905 99.1
2022 29,102 9,908 119,304 117,026 171,992 12,477 20,465 5,543 37,090 101
2023 29,884 10,138 120,806 118,388 174,751 12,877 21,182 5,644 38,190 101
2024 30,688 10,364 122,344 119,791 177,713 13,300 21,889 5,750 39,277 102
2025 31,513 10,593 123,864 121,165 180,886 13,744 22,600 5,864 40,369 102
Industry Life Cycle The life cycle stage of this industry is Mature
LIFE CYCLE REASONS

The industry's contribution to the overall economy is growing at a slower pace than GDP
Growth in industry participant numbers has been restrained
Widespread domestic acceptance of industry products has limited US market growth
The Fruit and Nut Farming industry is in the mature stage of its life cycle. Industry
value added (IVA), or contribution to the economy, is expected to grow an
annualized 0.9% over the 10 years to 2025. During the same period, GDP is forecast
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to grow an annualized 1.4%. IVA growth during this 10-year period is expected to
significantly underperform GDP growth; however, this is largely attributable to the
industry's reliance on commodity prices and low product differentiation.
Moreover, domestic market opportunities are limited. Per capita fruit consumption
levels are an estimated 44.2 pounds annually, according to the US Department of
Agriculture (USDA). Likewise, nut consumption has also leveled off over the past
five years, totaling 3.7 pounds per person annually. Consequently, farmers
successfully expanded to overseas markets. The value of exports is expected to
grow at an annualized rate of 1.7% over the 10 years to 2025. This forecast
expansion is attributable to advancements in transportation technology, which
enable fresh fruit to be exported with greater ease.
The industry is also saturated with participants, as evidenced by the industry's slight
contraction. Fruit and nut plantings require several years to yield salable produce,
which works as a barrier to entry for many aspiring farmers. With fewer market and
product opportunities available within this industry, aspiring fruit and nut farmers
are turning to cash crops, which have a more immediate return.
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Products and Markets

Supply Chain KEY BUYING INDUSTRIES KEY SELLING INDUSTRIES
1st Tier 1st Tier
Fruit & Vegetable Wholesaling in the US Water Supply & Irrigation Systems in the
US
Grocery Wholesaling in the US
Farm, Lawn & Garden Equipment
Canned Fruit & Vegetable Processing in
Wholesaling in the US
the US
Crop Services in the US
2nd Tier
Supermarkets & Grocery Stores in the US 2nd Tier
Pesticide Manufacturing in the US
Fruit & Vegetable Markets in the US
Fertilizer Manufacturing in the US
Specialty Food Stores in the US
Tractors & Agricultural Machinery
Manufacturing in the US
Products and
Services
Grapes
Grapes are the largest fruit product segment for this industry,
accounting for 20.5% of industry revenue in 2020.
Grapes are mainly sold to wine makers, which provide a large, steady market for
this product. The Wineries industry (IBISWorld report 31213) has been growing
steadily and is expected to continue to do so, benefiting grape farmers through
higher prices and larger quantities sold. However, shares of production can
fluctuate from year to year, due to volatility in prices and growing conditions. For
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example, wildfires in California have damaged vineyards in the state's wine-growing

region; as a result, the price of grapes increased during the period.
Apples and strawberries
Consumption of both apples and strawberries has remained fairly

flat over the five years to 2020.
Both fruits are well-established fruit varieties with several uses in different foods,
such as snacks and deserts. Farmers of these fruits also increasingly sell to food
processors, who in turn prepare and package them in refrigerated or frozen
varieties to increase their shelf life and provide consumers' greater convenience.
Nevertheless, fresh varieties of these fruits still command a premium, and organic
options, which are increasing in popularity, do so even more. Apples' share of
revenue has increased over the past five years as the value of utilized production
has increased, accounting for 9.8% of industry revenue. Strawberries' share of
revenue has increased over the past five years, accounting for 9.1% of industry
revenue.
Cherries, blueberries and cranberries
Cherries, blueberries and cranberries remained stable as a share of

revenue over the past five years, accounting for an estimated 6.4%
of industry revenue in 2020.
This stability has occurred partly because the media has been promoting these
fruits as excellent sources of vitamins, antioxidants and other health benefits.
Furthermore, dried blueberries, cranberries and cherries have increased in
popularity because they make for low-calorie, low-carbohydrate snacks in an
increasingly health-conscious environment. Organic cherries, blueberries and
cranberries also command a premium as a result of a shift in consumer
preferences.
Tree nuts
Tree nuts are expected to account for a combined 28.1% of industry

revenue in 2020.
Almonds are the country's largest tree nut crop, accounting for an estimated 21.8%
of industry revenue in 2020. The United States is the largest almond producer in the
world, ahead of Iran, Spain and Italy. Furthermore, demand for almonds has
skyrocketed as the nut becomes more popular as a snack and a derivative for other
food products, including almond butter and almond milk. In the past 10 years,
production of almonds by volume has doubled. Other major tree nuts include
pecans, walnuts and pistachios which are primarily produced by operators in
California and Georgia. Pecans and walnuts are anticipated to account for 6.3% of
industry revenue. Price trends for almonds and walnuts, although up over the past
10 years, have decreased in more recent years, specifically in 2015 and 2016.
Overall, while cash receipts from certain nuts have risen during the five-year period,
others have declined. In particular, almond and walnut prices has declined due to
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oversupply, while the price of pecans has increased due to undersupply issues
caused by weather-related crop damage.
Peanuts
Unlike nuts that grow on trees, the peanut is technically a legume,

and is therefore classified differently.
Peanuts are often used in processing to make peanut butter or are roasted and
dried to make snacks. Peanuts have exhibited substantial volatility over the past
five years as a result of changes in government regulation. Land that produces a
large crop in one year most often will produce a smaller crop in the next year to
restore nutrient reserves. Peanuts are estimated to account for 4.2% of industry
revenue in 2020.
Other
The other fruit category includes peaches, pears, pineapples,

nectarines and several smaller segments, such as guavas, papayas,
olives, figs and dates.
The other nut category includes hazelnuts, pistachios and macadamia nuts. Since
the “other” segment is so diversified, an increase in the market share of one item is
able to offset declines in another. Consequently, this segment remained flat over
the five years to 2020.
Demand Various factors determine demand from the different market

Determinants segments of the Fruit and Nut Farming industry.
Domestically, fruit can be consumed in its fresh form or in cans and processed
foods. The preference for one over the other can determine demand for different
grades of fruit. Fruit processors (e.g. canners, juicers) do not require an attractive
appearance as the fruit is not used in its whole form, while fresh fruit markets
demand the highest appearance as that is a selling point. The quality demanded
also determines the prices farmers receive, which therefore determines overall
revenue earned.
Dietary trends and taste preferences also play a role in determining demand for fruit
and nut farmers. Over the past five years, per capita fruit consumption has
increased. Government programs encouraging Americans to eat more produce
have changed dietary trends and preferences, spurring demand for fruit. With
studies from the University of California Davis stating that canned fruit have the
same nutritional content as fresh fruit, IBISWorld expects tastes and preferences to
play an increasingly larger role in stimulating demand for fruits. According to the
Harvard School of Public Health, higher levels of nut consumption are linked to a
lower incidence of coronary heart disease. As concerns about money abate, the
focus on a healthy diet and lifestyle will become the primary demand-determining
factors.
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Demand for fruit and nuts is sensitive to price fluctuations, which are primarily
affected by changes in annual production. However, the effect of pricing is limited
to the industry level, since most consumers consider fruit to be a staple product. In
addition, the large variety of fruit produced by the industry means that an increase
in the price of one type of fruit will generally cause consumers to substitute it for
another, thus offsetting any potential negative effect.
The growing and more diverse population of the United States has also had a
positive effect on demand for fruit and nuts. Since fruits are a staple product,
consumption rises along with population. In addition, the increasing adoption of
new foods has led to increased demand for tropical fruit, such as papaya and
mangoes.
Foreign exchange rates directly affect demand for American fruits and nuts in
foreign markets. Like domestic manufacturers, overseas customers are sensitive to
price increases. Any appreciation in the value of the US dollar will erode the price
competitiveness of American-grown non-citrus fruits abroad. The availability of
non-citrus fruit supplies from other countries explains why overseas customers will
reduce their demand for US fruits if their price increases. Exchange rates influence
demand for nuts in a similar way.
Major Markets
Fruit and nut processors
Fruit and nut processors are the largest domestic buyers of industry products.
Virtually all nuts have to undergo processing at facilities, where they are hulled,
shelled and packaged for consumption. Further processing includes grinding nuts
into derivative products. For peanuts, these include peanut butter and peanut oil; for
almonds, some products include almond butter and almond milk. Moreover, nuts
are easily stored and can be sold with little regard for seasonality. Due to their
versatility, health benefits and ease of transport, this market has grown over the five
years to 2020. Fruit processors make up the second portion of this segment. These
operators can be segmented into producers of juices, canned fruit, dried fruit and
frozen fruit. Over the past five years these markets have been influenced by
different trends. Consumption of juice has shown steady decline, reflecting growing
22 IBISWorld.com
concern about the sugar content in what was previously seen as a healthy way to
consume fruits and vegetables. Overall, fruit and nut processors are estimated to
account for 22.4% of industry revenue in 2020.
Wine manufacturers
Wine manufacturers represent the third-largest domestic market segment for the
industry. Grapes are the largest product segment, and about two-thirds of all grapes
grown in the United States are destined for wineries. In 2020, IBISWorld estimates
demand from wineries to account for 12.4% of industry revenue, marking an
increase from five years prior.
Fresh fruit markets and supermarkets
Fruit and nuts sold in their purest form are sold to fresh fruit markets (e.g. farmers'
markets) and grocery stores. Over the past five years, this market has remained
relatively stable in line with fruit and vegetable consumption. In 2020, IBISWorld
expects demand from grocery stores and produce markets to account for 21.1% of
industry revenue.
Exports
In 2020, exports are projected to account for 42.7% of total industry revenue.
Canned fruit and almonds are the most commonly exported items from this
industry. The United States is a leader in nut production and exports, accounting for
more than one-tenth of the world's supply. However, an appreciating US dollar
causes fruit and nut exports to be more expensive for importers. Key export
destinations and their respective shares of total projected exports in 2020 are
Canada (10.4%), India (9.6%), Mexico (1.1%) and Spain (7.2%).
International Exports in this industry are High and Steady

Trade
Imports in this industry are High and Steady
23 IBISWorld.com
Exports
Exports are a major driver of industry

performance, accounting for an
estimated 42.7% of industry revenue
in 2020. The dollar's appreciation
over the majority of the period
pressured export markets given
higher effective prices on
international markets. Overall,
exports are forecast to increase an
annualized 0.2% to $11.7 billion over
the five years to 2020. However, the
relative share of exports varies
across different industry segments;
nut farmers export up to 70.0% of
output, while less than 20.0% of
strawberries and grapes are
exported. As a result of this
industry's heavy reliance on foreign
markets, nuts make up a significant
portion of total fruit and nut exports.
Imports
Producers experienced increasing

competition from imports over the past five years, which account for more than half
of domestic demand at an estimated 54.8% in 2020. Consumers have become
accustomed to purchasing fresh produce year-round, regardless of domestic
availability and this has boosted reliance on imports. Due to US farmers being
limited to seasonal fruit production, the United States imports fruits during off-
seasons. Furthermore, consumption of tropical fruits that the United States has
limited investment in, such as mangoes and papayas, have increased during the
period, further boosting imports. Therefore, countries in Central and South America,
which have opposite seasons and tropical climates, are the largest sources for fruit
imports. As a result, imports are anticipated to grow an annualized 1.7% to $19.1
billion over the five years to 2020. Furthermore, increasing trade has been
facilitated by technological advancements in the transport of fruit. Controlled
atmosphere techniques enable foods to be shipped in containers where oxygen,
nitrogen, temperature and humidity are maintained at optimal levels to preserve the
quality of fruit.
24 IBISWorld.com
Business
Locations Business Concentration in the United States
WA
MT ME
VT
OR MN
NH
ID WI
NY MA
MI CT RI
PA
IA NJ
OH MD
IL IN
UT
CO WV VA
KS MO
CA KY
NC
AZ TN
OK
NM SC
AR
AL GA
MS
TX LA
FL
Percentage of Value of production (%)

HI
0 24 48 72
Fruit & Nut Farming in the US

Source: IBISWorld
Although production occurs in most states, fruit and nut farms are heavily
concentrated in the West, where weather patterns are most favorable for fruit and
25 IBISWorld.com
nut production. Production in the West accounts for more than 85.4% of the value
of industry production. California and Washington in particular dominate the
industry, which account for an estimated respective 70.7% and 11.9% of the value
of industry production.
According to the US Department of Agriculture (USDA), California is the country's

leading producer of grapes, strawberries, peaches, nectarines, and kiwi fruit. It is
also a major producer of apples, plums, pears and cherries. Furthermore, more than
80.0% of nuts produced by the industry are also grown in California, including
almost all almonds, pistachios, and walnuts. Washington is the largest apple
producer and an important producer of grapes and pears. Oregon is known for its
hazelnut farming activities accounting for 2.4% of total US production of fruit and
nuts. Texas and New Mexico are smaller contributors to the industry but produce a
combined 1.4% of total fruit and nut output with a focus on pecans and peanuts.
Macadamia nuts comprise a small proportion of nut production and are most
commonly found in Hawaii.
Historically, non-citrus fruit farms have been established on urban fringes. However,
the rising value of metropolitan land and encroachment by housing developers has
been a threat to traditional fruit growing areas. Advances in transportation and
storage have aided farmers as they have progressively relocated. Today, farms and
orchards are generally located some distance from major markets.
26 IBISWorld.com
Competitive Landscape
Market Share Concentration in this industry is Low
Concentration
The majority of farmers, including those
growing fruits and nuts, are small- to
medium-sized enterprises. On the other
end of the spectrum, the industry is
characterized by a handful of large scale,
highly diversified commercial farms. Even
so, production value is dispersed such that
no single farm receives a large proportion
of the industry's total revenue. The
distribution of employment is linked
closely to production values, with the few
commercial mega-farms employing the
vast majority of laborers.
In an effort to consolidate this dispersed

market power, farmers commonly pool
their resources to farm cooperatives. These organizations act on behalf of their
members to improve demand and returns, often through marketing and promotional
activities. Additionally, these cooperatives may vertically integrate into storing,
packing and transportation, resulting in additional returns and cost savings for
farmers.
The total number of farms growing fruits and nuts historically has remained
relatively stable. Meanwhile, yields have been trending up at a slow rate. Newer
technologies are enabling farmers to leave less of their lands unsown or in a state
of recovery each year, improving their productivity and bottom line. Notably,
consolidation has not been an emerging factor in this industry to the same extent
as it has in many other crop industries. This is likely due to the presence of
cooperatives, which enable farmers to realize many of the benefits of economies of
scale by pooling resources. The high-value nature of fruit and nut farming also
permits operating farms to earn high incomes and continue their operations year
after year without having to combine resources with other farmers.
27 IBISWorld.com
Key Success IBISWorld identifies 250 Key Success Factors for a business. The most important for this
Factors industry are:
Economies of scale: Economies of scale in production generate cost savings for fruit and
nut growers. Specifically, economies of scale result in lower per-unit growing costs that
ultimately result in higher net returns.
Production of premium goods: Premium fruit are sold on the fresh fruit market, where
they demand a higher price. This ultimately benefits growers with higher revenue and
returns.
Establishment of export markets: The export market accounts for about half of the
revenue earned in this industry. Securing export market contracts permits farmers to temper
the effects of domestic demand fluctuations.
Appropriate physical growing conditions: The presence of fertile soils and other
appropriate growing conditions plays a critical role in shaping the success of growing fruit
and nuts because they influence harvest volumes and crop quality.
Availability of irrigation water: Water availability affects the quality of fruit and nut
harvests and the area of land devoted to fruit and nut production.
Ability to take advantage of government subsidies and other grants: Farmers in this
industry are eligible for support from the government that can form an important part of
their income. The ability to access these payments often benefits profit.
Cost Structure
Benchmarks
28 IBISWorld.com
Profit
Profit, measured as earnings before interest and

taxes, is expected to account for 9.0% of
revenue in 2020. Returns to farmers vary by
farm size, region and product. Family farms with
just a few acres are the least profitable and
often operate at losses that average 10.0% of
total receipts. However, larger operations are
able to pursue economies of scale to control
costs and negotiate better prices with
wholesalers, resulting in wider profit margins.
According to US Department of Agriculture
(USDA) survey data, even a modest increase in
the size of operations permits farms to expand
profit. In addition, government payments for
certain items (like peanuts) add to the overall
level of profit earned by farmers.
Industry profit is anticipated to decline slightly in

2020 due to the effects of COVID-19
(coronavirus). The pandemic has caused a
major shift in food consumption trends due to
the temporary closure of restaurants and other
food service establishments. However,
increased demand for fruit and nuts through
grocery channels is anticipated to partially
offset losses incurred from food services
channels. This shift in downstream demand is
anticipated to result in additional costs for
industry operators and their suppliers.
Wages
Growers of fresh produce can command higher

prices but are heavily dependent on costly labor
to hand-pick certain types of fruit, ensuring that
it maintains an attractive appearance for the
retail market. Conversely, growers of produce
for processing receive lower prices but are free
from meeting stringent standards and can freely
achieve savings through the use of machine
harvesting, sowing and packing. The net effect
is dependent on the ability of individual
operators to play to their strengths while
minimizing their weaknesses.
Farm labor is important for most agricultural

operations, but especially so for fruit farms. Key
activities that can be performed mechanically
for most field crops must be carried out
manually for fruit farms. Thinning, cultivating,
irrigating, harvesting and sorting must be carried
29 IBISWorld.com
out by skilled hand labor to avoid damaging the

fragile plants and assuring that the produce
meets quality and appearance standards.
Capital expenditures are higher for farms that
rely heavily on machinery.
Farms also hire labor seasonally, especially

during peak months when crops have to be
harvested. With higher yields and limited use of
machinery on fruit farms, farm owners have had
to hire increasing amounts of third-party labor.
Still, average annual salaries are relatively low,
representing the seasonal and unskilled nature
of the job. Overall, wage costs have effectively
stagnated, from 19.3% of revenue in 2015, to
19.4% in 2020.
Purchases
Purchases are another major cost category for

fruit and nut farmers, accounting for an
estimated 30.0% of industry revenue in 2020.
Major items in this category include farm
chemicals (e.g. pesticides and fertilizer), seeds
and capital expenditures. Purchases have
gradually increased as a share of revenue over
the five years to 2020. Although fertilizer prices
have declined during the period, the industry's
reduced output has caused purchases to
account for a slightly larger share of revenue.
Depreciation
Farms that primarily grow nuts or fruits for

processing use machinery during harvest
because the appearance of these crops is less
important. Farms that want to raise efficiency
also use machines because harvesting is more
efficient than hand-picking. Nonetheless, all
farms use machinery or equipment, such as
tractors, to perform basic farming activities.
New capital investments can be costly and
some farmers may not have the means to make
purchases when machines give out. Repairs and
maintenance, therefore, represent a significant
cost. Over the past five years, this category has
remained relatively stagnant as sales have
pushed upward quickly enough for machinery
costs to lag. Over the long term, capital costs
are expected to remain at the same level,
accounting for an estimated 5.6% of industry
revenue in 2020.
30 IBISWorld.com
Marketing
Marketing costs are minimal for fruit and nut

growers. In 2020, IBISWorld expects marketing
costs to account for 1.7% of industry revenue.
Overall, marketing costs have historically
remained below 2.0% of industry revenue.
Rent
While many fruit and nut growers own their own

land, a significant portion of producers operate
farms on leased land. For these growers, rent
costs are considerable and account for the
revenue that land-owning farmers would spend
on related expenses like general upkeep and
property taxes. In 2020, rent costs are expected
to account for 6.8% of industry revenue.
Utilities
Aside from rent, utilities are a major cost of

farming. Water irrigation for farms in dry
climates is generally pricey, and fuels like diesel
and gasoline are required to operate equipment
like trucks and tractors. As a result, IBISWorld
estimates utilities to account for 11.2% of
industry revenue in 2020.
Other Costs
Other industry costs include insurance

premiums, interest payments and transportation
costs. Transportation costs vary among farmers
depending on distance from common markets
and mode of transport. Since transportation can
be costly, most producers sell their harvest to
major markets in proximity to their farms. In
2020, other costs are expected to account for
16.3% of industry revenue.
31 IBISWorld.com
Basis of Competition in this industry is High and Increasing

Competition
Production costs
This is a key competitive factor among growers because within each

variety, most fruits and nuts are homogeneous in nature and
farmers receive very similar prices.
Therefore, farmers who can produce their fruit at lower costs will have a
competitive advantage. This is particularly the case for fruit that are grown for
processing. Prices for these fruits can be up to 80.0% lower compared with fruit
sold on the fresh market. In addition, they are usually grown as part of a contract
with a processing plant, which will prefer to buy produce at the lowest cost
possible.
Quality
To a limited extent, fruits and nuts can be differentiated by quality.

Fruits and nuts are commonly judged on their size, taste and appearance. Premium
graded fruits are usually sold into the fresh fruit market and therefore demand a
higher price than fruit picked for processing. The introduction of organically grown
fruit and nuts is creating a new sub-segment in the market. Organically certified
farmers are able to demand a higher price. Although a base for competition, quality
is difficult to control because it is largely determined by exogenous factors like
growing conditions. Weather, pests, and crop moisture levels combine to determine
the quality of harvested non-citrus fruit and nuts.
Variety
There are about 30 varieties of non-citrus fruits and half a dozen

varieties of nuts grown by the industry, each suitable for different
purposes.
These varieties attract different returns depending on demand levels. Strawberries,
for example, typically attract higher returns than apples and pears. Farmers that
32 IBISWorld.com
carry a wide variety of products can consistently supply to consumers' shifting

preferences.
Branding
Over time, the importance of branding is growing as farmers and

packers seek to differentiate themselves from their competitors.
Branding is becoming especially important for growers that produce varieties that
compete with imports because it is one of the best ways for local growers to take
advantage of America's reputation as a producer of safe food.
Reliability and supply contracts
Producers that are consistently able to deliver produce are better

able to maintain business with wholesalers.
There has been a move within the industry away from spot markets (where prices
can fluctuate widely) toward maintaining supply contracts. To maintain these
contracts, producers must consistently supply produce.
External competition
Fruit and nut growers also compete with several alternative

products.
Within the fresh produce segment, the high level of substitution among fruit means
that growers in the industry compete directly against citrus growers. Meanwhile,
non-citrus fruit growers and nut growers must also compete with an ever-increasing
range of processed foods in the snack segment. Given the high level of competition
and the presence of discerning customers at the retail level, growers must endeavor
to deliver high quality produce to the marketplace.
Abroad, the Fruit and Nut Farming industry competes in export markets against
producers in other regions like the European Union, South America and Asia
particularly China). The key factors affecting world demand for fruit and nuts are
the same as the variables driving domestic demand. However, in addition, the global
market is affected by foreign exchange effects, foreign supplies and variances in
per-capita consumption of fruit and nuts in other parts of the world.
Barriers to Entry Barriers to entry in this industry are Medium and Steady
33 IBISWorld.com
Overall, the barriers to entry in this

industry are moderate to substantial and Barriers to entry checklist
largely depend on the bearing acreage Competition High
of a fruit or nut growing operation. For a
Concentration Low
small operation, most inputs are readily
available and there are often many Life Cycle Stage Mature
farms for sale. However, large
Technology Change Medium
commercial operations often require
substantial upfront capital to finance Regulation & Policy Medium
machinery and equipment.
Industry Assistance High
Two other possible barriers include
capital investment requirements and the lead time for commercial harvesting. For
some industry segments, the long lead time between planting and harvesting is
perhaps the biggest barrier for prospective growers. On average, it takes about four
years for fruit trees to reach commercial bearing, although new propagation
techniques have managed to bring this lag down to two to three years. Further, it
can take up to eight years before orchards break even. New participants need to be
able to sustain the farms in the absence of a positive cash flow during this time. As
a solution, many farmers create alternative revenue streams. This usually involves
the growing of alternative crops, such as wheat, hay and potatoes.
For enterprises already engaged in other cropping, start-up costs are low.
Nonetheless, fruit growing requires some specialized machinery including
harvesters and sometimes irrigation systems. New growers can overcome the cost
of purchasing this machinery by employing outside contractors with the appropriate
equipment. Nonetheless, if farmers are unable to afford these initial capital
investments, they will be unable to enter the industry.
Subsidies directed at program crops (crops which receive particular payments

under the Farm Bill) can act as a disincentive for using agricultural land in the
production of fruit. Planting non-program crops on land which has been enrolled in
these programs, farmers forfeit their rights to certain agricultural subsidies. This
limits the availability of farmland for producing non-program crops, particularly
leased farmland. The USDA investigated the implications of removing such
restrictions and found that lower value commodities are more likely to expand
should planting restrictions be dropped. In some cases, high-value crops, such as
almonds, have already been produced on program crop acreage because the
profitability offsets the loss of subsidies.
Like many agricultural industries, profitability can be highly volatile. It depends on

factors beyond the control of farmers, including world supply and demand, weather
conditions and plant disease. Traditional financing companies and banking
institutions may be reluctant to approve loans for establishment costs.
Industry Globalization in this industry High and Increasing

Globalization
Foreign ownership is extremely limited across the crop agriculture sector. Instead,
farmers are exposed to globalization through export activity and import
competition. Exports account for about half of industry revenue, and imports
account for slightly more than half of industry demand; and these proportions are
34 IBISWorld.com
slowly increasing. Given their exposure to international trade, globalization

indirectly places pressure on American farmers to become more competitive and
improve productivity and quality. Similarly, the ability of grocery retailers, food
manufacturers and fruit processors to source fresh and processed fruit from
anywhere in the world is forcing US fruit farmers to employ the latest technology to
raise crop production and minimize costs.
35 IBISWorld.com
Major Companies
Major Players THERE ARE NO MAJOR PLAYERS IN THIS INDUSTRY
Other Players THE WONDERFUL COMPANY LLC
Market Share: 2.7%

Based in Los Angeles, the Wonderful Company LLC (Wonderful Company), formerly
known as Roll Global, is a grower of nuts primarily operating in California's San
Joaquin Valley. The company owns Paramount Farming, whose products have been
rebranded under the Wonderful Company name, along with other brands such as
Teleflora, a flower delivery service, and POM Wonderful, a pomegranate juice brand.
From these ventures, the company earns an estimated $4.2 billion in revenue
annually. According to the company, it is the largest grower and processor of
almonds and pistachios. It farms about 125,000 acres and produces about 450.0
million pounds of nuts annually. In addition to growing nuts, the Wonderful
Company sorts, grades, processes, roasts and flavors its crop at its processing
facilities. As a private company, the Wonderful Company does not release its
financial information. However, based on its acreage of pistachio and almond trees,
IBISWorld estimates that the company will generate $766.7 million in industry-
relevant revenue in 2020.
DOLE FOOD COMPANY INC.
Market Share: 0.1%

Dole Food Company Inc. (Dole) was founded in 1851 and now employs more than
36,000 people worldwide. The company is a global producer, marketer and
distributor of fresh fruit and vegetables. Prior to the five-year period to 2020, it sold
its worldwide packaged foods and Asia fresh business segments to ITOCHU
Corporation, a diversified Japanese conglomerate, which reduced the size of Dole
by about one-third. The following year, the company's CEO bought out a majority of
its outstanding shares, choosing to take the company private.
Dole's US operations within the Fruit and Nut Farming industry include berry farms
in California and Arizona; pineapple farms in Hawaii; and peach, grape, almond and
pistachio farms in California. The company owns and leases the land on which it
operates several farms, but also produces fruit and nuts via agricultural
partnerships in which it has an economic interest. In addition to its US-based
growing operations, the company has extensive growing operations in Latin
America. Most recently, Dole was the subject of several lawsuits over the use of the
agricultural chemical DBCP (1,2-Dibromo-3-Chloropropane), which it used in Latin
America, the Philippines and Hawaii.
Due to the international nature of Dole's operations and the significant amount of
vertical integration within the company, its share of revenue derived from
operations devoted to fruit and nut farming in the United States is marginal. Its
36 IBISWorld.com
operations span several domestic and international industries, including the Canned
Fruit and Vegetable Processing industry (IBISWorld report 31142) and the
Vegetable Farming industry (11120). In 2020, Dole is forecast to generate $294.8
million in industry-relevant revenue.
37 IBISWorld.com
Operating Conditions
38 IBISWorld.com
Capital Intensity The level of capital intensity is Medium
Capital intensity varies among the different

segments in the industry. Overall, for every
$1.00 spent on labor, $0.29 is spent on capital.
Nut farmers use a greater level of capital
equipment. Across the country, almost all nuts
are mechanically harvested by equipment that
digs through the dirt and shakes the trees and
taproots. Fruit farms employ varying levels of
capital equipment. The bulk of fruit harvested
for processing is mechanically harvested by
mechanical shakers that drop the fruit into
tarps. By contrast, fruit grown for the fresh
markets is picked by teams of specialist
harvesters to avoid damage. Other examples
of capital equipment needed to operate a farm
include tractors, storage mills and irrigation
systems. Technological advancements are
making these items increasingly costly, but
they enable farmers to use less labor and
ensure a higher quality, more consistent crop.
Higher dependency on equipment leads to
more wear and tear, which increases
depreciation costs. Although mechanizing
harvesting processes is important to raise
efficiency, farms are still dependent on labor to hand pick fruit for the fresh fruit
market where appearances are important; in turn, wages are expected to account
for an estimated 19.4% of industry revenue in 2020.
Technology And Potential Disruptive Innovation: Factors Driving Threat of Change

Systems Level Factor Disruption Description
A ranked measure for the number of

Rate of patents assigned to an industry. A faster
High Likely rate of new patent additions to the
Innovation industry increases the likelihood of a
disruptive innovation occurring.
A measure for the mix of patent classes

Innovation assigned to the industry. A greater
Moderate Potential concentration of patents in one area
Concentration increases the likelihood of technological
disruption of incumbent operators.
A qualitative measure of barriers to entry.

Fewer barriers to entry increases the
Moderate Ease of Entry Potential likelihood that new entrants can disrupt
incumbents by putting new technologies
to use.
Annualized growth in the number of

Moderate Rate of Entry Potential enterprises in the industry, ranked against
all other industries. A greater intensity of
39 IBISWorld.com
Level Factor Disruption Description
companies entering an industry increases

the pool of potential disruptors.
A ranked measure of the largest core

Market market for the industry. Concentrated core
Moderate Potential markets present a low-end market or new
Concentration market entry point for disruptive
technologies to capture market share.
The industry has a high rate of new patent technologies combined with moderately
concentrated focus of patent types. New technology entering the industry increases
the likelihood of discontinuous innovations. This presents a technology focus
whereby new activity has a moderate potential to enter through less high-end areas.
Both the ease of entry and the rate of entry in the industry are moderate. While
these factors do not significantly add to the threat of disruptive potential, they do
not detract from it either.
The Fruit and Nut Farming industry does not contend with
technological disruption.
The straightforward nature of industry operations are not conducive to
technological disruption. Industry operators primarily rely on technology related to
irrigation systems and crop management.
The level of technology change is Medium
The technology associated with growing fruits and nuts changed

significantly over the past decade.
These changes include the introduction of more vigorous and high-yielding root
stock, advanced propagation methods (which cut the time required for new trees to
reach bearing age from five or six years to two or three years), extensive planting of
disease resistant varieties and precision farming including better trellising
techniques and changes to irrigation practices with the introduction of micro-
irrigation. New irrigation techniques such as micro-irrigation has improved water
efficiency in irrigation systems. Advances in irrigation include trickle/drip pipes,
micro-spray and mini-sprinkler systems that are designed to target water at the root
zone of fruit trees rather than traditional watering systems that wet an entire
orchard.
Controlled atmosphere storage
Possibly the most significant technical development influencing the

industry during the past decade was the general introduction of
controlled atmosphere storage.
This technique is designed to slow the ripening process of some fruits like apples
and to extend their life once harvested. It provides growers with an alternative to
40 IBISWorld.com
chemical preservatives and pesticides. Controlled atmosphere storage involves the

control of temperature, oxygen, carbon dioxide and humidity of storage conditions.
In some cases, apples can be stored for up to one year under specific controlled
atmosphere storage.
Some non-citrus fruit do not ripen once removed from trees or plants so quality
control occurs simultaneously with harvesting. Since many markets do not accept
small fruit, the majority of fruit is "ring" picked. Under this method, harvest teams
use sizing rings to ensure that the fruit picked is larger than a specified minimum
diameter. Clean tree picking (picking all the fruit from the tree) is generally only
carried out at the end of each season. Clean tree picked fruit is usually sold to
discount markets or processed into concentrate. Ring picking is not as efficient as
clean picking but it permits the fruit to remain on the tree to ripen into bigger fruit. It
also reduces the number of fruit rejected at the packinghouse.
Yield mapping
Technology used by commodity crop producers is gradually making

its way to specialty crop producers.
One example of this technology is GPS yield mapping, which, with the help of an
array of sensors mounted on harvesters, permits one to visualize crop yields over a
specified area. Yield mapping enables a grain farmer, for example, to collect data
about their growing operation to determine why particular sections of an operation
are more or less productive than others. With continuing iterations of yield mapping
resulting in more cost-effective options, smaller farms are beginning to adopt this
technology. Vineyards in California, for instance, have started to adopt yield
mapping technology to further evaluate and improve their production capacity.
Revenue Volatility The level of volatility is Medium
Note: Revenue growth and decline reflective of 5-year annualized trend. Y-axis is in
logarithmic scale. Y-axis crosses at long-run GDP. X-axis crosses at high volatility
threshold.
41 IBISWorld.com
The Fruit and Nut Farming industry is characterized by a moderate

level of revenue volatility.
The various segments of this industry fluctuate considerably from year to year. The
most significant factor affecting revenue volatility for the Fruit and Nut Farming
industry is weather variability (i.e. rainfall, droughts, wildfires and temperature
ranges). Recent examples include the northern California wildfires in 2017 that
devasted California's wine country, including Napa Valley and Sonoma. However,
this industry is also influenced by more macroeconomic factors such as oil prices,
foreign exchange rates and geopolitics. For example, a sharp decline in the global
price of crude oil in 2015 ultimately resulted in declines in the agricultural price
index in 2015 and 2016.
Regulation & The level of regulation is Medium and is Steady

Policy
There are currently several federal marketing orders that apply to
fruit and nut growers in the United States.
These cover tree nuts, grapes, pears, peaches, cherries, avocados, nectarines,
kiwifruit, apricots, papayas and cranberries. Marketing orders, which are designed
and administered by handlers and growers' representatives and overseen by the US
Department of Agriculture (USDA), are designed to establish the conditions within
fruit and nut markets. This includes enforcing product quality standards, regulating
the flow of product to the market, standardizing packages and containers, creating
reserve pools for storable commodities and authorizing production and marketing
research and advertising.
The USDA controls the licensing of organic agricultural production. Farmers wishing
to promote their produce as organic must obtain certification from the USDA. The
USDA also controls the planting of experimental GM food crops. Currently,
genetically modified fruit and nuts are not grown on a commercial scale in the
United States. However, all growers of GM crops are required to obtain a permit
from the USDA before planting. Finally, the Food and Drug Administration (FDA) is
responsible for enforcing stringent food safety and disease prevention standards.
An issue of particular concern to peanut farmers is that their produce must be

assessed for the presence of aflatoxin, which has been known to cause death in
livestock and thought to cause cancer in people. All peanuts intended for human
consumption must be analyzed in a USDA-approved laboratory.
There are also considerable state regulations for growing fruits and nuts. Most
states operate agricultural departments that act as regulatory agencies. These
authorities monitor pollution levels associated with growing fruit and nuts. This
typically involves regulating waste material, chemical usage and odor emission
discharge into the environment.
Serious breaches or failure to comply with regulations, laws and other rules
governing fruit and nut farming can subject industry players to civil remedies and
administrative penalties. It can also result in considerable negative publicity that
42 IBISWorld.com
can damage the reputation and public image of producers. Given this, non-
compliance can potentially have a material effect on the earnings and competitive
position of businesses operating in this industry.
Industry The level of industry assistance is High and is Increasing

Assistance
The Fruit and Nut Farming industry receives minimal federal
assistance relative to commodity crops such as corn and cotton due
to the status of the industry's products as specialty crops.
However, industry assistance has gradually risen over the 10 years to 2020, with
authorized USDA funding levels for specialty crops and organic agriculture
increasing under both the 2008 Food, Conservation and Energy Act (2008 Farm Bill)
and the Agricultural Act of 2014 (the 2014 Farm Bill). Specifically, under the 2014
farm bill, an estimated $739 million in annual funding was allocated toward thirteen
specialty crop programs, such as the Technical Assistance for Specialty Crops
program and the Specialty Crop Research Initiative. This represents an estimated
9.3% increase from the 2008 farm bill's $676 million in annual funding for specialty
crop programs. Nevertheless, funding for specialty crop programs is overshadowed
by allocations for commodity crops; in contrast, producers of commodity crops are
expected to receive $4.7 billion in annual funding under the 2014 Farm Bill via
various programs, including direct price and income support programs. In late 2018,
the 2018 Farm Bill was signed into law by President Trump. The 2018 Farm Bill
largely extends funding for existing specialty crop programs from the 2014 Farm
Bill, such as the Specialty Crop Research Initiative.
Loss coverage for peanuts
Unlike fruits and tree nuts, peanuts are considered a commodity

crop and are therefore eligible for more extensive government
assistance programs.
Under the 2014 Farm Bill, peanut farmers are required to elect between one of two
programs, Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC). A one-
time election will stand for the entire duration of the farm bill, for the crop years
2014 to 2018. Under PLC, farmers receive payments if the average US price falls
below a certain reference point. For peanuts, this threshold is $535.0 per ton. Under
ARC, payments are determined by county and kick in when actual crop revenue is
below a guarantee for a crop year. The guarantee is calculated as 86.0% of county
ARC benchmark revenue. Additionally, coverage is capped at 10.0% of the
benchmark revenue, meaning payments stop increasing if revenue falls below
76.0% of benchmark revenue.
43 IBISWorld.com
Non-payment programs
Farmers in this industry are also eligible for federally subsidized

crop insurance programs, which were expanded under the 2018
Farm Bill.
There are several different types of crop insurance, but some form of insurance is
typically required for farmers to receive a loan from a bank. The federal government
subsidizes crop insurance by contributing a certain percentage of the cost of
farmers' insurance premiums. Crop insurance programs are usually designed to
target certain commodities, and historically these insurance programs have not
targeted fruit and nut production. However, whole-farm insurance, a new coverage
option under the 2014 Farm Bill, now makes it possible for fruit and nut farmers, as
well as farmers of vegetables and other specialty crops, to choose coverage of their
entire farm, regardless of the selection of commodities it produces.
In the international market, US fruit and nut farms previously benefited from export
programs such as the Market Access Program, National Export Initiative and food
aid programs. The food aid program provides matching grants to commodity
marketing boards and cooperatives to help expand markets overseas for US
agricultural products. The Fresh Produce Association of the Americas is a major
beneficiary of this program. The 2014 Farm Bill continued funding available through
the Market Access Program set at $200.0 million annually. In addition, Local and
Regional Procurement was established as a permanent program, providing $80.0
million in funding for international development assistance and food aid.
Industry organizations
In the private sector, US fruit and nut growers receive assistance

from the lobbying efforts of industry associations.
Membership organizations include bodies like Florida Fruit and Vegetable
Association, and the United Fresh Fruit and Vegetable Association. Peanut farmers
can join the American Peanut Council or the National Peanut Board. These non-
profit organizations represent the interests of growers, shippers and processors
operating in the fruit and nut supply chain. In addition to supporting the industry
through market development and lobbying efforts, most associations also provide
information and education.
Taxation
Fruit and nut farmers experience the same tax benefits offered to all
US farmers, including several tax breaks and allowable deductions
for farm-related expenditure.
For example, farmers can receive a credit or refund for excise tax paid on fuel used
on a farm for farming purposes. In some instances, farmers are also entitled to a
tax deduction for expenses incurred in the conservation of land used for farming.
This includes the cost of activities such as the treatment or movement of earth, the
eradication of brush and the planting of windbreaks. However, the total tax
44 IBISWorld.com
deduction for conservation expenses is limited to 25.0% of the gross farm income
for a given year.
45 IBISWorld.com
Key Statistics
Industry Data
Demand Price Index
2011 25,798 8,898 116,331 111,305 175,384 8,601 15,672 4,528 32,868 100.0
2012 30,272 10,758 112,096 110,126 180,348 10,124 14,673 4,838 34,822 105
2013 31,289 10,664 113,743 111,089 184,277 11,542 14,476 5,094 34,224 107
2014 32,479 11,423 115,334 112,693 186,986 11,826 16,352 5,292 37,005 110
2015 28,688 9,724 116,889 114,673 188,804 11,604 17,519 5,532 34,603 100
2016 29,930 10,869 118,180 115,320 186,022 11,411 18,444 5,691 36,963 89.5
2017 30,479 9,628 120,109 117,471 182,903 12,075 20,285 5,709 38,690 92.9
2018 27,818 9,610 116,177 114,052 178,201 11,935 20,141 5,636 36,024 89.9
2019 28,634 9,855 117,544 115,301 170,977 12,420 20,678 5,498 36,891 96.7
2020 27,474 9,352 116,130 114,130 166,161 11,735 19,073 5,330 34,813 98.0
2021 28,341 9,631 117,812 115,664 169,304 12,057 19,622 5,444 35,905 99.1
2022 29,102 9,908 119,304 117,026 171,992 12,477 20,465 5,543 37,090 101
2023 29,884 10,138 120,806 118,388 174,751 12,877 21,182 5,644 38,190 101
2024 30,688 10,364 122,344 119,791 177,713 13,300 21,889 5,750 39,277 102
2025 31,513 10,593 123,864 121,165 180,886 13,744 22,600 5,864 40,369 102
Annual Change
Demand Price Index
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2011 10.5 13.8 -1 -3 1 17.0 27.6 3.15 16.2 15.7
2012 17.3 20.9 -4 -1 3 17.7 -6.38 6.84 5.95 5.10
2013 3.35 -0.88 1 1 2 14.0 -1.34 5.29 -1.72 1.80
2014 3.80 7.11 1 1 1 2.45 13.0 3.87 8.13 3.27
2015 -11.7 -14.9 1 2 1 -1.88 7.14 4.54 -6.49 -9.33
2016 4.32 11.8 1 1 -1 -1.67 5.27 2.87 6.82 -10.7
2017 1.83 -11.4 2 2 -2 5.81 9.98 0.32 4.67 3.79
2018 -8.74 -0.19 -3 -3 -3 -1.16 -0.71 -1.30 -6.89 -3.23
2019 2.93 2.55 1 1 -4 4.06 2.66 -2.44 2.41 7.56
2020 -4.05 -5.12 -1 -1 -3 -5.53 -7.76 -3.07 -5.63 1.34
2021 3.15 2.98 1 1 2 2.74 2.87 2.14 3.14 1.12
2022 2.68 2.87 1 1 2 3.48 4.29 1.80 3.30 1.61
2023 2.68 2.31 1 1 2 3.20 3.50 1.82 2.96 0.59
2024 2.68 2.22 1 1 2 3.28 3.33 1.89 2.85 0.19
2025 2.68 2.21 1 1 2 3.33 3.25 1.96 2.78 0.98
Key Ratios
Year IVA/Revenue Imports/Demand Exports/Revenue Revenue per Wages/Revenue Employees per Average Wage
Employee estab.
(%) (%) (%) ($'000) (%)
2011 34.5 47.7 33.3 147 17.6 1.51 25,818
2012 35.5 42.1 33.4 168 16.0 1.61 26,825
2013 34.1 42.3 36.9 170 16.3 1.62 27,644
2014 35.2 44.2 36.4 174 16.3 1.62 28,299
2015 33.9 50.6 40.4 152 19.3 1.62 29,300
2016 36.3 49.9 38.1 161 19.0 1.57 30,593
2017 31.6 52.4 39.6 167 18.7 1.52 31,215
2018 34.5 55.9 42.9 156 20.3 1.53 31,625
2019 34.4 56.1 43.4 167 19.2 1.45 32,159
2020 34.0 54.8 42.7 165 19.4 1.43 32,077
2021 34.0 54.6 42.5 167 19.2 1.44 32,156
2022 34.0 55.2 42.9 169 19.0 1.44 32,226
2023 33.9 55.5 43.1 171 18.9 1.45 32,295
2024 33.8 55.7 43.3 173 18.7 1.45 32,358
2025 33.6 56.0 43.6 174 18.6 1.46 32,415
46 IBISWorld.com
Industry Financial Ratios

April 2018 - March 2019 by company revenue
Liquidity Ratios April 2015 - April 2016 - April 2017 - April 2018 - Small (< Medium Large (>
March 2016 March 2017 March 2018 March 2019 $10m) ($10m-50m) $50m)
Current Ratio 1.6 1.6 1.6 1.6 2.0 1.5 1.4
Quick Ratio 0.8 0.7 0.7 0.7 0.8 0.9 0.5
Sales / Receivables (Trade Receivables Turnover) 10.4 10.4 12.9 10.6 21.5 15.2 8.5
Days' Receivables 35.1 35.1 28.3 34.4 17.0 24.0 42.9
Cost of Sales / Inventory (Inventory Turnover) 17.0 8.6 12.0 11.6 11.5 32.7 4.7
Days' Inventory 21.5 42.4 30.4 31.5 31.7 11.2 77.7
Cost of Sales / Payables (Payables Turnover) 21.9 14.6 22.7 20.4 23.4 31.2 13.9
Days' Payables 16.7 25.0 16.1 17.9 15.6 11.7 26.3
Sales / Working Capital 7.0 6.5 7.5 5.8 4.1 13.3 10.3
Coverage Ratios
Earnings Before Interest & Taxes (EBIT) / Interest 3.5 4.3 3.2 3.0 3.0 3.2 2.7
Net Profit + Dep., Depletion, Amort. / Current 3.4 2.5 3.5 2.5 3.8 2.5
Maturities LT Debt
Leverage Ratios
Fixed Assets / Net Worth 1.1 1.1 1.2 1.0 1.2 0.9 1.0
Debt / Net Worth 1.3 1.4 1.4 1.3 1.0 1.2 1.8
Tangible Net Worth 32.0 37.8 34.6 39.1 38.1 44.5 34.4
Operating Ratios
Profit before Taxes / Net Worth, % 7.5 13.2 9.7 7.4 8.4 7.3 8.7
Profit before Taxes / Total Assets, % 3.2 5.5 4.1 3.2 3.8 2.6 3.2
Sales / Net Fixed Assets 1.3 1.6 1.8 1.6 1.4 1.7 2.5
Sales / Total Assets (Asset Turnover) 0.6 0.7 0.7 0.7 0.7 0.6 1.0
Cash Flow & Debt Service Ratios (% of sales)
Cash from Trading 40.6 37.5 41.7 40.0 56.6 29.5 18.9
Cash after Operations 15.2 11.2 14.8 10.4 14.9 12.1 6.7
Net Cash after Operations 14.9 12.3 14.7 12.6 14.8 14.1 5.4
Cash after Debt Amortization 4.3 1.4 2.2 1.0 0.9 4.6 1.5
Debt Service P&I Coverage 2.7 1.8 2.3 1.7 1.6 1.8 1.8
Interest Coverage (Operating Cash) 5.6 4.6 5.3 3.9 3.9 4.1 3.1
Assets, %
Cash & Equivalents 7.2 8.2 8.4 8.0 6.1 10.2 9.5
Trade Receivables (net) 13.7 14.5 13.3 13.6 12.2 12.3 18.3
Inventory 12.4 15.0 13.7 12.9 12.0 6.6 23.4
All Other Current Assets 5.4 5.6 4.4 4.1 5.6 2.4 3.0
Total Current Assets 38.8 43.4 39.8 38.6 36.0 31.4 54.3
Fixed Assets (net) 50.4 46.2 46.3 47.1 50.8 47.8 37.6
Intangibles (net) 3.0 2.8 5.3 4.5 5.1 4.8 2.5
All Other Non-Current Assets 7.9 7.6 8.5 9.8 8.1 16.0 5.6
Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Assets ($m) 5,652.3 6,637.6 4,987.3 5,205.4 537.0 1,790.7 2,877.6
Liabilities, %
Notes Payable-Short Term 13.5 11.6 10.3 10.6 8.3 12.9 12.9
Current Maturities L/T/D 2.9 2.5 2.9 3.2 2.5 4.9 2.4
Trade Payables 6.2 8.6 6.8 6.4 3.9 5.9 13.0
Income Taxes Payable 0.1 0.1 0.0 0.1 0.0 0.2 0.1
All Other Current Liabilities 6.8 6.0 7.2 5.3 4.2 3.0 11.1
Total Current Liabilities 29.5 28.7 27.3 25.6 19.0 26.9 39.4
Long Term Debt 27.5 25.0 26.6 23.1 27.2 17.5 20.7
Deferred Taxes 0.4 0.3 0.2 0.2 0.1 0.2 0.5
All Other Non-Current Liabilities 7.6 5.4 6.0 7.6 10.6 6.1 2.4
Net Worth 35.0 40.6 39.9 43.6 43.2 49.3 36.9
Total Liabilities & Net Worth ($m) 5,652.3 6,637.6 4,987.3 5,205.4 537.0 1,790.7 2,877.6
Maximum No. of Statements Used 166.0 175.0 164.0 135.0 68.0 38.0 29.0
Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more than 260,000 statements of member
financial institution's borrowers and prospects.
47 IBISWorld.com
Additional Resources
Additional USDA Economic Research Service
Resources http://www.ers.usda.gov
USDA Agricultural Marketing Service

http://www.ams.usda.gov
Fruit Growers News

http://fruitgrowersnews.com
Successful Farming
http://www.agriculture.com
Industry Jargon BEARING ACREAGE

The total area that is harvested each year, which is different from the total area of farms
(that may be used for other purposes) and total planting area.
COOPERATIVE (CO-OP)
An association of trade professionals who are united voluntarily to meet a common
economic goal.
GENETICALLY MODIFIED (GM)

A technique where specific changes are introduced into a plant or animal's DNA by genetic
engineering techniques. The most common modified foods include soybeans, corn and
canola.
ORGANIC FARMING
Farming that does not involve the use of artificial chemicals, pesticides, fertilizers or
genetically modified organisms.
SPOT MARKET
A market in which a commodity is bought or sold for immediate delivery or delivery in the
very near future.
TAPROOT
The main root of a plant, growing straight down from the stem into the earth.
Glossary Terms BARRIERS TO ENTRY

High barriers to entry mean that new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an industry.
48 IBISWorld.com
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital
intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is
$0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of
labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation
using the current year (i.e. year published) as the base year. This removes the impact of
changes in the purchasing power of the dollar, leaving only the "real" growth or decline in
industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US
Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their
country of origin. It is derived by adding imports to industry revenue, and then subtracting
exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working
proprietors, partners, managers and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise
consists of one or more establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single
physical location where business is conducted or where services or industrial operations are
performed. Multiple establishments under common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in
the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is
considered high if the top players account for more than 70% of industry revenue. Medium
is 40% to 70% of industry revenue. Low is less than 40%.
49 IBISWorld.com
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside the firm (such as commission
income, repair and service income, and rent, leasing and hiring income); and capital work
done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)

The market value of goods and services produced by the industry minus the cost of goods
and services used in production. IVA is also described as the industry's contribution to GDP,
or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to
domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high
is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%,
and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an
industry's life cycle by considering its growth rate (measured by IVA) compared with GDP;
the growth rate of the number of establishments; the amount of change the industry's
products are undergoing; the rate of technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are
mostly set up by self-employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s
profitability. It is calculated as revenue minus expenses, excluding interest and tax.
50 IBISWorld.com
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of
the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to
±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
51 IBISWorld.com
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US INDUSTRY (NAICS) REPORT 11135

Fruit & Nut Farming in the US

IBISWorld.com +1-800-330-3772 info@IBISWorld.com

About This Industry...........................................5 Competitive Landscape...................................27

Industry Definition..........................................................5 Market Share Concentration....................................... 27

Industry at a Glance.......................................... 7 Major Companies............................................ 36

Executive Summary....................................................... 9 Major Players............................................................... 36

Products and Markets..................................... 19 Industry Data................................................................46

• The industry is expected to nonetheless benefit from high volumes of food

• Most industry operators qualify for federally-funded small business relief

About This Industry

Major Players There are no major players in this industry

Main Activities The primary activities of this industry:

Growing pecans and walnuts

The major products and services in this industry:

Pecans and walnuts

Cherries, blueberries and cranberries

Other (including pistachios)

RELATED INTERNATIONAL INDUSTRIES

Apple, Citrus and Other Fruit

Annual Growth Annual Growth Annual Growth 1.4% 0.3%

9.0% Life Cycle

166k Government support has gradually increased over the past

Products & Services Segmentation

20.5% 21.8% 9.8% 6.3% 9.1% 4.2%

Grapes Almonds Apples Pecans and walnuts Strawberries Peanuts

Fruit & Nut Farming

Major Players % = share of industry revenue SWOT

Key External Price of fruit

Demand from canned fruit and vegetable processing

Demand from wineries

Per capita fruit and vegetable consumption

Despite volatility, consistent performance in some of the largest product segments

Exports remain a major source of industry revenue and are expected

Imports provide off-season non-citrus fruits to consumers, enabling them to bring

Operators within the industry rely in part on government programs

The makeup of the industry remained relatively stable during the

Historical Performance Data

Government-backed programs, such as the Centers for Disease Control and

Trade and participation

The already significant role that international trade has in the

Existing participants will benefit from improvements in domestic yields and

employment growth in the industry. Consequently, employment is forecast to

Performance Outlook Data

LIFE CYCLE REASONS

Growth in industry participant numbers has been restrained

Widespread domestic acceptance of industry products has limited US market growth

Products and Markets

example, wildfires in California have damaged vineyards in the state's wine-growing

Apples and strawberries

Consumption of both apples and strawberries has remained fairly

Cherries, blueberries and cranberries

Cherries, blueberries and cranberries remained stable as a share of

Tree nuts are expected to account for a combined 28.1% of industry

Unlike nuts that grow on trees, the peanut is technically a legume,

The other fruit category includes peaches, pears, pineapples,

Demand Various factors determine demand from the different market

Fruit and nut processors

Fresh fruit markets and supermarkets

International Exports in this industry are High and Steady

Exports are a major driver of industry

Producers experienced increasing

Percentage of Value of production (%)