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05/2013Florida Chemical aquired by Flotek Industries

01/2013Market Update - January 2013

12/2012Fill-A-Bag Program

11/2012Market Update - November 2012

08/2012Florida is Expecting a Good Citrus Crop for 2012-2013 Harvest Season

06/2012Florida Citrus June Forecast

05/2012Florida Chemical Company Celebrates 70 Years in Business

05/2012Florida Chemical Company Expands Their Distillation and Bulk Storage Capacity

05/2012Florida Chemical Company Adds 25 Acres to Their Current Location in Winter Haven, Florida

05/2012Extended Range Forecast of Atlantic Seasonal Hurricane Activity and Landfall Strike Probability for 2012

04/2012Florida Chemical Solidifies its Position as the Largest Processor of Citrus Oils

04/2012Florida Citrus April Forecast

Last week, the OJ futures market rallied on anticipated weather concerns. The long range forecast issued by NOAA and WeatherBELL call for below-normal temperatures for south Florida from December through February. The probability of abnormal weather has caused speculators to buy into the market which has caused prices to rise. There is correlation between FCOJ prices and citrus oil prices. Although citrus oil prices have not responded to weather concerns at this time, we do expect activity to increase between now and year-end if weather forecasters continue to call for adverse weather.

Industry experts are predicting a good crop from the Florida growers for the approaching 2012-2013 harvest. Weather conditions have been favorable for fruit development and high fruit count. Private industry estimates are anticipating a crop harvest 10-15% greater than last years harvest. As usual at this time of year, weather conditions continue to pose a threat to the citrus industry. Hurricane activity is expected to be higher than originally predicted. Weather experts have noted higher than anticipated activity thus far in the 2012 hurricane season. September 10 is considered to be mid-point in the Atlantic Hurricane season. If weather conditions do not damage the current Florida crop, harvest levels are expected to be in the 150-160 million box range. The harvest is not expected to begin until December time frame.

The US Department of Agriculture’s National Agriculture Statistics Service (NASS) provides an estimate for Florida citrus production monthly throughout the season. Estimates begin in October of each season. The first estimate for the 2012-2013 harvest will be October 11, 2012. We will continue to post updates as information becomes available.

Aristotle once said, “In all things of nature, there is something of the marvelous”. This sentiment resolutely held by Henry Elbert “Bert” Schulz, even before the current ideals to respect and preserve the environment were popular, led him along with his father, W.H. Schulz, to find a way to convert streams of citrus wastewater into molasses and alcohol. The year was 1942 when they began selling their products from the “Florida Molasses Company”, later renamed Florida Chemical Company. The company is still owned by the Schulz family, and continues to be driven by the belief that nature holds a wealth of unearthed treasures.

Through innovation, organization and diversification, Florida Chemical has evolved into a technologically advanced, financially sound company with manufacturing facilities in Winter Haven, Florida, and Houston, Texas. The company also has four strategic warehouse locations in the United States. Florida Chemical Company currently operates in 80 international markets on five continents.

Florida Chemical Company is one of the largest processors of citrus oils in the world, producing large volumes of d-Limonene and Flavor and Fragrance compounds. D-limonene, occurring in nature as the main component of citrus peel oil, is the company’s principle product. It is a very effective, biodegradable solvent and degreaser. Due to its high solvency, attractive citrus odor, versatility, and GRAS rating (“Generally Recognized As Safe”) from the USDA, d Limonene can be used safely and effectively in a wide range of cleaning and degreasing applications. During the past 70 years, the company has successfully increased the awareness and utilization of d-Limonene as an effective replacement for petroleum and chlorinated based products. “FCC’s evolution in the past 70 years is quite remarkable”, stated FCC’s president Josh Snively, “The size and scope of the d-Limonene market today is a tribute to the vision Bert Schulz developed so many years ago. His passion for environmental stewardship and his entrepreneurial vision remain core principles we follow today.”

Florida Chemical Company has announced a 4.5 million dollar expansion at their Winter Haven facility. The expansion includes multiple tanks, a state of the art still, boilers, chillers, and nitrogen generators. "The initial objective of this venture was to provide much needed tank space, as well as greater capacity to distill raw materials," says company president Josh Snively. "Ultimately, the customer wins. Because we now control more aspects of the distillation process, we will have even more ability to ensure we maintain the high standards we have always had for the quality of our products." Work began on this project in April 2011, and should be completely operational by May 2012.

In July of 1942, Florida Molasses, the company’s original name, stood on only 11 acres of land in Lake Alfred. When Bert Shulz moved Florida Chemical Company to 351 Winter Haven Blvd N.E., he perhaps never could have envisioned that his property holdings would increase to nearly 35 of prime industrial acreage. Seventy years later, in October, 2011, Florida Chemical Company purchased 23 additional acres across the road from their current location. Josh Snively, president of the company said, “This new expansion will give us greater logistical flexibility. It will increase our overall productivity, and that is good for everybody, especially our customers.” Two buildings already on the property, one 16,000 sq. ft., the other 34,000 sq. ft. will be renovated for office space, storage, and maintenance. Work has already begun to add necessary fire repression systems, and the maintenance shop is currently operational. Plans have been drawn up for the renovation of the office space, and material will begin to be stored in one of the buildings in June.

We anticipate that the 2012 Atlantic basin hurricane season will have reduced activity compared with the 1981-2010 climatology. The tropical Atlantic has anomalously cooled over the past several months, and it appears that the chances of an El Nino event this summer and fall are relatively high. We anticipate a below-average probability for major hurricanes making landfall along with United States coastline and in the Caribbean. However, coastal residents are reminded that it only takes one hurricane making landfall to make it an active season for them, and they need to prepare the same for every season, regardless of how much activity is predicted.

By Philip J. Klotzbach, Research Scientist,

and William M. Gray, Professor Emeritus of Atmospheric Science.

All Orange Production down 1 percent

Non-Valencia Orange Production unchanged

All Grapefruit Production up 1 percent

All Tangerine Production unchanged

Tangelo Production unchanged

FCJO Yield 1.62 gallons per box

The United States Department of Agriculture (USDA) issued its forecast for the 2011-2012 citrus crop on April 10, 2012. The Florida crop is estimated to be reduced this year by 2.0 million boxes to 145.0 million boxes. The total is comprised of 74.0 million boxes of non-Valencia oranges (early, midseason, Navel, and Temple varieties) and 71.0 million boxes of Valencia oranges. The hurricane seasons of 2004-2005 and 2005-2006 have been excluded from the usual 10 – year regression analysis and from comparisons of the current season to previous seasons. For those previous eight seasons, the April forecast has deviated from final production by an average of 2 percent with 3 seasons above and 5 below, with differences ranging from 1 percent above to 3 percent below. All references to “average” or “minimum” refer to the previous with non-hurricane seasons unless noted.