Mater, sorry, I haven't a clue what is causing problems, but since you mentioned termite poop, is it possible your tree has termites?

Regarding mulch, where did you hear it will harm a tree? On the contrary. Cypress prevents weeds and deters insects. This summer, (for the first time) I placed Cypress mulch around outdoor plants, and boy, what a difference!
The trick is, when applying, don't set mulch against the trunk of a tree. Leave some room. There was an article regarding mulch and citrus trees, I'll look for it. Can't recall if it was on GW, plant book or a citrus site.

I hope someone has an answer. Toni

Toni, that cypress mulch deters insects is a myth propagated by the cypress mulch companies. The truth is that we shouldn't use cypress at all, as it is being harvested from old stands of cypress in extremely sensitive wetlands. The advertisements would have us believe that cypress holds all kinds of special powers, while it truly does not.

BUT! Using mulch of some kind is absolutely one of the most beneficial things we can do for our trees for so many important reasons. Including citrus.

mater, would it be possible for you to attach a picture of this problem so that we can take a look at it?

My messages are not posting, so I'll try again.

It's phytophthora (gummosis, foot rot). Today the gum appeared.

I caused this myself. It's impossible to make the yard guys understand that they are not to use weedeaters on my trees, so I mulched to kill weeds. That kept the foot of the tree moist, and rot started. I didn't know that mulch causes foot rot in this climate, but it turns out it's a known hazard.

I painted the bark with Daconil and copper, and I got rid of the mulch, which is four days old and already turning white with fungus. I'll get to a nursery and buy the best fungus killer I can find.

" Weed Management

Often, citrus trees are planted in the midst of an expansive green lawn. Complete weed control is not essential, but weeds and sod grass should be removed from the area under the tree canopy. Above all, make sure all weeds are removed from the area adjacent to the trunk of the tree. Such weeds could promote injury due to a soil-borne fungus known as foot rot, which can seriously debilitate or even kill the tree. Mulches are not recommended around citrus trees, but if trees are located in a cultivated plant bed where mulch is used, it should be kept at least a foot away from tree trunks. "

This is from the U of F link below . I have a Persian lime in the ground up here and it is deliriously happy . That is until we have a killing frost . Mulch is a HUGE no-no around in-ground citrus in Florida . Sorry you learned this the hard way . Hope your tree survives .
Back way off on the watering . Mature citrus planted in-ground can go 30 days without water if they have to . Peruse the U of F site for a ton of citrus growing info . I highly recommend following their fertilizing schedule . I am also a big fan of Sunniland Citrus fertilizer - made in Florida for Florida growers .

Here is a link that might be useful: Citrus Culture

Thanks for the help. As for watering, I would love to take your suggestion, but as I'm sure you know, Mother Nature is watering plants in this area every day. I'm planning to move the sprinkler head that is nearest to this tree, so it doesn't add to the problem by soaking the trunk once a week.

I blasted the tree with copper and Daconil yesterday, to the point where the bark was blue. Today it looks better, which is hard to believe. I hope I can find a nursery where they have serious remedies instead of the silly stuff they have at Home Depot.

mater
I'm in Ft Lauderdale and my trees are mulched, no problem here
but I use eucalyptus mulch
if yoou definately have a rot or fungal infection to your tree, you can use 3% hydrogen peroxide the stuff is great
be careful using copper as copper will also kill some plants/orchids (Dendrobiums, Bulbophyllums,and Catasetum alliance) or severely stunt some types of plants growths.
manganese fungicides work really well and you can actually add just enough water to make a light paste and cover the infected wood

A guy who has worked on my trees before magically turned up today, and he knows where to get good antifungal stuff, which is good, because the nursery people here are worthless. I'll mention your suggestion.