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Horticultural Trade and U.S. Export Opportunities


July 1, 1997

U.S. exports of horticultural products to all countries in April totaled $832.2 million, down 1 percent from the same month a year earlier. Seven out of 15 categories registered decreases. Categories with the most significant decreases in April were tree nuts (down $23.9 million or 27 percent), fresh citrus (down $5.8 million or 6 percent), and fruit and vegetable juices (down $3.4 million or 5 percent). Categories with the most significant increases were canned vegetables (up $10.9 million or 21 percent), wine (up $5.2 million or 19 percent), and dehydrated vegetables (up $4.3 million or 23 percent). During the first 7 months (October-April) of fiscal year 1997, the total value of U.S. horticultural exports was $6.1 billion--7 percent above the same period last year.

Citrus production in selected countries in 1996/97 is forecast at a record 68.1 million metric tons, 3 percent above the previous year's output. Oranges account for most of this increase. The amount of oranges expected to be processed in 1996/97 is forecast at a record 28.9 million tons, 8 percent above the previous year's level. More citrus is expected to be processed because of record orange harvests in Florida and Sao Paulo. Selected country fresh citrus exports, however, are forecast to decrease 6 percent, due mainly to a smaller harvest in Spain, the world's largest fresh citrus exporter. The United States and South Africa are expected to expand fresh citrus exports in 1996/97, due partly to a forecast 14 percent drop in Spain's exports.

Canned tomato and tomato paste production in selected countries in 1997/98 are forecast at 1.6 and 1.3 million metric tons, down 21 and 10 percent from the previous season, respectively. The production decline in canned tomatoes is due largely to lower output in Italy, which accounts for over 80 percent of selected country production. Production was down in Italy due to reduced planted area, a severe frost last spring, and large carry-in stocks. Lower tomato paste production in 1997/98 is expected in most European countries, with the exception of France, where production remained the same. Despite the expected sharp decrease in canned tomato production, exports in 1997/98 are forecast to decrease only 1 percent as Italy is expected to reduce stocks in order to meet export demand. Tomato paste exports in 1997/98 are forecast to increase 5 percent to 937,000 tons despite lower production. All selected countries are expected to expand tomato paste exports except for Chile, Greece and France. U.S. tomato paste exports for the first 9 months of marketing year (July-June) 1996/97 have already reached a record 98,472 tons, 12 percent above the previous year's complete marketing year total. During the first 9 months of marketing year 1996/97 (July-March), U.S. imports of canned tomatoes from the EU have increased dramatically, since the United States' removal of the 100 percent punitive duty on imports of canned tomatoes from the EU in July 1996.

The first official shipment of sweet cherries from Washington state arrived in Shanghai on June 19. This first-time shipment follows the recent signing of a modified work plan governing export shipments of Washington state cherries. The previous work plan had effectively precluded shipments by requiring that the entire program be suspended in the event of a Western cherry fruit fly detection in a shipment. Under the revised work plan, such a detection will require that the lot of cherries be either fumigated, reexported or destroyed, but just the packing facility from which the cherries originated would be suspended from the program until an investigation and corrective measures could be undertaken. The Northwest Cherry Growers, representing 2,500 sweet cherry growers from Washington state, estimates the initial Chinese market could be worth $2 to $4 million annually, with long-term potential even higher.

FAS has determined that the European Union's proposed canned fruit program for 1997/98 complies with the U.S.-EC Canned Fruit Accord (CFA). The net cost of canning peaches to EU processors, after processing aid payments from Brussels are deducted from the minimum price paid to growers for raw fruit, is estimated at $203.57, above the agreed-upon world price of $199.84 per metric ton. For canned pears, processing aids were reduced by 25 percent due to the EU having exceeded its production threshold during the last 3 years. The penalty brings the 1997/98 net cost to processors up to $268.25 per metric ton of canning pears, versus a calculated world price of $189.06.

Poland's Council of Ministers has approved new tariffs and tariff regulations for 1997, which will somewhat reduce import tariffs for many horticultural products. The new tariff levels become effective July 1, 1997. The tariff reductions reflect Poland's World Trade Organization (WTO) commitments to reduce import tariffs over time. Some agricultural products for which applied tariffs were slightly reduced include fresh fruits (dates, figs, avocados), fresh vegetables, raisins, coffee, tea, pepper, vanilla, cocoa beans, selected processed fruits and vegetables, and selected wines and liquors. Poland also liquidated an across-the-board border tax, which in 1996 was 3 percent for all imports. In an unusual development, not connected with Poland's WTO commitments, the Polish government reduced the value add tax (VAT) applied to fresh citrus from 22 percent to 7 percent. The change will become effective on January 1, 1998.


Last modified: Tuesday, May 08, 2001