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Germany: Nuts About U.S. Almonds little german boy

If you have a sweet tooth and haven’t tasted the delights of a mouth- watering marzipan confection, it’s time to sample what German gourmands can do with an almond and a little imagination.

Fortunately for U.S. almond exporters, who supply over two-thirds of Germany’s needs, almond paste is only one of many uses for these tree nuts, which German processors use as ingredients in breakfast cereals, ice cream and bakery products.

The German food processing industry not only supplies domestic needs, but exports many of these as value-added products.

No Almond Trees in Germany

How ironic that the country that has done so much to popularize the almond must import all its almonds. The imports consist mostly of shelled, raw, whole or sliced nuts. In 1997, Germany imported $317 million worth of raw almonds. Most were shelled product, worth $310 million and totaling almost 60,000 metric tons. The volume was virtually the same as in 1996, though cheaper prices reduced its value.

Competitors Setting Up Shop

almond articleSince the United States exports about a quarter of its almond crop to Germany, tracking competitors is critical. Spain’s 20-percent plus market share and pronounced showings by Iran and Australia the last few years make them U.S. almond growers' most significant competition. Australia almond exports to Germany were up from $210,000 in 1995 to $8 million in 1997. Iran jumped from $750,000 in 1996 to almost $11 million in 1997.

Most almonds are imported in bulk by German companies that specialize in nut and dried fruit imports. The product enters the market year round, but imports peak from September to November in preparation for the holiday season.

Almond importing companies may re-pack the imported almonds for resale or sell in bulk to retailers or German food processors. Some U.S. companies also supply branded, consumer-packaged almonds available in the German market.

Outlook Blooms for U.S. Products

The majority of U.S. almond exports will almost certainly continue to supply the food processing industry as the industry grows, and opportunities will increase.

Though not large yet, the snack food market for almonds is a niche market worth watching. Sugar coated, burnt almonds are a popular snack in the open-air fests and the seasonal Christkindlesmarkts.

Ad valorem tariff rates of 11-12 percent and above are assessed on processed almonds, including roasted nuts and sugar-containing product. Thus, German importers tend to import the lesser-taxed raw product with further processing being done in Germany. The high tariff makes it difficult for U.S. exporters of processed almonds to compete.

coo coo clockUruguay Round Cuts Tariffs

The European Union (EU) agreed to sharply reduced import tariffs on unprocessed almonds in the Uruguay Round. And the reductions will be ongoing.

The EU has a global annual tariff rate quota of 90,000 metric tons for raw, sweet, in-shell and shelled almonds (excluding bitter almonds) imported into the European Union (EU). The tariff rate for this tariff quota is 2 percent ad valorem, available on a first-come, first-served basis.

Raw bitter almonds enter duty-free. Over-quota rates effective for sweet almonds until July 1999:

Over quota rates for sweet almonds beginning in July 1999:

Want More Information?

For help with marketing U.S. agricultural products in Germany, in-country contacts, trade shows and marketing reports, contact:

U.S. Agricultural Trade Office
Hamburg, Germany
AMCONGEN Hamburg
Department of State
Washington, DC 20521-5180
Tel.: (4940) 41-4607-0
Fax: (4940) 41-4607-20
E-mail: ATOHamburg@fas.usda.gov
Homepage: http://www.usembassy.de/atohamburg

-or-

Office of Agricultural Affairs
Bonn, Germany
PSC 117, Box 385
APO AE 09080
Tel.: (49-228) 339-2133
Fax: (49-228) 334-697
E-mail: AgBonn@fas.usda.gov

-or-

Trade Assistance and Promotion Office
Room 4951-S
Washington, DC 20250
Tel.: (202) 690-1182
Fax: (202) 690-4374
Homepage: http://www.fas.usda.gov

_______________________
The report was prepared by the U.S. Agricultural Trade Office in Hamburg, Germany.


Last modified: Thursday, October 14, 2004 PM