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World Apple Situation
|Combined apple production in selected countries in marketing year 2001/02 is forecast at 45 million tons, down 7 percent from the 2000/01 record crop of 48.2 million tons. Production in the European Union (EU) is expected to decrease sharply in 2001/02, due to reduced production in France, Italy, and Germany, the three top producers in the EU. Lower apple production is also anticipated in key producing countries of the Northern Hemisphere, such as China, Russia, and the United States. Output in Argentina and Chile, the two top apple producers in the Southern Hemisphere, will likely be reduced by 25 percent and 10 percent, respectively, in 2001/02. Apple exports from selected countries in 2001/02 are forecast at 4.6 million tons, down from 4.8 million tons shipped in 2001/02. Reduced exportable supplies from key exporting countries such as the United States, Chile, and countries in the EU will likely slow down 2001/02 apple shipments. The 2001/02 U.S. apple export forecast has been revised up to 620,000 tons, 17 percent more than the previous forecast, but 17 percent below last seasonís record shipments. A lower apple crop in Washington state, related higher prices, and recent challenges facing U.S. apples to Mexico will likely limit overall U.S. apple exports this season.|
Northern Hemisphere Briefs
Apple production in the Northern Hemisphere to
decrease for the first time in five years
Total apple production in selected Northern
Hemisphere countries in 2001/02 is forecast at 40.6 million tons, down 7 percent
from the record 2000/01 output and the first decline since the 1997/98 season,
when selected Northern Hemisphere countries produced a combined 38.4 million
tons. Continued overall decline in planted
acreage and unfavorable weather conditions in the eastern part of China will
likely slow down Chinese apple production for the second consecutive season. The
lower EU apple crop mainly reflects decreased production in the top three EU
producing countries (France, Italy, and Germany). Apple production in the
United States in 2001/02 is
forecast at 4.3 million tons, the lowest level since 1988/89.
Most of that drop is coming from Washington, the main producing state.
China leads world in apple production followed by the United States.
Hemisphere apple exports are forecast to decrease in 2001/02
exports from selected countries in the Northern Hemisphere in 2001/02 are
forecast at 3.3 million tons, 7 percent below last seasonís shipments. Lower
exports are forecast from the EU and the United States. On the other hand, apple
shipments in 2001/02 from China and Poland are forecast to increase 5 percent and 25 percent,
apple exports in 2001/02 are forecast at close to 282,000 tons, as it continues
to expand its export markets, especially to Asian countries and Russia. The Fuji
variety accounts for about 80 percent of Chinaís apple exports.
The 2001/02 U.S. apple export forecast was revised up to 620,000 tons, 17 percent above the previous forecast, due to better than anticipated shipments to date. However, the revised forecast is 17 percent less than shipments last season. A smaller apple crop in Washington state, related higher prices, and more challenges facing U.S. apples to Mexico will likely slow down U.S. apple exports in 2001/02. On average, about 40 percent of U.S. annual apple exports are destined to Latin America, about 35 percent go to Asia, and 5 percent each are destined to Europe and the Middle East.
Mexico reauthorizes ports of entry for U.S. apples
December 14, 2001, Mexicoís Secretariat of Treasury announced the
reestablishment of the ports of Mexicali, Nuevo Laredo, and Veracruz as official
ports of entry for apples from the United States. Entry of U.S. apples through
these ports had been closed from June 29 to December 14, 2001, as part of
Mexicoís efforts to control alleged unfair practices involving apples from the
United States. Apparently, Mexico raised concerns about apple shipments being
rejected at the border for missing required data on the cartons and problems
with the accompanying phytosanitary certificates.
also added the port of Tuxpan as an official border crossing. This action
increases the total number of ports authorized to import U.S. apples from five
to nine, including Ciudad Juarez, Nogales, Ciudad Reynosa, Manzanillo, and
Tijuana, which were authorized in June 2001.
is the top destination for U.S. apples, with sales in marketing year 2000/2001
(July-June) totaling nearly 225,000 tons, valued at $125 million.
Mexico still not in agreement on reference price for U.S.
On January 9, 2002, the Mexican courts ruled for a preliminary
suspension of the 2001/02 minimum reference price of $11.05 per 42-pound box for
U.S. Red and Golden Delicious apples. The preliminary suspension responded to
complaints filed by the Mexican apple industry, alleging that U.S. exporters
committed 6 violations of the 1998 apple dumping suspension agreement. The
Mexican courts have not yet issued a decision regarding which reference price
would apply to U.S. apple imports in the 2001/02 season. However, because the
current apple reference price is suspended, imports are entering under the
2000/01 reference price of $11.48 per box.
Mexico implemented a 101 percent anti-dumping duty on U.S. Red and
Golden Delicious apples in September 1997, which was lifted in March 1998,
following the suspension agreement. Under the terms of the agreement, all U.S.
shipments of Red and Golden Delicious apples to Mexico must comply with a
minimum reference FOB price per standard 42-pound box. The minimum price is
based upon a three-year average of FOB prices of the two varieties, as reported
by the Washington Growers Clearing House Association. The agreement runs through
2003 and calls for the minimum prices to be adjusted every November 1, to
reflect the average of the preceding three crop years.
U.S. apples under Food for Progress arrive in
the Russian Far East
On January 29, 2002, a press
conference was held in Vladivostok, Russia to inaugurate the distribution of
2,000 tons of fresh apples to needy children in Russia. The ceremony marked the
first time that U.S. apples have been successfully programmed under the ďFood
for ProgressĒ food aid program. The Global Jewish Assistance and Relief
Network (GJARN) plan to distribute Gala, Red Delicious, and Golden Delicious
apples to 200,000 needy children in schools, hospitals, and orphanages.
The Food for Progress program
has traditionally included non-perishable food staples such as grains and dried
milk products. Driven by efforts to aid more transitional economies, USDA this
past year expanded the program to include higher-value commodities, such as
fresh apples. As such, the distribution of fresh apples to Russian orphans marks
the first time that fresh fruit has been included in a U.S. government food aid
Philippines lifts ban on Chinese fruits and
In January 2002, the Philippine
Department of Agriculture lifted the ban on imports of apples and other fruits
from China. The temporary ban was removed after China successfully addressed
Philippine concerns regarding the introduction of corposant, the pest
found in a shipment of Chinese apples in October 2001. Corposant is an
actionable pest that is not present in the Philippines. A newly agreed-upon work
plan requires that fruit from China be treated at origin. The Philippines is a
major market for Chinese apples. In calendar year 2000, Chinaís apple
shipments to the Philippines were valued at $16 million, accounting for nearly
20 percent of total Chinese apple shipments. U.S. apple shipments to the
Philippines totaled $5 million in the same year.
U.S. Senate approves assistance for apple
February 11, 2002, the U.S. Senate approved an emergency agriculture assistance
amendment to the farm bill that will provide the U.S. apple growers with $100
million in direct assistance. The assistance is an attempt to offset a portion
of the devastating losses apple growers faced during the 2000/01 marketing year.
The Senate approved legislation in July 2001 to provide the nationís apple
growers with $150 million in direct market loss assistance payments, as part of
a $7.4 billion fiscal 2001 supplemental farm aid bill for 2000 crop losses.
However, the final version of the supplemental farm aid bill adopted by Congress
was trimmed to $5.5 billion and did not contain the $150 million apple market
loss assistance provision.
group of organic apple growers is challenging the Washington Apple Commission (WAC)
to remove themselves from that promotion group and form a promotion board
specifically for organic crops. Organic apple growers, along with producers of other
organic crops in the state of Washington,
are backing legislation to form an Organic Foods Commission, calling for
promotion of all organic crops. One of the provisions of the bill would exempt
organic apple growers from paying assessments to the Washington
Organic apple growers argue that WAC
does nothing to promote organic apples. However,
the commission reportedly has an active organic apple marketing committee.
WACís main job is to promote all apples of the state of Washington, including
organic apples. Apparently, the organic apple sector is a very fast-growing
segment of the industry and there is concern about how to differentiate and
position organic apples vis-ŗ-vis conventionally grown apples.
Southern Hemisphere Briefs
Southern Hemisphere Apple Crop Expected to Decrease in 2001/02
production in selected countries of the Southern Hemisphere in 2001/02 is
forecast at 4.4 million tons, down 8 percent from last seasonís record output.
Production declines are expected in the principal southern producing countries
of Argentina and Chile.
apple production in 2001/02 is forecast at 1.0 million tons, 25 percent below
the 2000/01 crop, due to unfavorable weather. In Argentina, small and medium
growers produce the bulk of the fruit. Last season, many growers replanted
orchards with higher yielding varieties, such as Pink Lady, Jonagold, and
Pacific Rose. Argentinaís commercial apple production is located in Rio Negro
(75 percent), Neuquen (15 percent), and Mendoza (10 percent).
apple production in 2001/02 is forecast at 900,000 tons, down 10 percent from
the 2000/01 crop. Unstable weather last spring, cloudy skies and lower than
normal temperatures will likely hamper apple production in Chile this season.
Chilean apple producers continue to diversify their orchards by planting
different and more popular varieties such as Fuji, Gala, Jonathan, and Braeburn.
However, Red apple varieties still account for about 70 percent of total output
and are mainly for the European and Middle East markets. The principal green
variety, Granny Smith, is used both for the fresh export market
(mainly Europe and the United States) and for concentrated apple juice
Hemisphere apple export, however, to increase in 2001/02
Although production will likely be lower, apple exports from selected countries in the Southern Hemisphere in 2001/02 are forecast to increase to 1.3 million tons, 3 percent above last seasonís shipments. The increase mainly reflects anticipated larger shipments from Argentina and New Zealand. On the other hand, shipments from the largest apple exporter in the Southern Hemisphere, Chile, are expected to decrease this season.
Zealandís 2001/02 apple exports are forecast at nearly 300,000 tons, a 14
percent increase from the 2000/01 seasonís shipments. Grower confidence is
high in New Zealand and strong export demand for New Zealandís products
continue, particularly in England and continental Europe. On October 1, 2001,
ENZA, single desk marketing group, became deregulated after more than 50 years.
After decades of rigid controls, apple and pear growers are free to sell their
own fruit and former monopoly exporter, ENZA, will have to compete with 30-40
other serious marketers.
Zealandís Top Local Brand Moves into Exporting
well known New Zealand fruit marketing brand, Yummy, is going to
begin exporting apples on its own. The company plans to export around 14,400
tons of their own apples and pears this season. Yummy is a
well-recognized brand and registered worldwide. The group is headed by former
African presence in New Zealandís apple industry
South African fruit marketer, Capespan, has confirmed a deal to export a significant volume of the New Zealand apple crop this season under its Cape brand. Up to 18,000 tons of Braeburn and Royal Gala varieties are expected to be shipped to England and to continental Europe this season. At least 50 percent of these apples will come from the company Fresh New Zealand. Since the apple industry was deregulated on October 1, 2001, Fresh New Zealand, along with other exporters, has been vigorously competing for fruit supplies with ENZA.
(For information on production and trade, contact Samuel Rosa at 202-720-6086. For information on marketing, contact Ted Goldamer at 202-720-8498. The FAS Attache Report search engine contains reports on deciduous fruit for more than 20 countries. Also, visit our apple web page at: http://www.fas.usda.gov/htp/horticulture/apples/html)