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| Horticultural & Tropical Products Division | Return to the H&TP Home Page |
March 29, 2000
U.S. Fuji Apples Launch in Japan
On March 3, FAS/Tokyo reported that the first 700 boxes of Washington state Fuji apples had arrived in Japan. The air shipped product was distributed through a mid-sized Tokyo supermarket chain and introduced to Japanese consumers for the first time. Although the quality of the fruit was reported as excellent, sales were slower than expected due mainly to strong competition from unusually abundant supplies of low-priced domestic Fujis. Sales may have been also hampered by Japanese consumer misperceptions about chemical residues on U.S. products. FAS/Tokyo reports, however, that the market for U.S. Fujis will likely improve with the arrival of sea shipments and with a nationwide promotion campaign sponsored by Daiei, Japan’s largest supermarket chain. U.S. apple shipments to Japan have been slowed by Japanese limitations on the varieties allowed for entry and by the high cost of inspection. U.S. Fuji is one of the new varieties recently approved for entry into Japan.
U.S. Apple Exports To Central America And The Caribbean Running At Record Pace
U.S. apple exports from July to December 1999 to Central America and the Caribbean totaled $14 million, up nearly 10 percent from the same period in 1998. Guatemala, Costa Rica, and the Dominican Republic led the region’s strong first half of the season demand for U.S. apples, totaling $3 million each. Apple exports to Guatemala have increased more than 300 percent since marketing year 1993/94, when exports were valued at $668,000. Continued economic growth, a growing upper and middle class, and more market promotion efforts have boosted demand for U.S. apples among countries in Central America and the Caribbean. U.S. apple growers and shippers located in the northeastern states have reaped significant benefits, as a large portion of U.S. apple shipments to the region originates there. Red Delicious, Golden Delicious, and Granny Smith are the most popular apple varieties and account for most of the U.S. sales. Other varieties, such as Gala, Cameo, and Fujis, are making inroads in certain markets in the region.
United States Lifts Embargo on Iranian Pistachios and Dried Fruit
In response to recent reform efforts in Iran, the Clinton Administration announced on March 17th that the United States will lift its thirteen-year embargo on Persian carpets and food products, such as caviar, pistachios and dried fruit. Although the embargo will be lifted, Iranian pistachio imports are still subject to significant countervailing and anti-dumping duties (318% on roasted in-shell; 283% on raw in-shell). For the moment, these prohibitively high duties will likely deter Iranian pistachios from entering the U.S. market. Iran is the world’s largest pistachio producer followed by the United States. Iran is also a significant raisin producer and exporter. In 1998, Iran produced 102,000 tons, ranking behind the United States and Turkey in raisin production and exports. The U.S. raisin industry expects some competition from Iranian raisins once the embargo is lifted, especially in the processing sector. Iran, Turkey and Afghanistan generally supply lower quality and price raisins, which are primarily sold in bulk to the processing sector. Thus, there could likely be some substitution of raisin imports from Iran for those from Turkey and Afghanistan.
U.S. Organic Suppliers Have French Supermarket Opportunities
As noted in a recent French press article (Les Echos 3/8/00), organic foods are specific market segment in French supermarkets, but production is insufficient for supermarkets to meet demand. Since increased production of organics in France started only in 1997, low supplies mean that France must import more than a third of its organic food products. These come mainly from Germany and Italy. As a result, French imports of organic food products have risen steadily by 20 percent since 1993, reaching 30,000 tons. Thus, the moment is right for U.S. suppliers who can supply high quality products at a reasonable price (keeping in mind the currency weakness of the Euro) to penetrate the French market. Best prospects include grains, almonds, pistachios, dried fruits, flour, tropical fruits, milk and organic proteins for animal feed. A promotional campaign: "Le printemps bio" (Spring Organics), organized by the different operators in the organic sector, will take place in France May 20-27. This promotional campaign will include tastings and other promotions.
Implementation of Japan’s Packaging Recycling Law Imminent
The Government of Japan will begin full implementation of its Packaging Recycling Law on April 1, 2000. Under this law, manufacturers will be obliged to pay the associated collecting, sorting, transportation, and recycling costs for all paper and plastic packaging and containers. In the case of imported products, importers will be held responsible for paying recycling costs. If the imported products are private labeled, the corporations using the private labeling will be held responsible for recycling costs. Japanese industry is working to reduce overall packaging, to make packaging which is easily recycled, and to prepare for obligations under the law. As a notice to U.S. exporters, Japanese importers may take associated recycling charges into account when choosing goods to import.
EPA Publishes Proposal Revising Public Participation in FQPA Review Process
On March 15 EPA published a proposal in the Federal Register to revise the public participation process for reassessing organophosphate pesticides and extending this process to all types of pesticides going through reregistration and tolerance reassessment (tolerance reassessment refers to the requirement under the Food Quality Protection Act of 1996 that EPA be required to reassess the maximum pesticide residue limits on food). EPA began this public participation initiative as a pilot in July 1998, after consultation with the Tolerance Reassessment Advisory Committee (TRAC), as a way to increase transparency of regulatory processes and consultation with affected stakeholders (TRAC, now defunct, was an independent group set up in 1998 by EPA and the U.S. Dept. of Agriculture to advise these agencies on reassessment issues). Based on lessons learned during the pilot and further consultation with stakeholders, EPA is now proposing a revised process that further enhances public participation. The process includes six phases with two public comment periods, as well as expanded public engagement before starting the process. The notice also describes how the process will apply to pesticides that are now in the review process. EPA has established a 30-day comment period on this proposal. The Federal Register notice announcing the proposal is available at http://www.gpo.gov/su_docs/aces/aces140.html .
EPA Also Announces a Revised Science Policy to Regulate Potential Exposures to Pesticides
On March 22, 2000, EPA also published a notice of availability in the Federal Register for a revised science policy that the Agency will use to regulate potential exposures to pesticides resulting from their use on food crops. The revised policy is a revision of the draft published for comment on April 7, 1999. It will be available at http://www.epa.gov/pesticides/trac/science/ ; the Federal Register notice is available at: http://www.gpo.gov/su_docs/aces/aces140.html .
Developers of Bioengineered Foods Expected to Consult with FDA Before Marketing Product
Under FDA policy developers of bioengineered foods are expected to consult with the agency before marketing their products, to ensure that all safety and regulatory questions have been fully addressed. FDA's policy also requires special labeling for bioengineered foods under certain circumstances. For example, a bioengineered food would need to be called by a different or modified name if its composition were significantly different from its conventionally grown counterpart, or if its nutritive value has been significantly altered. Special labeling would be required if consumers need to be informed about a safety issue, such as the possible presence of an allergen that would not normally be found in the conventionally-grown product. FDA has a new initiative to engage the public about foods made using bioengineering. This initiative began with a series of public meetings in November and December, 1999. To read the transcripts from these meetings go to the following website: http://www.fda.gov/oc/biotech/Biofood4.jpg .
FDA to Publish Proposed Rule on Notification Process for Food Contact Substances
In November of 1997 the U.S. Congress amended the Federal Food, Drug, and Cosmetic Act (FFD&C) to establish a notification process whereby manufactures and suppliers of components of food contact materials may notify FDA 120 days prior to marketing a new food contact substance. If FDA does not object to the notification within 120 days, the substance may be marketed with the same status as a regulated food additive. Unlike food additive regulations, premarket notifications will be specific to the notifier. The proposed use of a similar or identical substance produced by another manufacturer will require a separate premarket notification submission. Also unlike food additive petitions, the existence of the notification and any otherwise releasable data within the notification is not publicly available until the 120-day period has expired. FDA expects to keep a publicly available list of effective premarket notifications to assist manufacturers, distributors, and users of food packaging and other food-contact materials. FDA also expects to publish a proposed rule on the notification process for food contact substances by early FY 2000. FDA will provide a period for comments on the proposed rule and will need to address any comments in a final rule.
China to Import U.S. Citrus from Four States
On March 22, 2000, USTR and USDA announced that China has agreed to begin importing U.S. citrus from four states, effective immediately. This decision was made after Chinese agricultural officials spent two weeks touring citrus groves in Arizona, California, Florida and Texas. Upon reviewing their findings, the Chinese delegation determined U.S. groves meet all the necessary regulations for exportation. During the visit, the Chinese inspectors reviewed U.S. pest mitigation measures and general conditions at groves and packing houses. The inspectors were able to see first-hand how citrus producers and APHIS work together to safeguard U.S. agriculture from pests and diseases. China’s 1.3 billion people represent a significant market for U.S. citrus.
Full Enforcement of China’s Solid Wood Packing Material Rule in Effect
The period of operational flexibility for U.S. exporters shipping solid wood packing material to China has ended. Exporters must now fully comply with the requirements set forth in China’s regulation or risk having their shipment destroyed or returned to the United States. If no solid wood packing material is present, the exporter should self-certify the shipment by attaching a signed statement on company letterhead to the bill of lading or invoice. The statement should read, "There is no solid wood packing material in this shipment." Exporters are also encouraged to attach a copy of the Chinese declaration of no solid wood packing material available on the APHIS website at www.aphis.usda.gov/oa/chinaswp/nowood.html . Chinese officials developed these statements to assist in cargo clearance.
If there is solid wood packing material in the shipment, but it comes from a source other than coniferous trees, the exporter can self-certify by placing the following statement on the bill of lading and/or invoice: "The solid wood packing material in this shipment is not coniferous wood." Exporters are also encouraged to attach a copy of the Chinese declaration of non-coniferous wood packing material, available on the APHIS website at www.aphis.usda.gov/oa/chinaswp/nonconifer.html . Chinese officials developed these statements to assist in cargo clearance as well.
If coniferous solid wood packing material is used, it must be heated to a core temperature of 56 degrees Celsius for 30 minutes. Kiln drying also often meets this requirement. To certify the shipment for heat treatment, an exporter should download form PPQ 553 from APHIS' website at www.aphis.usda.gov/oa/chinaswp/hotbutton . The exporter should fill out the form and take it to a local USDA, APHIS, PPQ, or state cooperator office for endorsement. A list of these offices is also available on the APHIS website.
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