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| Horticultural & Tropical Products Division | Return to the H&TP Home Page |
April 20, 2001
USDA Proposes Plan to Assist Potato Growers
The U.S. Department of Agriculture is proposing to pay russet potato growers up to $10,250,000 to divert a portion of their year 2000 crop for charitable food institutions, livestock feed, and ethanol production. Increased harvested acreage and record yields in 2000 combined to push russet potato production past 500 million hundredweight for the first time in history, prompting grower prices to plummet. The National Agricultural Statistics Service reported the March 2001 season average grower price for all uses at $5.62 per hundredweight - down 10 percent from the March 2000 average of $6.26 and the lowest March grower price since the 1997 crop year. Record potato crops in Canada and Europe have compounded the domestic market problem, limiting U.S. sales in Canadian, European, and Asian markets. Payments for diverting 2000 crop russet potatoes are targeted at $1.00 per hundredweight. Potatoes offered for diversion must meet specific minimum U.S. Grade standards and must be inspected and certified by federal or federal-state inspectors. (For more information, contact the AMS Fruit and Vegetable Programs at 202-720-4517.)
USDA Grants Protection to 88 New Plant Varieties
The U.S. Department of Agriculture has issued certificates of protection to developers of 88 new varieties of seed-reproduced plants. They include basil, bean, buffalograss, carrot, clover, corn, Japanese lawngrass, pepper, wheat, bermudagrass, cowpea, lettuce, pea, alfalfa, fescue, potato, ryegrass, soybean, and watermelon. The 88 certificates are being issued under the Plant Variety Protection Act. The certificates require that the varieties be new, distinct, uniform, and stable. The owners will have the exclusive right to reproduce, sell, import, and export their products in the United States for the duration of protection. USDA's Agricultural Marketing Service administers the Plant Variety Protection Act, which provides limited time marketing protection to developers of new and distinct seed-reproduced and tuber-propagated plants ranging from farm crops to flowers. (For additional information, contact the Plant Variety Protection Office at 301-504-5518 (tel.) or 301-504-5291 (fax).)
United States and European Union Resolve Banana Dispute
The U.S. Government and the European Commission reached an agreement to resolve their long-standing dispute over bananas. The agreement provides for a transition to a tariff-only system by 2006. During the transition, bananas will be imported into the European Union through import licenses distributed on the basis of past trade. In the past, two European Union banana regimes were challenged successfully in the World Trade Organization, prompting U.S. retaliation against EU products. From July 1, 2001, the United States will suspend the sanctions imposed against EU imports since 1999. The European Commission will adjust the quantities in the various quotas, in order to expand access for Latin American bananas. (For more information, contact Amy Stilwell at 202-395-3230.)
U.S. Desert Grape Growers File Anti-dumping Petition against Mexico and Chile
On March 30, 2001, Desert Grape Grower League (producer members) filed an anti-dumping petition against imported grapes from Chile and Mexico. This group collectively represents the industry producing spring table grapes. The list of petitioners comprises 18 growers with concerns about late season imported product overlapping with the marketing of U.S. early season grapes. This case is unique in that the industry is seeking to define itself based on seasonality (i.e., the 2nd quarter of the calendar year). The U.S. International Trade Commission will need to decide whether to allow the industry to define itself in this manner. U.S. imports of grapes from Chile in calendar year 2000 totaled 359,678 metric tons ($388 million), up from the previous year’s total of 274,935 tons ($305 million). During the April 1 through June 30 period, imports from Chile were 59,604 tons, up nearly 72 percent from the same period the previous year. U.S. imports of Mexican grapes in 2000 totaled 90,749 tons ($143 million), compared to the1999 total of 87,632 tons ($211 million). Grape imports from Mexico during the second quarter also showed year-over-year increases with shipments equaling 85,931 tons in 2000, compared to 79,564 tons the previous year. Total shipments of Chilean and Mexican grapes to the United States increased nearly 25 percent from1999 to 2000. (Heather Page, 202-720-9792)
Thailand Increases Excise Taxes on Alcoholic Beverages, Including Wine
The Royal Thai Government (RTG) has recently increased excise taxes on alcoholic beverages, including wine, to help offset a continuing budget deficit. While the tax increase for wine is 5 percentage points (i.e., 55% to 60%), the total cost of imported wine could rise by an estimated 68 percent due to the automatic triggering of other tax increases (interior tax, value added tax), according to the GAIN Report #TH1040 submitted by the U.S. Agricultural Counselor’s office. The resulting price increases at the consumer level are expected to further dampen sales prospects in an already depressed market. The U.S. wine industry’s exports to Thailand had appeared poised to regain the ground lost in 1998 as a result of the Asian financial crisis. But any recovery in 1999 was stymied by the RTG’s anti-import campaign targeted against a number of products, including wine. This initiative was aimed at curbing spending of hard currency on imports and essentially wiped out sales of expensive vintages. U.S. wines sales to Thailand peaked in 1996 at $5 million, before falling to a low of $0.5 million in 1998. Sales had gradually climbed back to reach $1 million in 2000. For many Thai consumers, imported wine has become prohibitively expensive. (Heather Page, 202-720-9792)
Israel’s Demand For U.S. Walnuts Grows in Calendar Year 2000
U.S. exports of walnuts to Israel for Calendar Year 2000 totaled $11.3 million, an increase of 39 percent compared to the same period last year. This was due, in part, to the 1999/2000 record U.S. walnut harvest which totaled 256,734 metric tons, a 20-percent increase over the previous year’s harvest. As a consequence of this record harvest, world prices for walnuts were low and the quality of the product remained very high. Israel prefers to import the top quality type walnut which is used mainly for snack foods and products of that nature. To date, Israel is the sixth largest market for U.S. walnuts. If Israel’s demand continues to increase at such a fast pace, experts believe that it will soon become the United States’ fourth largest market for walnuts, surpassing both Canada and Italy which are currently the fourth and fifth largest market, respectively. (Erik Hansen, 202-720-0875)
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