Kiwifruit Situation For Selected Countries
|Selected country kiwifruit production declined marginally in 1998/99. Production in the Northern Hemisphere was up 4 percent, due primarily to a 13 - percent increase in Italian output. Selected country kiwifruit exports in 1998/99 are forecast to increase by 1 percent to 577,300 tons. Italy accounts for most of the increase in exports. U.S. kiwifruit production in 1998/99 is forecast down 1 percent, to 31,389 tons. The industry estimates a commercial packout of 28,577 tons. The quality of the U.S. crop is excellent and the fruit size is consistently larger. U. S. exports in 1998/99 may account for 20 percent of the packout compared to 13 percent the year before and are expected to be up 6 percent. U.S. kiwifruit imports in 1998/99 are expected to remain near last years level.|
Production in the Northern Hemisphere accounts for over 55 percent of world production. Italy is traditionally the worlds largest producer and by far the largest exporter in the Northern Hemisphere. All Northern Hemisphere countries, with the exception of Italy and Greece, are net importers of kiwifruit.
The European Union (EU) is the world's most important kiwifruit growing region accounting for 45 percent of total world production. Italy is the largest producer accounting for 68 percent of EU production. The EU greatly facilitated conversion of crop land to kiwifruit in the 1980s through widespread subsidies. Although most subsidies have reportedly been eliminated, their impact continues. Production in 1998/99, for the 5 major EU producing countries is 379,800 tons. EU exports in 1998/99 are forecast at 253,300 tons up 13 percent from last year.
Italys kiwifruit production in 1998/99 is estimated at 260,000 tons. Although this represents a 13 - percent increase from the small harvest of last year, it is still more than 25 percent below average production. The lower than average production is due to unfavorable weather conditions.
Italys exports in 1998/99 are forecast at 210,000 tons up 19 percent from last years record low of 177,000 tons, but 10 percent below historical average shipments. Over 70 percent of Italys exports are destined for other EU countries, mainly Germany which accounts for 30 percent of total exports.
Kiwifruit production in 1998/99 is forecast at 31,389 tons, down 2 percent from last years weather reduced crop. Industry sources indicate a commercial packout of 28,577 tons which is very close to last years level. However, unlike last year, this years crop is of excellent quality and consistently larger size. Domestic demand is high, due to the freeze reduced California citrus crop and export demand is strong. For the first time in many years the United States is shipping to Australia, Hong Kong, Taiwan and New Zealand. The United States should have enough production to export until Chile enters the market in March and New Zealand enters toward the end of April.
U.S. exports of kiwifruit in 1997/98 reached 5,684 tons up 150 tons from the previous years level. Canada is the major U.S. kiwfruit market, accounting for slightly more than 71 percent of total U.S. exports. The California Kiwifruit Commission (CKC) has recognized the importance of export markets. For over three years, CKC has committed more than 85 percent of its Market Access Funds in continuing to develop and maintain these markets. In-store promotions, trade relation activities, and trade shows have been used to address low awareness and increasing competition in Canada and Korea.
Exports to Canada increased 24 percent in 1997/98 to 4,041 tons, valued at $5.2 million. The California Kiwifruit Commission (CKC) has been working in Canada to overcome competition from Italian, Greek, and French kiwifruit imports. Last year, promotional activities included consumer promotions, trade shows and trade related activities.
The U.S. Commerce Department's determination of injury to the U.S. domestic kiwifruit industry from imports of New Zealand kiwifruit led to the imposition of a 98.6 percent anti-dumping duty in May 1992. However, since that date the margin has been reduced several times and is now set at zero.
Progress on the National Kiwifruit, Research and Promotion and Consumer Act
The National Kiwfruit, Research Promotion and Consumer Act was amended in June 1998 to eliminate the requirement that the 11 member Board be composed of at least 51 percent domestic producers. The purpose of this amendment was to reduce opposition to a forthcoming referendum on a proposed rule which would assess a charge of 10 cents per seven pound tray on domestic producers of 500 or more pounds per year of kiwifruit and importers of 10,000 pounds or more of kiwfruit per year.
The proposed rule would affect approximately six hundred U.S. producers of kiwifruit and 45 importers and generate about $2 million. The money would be used to conduct year round promotional activities in the United States.
SOUTHERN HEMISPHERE COUNTRIES
Due to unfavorable weather conditions, New Zealands kiwifruit production in 1999 is forecast at 221,000 tons, down10 percent from last years bumper crop. Last years grower returns increased by 17 percent, estimated at $209 million. The fall in the New Zealand dollar against the Deutschmark, the yen and the U.S. dollar is responsible for an estimated three-quarters of the improved returns. Another factor was the much lower than average production achieved in Europe and Chile. Thus demand remained strong but competition from alternative suppliers was reduced. Consequently, New Zealand sold and shipped all of its available fruit fairly early. In fact since December 1998, U.S. exporters shipped more than 250,000 pounds of kiwifruit to New Zealand to make up for the shortage of supplies for domestic consumption.
New Zealands 1998/99 exports are forecast at 195,000 tons, down 9 percent from the previous year due to the reduced production. Exports for 1997/98 are estimated at 215,000 tons, only 5,000 tons off the record 220,000 tons set in 1995/96. U.S. imports from New Zealand in 1997/98 were 12,608 tons compared to 2,569 tons imported during the previous year.
Kiwifruit production in Chile reached a record 156,000 tons in 1997/98. Production for 1998/99 is forecast at 158,000 tons. This slight rise in production reflects increased yields from maturing plantings.
Exports are expected to be down, due to an expected fall in the quality of the production. The return of drought conditions to most fresh fruit growing areas will affect the size of the kiwifruit and reduce the exportable output.
About 77 percent of Chiles production is exported. Exports for 1998/99 are forecast at 122,000 tons, down 4 percent from the previous year.
Chiles exports in 1997/98 were larger than expected due to increased European import demand as a result of a smaller harvest in Italy and France. The stronger EU demand offset the expected decline in shipments to the United States, due to increased competition from New Zealand resulting from the ending of the countervailing duties.
Exports in 1998/99 are expected to decrease for several reasons. First, shipments to the United States may decline due to greater competition from New Zealand. resulting from the elimination of the countervailing duty. Second, shipments to Asia may be reduced due to the financial crisis in that region.
For further information on production, supply and distribution, and trade contact Robert Knapp, Horticultural and Tropical Products Division, (202) 720-4620. For information on U.S. marketing opportunities, contact Pamela McKenzie (202) 720-3309.