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World Trade Situation and Policy Updates
 
Japan Production Shortfall Creates Opportunity for U.S. lettuce
 
A sharply reduced domestic supply situation in Japan for lettuce has led to a drastic run up in wholesale prices, according to a recent report from the U.S. Agricultural Minister-Counselor’s office in Tokyo. This situation is expected to create significant short term marketing opportunities for U.S. lettuce shippers. However, Japan’s onerous policy of fumigating imported lettuce whenever live insects, including indigenous species, are detected could hamper U.S. shippers from taking full advantage of the opportunity. U.S. lettuce shipments to Japan in 1998 totaled 5,722 MT, valued at $7.4 million. The United States is the predominant foreign supplier of lettuce to Japan, where imported lettuce continues to account for a very small percentage of domestic consumption. USDA and industry efforts to overcome Japan’s restrictive quarantine policy for lettuce are ongoing.
 
New Zealand Kiwifruit Industry Rejects GMO Technology
 
Kiwifruit New Zealand (KNZ), the organization representing that country’s kiwifruit industry, has disavowed involvement in research and development of genetically modified strains, according to a recent report from the FAS Agricultural Attache’s office in Wellington. KNZ has stated that no New Zealand kiwifruit, either now in commercial production or under research, has ever been subject to genetic modification. Further, the organization claims it will neither fund future research or market genetically modified product.
 
Japan Announces Approval of New Apple & Cherry Varieties
 
On July 30, 1999, Japan’s Ministry of Agriculture, Forestry, and Fisheries announced the decision to immediately lift its phytosanitary ban on five new varieties of apples; Fuji, Gala, Granny Smith, Jonagold and Braeburn, and two new varieties of cherries; Lapin and Sweetheart. Traders in Japan expect shipments of the new cherry varieties to commence in August of this year and, for apples, in early 2000.
 
Japanese Ban Lifted on New Varieties of Tomatoes
 
On July 6, 1999, Japan’s Ministry of Agriculture, Forestry and Fisheries announced its decision to lift its phytosanitary ban on all unapproved varieties of U.S. tomatoes. Liberalization is expected to be completed by early September 1999. Sales potential is particularly good for Roma tomatoes, a substitute for canned tomatoes, in the emerging Japanese cooking tomato market. Market opportunities also exist for cherry tomatoes, particularly during late fall through early spring, when Japanese prices are relatively high. The domestic market for cherry tomatoes in Japan is valued at approximately $380 million.
 
Cochran Dried Fruit and Nuts Team from China Obtains Immediate Results
 
A recent U.S. visit of 15 Chinese importers and distributors of dried fruit and nuts under the Cochran Program resulted in orders being placed on July 27 for two containers of pistachios. The team had traveled to Washington, D.C. and California in July to learn more about the U.S. dried fruit and nut industries. In addition to the two containers ordered, the group was hopeful that more orders would be placed, should the deal prove to be mutually satisfactory. Team members also expressed their enthusiasm and willingness to establish relationships with U.S. pecan companies and provided pecan packers with advice on how to enter the China market. The companies participating from China were all experienced worldwide traders and very optimistic about the future potential for U.S. products in China. Of particular interest to the traders was the issue of direct shipments to mainland China, as opposed to shipping via Hong Kong.


Last modified: Thursday, April 06, 2000