Processed Sweet Corn Situation in Selected Countries

 

United States

 

Production of sweet corn for processing in the United States in calendar year 1999 is estimated at 2.88 million metric tons, down 1 percent from 1998, due mainly to a 4 percent decline in contracted acreage and low wholesale prices. U.S. production of canned sweet corn (CSC) in 1999 is estimated at 1.51 million tons (613,000, net weight), unchanged from 1998. Production of sweet corn for freezing in 1999 is estimated at 1.44 million tons (389,190, net weight), down 6 percent from 1998. Production in Washington state, which accounts for a fourth of the sweet corn crop, was estimated to have increased about 1 percent despite a cool season. In Minnesota, which also accounts for about a fourth of the U.S. sweet corn crop, production was estimated down 11 percent due to heat and excessive moisture. Unfavorable weather in Wisconsin, Indiana and New York also lowered output for the U.S. 1999 crop.

 

Despite continuing economic woes in Asia, U.S. CSC exports during the first 9 months of 1999 to Asian countries, mainly Japan, Taiwan, Korea, Philippines and Singapore, accounted for the bulk (61 percent) of total CSC sales. During this period, U.S. CSC exports to these markets rebounded to total 78,425 tons, less than 1 percent below 1998, but still 23 percent below 1997. Stronger U.S. exports of CSC to Hong Kong, Korea, Singapore, the Netherlands and Norway were the primary reason for the gain, while exports to other key markets for this period did not do as well. U.S. exports of CSC for calendar year 1999 are forecast at 175,000 tons, down 7 percent from 1998 and 10 percent below the 1997 record year. CSC continues to account for the bulk of U.S. processed sweet corn exports.

 

Thailand

 

Production of CSC in Thailand in 1999 is forecast at 35,000 tons, up 25 percent from the previous year. This increase in output is attributed mainly to a significant rise in planted area and excellent weather during the peak growing season. Also, lucrative prices for fresh sweet corn in MY 1998/99, and the emergence of several new CSC processors persuaded some farmers to switch a portion of their farm land from other competing crops (mostly vegetables) to sweet corn production in 1999. Generally, about half of Thailand’s fresh corn production is delivered to sweet corn canners, with the balance being used for fresh and frozen consumption.

 

Thailand’s exports of CSC in calendar year 1999 and 2000 are forecast to grow about 15 to 20 percent, due mainly to Thailand’s competitiveness in world markets and improved quality. In 1998, Thai CSC exports totaled 22,000 tons, up 21 percent above the previous year. Shipments to Hong Kong, Germany, South Korea, and Japan accounted for 78 percent of total exports. Thai packers report that the average f.o.b. prices for CSC dropped from US$ 7.00 to 7.25 per case (24/12 ounce cans) in 1998 to US$ 6.30 to 6.50 per case in 1999. Thai CSC packers are concerned that fierce competition among themselves may generate problems of price cutting and lower CSC quality in the future.

 

Production of canned baby corn in Thailand in MY 1999 and 2000 is forecast at 72,000 tons and 74,000 tons, respectively. Because Thais prefer consumption of fresh baby corn to canned baby corn, approximately 99.5 percent of all production of canned baby corn is exported. In MY 1998, Thailand’s canned baby corn exports totaled 68,534 tons, down slightly from the year earlier because of reduced sales to Sweden, Germany and South Korea. Traditionally, the United States takes the bulk of Thailand’s canned baby corn exports, followed by the Netherlands, Germany, Japan, Canada, Hong Kong and the United Kingdom. Thailand is presently the world’s largest exporter of baby canned corn.

 

France

 

In France, processed sweet corn production includes canned and frozen product. In 1999, production of CSC is forecast at 153,367 tons, up 2 percent from the previous year, while production of frozen sweet corn is estimated at 29,000 tons. The increase in CSC output is due mainly to an increase in planted area and the growth of the European market.

 

Consumption of CSC decreased by 65 percent in MY 1998/99 (July-June), because of the European debate on genetically modified organisms (GMOs). Even though sweet corn is not genetically modified in France, some consumers do not trust the product any more. Producers are starting a forceful advertising campaign to inform consumers about the difference between genetically modified corn for animal feeds and non-modified sweet corn.

 

French exports of CSC declined by 12 percent in MY 1998/99, due mainly to reduced shipments to their top three markets--Germany, Spain, and the United Kingdom. Reduced shipments to the United Kingdom resulted mostly from fears of GMOs. Consumption of frozen vegetables in MY 1998/99 increased by 2.6 and exports rose by 4.7 percent over the previous year.

 

French production of frozen sweet corn in 1999 is forecast at 28,000 tons, down 2 percent from 1998. French consumption of frozen sweet corn in 1998 declined 10 percent from the previous year because of GMO fears, but is expected to recover somewhat in 1999.

 

United Kingdom

 

In the United Kingdom a small amount of sweet corn is produced and consumed on the cob. The United Kingdom has a well developed and relatively stable CSC market, which is predominantly served by producers from France, the United States, Canada, Thailand and Italy.

 

France continues to be the primary supplier of CSC to the United Kingdom. In 1998, U.K. imports of French CSC totaled 13,496 tons, down 40 percent from 1997, due largely to the debate on GMOs. Imports from the United States, the third leading supplier, were also down by 16 percent in 1998 from the 1997 import volume of 7,799 tons. U.S. CSC had trouble competing in the United Kingdom on price with product from France and Canada. So far, there does not appear to be negative trade or consumer reaction to U.S. CSC imports into the United Kingdom because of GMOs.

 

Japan

 

Production of sweet corn for processing in Japan in 1998 totaled 24,050 tons, down 2.4 percent from the previous year due to poor weather conditions. Approximately 51 percent of processed sweet corn production in Japan is made up of frozen kernel corn, and the balance stemmed corn. Frozen kernel corn production increased about 10 percent in 1998, while frozen stemmed corn production declined slightly from the year earlier.

 

Canned and frozen sweet corn consumption in Japan continues to be fairly well accepted among many families, particularly by young singles and married working couples. Due to a severe decline in consumer spending under the recessionary economy throughout 1998, retail sales of all foods suffered an extensive decline. As Japan’s economy begins to show some signs of recovery, consumer spending is also expected to resume growth.

 

In 1998, Japan’s imports of CSC from the United States accounted for approximately 59 percent of all imports, followed by New Zealand and Thailand. During the first 7 months of 1999, Japanese imports of CSC from the United States accounted for 91 percent of the total.

 

The FAS Attache Report search engine contains reports on processed sweet corn for 4 countries, including the United States, France, Thailand, United Kingdom and Japan. For information on production and trade, contact Emanuel McNeil at 202 720-2083. For information on marketing contact Elizabeth Mello at 202-720-9903.

Last modified: Thursday, April 06, 2000