Value of U.S. Stone Fruit Exports
Reaches Record Level in 1999
U.S. stone fruit exports
bounced back in calendar year 1999 to register a record
value of
$312 million. The
volume of U.S. stone fruit exports in 1999 reached
206,900 metric tons, the second largest level on record.
Adequate supplies of good quality fruit and more moderate
prices were behind the strong performance. Peaches and
nectarines accounted for about 45 percent of the volume
of U.S. stone fruit exports in 1999, followed by plums
and prunes at about 30 percent, cherries at 20 percent,
and apricots at 5 percent. However, in value terms,
cherries led the way, accounting for a 50-percent share.
Canada, Taiwan, and Mexico are the major markets for U.S.
stone fruit. About half the volume of U.S. peach and
nectarine exports go to Canada, while Japan remains the
dominant market for U.S. cherries.
U.S. Exports of
Tropical and Sugar Related Products Post Gain in 1999
U.S. exports of tropical and
related products, plus sugar and related products,
totaled $2.65 billion in CY 1999, an increase of 2.3
percent from the previous year’s level and down less
than 1 percent from the record in 1997. Almost all of the
major groupings showed value increases from 1998: Cocoa
and cocoa products, up 12 percent to $436.4 million;
coffee and coffee products, up 4.2 percent to $241.6
million; essential oils up 0.5 percent to $531.2 million;
ginseng up 6 percent to $36.9 million; spices up 2.3
percent to $110.4 million; tea (including herbal tea) up
36 percent to $73.1 million. The total for Sugar
Confectionery declined only slightly (less than 1
percent) to $239.3 million. Canada remains the major
market for these groups; while exports to Mexico
continued to grow.
U.S. Wine
Exports Hit 15th Consecutive Record-Breaking Year in 1999
Exports of U.S. wine and
wine products (including cider, fermented beverages, and
must) reached a new record in 1999 of $540.9 million, up
2 percent from 1998. Bottled grape wine accounted for 78
percent of the total by value. The export base for U.S.
wine and wine products is continuing to expand. In 1999,
the top export markets were the United Kingdom, Canada,
and Japan. Japan slipped back into third place, due to
large stocks going into 1999. The most impressive gains
were South Korea at $2.7 million (up 128 percent), China
at $2 million (up 247 percent), and Malaysia at $2.4
million (up 80 percent). Robust foreign demand, market
promotion efforts, recovering international economies,
and reports of favorable health effects associated with
moderate wine consumption have all fueled U.S. wine
export growth.
Not-From-Concentrate
Orange Juice Exports Expand; United States Dominates
Global Market
U.S. exports of
not-from-concentrate (NFC) orange juice pulled even with
frozen concentrated orange juice (FCOJ) exports in volume
terms for the first time in the 1998/99 marketing year,
at roughly 53,000 tons. U.S. NFC exports first surpassed
FCOJ in value terms in 1997/98 and were 25 percent
greater in 1998/99. NFC exports have increased by more
than 500 percent over the past 10 years, while FCOJ
exports have stagnated. The U.S. holds about 70 percent
of the growing world NFC market, but less than 10 percent
of the stagnating FCOJ market. NFC exports reached $173
million in 1998/99, with Canada and the European Union as
the top markets. As the global leaders in production and
quality, U.S. exporters are expected to continue to take
advantage of consumer preference for the freshest and
highest quality orange juice.
World Sugar
Market Remains Weighed Down by Overproduction
The world raw sugar market
continues to lie in the doldrums as high production in
all the major producing countries depresses the market.
The Contract #11, raw sugar futures price remains below
the psychologically important 5 cents/lb level, at about
4.65 cents/lb. The key world exporters, Brazil, Thailand,
and the European Union are all pricing large volumes
against the March, May, and July contracts, pushing
prices into record low territories. Key factors
restraining purchasing have been rising market protection
measures in Indonesia and Russia, a larger than expected
cane crop in India, and very slow offtake from Russia due
to large carry-over stocks. The current price is lower
than the cost of production in every country and is
causing a severe debt crisis in the global sugar
industry. Additionally, it remains to be seen if the
major producers will respond to the current
overproduction and high stocks in the upcoming 2000/01
campaign.
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.
USDA Announces
New Proposed Organic Rule
On March 7, Secretary
Glickman announced a new proposal for regulating the term
‘organic’ in the United States. National
standards will bring about greater uniformity in the
production, manufacture, and marketing of organic
products, boost consumer confidence in the organic label,
and facilitate U.S. exports at a time when overseas
demand is growing rapidly. This is the second organic
proposal issued by USDA. The first proposal, released in
December 1997, drew a record 275,000 comments generally
opposing irradiation, genetically modified organisms
(GMOs), and the use of sewage sludge on crop land as
incompatible with organics. The new rule prohibits these
practices. The public comment period runs March 13
through June 14.
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.
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/.
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.
United States
Begins Exporting Oranges and Tangerines to the
Philippines
On March 3, 2000, USDA
announced an agreement with the Philippines that allows
Florida producers to begin exporting oranges and
tangerines to the Philippines. The protocol to export
Florida oranges and tangerines to the Philippines is the
extension of an agreement that allows Florida growers to
export grapefruit to the Asian nation. The first shipment
of grapefruit was exported to the Philippines in November
1999. The grapefruit market is expected to bring in
another $2 million annually for Florida producers. All
Florida citrus exports to the Philippines will be
inspected before shipment and accompanied by a
phytosanitary certificate issued by APHIS.
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: http://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.
FDA Holds Public
Meetings on President’s Directive on Safety of
Imported Foods
On July 3, 1999, the
President announced an initiative to ensure the safety of
imported food by directing the Secretaries of the U.S.
Department of Health and Human Services and the U.S.
Department of Treasury to develop new operational
procedures to protect the public health. This initiative
is geared to optimize the statutory authorities and
resources available to FDA and the U.S. Customs Service
to take whatever steps are feasible to protect consumers
from unsafe imported foods. The President directed the
agencies to target unscrupulous importers who violate the
rules and work to subvert the system by moving unsafe
foods into U.S. markets.
On December 11, 1999, the
Secretaries of Health and Human Services and Treasury
submitted the "Presidential Initiative - Safety of
Imported Foods, Status Report" to the President. The
report presented the progress made in each area and a
plan for fully accomplishing the President's directive. A
copy of the report is available on the World Wide Web at:
http://www.foodsafety.gov.
On February 10, 2000 in
Irvine California and on February 17, 2000 in Washington,
D.C., FDA and the U.S. Customs Service hosted public
meetings to discuss the six specific objectives in the
President's directive and to review the new operational
procedures proposed to accomplish each of the six
objectives with stakeholders and other interested
parties.
Participants in the public
meetings actively expressed opinions and concerns about
the report and action plan, and to work through the
issues and develop options. All were anxious to be kept
informed of the progress of the plan and the resulting
procedures and rules. They were concerned that the
procedures be transparent and timely. Generally,
participants recommended that the agencies: 1) assure
equal treatment of domestic and imported foods; 2)
recognize the economic impact of the procedures and
proposed rules; 3) assure the promptness of decisions,
particularly those requiring destruction or marking; and,
4) anticipate the impact of equivalency.
Some specific concerns and
options suggested were: 1) provide alternatives to bonded
warehouses for secured storage; 2) target the destruction
procedure toward those intending to import a
"bad" product, rather than those simply
importing an unsafe food; 3) assure that the
"refusal" mark specifies the reason for
refusal; 4) reduce audits of private labs based on
accreditation; and, 5) limit the imposition of increased
bond to importers subject to secured storage.
In keeping with the
President's Directive to target unscrupulous importers,
Customs is in the process of reviewing comments and
finalizing the rule concerning increased bonds and FDA is
in the process of developing proposed rules covering
marking and private laboratories. Both will be published
for comment in the Federal Register. Both agencies are in
the process of finalizing procedures to deal with secured
storage, destruction, and civil monetary penalties.
