Canadian Horticultural Imports
|A strong demand for higher priced fresh fruits, wine, fruit and vegetable juices and non-alcoholic beverages together with a strong increase in demand for low priced U.S. vegetables have, over the last three years, contributed to significant increases in Canadian horticultural imports. The U.S. market share of total Canadian horticultural imports is steady, fluctuating between 58 and 62 percent since 1990. Other major competitors in the Canadian market include the European Union with 15 percent, due predominantly to large shipments of beer and wine, Mexico with 4 percent and Chile with 3 percent due to shipment of off-season fresh fruit and vegetables.|
For the first seven years of the past decade, real Canadian horticultural imports, adjusted for exchange rate movement against the U.S. dollar, remained flat. Beginning in 1996, the value of the U.S. dollar against the Canadian dollar appreciated 10 percent, while the value of Canadian horticultural imports increased by18 percent. Thus, for the last three years, real growth, as measured by the difference between the nominal growth rate and the indexed exchange rate, reached 8 percent totaling 19 percent for the last ten years. The growth in horticultural imports since1996 more than equaled the cumulative growth of the first seven years.
Fruits and Nuts
Since 1990, the value of the Canadian dollar has fallen 27 percent against the U.S. dollar making imports that much more expensive. However as the graph on the next page shows, Canadian demand for fruit and nuts remained consistently strong. Imports from the United States increased 23 percent over the decade despite the weak Canadian currency and increasing U.S. prices.
The graph below traces the movement of Canadian imports of U.S. fruits and nuts together with the National Agricultural Statistical Service (NASS) index farm price for U.S. fruits and nuts adjusted to reflect exchange rates. As can be seen, imports from the United States increased over 23 percent from the 1990 level despite a 50 percent price increase to Canadian consumers. Fruit and nut imports from the United States were off from the previous year due to a decline in shipments of oranges, apples, and shelled almonds. The United States accounts for 60 percent of Canadian imports of tree nuts and 55 percent of the fruit imports.
The United States supplies 80 percent of Canadas vegetable imports. Low U.S. farm prices benefitted Canadian consumers and fostered growth of U.S. shipments. Imports from the United States grew by 45 percent since 1990, while exchange rate adjusted NASS farm gate prices have generally remained under the 1990 bench mark. The following graph shows the movement of prices and imports.
A few of the leading vegetable growth items are potato chips, frozen french fries, carrots, lettuce, frozen mixed vegetables, canned whole tomatoes and ketchup.
Significant Growth Items Since 1996
Canadian imports of high value items from the world include, soft drinks and waters up $104, million or 112 percent, U.S. market share 85 percent; table wine up $138 million or by 40 percent, U.S. market share 15 percent; sparkling wine up $65 million or 135 percent; U.S. market share 6 percent; lettuce up $22 million or by 22 percent, U.S. market share 99 percent; strawberries up $18 million or by 79 percent, U.S. market share 97 percent; other fruit juices (including mixtures) up $22 million or by 55 percent, U.S. market share 80 percent.
Download the following graphs in PDF format:
Nominal Growth in Value from the U.S. and Exchange Rate Movement (1991-1999);
Growth of Fruit and Nut Imports from the U.S. vs. Exchange Rate Adjusted Price (1991-1999);
and Growth of Vegetable Imports from the U.S. vs. Exchange Rate Adjusted Price (1991-1999).
(For information on production and trade, contact Robert Knapp at 202-720-4620.)