Processed Sweet Corn in Selected Countries

United States

 

Production of sweet corn for processing in the United States in calendar year 2000 is estimated at 2.98 million metric tons, down slightly from 1999. Contracted output of the sweet corn this year was largely unchanged from 1999 as record-tying yields were offset by acreage reduction in response to low wholesale prices, particularly for canned corn. Production in Washington state, which accounted for slightly over a fourth of the sweet corn crop, was estimated to have increased 8 percent from the previous year’s output. Production in Minnesota, which accounted for about a fourth of the U.S. sweet corn crop for processing, was estimated down 3 percent, due to excessive rain. Unfavorable weather in Wisconsin, Oregon and New York also reduced output for the 2000 sweet corn crop. According to the Economic Research Service (ERS), U.S. production of CSC in 2000 is estimated at 1.63 million tons (661,807 tons, net product weight), up 3 percent from 1999. Production of sweet corn for freezing for the same period is estimated at 1.34 million tons (380,319 tons, net product weight), down 5 percent from 1999.

 

Despite continuing economic troubles in Asia, U.S. exports of CSC to these markets continue to maintain a strong presence. During the first 8 months of CY 2000, U.S. CSC exports to the Asian countries totaled 76,665 tons, up 5 percent from the same period in 1999. During this period, shipments to Japan, Taiwan and Korea accounted for 60 percent of the total U.S. CSC exports. U.S. exports of CSC to South Korea more than offset lower shipments to other Asian markets during this period by registering an increase of 99 percent from the level in 1999. U.S. exports of frozen sweet corn during the same period totaled 44,000 tons, down 10 percent from 1999. Japan accounted for 59 percent of the total, followed by Canada with 7 percent and the EU countries, with 5 percent. U.S. exports of CSC for CY 2000 are forecast at 185,000 tons, up slightly from 1999.

 

Thailand

 

Production of CSC in Thailand in 2000 is estimated at 26,000 tons, down 19 percent from the previous year. This decline in output was attributed mainly to a reduction in area, caused by high carryover of stocks from last year and low farmgate prices received by farmers. According to the U.S. Agricultural Counselor in Bangkok, several CSC processors in Thailand have been financially weakened, due to losses from slow export business and low international prices and have already suspended their CSC production lines. Generally, about half of Thailand’s fresh corn production is delivered to sweet corn canneries, with the balance being used for fresh and frozen consumption.

 

Despite a sharp reduction in production, Thailand’s exports of CSC in calendar year 2000 are estimated at 28,000 tons, up 5 percent from the previous year, due mainly to packers reducing high levels of inventories. In 1999, Thai CSC exports totaled 26,000 tons, down 13 percent from 1998. Shipments to Hong Kong, South Korea, Germany and Japan accounted for 65 percent of total exports. According to trade sources, export sales to Hong Kong may drop sharply in the future following a rise in Chinese import duties, which are curtailing the re-export trade from Hong Kong into the interior of China. Thai packers reported that the average f.o.b. prices for CSC dropped from US$ 6.30 to 6.50 per case (24/12 ounce cans) in late 1999 to US$ 5.00 to 6.00 per case in 2000, due to prevailing fierce competition among Thai packers and weak international demand.

 

Production of canned baby corn in Thailand in 2000 is estimated at 54,000 tons, up 8 percent from the revised level in 1999, due mainly to an increase in export demand. Output in 2001 is forecast at 55,000 tons, up 2 percent from this year’s level in anticipation of a further increase in export demand and a continued weak Thai baht. Exports account for nearly all of Thailand’s canned baby corn production. According to trade sources, the average f.o.b. export prices for Thai canned baby corn dropped from US$ 10.00 to 15.00 per case in 1999 to US$ 8.00 to 13.00 per case in 2000. In 1999, the United States continued to be Thailand’s best customer for Thailand’s canned baby corn, followed by Japan, Germany, the Netherlands, Canada, Australia, Hong Kong and South Korea. Thailand remains the world’ largest supplier of canned baby corn.

 

France

 

In France, sweet corn production for processing includes canned and frozen product. In 2000, production of CSC is estimated at 235,000 tons (gross weight), nearly unchanged from the revised total in 1999, while production of frozen sweet corn is estimated at 30,000 tons. The bulk of France’s sweet corn output is slated for the export market. In 1999, the EU countries accounted for approximately 85 percent of the CSC output and 68 percent of frozen output. The decline in French domestic demand for CSC recorded in 1998, which stabilized in 1999, was mainly due to French consumers’ fears that sweet corn products contained genetically-altered corn. As a result, French sweet corn growers launched an educational campaign informing the public of the absence of genetically engineered corn in their production, as well as imports into France or Europe, in hopes of raising consumption levels.

 

France is a net exporter of sweet corn, but imports products from the United States, Hungary and Thailand. In marketing year 1999/2000, these suppliers accounted for 32, 26 and 19 percent of the French market, respectively. During this same period, French exports totaled 96,000 tons with Germany, the United Kingdom, Spain, Italy and Belgium accounting for 82 percent of the total.

 

Reportedly, French domestic demand for U.S. sweet corn is likely to grow when it is certified non-GMO. Also, organic sweet corn is not grown in France, to date, and there is a niche market for this product in France.

 

Germany

 

In Germany, only small amounts of sweet corn are produced annually. Imports account for the bulk of Germany’s domestic sweet corn consumption. In CY 1999, Germany imported 66,000 tons of CSC and 12,000 tons of frozen sweet corn. France continued to be the biggest supplier of CSC, followed by Hungary, Thailand, Italy and the United States. The major supplier of frozen sweet corn was Hungary, accounting for more than 50 percent of Germany’s imports.

 

The extreme weakness of the Euro against the U.S. dollar is hurting U.S. sweet corn exports to Germany. Trade contacts report that German importers bought very little U.S. sweet corn from the 2000 U.S. crop. Importers complained that U.S. sweet corn was simply too expensive due to the unfavorable exchange rate. While the quality of U.S. sweet corn is still regarded as superior, buyers no longer respond to the U.S. quality advantage. Germany is primarily a price-aggressive market. Prices are currently the main marketing tool in the food retail sector.

 

(The FAS Attache Report engine contains reports on processed sweet corn for 4 countries, including the United States, Thailand, France and Germany. For information on production and trade, contact Emanuel McNeil at 202-720-2083. For information on marketing contact Elizabeth Mello at 202-720-9903. For additional information on sweet corn trade numbers, please visit our commodity trade page at http://www.fas.usda.gov/htp/exportdat.html)

 

 

Last modified: Thursday, April 06, 2000