July 1, 1997
U.S. exports of horticultural products to all countries in
April totaled $832.2 million, down 1 percent from the same month
a year earlier. Seven out of 15 categories registered decreases.
Categories with the most significant decreases in April were tree
nuts (down $23.9 million or 27 percent), fresh citrus (down $5.8
million or 6 percent), and fruit and vegetable juices (down $3.4
million or 5 percent). Categories with the most significant
increases were canned vegetables (up $10.9 million or 21
percent), wine (up $5.2 million or 19 percent), and dehydrated
vegetables (up $4.3 million or 23 percent). During the first 7
months (October-April) of fiscal year 1997, the total value of
U.S. horticultural exports was $6.1 billion--7 percent above the
same period last year.
Citrus production in selected countries in 1996/97 is forecast
at a record 68.1 million metric tons, 3 percent above the
previous year's output. Oranges account for most of this
increase. The amount of oranges expected to be processed in
1996/97 is forecast at a record 28.9 million tons, 8 percent
above the previous year's level. More citrus is expected to be
processed because of record orange harvests in Florida and Sao
Paulo. Selected country fresh citrus exports, however, are
forecast to decrease 6 percent, due mainly to a smaller harvest
in Spain, the world's largest fresh citrus exporter. The United
States and South Africa are expected to expand fresh citrus
exports in 1996/97, due partly to a forecast 14 percent drop in
Spain's exports.
Canned tomato and tomato paste production in selected
countries in 1997/98 are forecast at 1.6 and 1.3 million metric
tons, down 21 and 10 percent from the previous season,
respectively. The production decline in canned tomatoes is due
largely to lower output in Italy, which accounts for over 80
percent of selected country production. Production was down in
Italy due to reduced planted area, a severe frost last spring,
and large carry-in stocks. Lower tomato paste production in
1997/98 is expected in most European countries, with the
exception of France, where production remained the same. Despite
the expected sharp decrease in canned tomato production, exports
in 1997/98 are forecast to decrease only 1 percent as Italy is
expected to reduce stocks in order to meet export demand. Tomato
paste exports in 1997/98 are forecast to increase 5 percent to
937,000 tons despite lower production. All selected countries are
expected to expand tomato paste exports except for Chile, Greece
and France. U.S. tomato paste exports for the first 9 months of
marketing year (July-June) 1996/97 have already reached a record
98,472 tons, 12 percent above the previous year's complete
marketing year total. During the first 9 months of marketing year
1996/97 (July-March), U.S. imports of canned tomatoes from the EU
have increased dramatically, since the United States' removal of
the 100 percent punitive duty on imports of canned tomatoes from
the EU in July 1996.
The first official shipment of sweet cherries from Washington
state arrived in Shanghai on June 19. This first-time shipment
follows the recent signing of a modified work plan governing
export shipments of Washington state cherries. The previous work
plan had effectively precluded shipments by requiring that the
entire program be suspended in the event of a Western cherry
fruit fly detection in a shipment. Under the revised work plan,
such a detection will require that the lot of cherries be either
fumigated, reexported or destroyed, but just the packing facility
from which the cherries originated would be suspended from the
program until an investigation and corrective measures could be
undertaken. The Northwest Cherry Growers, representing 2,500
sweet cherry growers from Washington state, estimates the initial
Chinese market could be worth $2 to $4 million annually, with
long-term potential even higher.
FAS has determined that the European Union's proposed canned
fruit program for 1997/98 complies with the U.S.-EC Canned Fruit
Accord (CFA). The net cost of canning peaches to EU processors,
after processing aid payments from Brussels are deducted from the
minimum price paid to growers for raw fruit, is estimated at
$203.57, above the agreed-upon world price of $199.84 per metric
ton. For canned pears, processing aids were reduced by 25 percent
due to the EU having exceeded its production threshold during the
last 3 years. The penalty brings the 1997/98 net cost to
processors up to $268.25 per metric ton of canning pears, versus
a calculated world price of $189.06.
Poland's Council of Ministers has approved new tariffs and tariff regulations for 1997, which will somewhat reduce import tariffs for many horticultural products. The new tariff levels become effective July 1, 1997. The tariff reductions reflect Poland's World Trade Organization (WTO) commitments to reduce import tariffs over time. Some agricultural products for which applied tariffs were slightly reduced include fresh fruits (dates, figs, avocados), fresh vegetables, raisins, coffee, tea, pepper, vanilla, cocoa beans, selected processed fruits and vegetables, and selected wines and liquors. Poland also liquidated an across-the-board border tax, which in 1996 was 3 percent for all imports. In an unusual development, not connected with Poland's WTO commitments, the Polish government reduced the value add tax (VAT) applied to fresh citrus from 22 percent to 7 percent. The change will become effective on January 1, 1998.
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