Posts Tagged “apple exports”
The nation’s leading apple shipper, Washington state, is experiencing lower than normal exports of apples, which is resulting in more product being shipped to domestic markets.
Strong Washington State summer apple shipments indicate potentially record demand for apples that will be harvested in the coming weeks. Since June 1, Washington State apple shipments have eclipsed 2018 by a whopping 29 percent, and 2017 by 30 percent. There have been more than 10 straight weeks of +2 million-box shipments
In a typical year, roughly a third of the state’s apple crop is exported. At the end of the current shipping season, which concludes in early September, that share could be as low as 26 percent. The primary reason is the COVID-19 pandemic, which has made it difficult to predict domestic volume and exports.
Mexico and India currently are the top importers of Washington apples. But stay-at-home orders, particularly in India, where the virus has seen a surge, has kept consumers out of markets and stores and has contributed to a reduction in demand.
A modest decline in Chilean fruit exports for the 2019-20 season is forecast by the USDA primarily because of a drought and fewer plantings.
In its annual fruit report release recently Chilean table grape exports in 2019-20 will decline 3 percent, while apple exports will be off 7 percent and pear exports down 10 percent..
Grape Exports
Chile’s table grape planted area for exporting in 2019-20 is projected unchanged at about 118,000 acres. The USDA reports table grape production will drop due to droughts throughout the country and will have a pronounced effect in the central Chile regions of Valparaiso, Metropolitana, and O’Higgins. On the other hand, the northern regions of Atacama and Coquimbo have enough water reserves.
The USDA said traditional table grape varieties, including crimson seedless and thompson seedless, are declining in volume. Newer varieties, such as arra-15, timco, and sweet celebration continue to increase in production. Chile’s 2019-20 grape output is estimated at 805,000 metric tons, down 3 percent from a year ago.
Exports of table grapes will fall again in 2019-20 after an off year in 2018-19. Last season, Chile’s table grape exports decreased by 10.5 percent in volume compared with 2017-18, totaling 654,479 metric tons. Table grape exports to the U.S. and China fell by 10 percent while exports to South Korea grew by 27.7% last season. Even with the decline last year, the U.S. took 45 percent of Chile’s total exports in 201-8-19, with 295,149 metric tons shipped to the U.S.
Competition from Peru early in the season has pulled Chilean grape prices down and created a greater emphasis for late-season exportst.
The USDA projects Chilean grape exports to China will grow as exporters focus their promotion funds and marketing efforts in reaching that market. Chile’s total grape exports for 2019-20 are projected at 640,000 metric tons, down from 660,000 metric tons in 2018-19.
Apple Exports
Chile’s apple acreage this season is projected at near 80,000 acres, 6 percent less than 2018-19. Increased competition from Peru and low prices for traditional varieties contributed to the acreage decline.
Last season, Chile’s total fresh apple exports decreased by 10 percent in volume and 8.4 percdent in value compared with the 2017-18 season, with totals of 618,324 metric tons in volume and $557 million in value.
2018-19 exports of Chilean apples were diversified to customers in North America, Latin America, Europe and the Far East, but the U.S. was rated as the top buyer of Chilean apples.
For the upcoming season, apple exports to China, Taiwan, India, and Vietnam are expected to increase. Total Chilean apple exports for 2019-20 are projected at 656,500 metric tons, off 7 percent from 705,000 metric tons last season.
Pear Exports
Chilean pear acreage now is estimated at nearly 18,000 acres, about 11.5 percent fewer compared with 2018-19. Last season, Chile’s pear exports increased by 1.4 percent in volume over the previous year reaching 123,914 metric tons.
Top Chilean export markets for pears include Russia, Colombia, the Netherlands and Italyt.
Chilean pears also were exported to China starting in April with the opening of that market. For 2019-20, the USDA projects total Chilean pear exports at 117,000 metric tons, 10 percent lower compared with 130,000 metric tons in 2018-19.
Exports of American apples topped $1 billion in 2018, 4 percent greater than in 2017. This is 5 times the value of U.S. apple imports. Meanwhile, there has been a huge increase in strawberry imports.
Total U.S. apple exports by value equaled $1.01 billion in 2019, an increase of 4 percent from $969 million in 2017 and 10 percent higher than $920 million in 2016, according to the USDA.
Mexico was the top export market for U.S. apples, taking 28 percent of U.S. apple exports by value. Canada and India were nearly tied for second place among export markets, each accounting for about 16 percent of total apple exports by value.
U.S. imports of apples totaled $198 million in 2018, off 15 percent from $233 million in 2017 and down 26 percent from $268 million in 2016. Chile was the top supplier of imported apples in 2018, supplying 44 percent of the total apple import value. After Chile, other top global suppliers to the U.S. were New Zealand, Canada, and Argentina.
Strawberry Imports
American imports of strawberries have soared over the past 5 years, according to trade statistics.
USDA stats show imports of fresh/frozen strawberries have climbed from $449 million in 2013 to $762 million in 2018.
That is an increase of about 70 percent over those 5 years. Trade numbers from 2018 show peak strawberry imports were recorded in February, followed in rank by March, January, and December.
In 2018, Mexico accounted for 93 percent of total U.S. strawberry imports, followed by Chile with 3 percent and 1 percent from Canada. That was similar to 2013 when Mexico represented 95 percent of U.S. strawberry imports.
Meanwhile, USDA trade data reveals U.S. fresh strawberry exports in 2018 totaled $379 million, up 1 percent from 2017.
By the Washington Apple Commission
Wenatchee, Washington State, USA – In response to the Trump Administration’s tariffs on aluminum and steel, Mexico has announced effective immediately imports of apples from the U.S. would be subject to a retaliatory tariff of 20 percent. Under WTO rules, countries hit with unilateral tariffs are allowed to levy tariffs equivalent to the amount of injury. Apples are just one item on the list of U.S. products that Mexico is targeting.
Washington State, home to over 1,300 apple growers, is the source of almost all apple exports to Mexico. The state produces approximately 65 percent of all apples grown in the US and over 90 percent of U.S. fresh apple exports. Mexico is the top export market for Washington apples, and during the 2016-17 season Washington growers shipped 13.7 million 40 lb. bushel cartons valued at more than $215 million to the market. During the current season, shipments have been ahead of last season by 13 percent and were on track to exceed 15 million bushels, worth an estimated $241.8 million. This new tariff now puts that goal in doubt.
“Any tariff is clearly going to have economic impact to our industry – especially when you consider its cumulative effect along with the tariffs imposed by China and expected within the next few weeks from India, also major Washington apple export markets, in retaliation to U.S. steel and aluminum tariffs” stated Todd Fryhover, the President of the Washington Apple Commission. “The economic impact to individual growers will vary depending on the strategic importance of Mexico to their sales, but collectively Washington apple growers will see a decrease in what they are paid for their crop due to the 20 percent duty.”
The Washington Apple Commission is the international marketing arm of the Washington apple industry and conducts promotions in foreign markets to drive consumer demand for apples from Washington State, USA. Washington Apple Commission provides promotional support to international retailers, wholesalers and importers with innovative marketing programs and activities to grow consumer awareness and brand loyalty.