Required Report - public distribution

**Date:** 9/15/2003

**GAIN Report Number:** CH3121

CH3121

**China, Peoples Republic of**

**Fresh Deciduous Fruit**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Casey E. Bean

U.S. Embassy, Beijing

**Prepared by:**

Adam Branson and Wu Bugang

**Report Highlights:**

Fresh deciduous fruit cultivation remains a key sector of China's rural
economy. Off-season imports continue growing, but the window of
opportunity is narrowing as China's growing season expands. China's
apple production during MY 2003 is forecast down 3 percent at 18.5
million MT, while exports are forecast at 600,000 MT, an increase of 20
percent from the previous year. As China's fruit quality and variety
rapidly improves, government officials are aggressively negotiating
access to new overseas markets. New pricing data for fruit cultivars
illustrates how China is increasingly becoming a U.S. competitor both
within China and across the region. Retail marketing in China is
becoming more sophisticated for imported and domestic fruit.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 4](#production)

[Apples 6](#apples)

[Concentrated Apple Juice (CAJ) 8](#concentrated-apple-juice-caj)

[Pears 8](#pears)

[Grapes 9](#grapes)

[Consumption 10](#consumption)

[Fresh Fruit 10](#fresh-fruit)

[Processed 11](#processed)

[Trade - General 12](#trade---general)

[Apples 13](#apples-1)

[CAJ 13](#caj)

[Pears 14](#pears-1)

[Grapes 14](#grapes-1)

[Stocks 15](#stocks)

[Policy 16](#policy)

[Tariff Rate Reduction Schedule 16](#tariff-rate-reduction-schedule)

[Wholesale Market Fruit Prices 17](#wholesale-market-fruit-prices)

[Marketing 17](#marketing)

[TABLES 19](#tables)

[Price Table for Apples (Prices in RMB/KG, RMB 8.265 = US \$1.00)
19](#price-table-for-apples-prices-in-rmbkg-rmb-8.265-us-1.00)

[Pears (Prices in RMB/KG, RMB 8.265 = US \$1.00)
20](#pears-prices-in-rmbkg-rmb-8.265-us-1.00)

[Grapes (Prices in RMB/KG, RMB 8.265 = US \$1.00)
21](#grapes-prices-in-rmbkg-rmb-8.265-us-1.00)

[Production, Supply, and Demand (PSD) Tables
22](#production-supply-and-demand-psd-tables)

[Apples 22](#apples-2)

[Apple Trade Matrix Tables 23](#apple-trade-matrix-tables)

[CAJ 24](#caj-1)

[CAJ Trade Matrix Tables 25](#caj-trade-matrix-tables)

[Pears 26](#pears-2)

[Pear Trade Matrix Tables 27](#pear-trade-matrix-tables)

[Grapes 28](#grapes-2)

[Grape Trade Matrix Tables 29](#grape-trade-matrix-tables)

[Historical Production Tables (Planting Acreage and Metric Ton by
Province)
30](#historical-production-tables-planting-acreage-and-metric-ton-by-province)

[Apples, Pears, and Grapes (1000 Hectares (Ha) and MT) in 2001
30](#apples-pears-and-grapes-1000-hectares-ha-and-mt-in-2001)

[China Apple Production (1000 Ha and MT) by Province 1999-2001
31](#china-apple-production-1000-ha-and-mt-by-province-1999-2001)

[Pear Production (1000 Ha and MT) by Province 1998-2001
32](#pear-production-1000-ha-and-mt-by-province-1998-2001)

[Grape Production (1000 Ha and MT) by Province 1998-2001
33](#grape-production-1000-ha-and-mt-by-province-1998-2001)

# Executive Summary

China remains both a market for imported fruit and a growing competitor
for fresh U.S. deciduous fruit. Post estimates that China's 2003 apple
production will decrease by around 3.5 percent, pear production will
increase by 5 percent, and grape production will increase by around 10
percent. Post estimates 2003 Concentrated Apple Juice (CAJ) production
will increase, as well. Estimates are based on trends in production and
planting acreage as supported by past production, grower costs, consumer
preferences, trade data, policy initiatives, fruit prices, and more
sophisticated marketing.

The State Statistics Bureau (SSB) issued its preliminary report on 2002
fruit production in May. At that time, apple, pear, and grape production
were 19.241 million metric tons (MMT), 9.309 MMT, and 4.479 MMT
respectively. Industry sources estimate, China's 2002 Concentrated Apple
Juice (CAJ) production capacity stood at 400,000 metric tons (MT) with
utilization near 88 percent.

Growers' costs remained relatively stable. Labor costs are not a large
factor of production as growers provide most of the work and seldom
contract out labor. Many growing regions face water deficits, and water
scarcity makes irrigation an expensive necessity. Agri-chemical and
organic inputs (pesticides, fertilizers, and growth regulators) are the
largest portion of production costs.

Industry sources believe 70 percent of fruit production is consumed
fresh with fruit processing representing another 10 to 15 percent of
total fruit utilization. Industry contacts believe total fruit waste
could be 20 percent in some areas, but that the volume of wasted fruit
has been steadily decreasing in recent years with improved distribution
to juice manufacturers who can purchase low-grade fruit for their
expanded facilities.

The Chinese government is making a concerted effort to open new markets
and capture revenue from existing border trade. China's fresh apple
exports increased 38.8 percent by volume to 499,903 MT and 40.9 percent
by value to US \$173.24 million from July 2002 to June 2003. China
exported nearly 370,000 MT of CAJ; a 235 percent increase from the
previous year. Fresh pear exports increased 40 percent by volume to
272,137 MT and 53.3 percent by value to US \$68.605 million. China
exported 5,863 MT of grapes valued at US \$2.289 million, a 778 percent
increase in volume and 730 percent increase in value. Through the first
six months of 2003 grape exports increased 12.6 percent to 842 MT.

China's State General Administration for Quality Supervision,
Inspection, and Quarantine (AQSIQ) is aggressively negotiating market
access in other countries to promote China's increasingly competitive,
expanding deciduous fruit industry. Policy encouragement and reforms
from MOA and the State Forestry Administration (SFA) led to increased
planting of some deciduous fruit crops in certain regions around the
country.

This annual report includes a new section with wholesale market pricing
data from China's Ministry of Agriculture (MOA). The data, albeit
limited, provides an indication for major cultivars market prices and
seasonal availability throughout the country along with an indication
for exported product competitiveness.

The percentage of total fruit purchasing in retail locations as opposed
to street vendors or wet markets has increased. Retailer sophistication
and marketing of imported fruits through sales-driven marketing efforts
and of domestically produced fruit through societal-marketing efforts
has improved consumer awareness of fresh deciduous fruits. Growing
concerns by consumers to purchase attractive, "green" fruits have led
retailers to carefully consider fruit sourcing from growers and traders.
(See marketing section of this report).

# Production

China's government officials realized growers must pay attention to
product quality, food safety, and production management. Therefore, the
previous rural economic improvement plan, calling for increased planting
area and production of high value products, was not the best means to
improve the rural agricultural economy. In order to establish a system
where Chinese rural agricultural producers can prosper, the Chinese MOA
established guidelines in a 5-year plan entitled the Regional Plan for
Farm Products (2003-2007). In brief, the 5-year plan suggests China
possesses comparative production advantages for 11 different
agricultural commodities. Of the eleven commodities, apples and citrus
were the only two horticultural products included in the plan. The plan
suggests these commodities have potential for production growth and
government support in different regions across China. (See apple
production and policy sections of this report).

In an effort to improve fruit quality and export competitiveness, the
Chinese government has created and published both industry standards and
national standards for domestic fruit grading. Many of the fruit
standards contain not only requirements for fruit size and appearance,
but also for intrinsic features (i.e. sugar/acidity content) and
residues. Standards, also, may differ by fruit variety. For example, the
standard for exceptional Fuji apples is different from the standard for
exceptional Red Delicious apples. Provincial agricultural bureaus
continue working hard to extend grading guidelines and information to
growers so that farmers are able to receive premium payments for their
produce when it is shipped to market or purchased from the farm gate.
According to government officials and industry representatives, around
30 percent of China's total domestic fruit production was of exceptional
quality in 2002. Following that, another 50 percent of total domestic
fruit satisfied grading requirements. Much of the remaining 20 percent
of fruit that did not meet the standards was sold to processors for
juicing or possibly consumed at home by growers. There is also fruit
that is never brought to market or that is never harvested. This fruit
is not included in production statistics.

The Chinese government continues encouraging growers to make proper
variety selection (i.e. plant new cultivars with desirable traits for
fresh consumption or processed utilization). Extension work on varieties
is primarily conducted through agricultural universities. In some
instances, however, the provincial agricultural and forestry bureaus or
the local grower industry organizations provide variety recommendations.
Recommendations for the grower follow principles of ecological
suitability for the region (e.g. temperature, soil, sunlight, water,
fertilizer needs) along with assessing opportunities for receiving the
highest economic return on investment.

Although ecological and economic principles still guide new plantings
and variety grafting, processing operations and packinghouses are
beginning to contract variety planting and/or top grafting for
production with growers. In some newly planted areas of the Northwest
Loess region, apple and pear production is extensively driven by traders
and packinghouses, while in the Bohai Gulf, much of the new grape
planting is contracted by wineries. In many instances, growers agree to
produce fruit cultivars using guidelines provided by the packinghouse or
processor. Although the enterprises do not operate as a corporate farm,
hundreds or thousands of growers may depend upon them to purchase the
fresh fruit they produce. In general, corporate growers and provincial
extension specialists indicate varieties that: are early- and
mid-maturing, can be planted more densely, have shorter or dwarfed
trunks for easier harvesting or green house production, require less
management, and have less demand for watering and other inputs are most
desirable.

Based upon planting acreage changes, improving yields, and changes in
market prices, post estimates that 2003 apple production continued
declining by around 3.5 percent, 2003 pear production increased about 5
percent, and 2003 grape production increased by around 10 percent.
Preliminary analysis from the Chinese SSB Abstract (issued in May 2003)
indicates 2002 apple, pear, and grape production were 19.241 MMT, 9.309
MMT, and 4.479 MMT respectively. Although final 2002 production volumes
may change when the SSB issues its final report (scheduled for release
in October/November 2003), the production figures provide a general
indicator for 2002 deciduous fruit production. If there is little change
from the Abstract, apple production decreased 3.87 percent from 2001 to
2002 while pear production increased 5.83 percent and grape production
increased 21.8 percent.

Growers' costs remained stable. Provincial institutes offer fruit tree
seedlings relatively cheaply. Many growers report a desire to introduce
new and commercially desirable cultivars from these institutes but that
they cannot risk converting to new varieties at one time and be left
without any fruit bearing orchards or vineyards. Most labor costs are
not calculated as the family unit often does picking by hand without any
contracted laborers or machinery. Labor costs, for tree trimming,
anchoring, pruning, shaping, bud thinning, and bagging are not
calculated, as well, because the grower and the grower family supply
most of the labor.

Irrigation/water usage is a large share of grower production costs.
Irrigation, however, is improving as micro-irrigation, drip irrigation,
and spray irrigation technology are introduced from Israel, Australia,
and Europe through State Owned Farms and university demonstration sites.
Most orchards and fruit growing regions suffer water deficits that are
compounded by inefficient irrigation techniques. Flood and ditch
irrigation for fruit trees and grape vines continues to be the most
common form of water supply. In many orchards, growers apply water by
the bucketful or pump water from nearby streams, canals, or man-made
ponds designed to act as reservoirs into ditches that run around the
base of the trees or vines. In Northern China, water scarcity limits
industry expansion efforts not only on fruit production, but grain
production as well.

Agri-chemical and organic inputs (pesticides, fertilizers, and growth
regulators) occupy the largest portion of production costs. Growers
report they apply agri-chemicals and organic fertilizers six to seven
times per year. There is increased consumer awareness of "Green" foods
(see marketing section of this report) and this impacts growers'
production utilization and costs for agri-chemical inputs. Growers are
trying to cater to consumer demands by using more costly but less toxic
pesticides and organic animal waste for fertilizers. Although tradition
dictates most growers' livelihoods and agri-chemical application can be
too frequent, many are changing input practices to prevent wasted input
applications and run-off to follow better food safety and environmental
guidelines. However, as growers attempt to improve fruit quality and
food safety, their management time for orchards has increased.

Farmers bag specific cultivars of apples and pears in order to foster
the distinguishing attributes of the fruit. Because bags are inexpensive
and easy to source within the fruit production area, bagging is a common
practice to improve fruit appearance. Many growers use bags to help
protect fruit from wind damage, scarring, and over-exposure to
agri-chemicals applied to tree foliage. Some bags have an inner plastic
layer while others have an inner layer made of paper. In almost all
instances the outer layer is paper and designed to reflect as much light
as possible. Then, prior to harvest, the outer bag is removed to allow
for sunlight exposure that will in turn deepen the fruit color. Although
not common, some large commercial growers have grown pears inside a hard
clear plastic shell that remains on the fruit until purchased by the
consumer. The hard shell has the added benefit of protecting fruit from
bruising and making fruit packing convenient for export.

Agricultural specialty product taxes occupy the remaining share of
growers' costs. In most instances, growers report that although taxes
are collected, there is often a discounted effective tax rate of 6 to 8
percent of the fruit value. This is because farmers and growers often
pay fees or provide labor for rural development and infrastructure
products and they can negotiate lower tax assessments with local tax
bureaus.

Because labor costs are so low, the largest portion of manufacturers'
costs is for purchasing raw materials. A large juicing operation reports
that 73.3 percent and 76.8 percent of production costs were for
purchasing apples in 2001 and 2002. Packinghouses and waxing operations
report that operations are becoming more efficient and through
contracted growing, it is easier to source products. As distribution and
procurement become more efficient, costs should move lower. Most
post-harvest treatment like grading, sorting, waxing, packing and
storing is seasonal. Many manufacturers find they can source most of
their labor from local growers who then move back to the farm or to
cities for seasonal jobs.

Pick-your-own fruit operations are becoming more common as many growers
of deciduous fruits, stone fruits, and other high-value crops have
turned their farms into tourist destinations and weekend retreats. Many
growers operating orchards near provincial capitals or large urban
environments have opened up their farmlands to tourists who may visit
for a day and pay a flat fee for picking as much fruit as they like or
who may pay for fruit picked and taken away from the orchard. Although
this type of production situation is more opportunistic, it has a value
for farmers who do not have to take fruit to customers, but instead can
allow customers to come to them. In many instances, farmers are putting
up small inns to encourage urban residents to retreat overnight in the
countryside.

## Apples

As indicated in the newest MOA 5-year plan, the Chinese government
developed a strategy to improve apple production competitiveness. In the
plan, the government will:

-   Establish a virus-free seedling cultivation system.

-   Develop more early and mid-maturing varieties.

-   Build export-processing bases.

-   Integrate processing capacity and consolidate the comparative
    advantages of juicing.

-   Expand exports through intensified production management and
    post-harvest treatment.

In addition, the 5-year plan development goal for apple production is:

-   By the year 2007, increase the exceptional quality fruit production
    in the Bohai Gulf and Northwest Loess Plateau from 35 percent to 50
    percent.

-   Increase nationwide yields from the current nine MT per hectare to
    fifteen MT per hectare.

-   Concentrate around 85 percent of national apple production in the
    Bohai Gulf and Northwest Loess Plateau.

-   Increase exports of fresh apples to 900 thousand MT (nearly double
    the current level).

Despite the central government's aggressive plans, implementation will
be difficult. Growers do not have financial resources to change
cultivars and wait 5 years for trees to begin producing fruit. However,
it appears as if the central government and provincial government are
willing to spend money supporting research institutions. Furthermore,
many production bases and small administrative districts are willing to
encourage commercial growing through policy and financial incentives
like reduced tax rates and fees for growers and processors.

China's SSB estimates domestic apple production declined 3.8 percent
from 20.015 MMT on 2.2 million hectares in 2001 to 19.241 MMT on reduced
acreage in 2002. Industry sources expected the decline as older bearing
trees were removed and recently grafted trees have not started producing
fruit. In addition, weather damage during bloom affected 2002
exceptional and good quality fruit production in the Bohai Gulf while at
the same time increasing poor and out-of-grade production.

Post estimates 2003 total apple production is lower by another 3.5
percent to 18.5 MMT provided that there is no early frost damage that
would affect fruit prior to harvest. Good quality apple production was
closer to normal around the Bohai Gulf growing region (Hebei, Shandong,
and Liaoning) and lower in the Northwest Loess region (Shanxi, Shaanxi,
and Gansu). Weather was the primary factor for better production around
the Bohai Gulf and poorer production in the Northwest Loess region.
Apple production in the other two principle growing regions; the Yellow
River Basin (Henan, Jiangsu, Anhui) and the Southwest Plateau (Guizhou
and Sichuan), should decrease as growers are removing apple trees in
favor of other fruit crops. Post estimates grower yields are increasing
slightly to around 10 MT per hectare, still much lower than world
averages.

Recently, growers planted newly introduced varieties from New Zealand,
Australia, France, and other European countries in Hebei, Henan, Shanxi,
and Shaanxi. In Shanxi, green apple trees, similar to Granny Smith, are
producing exceptional apples after planting took place in the late
1990s. Red Fuji (Hong Fushi) apples, however, still dominate cultivars
acreage and production with nearly a 50 percent share of exceptional and
high-quality apples. HuangYuanShuai (9.7 percent), QinGuan (6.2
percent), Jona Gold (QiaoNaJin 3 percent), and Gala (2.8 percent)
cultivars were also responsible for a large share of exceptional and
good-quality apple planting acreage and production. The traditional
Ralls (GuoGuang) apple variety comprised around 14 percent of the
exceptional and high-quality production and acreage. The concepts of
growers' rights and breeders' rights for tree fruit as agreed to by
China under its UPOV commitment have not been extended very clearly to
rural farmers or some research institutes. In many instances, new
varieties being planted should be subject to new-Plant Variety
Protection. However, it appears as if some new varieties from abroad are
being extended to farmers without proper remuneration or compensation to
breeders.

Most of China's apple producing areas are managed by growers who have
small parcels of land with apple trees planted in uneven rows between
grain and cash crops. As such, production is not very efficient,
management is difficult, yields are low, and input costs for individual
farmers can be high. Many growers remove bark strips from the trees to
encourage greater bloom and production while limiting the tree life.
Indications are that although planting acreage has been declining, the
government is advocating for better-managed and increased commercial
orchards. This means that as some orchards are removed, lands are
replanted in a more efficient manner with trees that may take five years
for commercial production. Furthermore, provincial agricultural bureaus
are encouraging growers to top-graft and graft new cultivars that take
less time to produce fruit with a greater commercial appeal. Also,
processors and packinghouses are providing orchard management training,
variety extension, and technology extension in order to source better
fruit.

The Liaoning Province Agricultural Bureau reports that between 65 to 70
percent of total provincial apple planted acreage was producing fruit in
2002 with a total production of 1.2 to 1.3 MMT and that 2003 production
was similar to past years. In Shandong, growers and industry
representatives report the key production base of Yantai saw improved
weather in 2003 with apple production volume closer to historical
averages (around 6 MMT).

## Concentrated Apple Juice (CAJ)

Industry sources estimate China's calendar year 2002 CAJ production
capacity stood at 400,000 MT with production volume surpassing 350,000
MT. Post estimates 2003 production will increase as capacity expanded
and the cost for sourcing out-of-grade juicing apples remained
inexpensive. (Note: above volume is determined on a calendar year basis
while CAJ PSD table is determined on a July to June basis). Furthermore,
as world demand increased and the U.S. lowered countervailing duties for
some Chinese CAJ exporters, processors will produce more CAJ for export.

China produces mainly sweet tasting 70 degrees brix CAJ. CAJ export
prices declined over the past few years (January-June CAJ export prices
averaged US \$598 per MT). The juicing industry has attempted to set a
floor price for export CAJ since 1999. A recently concluded industry
meeting set the following floor CFR prices for CAJ exports to the United
States effective from August 1 to October 31, 2003: non-frozen CAJ US
\$705/MT (Pacific coast), US \$735/MT (Atlantic coast); frozen CAJ US
\$755/MT (Pacific coast) and US \$785/MT (Atlantic coast).

China's cost of producing CAJ is relatively low (between 400-500
dollars/ton), because juicing companies use low quality or out-of-grade
apples for processing. Although purchasing prices for such apples
increased recently with better management and fewer out-of-grade apples,
CAJ producers can still make a profit because labor is cheap, apple
production volume stands high, and many receive tax and fee incentives.

The constraints of sourcing low-grade apples and the increasing demand
for sour tasting apple juice in the world have encouraged Chinese
growers to plant more high-sour content apples. The country has planted
some 13,333 hectares of high-sour juicing apples (not bearing fruits for
another 3-5 years). Varieties have been introduced from Australia,
France and Switzerland. Sources said China would see some 66,666
hectares of high-sour apple trees being planted within the next 3-5
years.

Industry sources indicated that around 2.8 MMT of fresh apples produced
in 2002 went to processing, predominantly for CAJ but also for jams,
jellies, sauces, and for flavorings or additives for candies and foods
as an ingredient or an essence.

## Pears

The SSB Abstract estimates 2002 nationwide pear production was 9.309
MMT, an increase of 5.8 percent from 2001 production. Production likely
increased as a result of greater bearing acreage and better weather
conditions in China's Bohai Gulf and in Northwest China's Xinjiang
Province. Post estimates 2003 pear production increased 5 percent to
9.845 MMT. Trade and government reports indicate production increased as
the Bohai Gulf region experienced better weather during Spring 2003 and
bearing acreage expanded as trees planted and/or grafted in the late
1990s increased commercial scale production. Fruit specialists report
that most pear trees need five years following planting to begin
producing fruit in a commercial manner. The time, according to
specialists, can be shortened if growers are willing to better manage
the trees or if they are willing to graft onto existing trees.

Future planting acreage increases should be minor, as most pear grower
prices have steadily declined. Although exports have increased, traders
speculate that higher export volumes are attributed to better trade data
collection from the Chinese Customs Office. Therefore, it is unlikely
that significant changes to planting acreage will occur in the near
future. Instead, growers interested in earning more from pear production
may alter varieties or plant in greater density in order to produce more
pears and offset lower prices. Provincial agricultural bureaus indicate
most new pear varieties require intensive management. However, growers
are not likely to provide the necessary time, inputs, or financial
resources to see production thrive.

Fragrant (Xiang) pears from Xinjiang are the second highest value pear
according to pricing data from MOA (highest value being Fuji Pears-see
price data in this report). Although Fragrant pears comprise the
greatest share of production in Xinjiang, the region began planting
European/Western style pears a few years ago near the city of Korla. At
present, however, only a small production volume is available. If the
region is able to successfully begin exporting Xinjiang fragrant pears,
Western pear exports from Xinjiang may develop in the next several
years. Chinese fruit specialists indicate that the Crystal (Shui Jing)
pear is the nations major cultivars. However, there are numerous other
pear cultivars that have developed in recent years as individual growers
and agricultural institutions have increased grafting efforts to find
the most suitable rootstock, mid-stock, and treetop stock for different
ecological regions. Duck (Ya) and Crisp (Su) pears produced in Shandong
and Hebei are widespread in the domestic marketplace and although an
older variety, still appeal to a large domestic and export fresh
consumer market. China's central government is actively pursuing market
access for several pear cultivars. If successful, growers may begin
producing cultivars with better export potential.

Growers in Xinjiang plant Fragrant pear trees 5 or 6 meters apart in
rows spaced 6 or 7 meters apart. Fragrant pear trees require trimming
and need to be kept relatively short to avoid wind damage or lost fruit
caused from high winds. Often, trees are trained or anchored to the
ground by weights and ropes. Some growers use splints to widen canopies
for increased sunlight exposure and easier harvest. In addition,
Fragrant pear trees require pollination from other varieties, most
notably, the Dong Shan Pear. Production costs in the province are quite
excessive, as well, because soil conditions are bad and there is little
surface moisture (irrigation, however, from underground aquifers filled
from snow melt is available almost year round). Many growers rent out
storage space and assess that as part of their operating costs. Several
growers indicated that their production costs are near RMB 2000 per mu
per year (roughly US \$3600 per hectare per year).

## Grapes

China's SSB Abstract indicates 2002 grape production increased 20
percent from 2001 to 4.5 MMT. This was a large an unexpected increase
from earlier production and may be lowered following final analysis of
2002 production. Increased grape production is, however, probable as
increases in grape planted area and the percentage of grape vineyards
bearing fruit have lead to stronger yields.

Reports indicate that much of the new grape acreage is for foreign
invested and domestic wine making enterprises. However, there is also a
lot of increased planting of table grape varieties introduced from
abroad like the Globe grape. Much of the newly planted area for table
and wine grapes is in the Bohai Gulf and the Yellow River Basin.
However, as domestic table grape prices decrease (sometimes by as much
as 15 percent per year) new plantings should decrease. Post estimates
that production growth in 2003 should slow from 20 percent to 10
percent. This would indicate a production volume of 5 MMT.

The largest provincial producer of grapes is Xinjiang province in
Northwest China. Xinjiang grapes from the Turpan region are primarily
Pearl (Zhen Zhu, a round milky green seedless variety) and Green Horse
Nipple (Qing Ma Nai, a milky green oblong variety with seeds similar to
Thompson grapes). Many of the grapes produced in Xinjiang are dried by
hanging the vines on pegged sticks suspended from shelters that allow
for heat and air currents. However, as distribution is more convenient
and cold storage improves and capacity increases, more Xinjiang fresh
table grapes are arriving in China's Eastern provinces. Specialists,
distributors, wholesalers, and retailers, however, complain that many of
the grapes from Xinjiang and other provinces drop from the vine easily
and are wasted as consumers and retailers would rather purchase grapes
on the vine.

Most Chinese grape production is in rows (Li Jia) or along low-lying
trellises (Peng Jia). Concrete or wooden posts with bailing wire strung
between them in rows one and half to two and a half meters apart are the
most commonly visible forms of grape production in Eastern China.
Smaller distances between rows indicates most harvesting is done by hand
and then hand carried out of the orchard to the end of the row where it
can be loaded onto trucks. Wider distances are used for more commercial
and mechanized grape vineyards that may pick grapes by hand and then
place them in small tractors that tow carts between the rows and then
transfer them to trucks. Low trellises made from cut tree branches and
bailing wire provides most of the support for trellis style production
in Northwestern China. Most low-lying trellises have grape vines planted
in ditches that are supported for up to a meter and half high before
spanning another three meters across. Growers then harvest grapes that
hang below the supporting spans of the trellis. Growers report that
trellis grape production acts as a further barrier from wind damage and
grapes falling to the ground as a result of strong winds. In many colder
climate regions, grape growers often remove the vines from the supports
or trellises after harvest and bury vines up to a half-meter under soil
in order to prevent freezing and frost damage.

Extension specialists indicate that Grape production in simple green
houses and hot houses around provincial capitals and large urban centers
like Beijing, Shanghai, and Dalian is driving some of the development of
green house grape production. However, many of the grapes grown in green
houses are not too distant from large and sophisticated port operations
that may be able to export grapes to regional neighbors like South Korea
and Japan. In many areas, producers also provide opportunities for urban
residents to visit grape vineyards to pick grapes for fresh consumption
or for grape juicing.

# Consumption

## Fresh Fruit

Increased purchasing power along with increased availability of fresh
fruits throughout the year has led to increased fresh fruit consumption.
China's per capita consumption of fresh fruits is estimated at 50
kilograms and growing. Consumption has witnessed slight increases over
the last several years (45.48 kg in 1997, 47.86 kg in 1998, 46.07 kg in
1999, and 48 kg in 2001).

Most fresh consumption of domestic apples, pears, and grapes tends to be
seasonal. Furthermore, domestic consumption tends to be higher near the
production regions as the local food culture has readily adapted the
fruit into its cuisine or diet. However, as products retain their
attractive appearance and good quality over a longer period of time,
consumption of fruits beyond the production period appears to be
extending to a greater area within the country. In addition, consumers
of fresh fruit in Southern China seem to be more affluent and willing to
pay for higher prices commanded by domestic or even imported fruits in
the region.

Industry sources believe about 70 percent of fruit consumption is fresh
with fruit processing representing another 10 to 15 percent of total
fruit utilization. Industry contacts believe that total fruit waste
could be as high as 20 percent in some areas, but that the volume of
wasted fruit has been steadily decreasing in recent years. The decrease
in fruit waste has been aided by better growing practices, an increased
volume of fruit produced within grade, faster and more convenient
distribution paths, and improved cold storage and controlled atmosphere
(CA) storage facilities. Furthermore, the decline in waste has been
caused by increased production capacity and improved market awareness
among fruit processing companies.

In some commercial fruit growing regions, government officials report
that fruit waste is around 5 percent. In general, however, fruit waste
and culling depends upon the level of processing in the area. If juicing
facilities are near, storage facilities are available, and distribution
channels are accessible, growers are able to sell even the most
unattractive fruits by either delivering the product to processors or by
using accumulators (i.e. middle-men) to deliver the product on their
behalf.

One juicing operation reports that approximately 6.2 to 6.8 MT of fresh
apples will equal 1 MT of 70/71 Brix concentrated apple juice. Pear
nectar production, however, requires around 8 MT of fresh pears to equal
1 MT of concentrated pear nectar. According to grape and raisin growers
and manufacturers in Northwestern China, approximately 4.5 MT of fresh
grapes will equal 1 MT of raisins.

## Processed

Domestic fruit juice consumption is small (average 1 kilogram per person
a year), but the number is expected to grow dramatically in the next few
years. Currently, industry sources estimate around 30,000 tons of CAJ is
consumed domestically each year, with the volume expected to top 180,000
tons in five years time. Juice consumption is considered appropriate
almost any time of day. Often, consumers will request fresh juice from
bars and restaurants or glasses of juice or small packages while on
airplanes.

Domestic consumption of dried fruit (e.g. raisins) by the food
manufacturing industry is growing. Utilizing fruit pastes and fillings
inside breads and cookies is also an area being developed by the food
processing and manufacturing industry. At present, there appears to be
very little domestic production or consumption of fruit sauces (e.g.
apple sauce). However, there is some production and consumption of fruit
jams, jellies, and preserves. There is also some use of fruit flavorings
and essences in candies and jellied products. The China Canned Food
Industry Association reports that domestic consumption of canned or
tinned apple or pear products has been decreasing.

Many domestic and foreign invested juicing operations and wineries are
expanding their capacity and increasing their product lines. Up until
about two years ago, it was rare to see any juices other than apple and
orange. Now, pear nectar, grape juice, apricot nectar, kiwi nectar, etc.
along with juice cocktails using blended juices from apples, pears, or
grapes and other fruits are available. Much of the fruit juice industry
tends to be opportunistic (i.e. utilizing fruit grown near juicing
plants and utilizing product quickly in order to avoid putting already
bad quality fruit into storage). According to one industry source with a
juicing capacity of over 100,000 MT, the plant operates for a six-month
period following harvest when production can be profitable. Following
that, the plant may release workers so that they may find other seasonal
and temporary employment in cities before returning to the juicing plant
later in the year.

The juicing industry, through the China Chamber of Commerce for Native
Products Sub-Chamber for Juice has recently agreed to curtail capacity
expansion in order to avoid over-competition. Without the fear of
excessive juicing expansion, the industry believes product prices will
stabilize and many of the companies can focus on becoming more
efficient. Other companies may look to expand their product lines or
explore export market opportunities.

# Trade - General

Imports

Increased fruit imports should continue as Chinese consumers are willing
to spend more income on fresh fruits year round and as tariff rates are
lowered. The strongest potential for increased imports remains during
the period which China does not produce deciduous fruits, or in years
when production is affected by water scarcity or weather damage. Same
hemisphere exports to China have potential for further increases if
exporters can supply good quality fruits at low prices. As China
produces more early- and mid-season deciduous fruits, however, large
rates of gain for same season/hemisphere suppliers do not appear likely.
Therefore increased imports may come from southern hemisphere producers
and from low-priced same season producers.

Chinese traders indicate that although it is possible to import fruit
directly into China at ports closer to major population centers, the
infrastructure, distribution, and familiarity of importing fruit through
the Lishui market (Guangzhou) in south China is still a preferred
low-cost method. However, direct exports to Mainland China are forecast
to increase as inspection and customs policies become more transparent
and storage facilities for imported fruits improve. The number of
countries exporting fruit to China has remained stable.

Some exporters of U.S. fruit have utilized the USDA Supplier Credit
Guarantee Program in order to export American deciduous fruit products
to the China/Hong Kong region. Some traders report a reluctance to trade
with Chinese and Hong Kong importers for fear of falling into commercial
disputes. In addition some Chinese importers require very lengthy
payment terms, as they are extended to distributors and wholesalers who
are extended to retailers, restaurants, etc. Many importers often
require lengthy terms in order to make foreign currency payments, too.

Exports

China's AQSIQ actively engages other nations to open their customs doors
to Chinese fruit. In addition, Chinese fruit quality, post-harvest
management, and distribution are improving and becoming more efficient,
making the product more attractive in export markets. Furthermore, as
domestic fruit quality improves while retaining its lower than world
average prices, it is less likely that Chinese fresh fruits will face
unjust trade restrictions. However, many nations may limit trade of
Chinese fruit based upon plant health concerns if there are justifiable
sanitary and phyto-sanitary restrictions.

Although trade data indicates large export increases, some traders and
industry specialists speculate the China Customs office has improved
trade data for neighboring countries that was unrecorded previously or
conducted on a barter basis. According to Chinese traders the customs
office is making a concerted effort to collect revenue from tariffs. As
such barter trade and gray channel trade is diminishing. Also,
exporters, themselves, want currency rather than an exchange of goods.
In addition to better data collection for trade to neighboring
countries, however, Chinese exports to distant markets for apples,
pears, and grapes have increased as prices are below world averages.
Furthermore, the number of export destinations has increased.

## 

## Apples

Apple imports should increase slightly while exports continue surging in
2003. The Chinese growing season is slowly becoming longer and able to
supply diverse varieties when, in the past, consumers needed to depend
on imported product. Exports volume should expand as market access
issues are resolved for Chinese apples and exceptional and good-quality
apples remain over-produced and inexpensive.

The highest volume imported apple varieties continue to be Red Delicious
and Granny Smith style. According to China Customs data, over the July
2002 to June 2003 marketing year, China imported 51,256 MT of apples
valued at US \$23.82 million. This was a 2.5 percent increase by volume
and 21 percent increase by value from the previous 2001/2002 marketing
year. In the 02/03 marketing year, 88 percent by volume and 86 percent
by value of imported apples entered through the Guangzhou port. Other
ports recording apple imports were the ports of Dalian (2,507 MT, US
\$1.23 million), Shenzhen (2,221 MT, US \$1.356 million), Shanghai
(1,178 MT, US \$556 thousand), and Tianjin (41 MT, US \$18 thousand).

According to Chinese traders, Fuji is the most commonly exported Chinese
apple. Following Fuji, Ralls and other traditional low-price apples are
exported to many neighboring countries. Chinese exports of fresh apples
in the 2002/2003 marketing year were 499,903 MT and US \$173.24 million.
This was a 38.8 percent increase by volume and 40.9 percent increase by
value from the 2001/2002 marketing year. In the 2002/2003 marketing
year, 41.6 percent of exports by volume and 58.5 percent by value
originated from Qingdao. The other top 5 exporting ports included:
Nanning (59,134 MT and US \$16.611 million), Harbin (52,966 MT and US
\$18.746 million), Manzhouli (41,739 MT and US \$7.144 million), and
Kunming (30,846 MT and US \$7.227 million).

## CAJ

China imports very limited quantities of CAJ, primarily high sour juice
for blending with local products. Imported CAJ primarily entered through
ports in Guangdong, and some through Shanghai and the northern port of
Dalian. As China's food and beverage manufacturing industry develops,
and demand for high-quality product grows, there should be slight
increases in imported CAJ.

The surge of CAJ exports was partly attributed to the U.S. trade court
decision that waived import tariffs to an additional five Chinese CAJ
producers on November 15, 2002. Around 90% of China's CAJ production is
exported. China customs data has shown that in last marketing year (July
2002-June 2003) China exported nearly 370,000 MT of CAJ. During the
first six months of the 2003 calendar year, China has exported a total
of 229,000 MT, up 47.4 percent on year. These numbers indicate that
China could export as much as 480,000 MT of CAJ in 2003. The other
reason for continued strong exports is growing world demand. CAJ was
exported from China's northern ports, predominantly Qingdao (situated
near the Yantai production base), with some exports through Xian,
Dalian, and Tianjin.

## Pears

Pear imports during the 2003/04 marketing year are expected to remain
flat. Pear imports over the 2002/03 July to June marketing year
increased 13 percent by volume to 750 MT and 15.3 percent by value to US
\$263 thousand. In the 02/03 marketing year, over 99 percent of imports
by volume and value entered through the Guangzhou port. The remaining
small percentage of imported pears entered China through the port of
Shanghai. Although small increases in pear imports may occur, Chinese
growers produce many kinds of pears (including European/Western pears)
and there does not appear to be much opportunity for market expansion.
Some importers have indicated that some apple imports enter the country
classified as pears in order to avoid phyto-sanitary restrictions
despite the higher customs tariff charges.

Exports during 2003/04 should increase as China's government
aggressively engages other countries for market access. Market access
for Chinese fruit is a priority for MOA and AQSIQ. Some government and
industry representatives believe that without better market access, it
will be difficult to improve the livelihood of rural growers that is
needed to maintain political stability. In addition, China Customs is
better capturing trade data and assessing fees on exported fruit.

Traders indicate that Duck pears from Shandong and Hebei along with
Fragrant pears from Xinjiang are the most common exported Chinese pears.
Exports of pears in the 02/03 marketing year increased 40 percent by
volume to 272,137 MT and 53.3 percent by value to US \$68.605 million.
The port of Tianjin accounted for 43 percent of pear exports by volume
and 37.6 percent by value. The ports of Shenzhen (44,105 MT and US
\$9.413 million), Qingdao (38,693 MT and US \$13.117 million), Nanning
(31,293 MT and US \$7.636 million), and Harbin (19,222 MT and US \$6.881
million) were the remaining top five exporting locations for pears and
quinces. China's AQSIQ continues negotiating increased market access for
domestic pears into other countries. However, questions regarding the
prevention of plant pests and plant diseases may arise and lower the
rate of increase for pear exports.

## Grapes

As China's own grape production continues to expand over a larger season
with the introduction of new varieties, the rate of increase in grape
imports could slow. Increasingly, China is importing more Southern
hemisphere grapes as its own Northern hemisphere production has expanded
and improved. Most grape imports are dark red and green-red Globe
grapes, but there are also some retailers who carry bags of "imported"
Thompson grapes.

Through the first six months of the 2003 marketing year (Jan. -- June),
China's grape imports were 39,072 MT and US \$26.919 million, an 11
percent increase by volume and 31 percent increase by value. Chile, as a
Southern hemisphere country, supplied 28,290 MT valued at US \$20.346
million from January to June while the United States supplied 10,559 MT
at US \$6.458 million. Main import locations were Guangzhou (30,505 MT
and US \$20.006 million), Shenzhen (4,938 MT and US \$4.455 million),
Dalian (2,318 MT and US \$1.354 million), and Shanghai (1,270 MT and US
\$1.073 million).

During the 2002 marketing year (Jan. -- Dec.), China's grape imports
totaled 54,843 MT valued at US \$32.215 million, a 12.6 percent increase
by volume and a 4.5 percent decrease by value from the previous year. In
2002, Guangzhou accounted for 70 percent of grape imports by volume and
67 percent by value. Other ports with substantial grape imports in 2002
included: Shenzhen (23 percent by volume and 26 percent by value),
Dalian (4 percent by volume and value), and Shanghai (2 percent by
volume and 3 percent by value).

Grape exports in comparison to total production remain small. Government
officials and grape exporters report the largest problems affecting
increased grape exports are an inability of keeping grapes on the vine
following harvest and producing few desirable varieties for export.
Extension agents and traders want to focus their efforts on variety
improvement that would allow Chinese growers to produce grapes that
remain on the vine better after harvest. In addition, extension agents
have expressed interest in the research of any types of chemical agents
or compounds that would keep grapes on the vine longer.

During the first six months of 2003, China's grape exports increased
considerably relative to the same period of 2002. From January to June,
China exported 842 MT valued at US \$339,000. Much of this was due to
increased production of varieties that can be harvested earlier in the
year and exported to non-grape producing neighboring territories and
countries of Russia, Vietnam, Hong Kong, Macau, and Mongolia. The cities
of Harbin, Nanning, Shenzhen, Manzhouli, and Tianjin have been the top
five exporting locations through the first six months of the year.

China's grape exports increased significantly in the 2002 marketing
year. In 2002, China exported 5,863 MT of grapes valued at US \$2.289
million. This was an increase in volume of nearly 778 percent and in
value by 730 percent from 2001. Most export locations are to areas with
contiguous borders. Russia was the largest export destination for
Chinese grapes with 35.5 percent of value and 23.6 percent of value.
(See trade tables for other export destinations). Harbin (1,503 MT and
US \$ 477,000), Nanning (1,241 MT and US \$207,000), Urumqi (780 MT and
US \$ 207,000), Qingdao (601 MT and US \$ 551,000), and Manzhouli (568
MT and US \$ 63,000) were the large export bases for Chinese grapes.

# Stocks

No official data exist for fruit stocks in China. Modern cold storage
and controlled atmosphere facilities are developing and storing a larger
portion of China's harvested fruit. According to a 2002 speech by a
high-level MOA official, storage capacity was enough to accommodate 20
percent of the nation's fruit production (note: 2002 total fruit
production was over 69.52 MMT). Although modern storage facilities for
domestic fruit are improving, there should still be strong demand for
high quality imported fruit.

In 2002, it was estimated that 85 percent of domestic cold storage
capacity was in modern facilities that are mechanically controlled. The
remaining 15 percent of storage capacity is in small but numerous simple
ventilated facilities and underground pits. Industry sources report most
modern cold storage facilities are privately run and managed. In many
instances, cold storage enterprises operate under large trading
companies that contract and rent out space to smaller traders,
accumulators, and large farms. Several cold storage facility operators
report that by April and May of year following harvest that warehouses
have sold out most domestic stocks of stored apples, pears, and grapes.
In many instances, storage facilities have exhausted their supplies even
earlier in the year following the Chinese Spring Festival/Lunar New Year
that takes place in late January to mid-February. According to pricing
data, too, fresh wholesale market prices rise at these times when
supplies are low.

Although it is an exception rather than the norm, industry sources
report some CA facilities still have exceptional and good quality apples
and deciduous fruit in storage even after the new crop harvest has
began. At least one trader who still has year-old fruit in a CA storage
facility recognizes that the fruit will have to be sold at a loss in
order to compete with fresh fruit that is less expensive. As China's CA
storage and post-harvest treatment continue to improve, this type of
scenario could become more common.

# 

# Policy

China continues negotiating with several countries to gain market access
for its fruit. China's quarantine authorities, AQSIQ, are responsible
for conducting and negotiating Pest Risk Assessments (PRAs). AQSIQ and
the USDA Animal and Plant Health Inspection Service (APHIS) continue
holding bilateral discussions on plant quarantine concerns affecting
trade between China and the United States. AQSIQ continues pushing for
apple exports to the United States along with Ya and Fragrant pear
exports. Minutes from the annual bi-lateral discussions along with
papers detailing the status of PRAs for individual fruits are available
from APHIS plant quarantine officials and the APHIS website.

MOA's five-year agricultural plan established guidelines for the
production of several commodities (see apple production section).
Tart/sour apple production in the Bohai Gulf and the northwest Loess
soil regions were signaled out in the plan. According to an industry
source, growers have already began planting and grafting some French
apple varieties in the areas. Increased planting and production is
expected to continue as acreage from older cultivars is removed and
converted with more densely planted desirable cultivars.

Fruit trees are recognized as an economic forest crop in China and as
such also fall under the administration of China's State Forestry
Administration (SFA) if production occurs in a designated forest. The
Chinese government has set aside money under the *Sloped Land Conversion
Project* to plant economic and ecological forest crops on sloped lands
that formerly produced grains and other commodities. Under the SFA
managed *SLCP*, growers can retire sloped (≥ 25 degrees) agricultural
lands and receive grain and financial subsidies to replace lost income
and purchase economic or ecological tree seedlings. Within the replanted
areas, 20 percent of land can be designated for economic tree plantings
while the remaining 80 percent is for ecological species.

In addition, China's government has negotiated separate trade treaties
to lower tariffs on certain agricultural commodities with Southeast
Asian neighbors (e.g. Hong Kong-China CEPA treaty, and Thailand-China
certain specialty product agricultural commodities). These tariff treaty
negotiations are beyond China's WTO commitments and allow for
preferential tariff treatment that is below that for other WTO member
states. Although details of these trade treaties are not available, it
is expected that there will be clauses requiring that the product origin
or at least a certain portion of the added value take place in the
treaty country. This, in effect, would prevent direct trans-shipping of
commodities through tariff treaty countries as an attempt to receive
preferential tariff treatment. Before treaties are finalized, many of
China's administrative bodies (e.g. MOA and its affiliated agricultural
academy) are conducting analysis on the impact of such treaties for
domestic production.

## Tariff Rate Reduction Schedule

China agreed to lower tariff rates on select agricultural commodities
beginning on January 1 of each year as negotiated during China's WTO
accession. Apple, pear, and grape imports are subject to double-digit
tariffs and value-added taxes (VATs). Although China is not expected to
lower its double-digit tariffs and VATs anytime soon, China is providing
certain tariff and VAT exceptions to regional neighbors (see policy
section) with trade treaties.

+-------+-----------------------------+---+---+-----+---+---+-----+
| Deci  |                             |   |   |     |   |   |     |
| duous |                             |   |   |     |   |   |     |
| Fruit |                             |   |   |     |   |   |     |
| T     |                             |   |   |     |   |   |     |
| ariff |                             |   |   |     |   |   |     |
| and   |                             |   |   |     |   |   |     |
| VAT   |                             |   |   |     |   |   |     |
| Rates |                             |   |   |     |   |   |     |
| for   |                             |   |   |     |   |   |     |
| 2003  |                             |   |   |     |   |   |     |
| and   |                             |   |   |     |   |   |     |
| 2004  |                             |   |   |     |   |   |     |
+-------+-----------------------------+---+---+-----+---+---+-----+
| HS    | Description                 | 2 |   | Eff | 2 |   | Eff |
| Code  |                             | 0 |   | ect | 0 |   | ect |
|       |                             | 0 |   | ive | 0 |   | ive |
|       |                             | 3 |   |     | 4 |   |     |
|       |                             |   |   | R   |   |   | R   |
|       |                             |   |   | ate |   |   | ate |
+-------+-----------------------------+---+---+-----+---+---+-----+
|       |                             | T | V |     | T | V |     |
|       |                             | a | A |     | a | A |     |
|       |                             | r | T |     | r | T |     |
|       |                             | i |   |     | i |   |     |
|       |                             | f |   |     | f |   |     |
|       |                             | f |   |     | f |   |     |
+-------+-----------------------------+---+---+-----+---+---+-----+
| 08    | Grapes, Fresh               | 1 | 1 | 33  | 1 | 1 | 27  |
| 06.10 |                             | 8 | 3 | .8% | 3 | 3 | .7% |
|       |                             | . | . |     | . | . |     |
|       |                             | 4 | 0 |     | 0 | 0 |     |
|       |                             | % | % |     | % | % |     |
+-------+-----------------------------+---+---+-----+---+---+-----+
| 08    | Apples, Fresh               | 1 | 1 | 28  | 1 | 1 | 24  |
| 08.10 |                             | 4 | 3 | .8% | 0 | 3 | .3% |
|       |                             | . | . |     | . | . |     |
|       |                             | 0 | 0 |     | 0 | 0 |     |
|       |                             | % | % |     | % | % |     |
+-------+-----------------------------+---+---+-----+---+---+-----+
| 0808  | Pears, Duck (Ya) or Snow    | 1 | 1 | 30  | 1 | 1 | 26  |
| .2012 | (Hsueh), Fresh              | 5 | 3 | .6% | 2 | 3 | .6% |
|       |                             | . | . |     | . | . |     |
|       |                             | 6 | 0 |     | 0 | 0 |     |
|       |                             | % | % |     | % | % |     |
+-------+-----------------------------+---+---+-----+---+---+-----+
| 0808  | Pears, Fragrant (Xiang),    | 1 | 1 | 30  | 1 | 1 | 26  |
| .2013 | Fresh                       | 5 | 3 | .6% | 2 | 3 | .6% |
|       |                             | . | . |     | . | . |     |
|       |                             | 6 | 0 |     | 0 | 0 |     |
|       |                             | % | % |     | % | % |     |
+-------+-----------------------------+---+---+-----+---+---+-----+
| 0808  | Pears, Other, Fresh         | 1 | 1 | 28  | 1 | 1 | 24  |
| .2019 |                             | 4 | 3 | .8% | 0 | 3 | .3% |
|       |                             | . | . |     | . | . |     |
|       |                             | 0 | 0 |     | 0 | 0 |     |
|       |                             | % | % |     | % | % |     |
+-------+-----------------------------+---+---+-----+---+---+-----+
| 0808  | Quinces, Fresh              | 1 | 1 | 31  | 1 | 1 | 31  |
| .2020 |                             | 6 | 3 | .5% | 6 | 3 | .1% |
|       |                             | . | . |     | . | . |     |
|       |                             | 4 | 0 |     | 0 | 0 |     |
|       |                             | % | % |     | % | % |     |
+-------+-----------------------------+---+---+-----+---+---+-----+

# Wholesale Market Fruit Prices

Beginning last year, the MOA published sales price information from
individual wholesale markets for a variety of major agricultural goods
on its website (http://www.agri.gov.cn/jghq/gp/). The information aims
to provide domestic growers and traders with greater knowledge about
market conditions for agricultural goods around the country. The website
provides no data regarding fruit quality or trade volume. Also, the
website neither distinguishes between imported products that have
filtered onto the local market, nor is each market required to report
daily. The positive side, however, is that the information, albeit
limited, provides a general indicator of major cultivars market prices
and seasonal availability across different regions.

  -------------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- -----------
  Converting                                                                                    
  Chinese                                                                                       
  RMB/Kilogram                                                                                  
  to US                                                                                         
  \$/Metric Ton                                                                                 
  (RMB 8.265 =                                                                                  
  US \$1.00)                                                                                    

  RMB/KG         RMB 1/Kg   RMB 2/Kg   RMB 3/Kg   RMB 4/Kg   RMB 5/Kg   RMB 10/Kg   RMB 15/Kg   RMB 20/Kg

  US \$/MT       \$121/MT   \$242/MT   \$363/MT   \$484/MT   \$605/MT   \$1210/MT   \$1815/MT   \$2420/MT
  -------------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- -----------

Apple, pear, and grape prices (see individual price tables) are at their
highest point when domestic supplies are low. After the onset of
harvest, prices remain strong while quality is good, but then market
support falls as quality deteriorates. Then, as many fruits are sold
from CA facilities for the Chinese Spring Festival and lunar New Year,
many prices rise as the demand for good quality fruits surges.

# Marketing

Consumers are purchasing more of their fruit from retail outlets, and
retailers are more sophisticated in their marketing of imported and
domestic fruit. Sales driven marketing efforts such as advertisements in
newspapers for imported fruits and promotional point-of-purchase/sale
signs are common. Often, hypermarkets will carry good quality deciduous
fruits year round. In many instances, there may be several varieties of
imported fruits from several countries placed alongside domestic fruits
that are indistinguishable from imported cultivars. One hypermarket
mentioned that when it held a sale driven promotional event for imported
U.S. Red Delicious apples, the store sold over 2 MT in a day. Many USDA
cooperators such as the California Table Grape Commission, Washington
Apple Commission, and Sunkist, in conjunction with the USDA Agricultural
Trade Offices in China, have also encouraged more sophisticated
marketing of U.S. fresh deciduous fruits.

Different Chinese government agencies (i.e. Ministry of Agriculture,
Ministry of Health, State Environmental Protection Administration) have
developed standards for "green food," "wholesome food," and
"pollutant/pesticide free food." It does not appear as if any single
standard/certification has dominated the production market, but
consumers generally believe these types of certified domestic foods are
healthier or better for their families.

Societal marketing is used for domestically produced fruits and
vegetables sold in grocery stores, supermarkets, and hypermarkets. The
environmental, cultural, and societal benefits of such marketed
commodities do not appear to be taken into consideration when consumers
purchase fruit. Rather, the consumers would rather procure fruits that
are better for their family and they pay less regard to the
environmental implications. At present, no known imported fruits are
marketed using any of the above-mentioned standards. However, consumers
recognize imported fruit quality may be better and healthier than the
domestic fruit grown with these standards. (Note: many of the standards
allow for the controlled use of pesticides or other agri-chemicals and
should not be considered an organic product).

Most Chinese consumers continue to peel or pare their fruit. The skin on
grapes, too, is often discarded. This custom appears to be part of the
culture, but also it is seen as a method to reduce the intake and
exposure to chemical residues that may be on the skin and peel of the
fruit. Therefore, fruit that is big and easy to pare or that is easy to
squeeze out of the grape skin is consumed most commonly on the domestic
market.

Chinese government and industry representatives reported that consumer
preference is growing for sour and tart apples. In general, many
consumers also like crisp and juicy apples and pears. New table grape
varieties entering the market are sweeter than traditional varieties. In
individual market tours, consumers admit that although they are willing
to try imported fruits, but they do not always like the taste of
imported fruits. Rather than buy the product for its taste, in many
instances, consumers say they may purchase the imported fruit because of
its "niche" appeal as a gift or the quality of its appearance.

Fruits, especially apples and grapes, are often eaten with meals or
snacks. These fruits are often purchased from supermarkets and
hypermarkets in large cities or, in less developed cities, from street
vendors. Many fruits are given as gifts during Chinese holidays. Many
Chinese seem to enjoy bringing gifts of fruit when visiting or calling
on someone's home. Industry representatives and government officials
report that imported fruits (e.g. Washington Red Delicious, Sunkist
Oranges) are packaged and given as gifts to hospital patients or to
company supervisors. Also, as China's family units tend to have only one
child, parents and other relatives often purchase fresh imported fruits
and high-quality domestic fruits for young children.

# TABLES

## Price Table for Apples (Prices in RMB/KG, RMB 8.265 = US \$1.00)

  ---------- -------- ------ ------ ------- ----- ------ ------- ----- ----- ------ ----- ------ -------- ------ ------
  Product    GGPG                   FSPG                 HXPG                QGPG                HoXJPG          

  Date       Min      Max    Avg    Min     Max   Avg    Min     Max   Avg   Min    Max   Avg    Min      Max    Avg

  9/5/02     0.8      4             0.7     6            0.6     1.6                             0.7      1.5     

  11/6/02    0.6      2      1.3    0.8     4.4   2.1    0.6     2     1.1   0.5    2.7   1.3    1        1.9    1.5

  12/12/02   0.6      6.1    1.7    0.7     6     2.1    1       1.6   1.3   0.6    1.6   1.1    1        1.8    1.4

  1/9/03     0.8      2.03   1.26   0.7     3.6   2.14   1       1.8   1.5   0.54   2     1.22   1.6      6      3.13

  2/11/03    0.8      2.5    1.45   0.6     5     2.34   1       1.8   1.5   0.8    2.5   1.58   1.2      6      3.6

  3/11/03    1        2      1.32   1.4     3.4   2.15   1       1.6   1.4   0.9    1.8   1.43   1.4      1.5    1.45

  4/7/03     0.9      2.24   1.36   1       4.2   2.16   1       1.4   1.2   0.35   2.3   1.31   2.4      10     5.13

  5/12/03    0.6      2.1    1.32   1.2     4.5   2.44   2       2     2     0.65   3     1.51   8        8      8

  6/6/03     0.6      3      1.82   0.8     6     2.87   2       2     2     0.8    3     1.96                    

  7/9/03     0.6      2.2    1.49   1.4     6.4   3.16   0.8     2     1.4   1.6    2.8   2.2                     

  8/8/03     0.6      2.1    1.16   1.3     5.5   3.18   1.1     2.8   1.8   1.2    1.6   1.4    1.3      1.3    1.3

  9/8/03     1        3.2    1.81   0.9     5.5   2.75   0.75    3     1.5                       1        1.95   1.49

                                                                                                                 

             HuXJPG                 HYSPG                QNJPG               SGPG                QPG             

             Min      Max    Avg    Min     Max   Avg    Min     Max   Avg   Min    Max   Avg    Min      Max    Avg

  9/5/02                            0.9     1.8          1.3     1.8         2.81   16           2.8      16      

  11/6/02    0.7      1.9    1.3    0.8     2     1.3    0.8     5     2     2.05   20    10.7   0.7      14     7.5

  12/12/02   0.8      2.2    1.4    1       2.5   1.7    0.9     2.2   1.4   7      20    13.7   1.6      18     12.9

  1/9/03     1.6      4      2.28   1.2     2.6   1.93   2.6     2.6   2.6   3.9    18    12.4   1.7      19     12.1

  2/11/03    1.6      3      2.3    1       2.6   1.87                       4.25   17    12.5   13       17     14.3

  3/11/03    1.4      2.2    1.8    1       1.7   1.35   2.4     2.4   2.4                       1.5      15     11.2

  4/7/03     0.5      8      2.94   1       2.2   1.6    3.8     3.8   3.8   1.1    20    12.5   1.6      20     12.2

  5/12/03    0.6      7      3.8    2.4     2.4   2.4    2       2     2     8      14    11.5   1.6      14     10.4

  6/6/03                            3.6     3.6   3.6    2.2     2.2   2.2   9      18    12     11       14     12.5

  7/9/03     1.3      1.3    1.3                         2.4     2.4   2.4   9      14    11.4   1.6      16     9.4

  8/8/03     0.8      0.8    0.8    0.8     1.3   1.05   2       2     2     9      18    12.2   0.8      16     6.66

  9/8/03     0.5      3      1.6    0.9     1.5   1.19   1       2.2   1.2   9      19    12.8   0.5      26     11.1
  ---------- -------- ------ ------ ------- ----- ------ ------- ----- ----- ------ ----- ------ -------- ------ ------

GGPG= Guoguang Pingguo (Ralls Apple)

FSPG= Fushi Pingguo (Fuji Apple)

HXPG= Hongxing Pingguo (Crimson Star Apple)

QGPG= Qinguan Pingguo (Large apples similar to Yellow/Golden Delicious)

HoXPG= Hongxiangjiao Pingguo (Red-banana Apple)

HuXP= Huangxiangjiao Pingguo (Yellow-banana Apple)

HYSPG= Qiaonajin Pingguo (Jona Gold Apple)

SGPG= Sheguo Pingguo (Red Delicious Apple)

QPG= Qing Pingguo (Green Apples similar to Granny Smith)

## Pears (Prices in RMB/KG, RMB 8.265 = US \$1.00)

  ---------- ------ ------ ------- ------ ----- ------ ------ ----- ------- ------ ----- ----- ----- ----- ------ ----- ----- -----
  Product    YL                    PGL                 XuL                  HGL                BL                             

  Date       Min    Max    Avg     Min    Max   Avg    Min    Max   Avg     Min    Max   Avg   Min   Max   Avg                

  9/5/02     0.7    3              0.6    0.6   0.6    0.55   4                                1.2   2.5                      

  11/6/02    0.6    2      1       0.6    2.4   1.5    0.8    2     1.36                       1     2.2   1.46               

  12/12/02   0.6    2      1.2     2.2    2.2   2.2    1      2.6   1.4                        0.9   1.7   1.2                

  1/9/03     0.6    2.8    1.34                        1      3     1.78                       1.1   1.6   1.3                

  2/11/03    0.7    3.68   1.53    2.2    2.2   2.2    1      2.8   1.52                       1.5   1.5   1.5                

  3/11/03    0.7    2      1.32    1      1     1      1      3     1.46                       1.2   1.8   1.5                

  4/7/03     0.8    2.54   1.356   0.9    6     2.63   1      3.4   1.714                      1.3   2.2   1.75               

  5/12/03    0.8    3      1.74    0.9    6     3.45   1      3.4   2.051                      1.5   3.2   2.35               

  6/6/03     1      3.5    1.827   3.2    3.2   3.2    1      3     1.825                                                     

  7/9/03     1      3.5    2                           2      2.6   2.4                        4     4     4                  

  8/8/03     0.5    3      1.95    0.4    5     2.2    2.8    2.8   2.8                        1.2   4.4   2.8                

  9/8/03     0.4    3      1.27    0.6    2.9   1.43   0.66   2.4   1.35    1.5    1.5   1.5   0.8   2.3   1.5                

                                                                                                                              

             FuSL                  SuL                 XiL                  FeSL               HXL                ShL         

             Min    Max    Avg     Min    Max   Avg    Min    Max   Avg     Min    Max   Avg   Min   Max   Avg    Min   Max   Avg

  9/5/02                           0.5    3            6      7.6                                                 0.4   1.5    

  11/6/02                          0.7    2.1   1.02   3      8     4.4                                                        

  12/12/02                         0.6    2.3   1.2    1      8     3.8                        1.4   1.4   1.4                 

  1/9/03                           0.7    2.5   1.32   3.1    8     4.17                       1.4   1.4   1.4                 

  2/11/03                          0.7    2.6   1.39   2.41   7     4.09                       1.2   1.2   1.2                 

  3/11/03                                                                                      1     1     1                   

  4/7/03     6      6      6       0.7    1.5   1.2    3      6     4.16                                                       

  5/12/03    6      6      6       0.6    2.2   1.27   3.2    6     4.454                                                      

  6/6/03     6      6      6       0.9    4     2.17   3.2    8.4   5.34                                                       

  7/9/03     6      6      6       0.9    3.2   1.6    5      10    7.4                        1.4   1.4   1.4                 

  8/8/03     6      6      6       0.6    2.4   1.29   0.6    8.4   5.213   0.5    7     3.2                                   

  9/8/03     6      6      6       0.35   1.6   1      0.6    6     3.26    0.88   12    4                                     
  ---------- ------ ------ ------- ------ ----- ------ ------ ----- ------- ------ ----- ----- ----- ----- ------ ----- ----- -----

YL= Ya Li (Duck Pear)

PGL= Pingguo Li (Apple Pear)

XuL= Xue Li (Snow Pear)

HGL= Huagai Li

BL= Bai Li (White Pear)

FuSL= Fushi Li (Fuji Pear)

SuL= Su Li (Crisp Pear)

XiL= Xiang Li (Fragrant Pear)

FeSL= Fengshui Li

HXL= Hongxiao Li

ShL= Sha Li (Sand Pear)

## Grapes (Prices in RMB/KG, RMB 8.265 = US \$1.00)

  ---------- ------ ------- -------- ------ ----- ------- ------ ----- ------- ------ ----- ------- ------- ------ ------
  Product    QTPT                    HTPT                 JFPT                 MNPT                 MGXPT          

  Date       Min    Max     Avg      Min    Max   Avg     Min    Max   Avg     Min    Max   Avg     Min     Max    Avg

  9/5/02     11     33               13     35            0.6    4.5           1.4    4             1.2     6       

  11/6/02    3      30      13.2     3.6    26    11.01   0.7    4.9   2.23    1.5    5     3.51    1.8     4      2.48

  12/12/02   7      30      15.2     1.8    25    10.5    1      3     2.04    1.8    4     2.6     2.2     4      2.71

  1/9/03     10     22      14.5     4.5    27    15.49   1.5    3.2   2.33    2      5.2   3.6     1.9     10     3.75

  2/11/03    9      30      19.08    6.21   30    20.52   1.8    8     3.08    2.6    2.6   2.6     2.4     5      3.58

  3/11/03    15     29      20.57    3.3    30    17.6    2      4.2   3.17                         2.8     5      3.64

  4/7/03     10     29      19.143   5.96   29    18.36                        2.2    2.2   2.2     3       4.6    3.8

  5/12/03    12     29      19.1     12     30    20.21   4.1    8     6.275                        3       4.05   3.53

  6/6/03     15     22      18.67    5.64   30    18.44   4      12    8.02                                         

  7/9/03     2      25      15.4     6      24    17.8    2.3    8.5   4.2     6.5    14    10.25   2.8     4      3.6

  8/8/03     3.4    22.54   16.894   5.44   22    15.75   0.55   4     2.1     0.6    7     4.87    0.9     4.6    3.28

  9/8/03     1.8    26      11.1     3.2    30    19.1    0.4    3.2   1.46    0.5    4     2.43    1.1     3.8    2.15

                                                                                                                   

             LYPT                                                                                                  

             Min    Max     Avg                                                                                    

  9/5/02     1.1    4                                                                                              

  11/6/02                                                                                                          

  12/12/02                                                                                                         

  1/9/03                                                                                                           

  2/11/03                                                                                                          

  3/11/03    1.6    1.6     1.6                                                                                    

  4/7/03     5.6    14      9.8                                                                                    

  5/12/03    5.6    15      10.3                                                                                   

  6/6/03     15     15      15                                                                                     

  7/9/03     2.2    10      6.1                                                                                    

  8/8/03     0.7    10      3.54                                                                                   

  9/8/03     2      2       2                                                                                      
  ---------- ------ ------- -------- ------ ----- ------- ------ ----- ------- ------ ----- ------- ------- ------ ------

QTPT= Qingti Putao (Green Globe Table Grapes)

HTPT= Hongti Putao (Red Globe Table Grapes)

JFPT= Jufeng Putato (Large purple grape with thick skin and seeds that
is similar to the Japanese Kyoho grape)

MNPT= Manai Putao (Large milky green grape with seeds that is similar to
Thompson)

MGXPT= Meiguixiang Putao (Small dark purple sweet grape with seeds)

LYPT= Longyan Putao (Large purple grape similar in size to a dark
red/purple Globe grape)

# Production, Supply, and Demand (PSD) Tables

## Apples

![](media/image2.wmf)

## Apple Trade Matrix Tables

  --------------- --------------------------------- ----------- ----------
  **Import Trade                                                
  Matrix**                                                      

  **Country**     China, Peoples Republic of                    

  **Commodity**   Fresh Apples                                  

  Time Period     MT                                Units:      MT

  Imports for:    2001                                          **2002**

  U.S.              See Below                       U.S.        See Below

  Others                                            Others      

  U.S.            23918                             U.S.        21655

  Chile           12286                             Chile       18894

  New Zealand     13782                             New Zealand 10643

  France          0                                 France      43

  Vietnam         0                                 Vietnam     19

  Thailand        17                                Thailand    0

  Total for       50003                                         51254
  Others                                                        

  Others not      1                                             2
  Listed                                                        

  Grand Total     50004                                         51256
  --------------- --------------------------------- ----------- ----------

  ---------------- ----------------------------------- ------------- ----------
  **Export Trade                                                     
  Matrix**                                                           

  **Country**      China, Peoples Republic of                        

  **Commodity**    Fresh Apples                                      

  Time Period      MY                                  Units:        MT

  Exports for:     2001                                              **2002**

  U.S.             3                                   U.S.          0

  Others                                               Others        

  Russia           81500                               Russia        95461

  Vietnam          7503                                Vietnam       63059

  Philippines      24923                               Philippines   53145

  Indonesia        33282                               Indonesia     42995

  Malaysia         36878                               Malaysia      34789

  Singapore        32135                               Singapore     27161

  Myanmar          34047                               Myanmar       27054

  Thailand         16947                               Thailand      21462

  Hong Kong        22969                               Hong Kong     20378

  Kazakhstan       0                                   Kazakhstan    14582

  Total for Others 290184                                            400086

  Others not       69865                                             99817
  Listed                                                             

  Grand Total      360052                                            499903
  ---------------- ----------------------------------- ------------- ----------

## CAJ

![](media/image3.wmf)

## CAJ Trade Matrix Tables

  ---------------- ------------------------------------ ------------- ----------
  **Import Trade                                                      
  Matrix**                                                            

  **Country**      China, Peoples Republic of                         

  **Commodity**    Concentrated Apple Juice                           

  Time Period      Jul-Jun                              Units:        MT

  Imports for:     2001                                               **2002**

  U.S.             9                                    U.S.          14

  Others                                                Others        

  Australia        102                                  Australia     301

  South Korea      17                                   South Korea   71

  China            1                                    China         33

  Taiwan           9                                    Taiwan        26

  Germany          34                                   Germany       22

  Hungary          11                                   Hungary       13

  Netherlands      0                                    Netherlands   6

  Turkey           0                                    Turkey        6

  Japan            0                                    Japan         5

  Spain            31                                   Spain         3

  Total for Others 205                                                486

  Others not       35                                                 34
  Listed                                                              

  Grand Total      240                                                520
  ---------------- ------------------------------------ ------------- ----------

  --------------- --------------------------------- -------------- ----------
  **Export Trade                                                   
  Matrix**                                                         

  **Country**     China, Peoples Republic of                       

  **Commodity**   Concentrated Apple Juice                         

  Time Period     July-June                         Units:         MT

  Exports for:    2001                                             **2002**

  U.S.            38589                             U.S.           121938

  Others                                            Others         

  Russia          17718                             Russia         42730

  Netherlands     22012                             Netherlands    38716

  Japan           21069                             Japan          38110

  Germany         23244                             Germany        37763

  Australia       7601                              Australia      26327

  Canada          9243                              Canada         25025

  South Africa    1565                              South Africa   6041

  United Kingdom  2829                              United Kingdom 5015

  New Zealand     1285                              New Zealand    3775

  Israel          1934                              Israel         3264

  Total for       108500                                           226766
  Others                                                           

  Others not      10310                                            21424
  Listed                                                           

  Grand Total     157399                                           370128
  --------------- --------------------------------- -------------- ----------

## Pears

![](media/image4.wmf)

## Pear Trade Matrix Tables

  ---------------- ------------------------------------ ------------ ----------
  **Import Trade                                                     
  Matrix**                                                           

  **Country**      China, Peoples Republic of                        

  **Commodity**    Fresh Pears                                       

  Time Period      MY                                   Units:       MT

  Imports for:     2001                                              **2002**

  U.S.             0                                    U.S.         0

  Others                                                Others       

  New Zealand      591                                  New Zealand  714

  Japan            0                                    Japan        35

  Taiwan           0                                    Taiwan       2

  Malaysia         73                                   Malaysia     0

  Total for Others 664                                               751

  Others not       0                                                 0
  Listed                                                             

  Grand Total      664                                               751
  ---------------- ------------------------------------ ------------ ----------

  ---------------- ----------------------------------- ------------- ----------
  **Export Trade                                                     
  Matrix**                                                           

  **Country**      China, Peoples Republic of                        

  **Commodity**    Fresh Pears                                       

  Time Period      MY                                  Units:        MT

  Exports for:     2001                                              **2002**

  U.S.             8325                                U.S.          7141

  Others                                               Others        

  Malaysia         44758                               Malaysia      51456

  Indonesia        39678                               Indonesia     36159

  Vietnam          4544                                Vietnam       34675

  Russia           14335                               Russia        29536

  Hong Kong        17796                               Hong Kong     26569

  Singapore        25265                               Singapore     24373

  Philippines      9004                                Philippines   13714

  Netherlands      5976                                Netherlands   10258

  Canada           8073                                Canada        10132

  Myanmar          1926                                Myanmar       6120

  Total for Others 171355                                            242992

  Others not       14696                                             22004
  Listed                                                             

  Grand Total      194376                                            272137
  ---------------- ----------------------------------- ------------- ----------

## Grapes

![](media/image5.wmf)

## Grape Trade Matrix Tables

  ---------------- ------------------------------------ ----------- ----------
  **Import Trade                                                    
  Matrix**                                                          

  **Country**      China, Peoples Republic of                       

  **Commodity**    Fresh Table Grapes                               

  Time Period      MY                                   Units:      MT

  Imports for:     2001                                             **2002**

  U.S.                                                  U.S.         

  Others                                                Others      

  U.S.             21604                                U.S.        19479

  Chile            27091                                Chile       35289

  Thailand         21                                   Thailand    76

  South Africa     0                                    South       0
                                                        Africa      

  Total for Others 48716                                            54844

  Others not       0                                                0
  Listed                                                            

  Grand Total      48716                                            54844
  ---------------- ------------------------------------ ----------- ----------

  ----------------- ------------------------------------- ------------- ----------
  **Export Trade                                                        
  Matrix**                                                              

  **Country**       China, Peoples Republic of                          

  **Commodity**     Fresh Table Grapes                                  

  Time Period       MY                                    Units:        MT

  Exports for:      2001                                                **2002**

  U.S.              30                                    U.S.          0

  Others                                                  Others        

  Russia            425                                   Russia        2083

  Vietnam           40                                    Vietnam       1241

  Pakistan          0                                     Pakistan      776

  Malaysia          0                                     Malaysia      673

  Hong Kong         56                                    Hong Kong     430

  Indonesia         0                                     Indonesia     213

  Singapore         20                                    Singapore     173

  Sri Lanka         32                                    Sri Lanka     113

  Mongolia          0                                     Mongolia      71

  Philippines       0                                     Philippines   35

  Total for Others  573                                                 5808

  Others not Listed 64                                                  55

  Grand Total       667                                                 5863
  ----------------- ------------------------------------- ------------- ----------

# Historical Production Tables (Planting Acreage and Metric Ton by Province)

## Apples, Pears, and Grapes (1000 Hectares (Ha) and MT) in 2001

  --------------------- --------- ------------ --------- ----------- --------- -----------
  China Apple, Pear,                                                           
  and Grape Production                                                         
  (1000 Ha and MT) by                                                          
  Province 2001                                                                

                        Apples                 Pears                 Grapes    

  Province              1000 ha   MT           1000 ha   MT          1000 ha   MT

  Beijing               16.00     153,174      10.28     115,197     4.08      43,361

  Tianjin               9.31      68,424       4.53      27,991      6.00      114,154

  Hebei                 316.50    1,845,447    211.50    2,445,536   46.34     580,139

  Shanxi                164.73    1,551,595    29.78     139,782     9.40      70,236

  Inner Mongolia        20.90     43,081       23.56     103,160     5.04      16,004

  Liaoning              161.90    1,134,657    87.60     509,942     29.70     396,991

  Jilin                 22.20     97,164       36.30     75,508      9.75      62,618

  Heilongjiang          25.20     109,689      5.27      27,965      1.64      10,513

  Shanghai              0.01      111          1.30      15,752      1.39      23,921

  Jiangsu               47.73     680,191      39.71     462,768     8.10      114,568

  Zhejiang              0.24      936          19.40     188,737     6.20      132,849

  Anhui                 20.68     259,680      34.72     672,389     5.06      76,062

  Fujian                0.20      311          21.90     110,029     3.10      39,291

  Jiangxi               0.00      0            19.20     42,790      1.76      3,294

  Shandong              397.68    6,163,790    62.96     961,234     49.67     619,141

  Henan                 180.20    2,524,083    32.80     395,919     18.15     280,331

  Hubei                 6.80      21,800       52.80     676,761     4.90      68,301

  Hunan                 0.00      0            20.20     55,348      5.30      24,218

  Guangdong             0.00      0            8.00      37,097      0.00      0

  Guangxi               0.00      0            11.50     64,528      7.80      63,058

  Hainan                0.00      0            0.00      0           0.00      0

  Chongqing             1.98      6,226        18.20     89,316      1.47      10,493

  Sichuan               26.90     193,972      52.30     394,805     9.10      120,980

  Guizhou               7.70      7,854        25.30     66,606      3.20      11,306

  Yunnan                42.28     103,496      40.90     157,491     6.30      25,414

  Tibet                 0.83      5,405        0.09      646         0.00      0

  Shaanxi               374.29    3,912,713    57.95     451,236     6.87      58,206

  Gansu                 165.90    723,901      52.40     266,001     6.87      32,008

  Qinghai               3.91      9,661        1.06      5,525       0.02      117

  Ningxia               20.91     126,642      2.25      9,071       6.61      20,582

  Xinjiang              31.17     270,983      42.67     226,967     70.55     661,524

  National Total        2066.00   20,014,986   1026.00   8,796,097   334.00    3,679,680

  Source: China                                                                
  Agricultural                                                                 
  Yearbooks                                                                    
  --------------------- --------- ------------ --------- ----------- --------- -----------

## China Apple Production (1000 Ha and MT) by Province 1999-2001

  --------------------- --------- ------------ --------- ------------ --------- ------------
                        1999                   2000                   2001      

  Province              1000 ha   MT           1000 ha   MT           1000 ha   MT

  Beijing               18.90     151,717      18.00     157,654      16.00     153,174

  Tianjin               11.72     81,039       10.40     79,466       9.31      68,424

  Hebei                 341.13    1,871,157    328.30    1,806,155    316.50    1,845,447

  Shanxi                187.70    1,748,293    177.90    1,629,575    164.73    1,551,595

  Inner Mongolia        23.80     41,757       23.94     46,853       20.90     43,081

  Liaoning              209.00    1,469,839    195.10    1,231,479    161.90    1,134,657

  Jilin                 18.83     114,604      24.07     100,543      22.20     97,164

  Heilongjiang          32.20     96,962       28.60     112,086      25.20     109,689

  Shanghai              0.00      0            0.00      21           0.01      111

  Jiangsu               63.60     679,626      49.60     695,294      47.73     680,191

  Zhejiang              0.40      1,036        0.33      845          0.24      936

  Anhui                 24.74     308,521      23.60     302,040      20.68     259,680

  Fujian                0.20      257          0.20      380          0.20      311

  Jiangxi               0.00      0            0.00      0            0.00      0

  Shandong              498.20    6,432,745    444.30    6,476,586    397.68    6,163,790

  Henan                 240.69    2,427,717    207.00    2,388,997    180.20    2,524,083

  Hubei                 11.04     30,447       9.00      30,224       6.80      21,800

  Hunan                 0.00      0            0.00      0            0.00      0

  Guangdong             0.00      0            0.00      0            0.00      0

  Guangxi               0.00      0            0.00      0            0.00      0

  Hainan                0.00      0            0.00      0            0.00      0

  Chongqing             2.20      5,688        2.25      7,020        1.98      6,226

  Sichuan               28.70     186,798      28.60     202,283      26.90     193,972

  Guizhou               7.20      7,010        8.08      7,675        7.70      7,854

  Yunnan                45.10     85,919       50.30     101,105      42.28     103,496

  Tibet                 1.00      5,506        1.05      5,299        0.83      5,405

  Shaanxi               413.63    3,992,705    395.46    3,885,700    374.29    3,912,713

  Gansu                 195.00    629,027      167.60    690,671      165.90    723,901

  Qinghai               4.11      15,897       4.00      14,144       3.91      9,661

  Ningxia               23.67     170,536      21.73     159,462      20.91     126,642

  Xinjiang              36.20     246,838      34.60     299,673      31.17     270,983

  National Total        2438.96   20,801,641   2254.01   20,431,230   2066.00   20,014,986

  Source: China                                                                 
  Agricultural                                                                  
  Yearbooks                                                                     
  --------------------- --------- ------------ --------- ------------ --------- ------------

## Pear Production (1000 Ha and MT) by Province 1998-2001

  -------------- -------- ----------- -------- ----------- --------- ----------- --------- -----------
                 1998                 1999                 2000                  2001      

  Province       1000 ha  MT          1000 ha  MT          1000 ha   MT          1000 ha   MT

  Beijing        8.90     105,436     9.40     98,075      10.00     102,693     10.28     115,197

  Tianjin        3.00     25,305      3.74     20,075      3.71      30,172      4.53      27,991

  Hebei          224.30   2,388,517   221.80   2,509,805   218.70    2,551,647   211.50    2,445,536

  Shanxi         30.80    101,843     30.60    118,816     31.20     128,577     29.78     139,782

  Inner Mongolia 34.50    116,421     30.20    111,872     27.14     109,605     23.56     103,160

  Liaoning       82.10    610,898     82.50    424,605     85.70     455,404     87.60     509,942

  Jilin          34.00    134,799     36.06    136,699     39.95     140,779     36.30     75,508

  Heilongjiang   6.70     28,357      6.60     29,804      5.76      26,250      5.27      27,965

  Shanghai       0.80     12,895      0.90     16,298      1.10      17,369      1.30      15,752

  Jiangsu        23.00    308,453     38.20    361,118     38.60     390,137     39.71     462,768

  Zhejiang       11.00    85,740      12.80    114,341     16.65     147,563     19.40     188,737

  Anhui          29.50    426,452     31.15    492,525     34.40     616,192     34.72     672,389

  Fujian         17.20    72,289      19.30    81,307      20.90     96,394      21.90     110,029

  Jiangxi        21.30    32,784      21.00    38,899      23.60     42,109      19.20     42,790

  Shandong       63.30    714,667     73.50    857,807     60.30     911,298     62.96     961,234

  Henan          27.30    202,469     28.77    263,003     31.00     333,000     32.80     395,919

  Hubei          51.40    564,420     54.12    541,856     56.10     633,197     52.80     676,761

  Hunan          14.30    24,719      14.80    27,293      16.30     35,558      20.20     55,348

  Guangdong      9.50     31,621      8.37     36,892      8.52      42,144      8.00      37,097

  Guangxi        9.50     62,381      9.80     67,818      10.20     60,863      11.50     64,528

  Hainan         0.80     0           0.00     0           0.00      0           0.00      0

  Chongqing      11.60    52,070      13.10    53,376      15.11     76,251      18.20     89,316

  Sichuan        27.80    249,712     34.20    272,066     48.20     344,472     52.30     394,805

  Guizhou        2.00     38,972      15.60    46,114      18.34     47,677      25.30     66,606

  Yunnan         35.30    145,803     38.90    152,099     45.60     158,112     40.90     157,491

  Tibet          0.10     1,515       0.10     492         0.11      803         0.09      646

  Shaanxi        52.00    376,370     52.01    432,356     55.58     458,306     57.95     451,236

  Gansu          57.40    238,237     57.30    222,097     54.50     245,941     52.40     266,001

  Qinghai        1.00     6,585       1.02     5,931       1.10      5,963       1.06      5,525

  Ningxia        2.20     6,951       2.34     10,114      2.47      9,058       2.25      9,071

  Xinjiang       25.80    108,783     28.60    198,148     33.90     194,879     42.67     226,967

  National Total 918.50   7,275,464   976.78   7,742,331   1014.74   8,412,413   1026.00   8,796,097

  Source: China                                                                            
  Agricultural                                                                             
  Yearbooks                                                                                
  -------------- -------- ----------- -------- ----------- --------- ----------- --------- -----------

## 

## Grape Production (1000 Ha and MT) by Province 1998-2001

  -------------- -------- ----------- -------- ----------- -------- ----------- -------- -----------
                 1998                 1999                 2000                 2001     

  Province       1000 ha  MT          1000 ha  MT          1000 ha  MT          1000 ha  MT

  Beijing        1.60     20,318      1.90     23,070      3.10     33,961      4.08     43,361

  Tianjin        3.50     56,032      4.02     76,547      5.27     102,201     6.00     114,154

  Hebei          31.50    404,436     39.40    447,002     42.80    523,601     46.34    580,139

  Shanxi         6.30     33,393      6.20     36,411      7.10     50,564      9.40     70,236

  Inner Mongolia 2.20     16,826      2.60     14,867      3.05     15,853      5.04     16,004

  Liaoning       14.20    275,557     20.80    307,457     27.80    430,282     29.70    396,991

  Jilin          8.60     50,302      9.30     52,814      11.82    65,716      9.75     62,618

  Heilongjiang   1.60     8,157       1.50     7,249       2.02     9,611       1.64     10,513

  Shanghai       1.20     26,679      1.10     22,007      1.10     23,124      1.39     23,921

  Jiangsu        4.20     71,577      5.90     77,060      5.90     87,697      8.10     114,568

  Zhejiang       4.50     92,021      4.60     97,346      5.14     114,569     6.20     132,849

  Anhui          3.60     34,281      3.54     48,868      4.60     56,156      5.06     76,062

  Fujian         2.10     27,503      2.20     32,449      2.60     38,702      3.10     39,291

  Jiangxi        2.20     2,551       2.00     2,892       2.90     2,681       1.76     3,294

  Shandong       20.90    268,986     29.20    362,593     36.50    475,325     49.67    619,141

  Henan          11.30    153,047     12.24    182,392     16.80    208,280     18.15    280,331

  Hubei          4.00     53,893      5.27     70,952      5.10     74,788      4.90     68,301

  Hunan          3.00     13,359      3.40     14,960      4.00     18,764      5.30     24,218

  Guangdong      0.00     0           0.00     0           0.00     0           0.00     0

  Guangxi        0.00     21,662      2.70     25,455      5.20     39,427      7.80     63,058

  Hainan         0.00     0           0.00     0           0.00     0           0.00     0

  Chongqing      1.00     8,618       1.00     9,142       1.17     9,917       1.47     10,493

  Sichuan        5.10     82,611      6.40     97,005      7.70     116,037     9.10     120,980

  Guizhou        3.40     7,621       2.50     9,077       3.54     10,241      3.20     11,306

  Yunnan         1.60     11,881      2.60     15,599      3.80     17,746      6.30     25,414

  Tibet          0.00     0           0.00     0           0.00     0           0.00     0

  Shaanxi        4.30     41,845      4.38     37,669      5.31     41,550      6.87     58,206

  Gansu          2.20     13,782      3.00     20,150      4.20     22,194      6.87     32,008

  Qinghai        0.00     67          0.01     106         0.00     107         0.02     117

  Ningxia        1.90     5,806       4.18     6,577       5.42     8,959       6.61     20,582

  Xinjiang       32.00    555,408     41.30    610,415     59.10    683,645     70.55    661,524

  National Total 178.00   2,358,219   223.24   2,708,127   283.04   3,281,698   334.00   3,679,680

  Source: China                                                                          
  Agricultural                                                                           
  Yearbooks                                                                              
  -------------- -------- ----------- -------- ----------- -------- ----------- -------- -----------