Required Report - Public distribution

**Date:** 11/15/2008

**GAIN Report Number:** CH8108

CH8108

**China, Peoples Republic of**

**Fresh Deciduous Fruit**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)Jorge Sanchez

AGBEIJING

**Prepared by:**

Chanda Beckman, Wu Bugang, and May Liu

**Report Highlights:**

China's apple production is forecast at 28.5 million MT in MY 2008, up
15 percent from the previous year, the result of a high year in the
production cycle. Concentrated apple juice production is forecast at
600,000 MT in MY 2008, down 50 percent from the previous year,
attributed both to large quantities of carry-over stock and weakening
demand in the world market. Industry sources believe that crushers held
at least 300,000 MT of stocks at the end of MY 2007, as sky-rocketing
prices limited the buying interest of the major world buyers. Apple
exports are forecast at 870,000 MT in MY 2008, while CAJ exports are
forecast at 700,000 MT in MY 2008, down 13 percent from the previous
year, given expected lower demand from Europe and America.

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* 4](#apples)

[*Apple Juice* 4](#__RefHeading___Toc214525687)

[*Pears* 5](#pears)

[*Grapes* 5](#grapes)

[Prices 5](#prices)

[Consumption 6](#consumption)

[Trade 7](#trade)

[*Imports* 7](#imports)

[*Exports* 8](#exports)

[Policy 9](#policy)

[Marketing 9](#marketing)

[*Regional Markets* 9](#regional-markets)

[*Limits to Cold Chain* 10](#limits-to-cold-chain)

[*Wholesale Markets Handle Largest Amount of Imported Fruit*
10](#__RefHeading___Toc214525699)

[*IPR Concerns* 10](#ipr-concerns)

[*How Apples are Marketed* 10](#how-apples-are-marketed)

[*How Table Grapes are Marketed* 11](#how-table-grapes-are-marketed)

[Tables 12](#tables)

[China Apple Production (1000 Ha and MT) by Province 2003-2007
12](#china-apple-production-1000-ha-and-mt-by-province-2003-2007)

[Pear Production (1000 Ha and MT) by Province 2003-2007
13](#pear-production-1000-ha-and-mt-by-province-2003-2007)

[Grape Production (1000 Ha and MT) by Province 2003-2007
14](#grape-production-1000-ha-and-mt-by-province-2003-2007)

[Production, Supply and Demand (PS&D) Tables
15](#production-supply-and-demand-psd-tables)

[Fresh Apples 15](#fresh-apples)

[Trade Matrices for Fresh Apples 16](#trade-matrices-for-fresh-apples)

[Concentrated Apple Juice 17](#concentrated-apple-juice)

[Trade Matrix for Concentrated Apple Juice
18](#trade-matrix-for-concentrated-apple-juice)

[Fresh Pears 19](#fresh-pears)

[Trade Matrix for Fresh Pears 20](#trade-matrix-for-fresh-pears)

[Table Grapes 21](#table-grapes)

[Trade Matrices for Table Grapes 22](#trade-matrices-for-table-grapes)

# Executive Summary

China's apple production is forecast at 28.5 million metric tons (MT) in
marketing year 2008 (MY, July-June), up 15 percent from the revised
figure for MY 2007, the result of a high year in the production cycle.
Apple acreage in MY 2008 is forecast at 1.98 million hectares, an
increase of only one percent from the previous year. Acreage expansion
is expected to slow in the wake of falling market prices due to a bumper
harvest this year.

Concentrated apple juice (CAJ) production is forecast at 600,000 MT in
MY 2008, down 50 percent from the previous year, attributed both to
large quantities of carry-over stock and weakening demand in the world
market. Industry sources believe that crushers were still holding at
least 300,000 MT of stocks at the end of MY 2007, as sky-rocketing
prices set by Chinese juice producers at the beginning of the previous
season have limited the buying interest of the major world buyers,
especially those in Europe.

China's pear production is forecast at 13 million MT in MY 2008, an
increase of only one percent over the revised estimate of 12.8 million
MT in MY 2007, despite the fact that acreage decreased slightly. Grape
production is forecast at seven million MT in MY 2008, up five percent
from the previous year on increased acreage, which is forecast at
460,000 hectares in MY 2008. Production is also up as a result of better
returns compared with other deciduous fruits.

Apple imports are forecast at 42,000 MT in MY 2008, up six percent from
the revised estimate of 39,782 MT the previous year. Table grape imports
are forecast at 52,000 MT in MY 2008, up 12 percent from the previous
year, given strong demand for this fruit. Apple exports are forecast at
870,000 MT in MY 2008, down 15 percent from the revised estimate in the
previous year, as a result of reduced demand due to the worldwide
economic slowdown. CAJ exports are forecast at 700,000 MT in MY 2008,
down 13 percent from the previous year, given expected lower demand from
Europe and America. Pear exports are forecast at 450,000 MT in MY 2008,
up seven percent from the previous year as world buyers, mainly in Asia,
are showing a quite strong buying interest for Chinese pears.

China's table grape exports are forecast at 72,000 MT in MY 2008, up
more than 30 percent over the previous year, thanks to strong demand
from neighboring countries in Asia.

# Production

## *Apples*

China's apple production is forecast at 28.5 million metric tons (MT) in
marketing year 2008 (MY, July-June), up 15 percent from the revised
figure for MY 2007, the result of a high year in the production cycle.
Favorable weather conditions in major production areas such as Shaanxi
and Shandong, the top two apple-producing provinces, have also
contributed to the production increases. While apple quality is
generally desirable this year, fruit size appears to be smaller than the
previous season. To echo industry expectations, the MY 2007 apple
production figure is revised up to 24.8 million MT from the earlier
estimate of 23 million MT. China's Ministry of Agriculture reported a
record crop of 27.8 million MT in 2007, but high market prices indicate
production figures are not realistically that high.

Apple acreage in MY 2008 is forecast at 1.98 million hectares, an
increase of only one percent from the previous year. Acreage expansion
is expected to slow in the wake of falling market prices due to a bumper
harvest this year. The area increases are mainly occurring in the Yellow
Plateau area that encompasses Shaanxi, Shanxi, and Gansu Provinces. Fuji
apples account for 51 percent of China's total planted area, followed by
Ralls Janet (14 percent), Red Delicious (10 percent), Gold Delicious (6
percent), Jonathan (3 percent), and Gala (3 percent).

Yields averaged 37.5 MT per hectare in Shandong province in 2007,
according to an agricultural product cost and profit report compiled by
the National Development and Reform Commission (NDRC). The costs of
inputs required for apple production continue to rise. For example in
Shandong Province the average price of fertilizer reached U.S. \$1,362
(9,330 RMB) per hectare in 2007, up 28 percent over 2006. The price of
pesticides was reported at U.S. \$811 (5,547 RMB) per hectare in 2007,
up 12 percent from the previous year, while labor costs rose to U.S.
\$5.26 (36 RMB) per day, up 32 percent from 2006. Although China's
Consumer Price Index continues to decline from the peak of 8.7 percent
in February 2008 to 4.6 percent in September, the Producer Price Index
was still high at 9.1 percent. For these reasons, the cost of production
in 2008 has significantly increased over that of 2007.

Specialization has become more common in the apple industry. Enterprises
and individuals now tend to focus on one or two segments of the
production and distribution chain that includes production, purchasing,
packaging, storing, marketing, and export. Resources are better
consolidated in the specialization process. A major exporter in Shandong
Province, for instance, is no longer exporting apples and has instead
become a supplier who sources and packages apples for many exporters
across the country.

[]{#__RefHeading___Toc214525687 .anchor}*Apple Juice\
*Concentrated apple juice (CAJ) production is forecast at 600,000 MT in
MY 2008, down 50 percent from the previous year, attributed both to
large quantities of carry-over stock and weakening demand in the world
market. Industry sources believe that crushers were still holding at
least 300,000 MT of stocks at the end of MY 2007, as sky-rocketing
prices set by Chinese juice producers at the beginning of the previous
season have limited the buying interest of the major world buyers,
especially those in Europe. Encouraged by the fact that Poland's CAJ
production would drop by 50 percent due to a severe frost and further
fueled by strong world demand in the second half of MY 2006, Chinese
crushers bought as many apples as possible in MY 2007. This rampant
buying pushed juicing apple prices higher than U.S. \$215 per MT (it
requires about seven MT of raw apples to make one MT of CAJ). As a
result, CAJ prices were at one point quoted at U.S. \$1,800-2,000 per
MT. Given the large amount of carry-over stocks, China's Juice Chamber
of Commerce has instructed the juicing companies to postpone this year's
crushing season by six weeks. A major Chinese juicing company recently
announced China's industry will cut production by 35 percent in MY 2008,
but industry sources indicate that China's CAJ production will fall by
more than 50 percent, especially given the current worldwide economic
slowdown. China's processing capacity is reported to have reached 4,885
MT per hour.

## *Pears*

China's pear production is forecast at 13 million MT in MY 2008, an
increase of only one percent over the revised estimate of 12.8 million
MT in MY 2007, despite the fact that acreage decreased slightly. Pear
acreage is forecast at 1.06 million hectares in MY 2008, down
one-percent from the previous year. Pear planted area has continued its
slight decline over the past few years as a result of weak market
prices. Major varieties being planted include: Su pear (24 percent), Ya
pear (12 percent), Cuiguan (10 percent), Fengshui (7 percent), Golden
pear (6 percent), Huanghua (6 percent), Nanguo (6 percent), and Xiang
(or fragrant) pear (5 percent).

## *Grapes*

Grape production is forecast at seven million MT in MY 2008, up five
percent from the previous year on increased acreage, which is forecast
at 460,000 hectares in MY 2008. Production is also up as a result of
better returns compared with other deciduous fruits. MY 2007 production
is revised down three percent from the previous estimate to 6.6 million
MT. Grapes are planted in many provinces across China but production is
increasing faster in southern provinces like Jiangsu, Zhejiang, Yunnan,
and Guangxi that are close to major domestic consumption markets in
China. Red Globe is the most popular variety being planted across China.

# 

# Prices

Currently, the best quality Fuji apples are priced at U.S. \$0.38 (2.6
RMB) per kilo in Xixia, Shandong Province, down 40 percent from the
previous year. In the beginning of MY 2007, many traders and cold
storage owners paid between U.S. \$0.59-0.70 (4-4.8 RMB) per kilo for
the same grade apples, encouraged by reduced production and in
anticipation of strong consumption before and during the Beijing
Olympics in August 2008. The highly anticipated consumption boom,
however, did not happen and apple prices began to fall in June 2008. As
a result, many fruit dealers were still holding a significant amount of
stocks after the new season began in July, and these companies have
become cautious about making offers. Meanwhile, juicing apples are
priced at about U.S. \$88 per MT, down more than 60 percent from the
previous season due to the delayed crushing season.

Farm gate prices for Ya pears are quoted at U.S. \$0.14-0.23 (1-1.6 RMB)
per kilo in Hebei, the top pear producing province, stable compared with
prices the previous year. Unlike other fresh deciduous fruits, grape
prices vary significantly from place to place.

![](media/image2.wmf){width="6.498611111111111in" height="3.35625in"}

![](media/image3.wmf){width="6.498611111111111in"
height="2.9368055555555554in"}

Note: Wholesale market prices compiled from the Ministry of
Agriculture's database. Prices reflect the average wholesale price in
markets across China.

# Consumption

Consumption of fruit represents an increasing share among total food
expenditures in urban households in China, along with rising income and
enhanced consciousness about health and food nutrition. Ministry of
Agriculture data indicates the per capita consumption of fruit in urban
areas reached U.S. \$35.31 (240.15 RMB) per year in 2006, accounting for
7.7 percent of total food expenditures. The share increased by 1.8
percent from ten years ago and is expected to continue this upward trend
in 2007 and 2008. The very best apples are priced much higher than
regular apples and though more expensive, are selling quite well. Given
the fact that this year's apples are sized smaller than the previous
year, the best quality apples will likely be in short supply. The
consumption volume in southern China is generally greater than in
northern China, but the consumption of apples in northern cities like
Beijing is catching up.

Compared with staple foods like rice, the consumption volume of fruit in
China is more dependent on price. Lower apple prices are likely to boost
the domestic consumption of apples. In addition, an outbreak of citrus
fruit fly in Sichuan Province has already impacted the buying interest
of Chinese consumers on citrus products and they are likely to
substitute with apples.

Pear consumption is quite stable and is likely to remain at the current
level for the foreseeable future. At present, the per capita consumption
of pears reached 9 kg, higher than world average of 6.3 kg. Grape
consumption is expected to grow steadily as Chinese consumers
traditionally enjoy this fruit. Improvements in cold storage facilities
have also helped extended the supply season and thus further boost the
overall consumption of grapes.

Juice and juice drink consumption has grown in double digits in recent
years. China's production of juice and juice drinks reached 10.8 million
MT in 2007, overtaking carbonated soft drinks for the first time and
becoming the second largest beverage consumed next to bottled water.
Apple juice is the third largest juice consumed next to orange and peach
juice in China. Young consumers in urban areas are reportedly the main
driving force for juice consumption growth. Industry sources are
predicting large increases in juice consumption, as very few of China's
800 million rural consumers currently drink juice.

China's State Statistics Bureau reported third quarter GDP growth of
nine percent, down from the peak of 12.7 percent in the second quarter
of 2007. The growth rate has declined for five consecutive quarters.
Although the economic slow-down is not having an immediate impact on
food consumption, it certainly creates uncertainties over the
consumption of fruit products in the future if the economic situation
continues to worsen in China.

**Share of Fruit and Vegetables in Urban Household Food Expenditures**

![](media/image4.png){width="6.845833333333333in"
height="2.4902777777777776in"}

# Trade

## *Imports*

Apple imports are forecast at 42,000 MT in MY 2008, up six percent from
the revised estimate of 39,782 MT the previous year. The U.S. Red
Delicious variety is consumed by a relatively stable group of consumers
who like the color, shape, and size of this fruit. Imports of fresh
apples from Chile and New Zealand, the other two major apple suppliers
to China, are expected to increase. China does not maintain varietal
restrictions over apple imports from these two countries as it does with
the United States (currently, only Red and Golden Delicious varieties
from the Pacific Northwest are allowed market access). Additionally,
Chile and New Zealand have both signed free trade agreements with China
and enjoy lower apple import tariffs as a result. Chinese importers,
however, are expected to be very cautious about placing orders in the
wake of the uncertain economic situation across the globe. According to
China Customs data, in 2007 around 65 percent of total apple imports
came through South China ports, most of these apples were from Chile
(U.S. \$11.5 million), the United States (U.S. \$8.8 million) and New
Zealand (U.S. \$3.8 million). These figures do not account for grey
channel trade. 

Table grape imports are forecast at 52,000 MT in MY 2008, up 12 percent
from the previous year, given strong demand for this fruit. MY 2007
imports are also revised up 16 percent to 46,464 MT to echo industry
estimates. Grapes are one of Chinese consumers' favorite fruits and a
growing number of middle class consumers are driving China's import
volumes of fresh grapes up. The availability of more varieties, like
seedless grapes, is also expected to boost imports. Chile remains the
top supplier of table grapes to China, followed by the United States and
Peru. Though official data indicates total table grape imports valued at
U.S. \$63 million in 2007, down nine percent from 2006, many industry
sources believe additional imports transshipped through grey channels
(from Hong Kong and Taiwan) should not be ignored.

## *Exports*

Apple exports are forecast at 870,000 MT in MY 2008, down 15 percent
from the revised estimate in the previous year, as a result of reduced
demand due to the worldwide economic slowdown. Russia, for example, is
the top export market for China's fresh apples, and has canceled some
contracts signed earlier this year. Many buyers, including those from
Southeast Asia, have also become very cautious about placing orders and
are buying product by the month or week supply, small amounts in each
order. India is an emerging market for exports of Chinese apples that
has shown strong buying power in recent years.

CAJ exports are forecast at 700,000 MT in MY 2008, down 13 percent from
the previous year, given expected lower demand from Europe and America.
China exported 893,680 MT of CAJ in MY 2007, similar to the amount of
893,437 MT in MY 2006, largely due to strong demand from the United
States, whose CAJ imports from China increased by nine percent in MY
2007 over MY 2006. CAJ imports from European countries declined by 25
percent in MY 2007, mainly attributed to high prices. The United States
is unlikely to maintain strong demand this year given the current
financial crunch. Chinese CAJ enters the U.S. market under a zero
tariff, while Chinese exporters to the EU have to pay import duties of
22.5 percent.

Pear exports are forecast at 450,000 MT in MY 2008, up seven percent
from the previous year as world buyers, mainly in Asia, are showing a
quite strong buying interest for Chinese pears. It is hard to predict
whether this momentum will continue for the remainder of the year with
the current worldwide economic situation.

China's table grape exports are forecast at 72,000 MT in MY 2008, up
more than 30 percent over the previous year, thanks to strong demand
from neighboring countries in Asia. China exported 33,365 MT of fresh
grapes from June - September, up 58 percent on a yearly basis. This
rapid growth is expected to slow in the months to come given worsening
world economy. While China's export volume of fresh table grapes is
relatively small, price advantages have allowed it to rapidly increase.

# Policy

In September 2008, the Ministry of Agriculture (MOA) released a new
"Layout Plan for China's Advantageous Agricultural Products
(2008-2015)." The plan provides guidelines for the layout and
development goals for 16 agricultural products that the government
believes will have a competitive advantage in the coming eight years.
According to the plan, the government will support development of apple
production in two key areas: Bohai Bay and the Yellow Plateau. Bohai
Bay, which encompasses parts of Shandong, Liaoning, and Hebei Provinces,
will focus on production of apples for fresh-consumption, while the
Yellow Plateau, which covers parts of Shaanxi, Shanxi, Gansu, and Henan
Provinces, will become a production base for both fresh-consumption and
juicing apples.

Efforts will be made to facilitate fresh apple export and processing,
stabilize acreage, and increase yields. Specific strategies include 1)
reforming seedling breeding/cultivation system and applying pest and
disease control; 2) establishing good agricultural practices (GAP) and a
traceability system; and 3) supporting top fruit-processing enterprises
and developing the cold chain.

The plan has also set development goals for China's apple industry. By
2015, apple acreage is expected to reach 1.33 million hectares in the
two areas above and apple production is expected to exceed 28 million
MT, accounting for 82 percent of the nation's total production. About 40
percent of the total apples produced in these two areas will be
processed. Exports of fresh apples and CAJ in Bohai Bay and the Yellow
Plateau are expected to account for 70 percent and 99 percent of
production, respectively.

In addition to policy guidance, the central government is also expected
to provide tangible support to the apple industry. After publishing the
first Layout Plan for China's Advantageous Agricultural Products
(2003-2007), in 2005 the Ministry of Agriculture began providing
subsidies to farmers in the two areas to begin bagging their apples on
the tree. About 25 million RMB was allocated in 2008 to subsidize
bagging on a total of 8,333 hectares of orchards in Henan, Hebei,
Shanxi, Shandong, Liaoning, and Shaanxi Provinces. Most support,
however, has been provided by provincial and/or lower level governments.
By the end of the first layout plan, the two areas combined accounted
for 50.7 percent of China's total apple acreage, 63 percent of total
apple production, and 54 percent of China's fresh apple exports.

The Free Trade Agreement (FTA) between China and New Zealand took effect
on October 1, 2008. According to the tariff schedule, China's import
duties for New Zealand fresh apples will be reduced by two percent each
year over the next four years and will be eliminated in 2012. New
Zealand is currently the third largest supplier of fresh apples to China
behind Chile and the United States.

# Marketing

With China\'s continual double-digit GDP growth over the last five
years, the retail sector has also expanded. Rising incomes and continued
urbanization have led to a more diverse diet and greater consumer
receptiveness to imported foods, including fresh deciduous fruits. Well
off consumers in wealthy, urban cities are less price sensitive than
others. These consumers also pay closer attention to fruit
characteristics and presentation such as flavor, freshness, color, and
appearance. With concerns over food safety and more healthful diets in
mind, nutritional benefits are new selling points for retailers when
promoting fresh fruits.  

## *Regional Markets *

South China plays an important role in marketing fresh deciduous fruits,
especially imported apples and table grapes. In the South, Guangzhou and
Shantou are two key ports for importing U.S. and Chilean fruits. Key
consumption markets are in Guangzhou and Shenzhen. Emerging markets
include cities in the Pearl River Delta such as Dongguan, Foshan,
Zhuhai, Changsha in Hunan Province, and Xiamen in Fujian province.  \
\
China's East and North have also witnessed increasing demand for
imported fruits in recent years. Direct shipments to local ports have
increased, and help to reduce transportation costs and facilitate
trade.  In the North, Dalian and Qingdao are emerging markets in
addition to the well-developed Beijing market. In 2007, around 24
percent of China's total fresh apple imports went directly to the North.
Shanghai is historically one of the leading markets in East China, while
other emerging markets in the East include Nanjing, Hangzhou, Wenzhou,
and Wuhan.

## *Limits to Cold Chain*

Cold chain storage and proper handling are essential for keeping fruits
fresh. Limits to China's cold chain system have resulted in significant
losses to both traders and retailers. Thus retailers, wholesale markets,
and distributors are now paying greater attention to these issues.
However, in general there is much room for improvement on cold chain
management in a country as large as China. More efforts should be
invested on infrastructure construction and education.\
 

[]{#__RefHeading___Toc214525699 .anchor}*Wholesale Markets Handle
Largest Amount of Imported Fruit\
*Jiangnan Fruit and Vegetable Wholesale Market in Guangzhou is the
largest wholesale market in China in terms of total sales and the volume
of imported fruit transactions. Industry sources estimate that 60-70
percent of all of China's imported fruits come through this market.
About 50 percent of those imports are consumed in Guangdong Province
alone. Longwu Fruit and Vegetable Wholesale Market in Shanghai is
another key hub for imported fruits trade in the East.  Many of China's
wholesale markets are expected to invest in upgrading their facilities
and images over the next few years.  \
 \
The best venues for U.S. apples and table grapes in the East and North
are the modern retail outlets, while in the South, imported apples and
grapes can be found not only in hypermarkets and supermarkets, but also
at many smaller fruit stalls.  In order to attract more traffic and
differentiate from competitors, fruit gift baskets and boxes were
introduced into retail stores. Waterfall displays at store entrances,
color breaks, in-store sampling, theme promotion, and nutritional
guidance have also helped to boost sales.  Recently some emerging
produce chain stores have begun offering on-line internet ordering
services, though the volume is limited.\
 

## *IPR Concerns*

IPR issues are still is a problem for fresh deciduous fruits. Plastic
packages printed with "California table grapes" sometimes are misused to
pack domestically produced table grapes or those sourced from other
countries. Consumers and some local retailers have little awareness of
varietal difference for imported fruits. Few retailers will mark
individual variety names on their price tags/tickets. The common
practice is to indicate origin of country only.

## *How Apples are Marketed*

Red Delicious apple from Washington State, available year-round in the
market, show up in modern retail venues and family-owned fruit stalls,
mostly in China's larger cities. Industry insiders believe Red Delicious
are a good choice for gift-giving because of their shiny dark red color
and unique, uniform shape. These are most commonly given as gifts
during national holidays such as Mid-Autumn Festival, National
Holiday, Spring Festival, and other special occasions.\
 \
There is increasing demand for U.S. Granny Smith and aromatic sweet Gala
varieties. These two varieties are not allowed market access to China,
but can often be found on the market, coming in via grey channels. They
are available from August through March. Chilean Grannies and Galas are
allowed into China and are available from March to September. In
addition, apples from New Zealand arrive in China in March as well.
Industry insiders foresee a promising market prospect for U.S. Granny
Smith and Gala varieties once the market access challenges can
be resolved.

## * **How Table Grapes are Marketed*

South China is also China's largest fresh table grape consumption
region, followed by the East and North regions. Over 85 percent of
imported table grapes enter China through South China ports. Key
exporting countries are Chile, the United States, and Peru. U.S. grapes
are consumed mainly during the Mid-Autumn Festival (September) and
National Day (October) holidays, while Chilean grape exporters target
China's Spring Festival (January or February).

In 2007, South China ports (Guangzhou, Shantou, and Shenzhen) imported
U.S. \$22 million of U.S. fresh grapes, accounting for 89 percent of
China's total grape imports. California table grapes are one of the
favorite fruits for China consumers. These are available from
late September through December.  Retail demand for U.S. seedless
varieties is also increasing, though the retail price may be much higher
than the seeded varieties. Red Globe is the most popular seeded grape
variety with highest sales volume. 

Although China produces a large amount of Red Globes, U.S. grapes are
firmer, look and taste better, and the size is larger with more
consistent quality than the local product. Other varieties such as
Crimson and Thomson are gaining ground. North China is the key
production region for table grapes. In that region, the price of
domestic table grapes is as low as one-sixth the price of imported
grapes.

 

# Tables

## China Apple Production (1000 Ha and MT) by Province 2003-2007

  -------------- ---------- ------------ --------- ------------ ----------- ------------ --------- ------------ --------- ------------
  Province       2003                    2004                   2005                     2006                   2007      

                 1000 ha    MT           1000 ha   MT           1000 ha     MT           1000 ha   MT           1000 ha   MT

  Shandong       357.30     6,118,563    340.5     6,690,553    342.5       6,716,634    311.1     6,930,492    304.9     7,249,227

  Shaanxi        401.50     4,617,921    412.1     5,552,054    426.3       5,601,167    462.2     6,499,755    484.9     7,015,682

  Henan          164.50     2,509,614    164.7     2,869,272    165.8       3,006,245    167.7     3,227,885    182.3     3,523,310

  Hebei          276.40     2,002,769    266.5     2,142,882    263.9       2,202,273    253.1     2,357,620    250.0     2,478,845

  Shanxi         154.10     1,801,786    152.7     2,021,372    151.4       1,648,413    146.0     1,867,049    144.3     1,872,681

  Liaoning       115.10     1,089,937    111.8     1,222,119    110.3       1,299,595    109.1     1,301,399    107.1     1,514,871

  Gansu          167.50     829,959      173.2     799,650      183.8       1,012,568    207.4     1,254,141    247.6     1,424,253

  Jiangsu        38.90      494,611      38.0      560,871      38.4        552,794      36.5      572,600      35.1      618,453

  Anhui          17.10      221,317      16.1      283,524      13.9        278,143      13.4      341,828      13.3      403,627

  Xinjiang       27.80      263,418      28.9      293,850      28.6        330,206      31.1      327,886      32.5      388,881

  Sichuan        26.80      225,384      26.4      240,481      26.6        242,923      26.2      248,022      27.8      296,977

  Ningxia        20.40      154,927      18.3      156,333      19.1        222,126      20.3      200,694      21.5      275,525

  Yunnan         33.70      13,414       33.1      141,239      31.5        159,396      30.3      201,962      31.1      234,855

  Heilongjiang   18.40      169,115      16.1      160,003      15.5        177,432      13.3      159,759      13.2      150,534

  Jilin          25.30      190,133      20.4      241,491      18.6        252,298      17.7      268,055      14.2      133,153

  Beijing        13.20      134,815      12.9      134,753      10.8        138,447      9.5       131,071      10.3      119,459

  Inner Mongolia 18.80      51,940       21.4      59,327       22.5        62,319       22.9      65,961       21.3      61,672

  Tianjin        7.30       68,069       6.2       64,721       6.4         66,039       6.2       64,076       5.5       59,709

  Guizhou        4.80       9,262        6.0       10,263       5.7         10,230       6.0       10,628       6.4       11,023

  Hubei          4.20       13,458       3.6       10,934       3.3         12,437       3.2       11,866       3.0       10,351

  Chongqing      2.70       6,441        1.8       6,854        1.9         6,094        1.7       6,326        1.8       6,693

  Qinghai        3.90       8,246        5.3       7,198        2.8         7,316        2.9       5,939        2.7       5,804

  Tibet          0.60       5,577        0.6       5,327        0.7         5,674        1.0       3,934        1.0       3,994

  Fujian         0.00       151          0.1       244          0.0         198          0.0       189          N/A       201

  Shanghai       0.00       139          0.0       158          0.0         114          0.0       158          N/A       154

  Zhejiang       0.20       810          0.0       0.0          0.0         0.0          0.0       0            0.0       0.0

  Jiangxi        0.00       0            0.0       0.0          0.0         0.0          0.0       0            0.0       0.0

  Hunan          0.00       0            0.0       0.0          0.0         0.0          0.0       0            0.0       0.0

  Guangdong      0.00       0            0.0       0.0          0.0         0.0          0.0       0            0.0       0.0

  Guangxi        0.00       0            0.0       0.0          0.0         0.0          0.0       0            0.0       0.0

  Hainan         0.00       0            0.0       0.0          0.0         0.0          0.0       0            0.0       0.0

  National Total 1,900.50   21,001,776   1,876.7   23,675,473   1,890,300   24,011,081   1,898.8   26,059,298   1,961.8   27,859,935

  Source: China                                                                                                           
  Agriculture                                                                                                             
  Statistical                                                                                                             
  Report                                                                                                                  
  -------------- ---------- ------------ --------- ------------ ----------- ------------ --------- ------------ --------- ------------

## Pear Production (1000 Ha and MT) by Province 2003-2007

  -------------- --------- ----------- --------- ------------ --------- ------------ --------- ------------ -------- ------------
                 2003                  2004                   2005                   2006                   2007     

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

  Hebei          213.1     2,820,702   213.3     3,131,868    215.0     3,246,220    215.0     3,334,972    200.9    3,459,772

  Shandong       74.1      982,562     70.6      1,000,938    69.9      1,061,389    59.6      1,103,481    54.9     1,172,162

  Anhui          36.5      583,091     38.4      601,134      38.6      638,058      37.4      803,652      36.4     929,719

  Sichuan        71.2      547,714     78.9      620,276      83.0      684,593      80.5      746,048      82.3     819,776

  Henan          36.7      433,413     36.4      544,554      39.2      654,680      41.1      695,950      43.2     799,939

  Liaoning       85.5      515,892     88.5      605,679      91.6      690,354      87.7      705,232      79.6     762,452

  Jiangsu        44.2      502,033     44.7      542,455      47.3      556,158      40.2      614,252      36.4     627,634

  Shaanxi        57.3      689,816     59.8      669,327      59.6      621,224      60.4      650,028      55.1     618,962

  Xinjiang       47.7      249,537     53.3      285,703      66.8      367,808      69.2      435,203      70.5     541,451

  Hubei          40.9      563,895     39.7      548,759      35.9      501,856      38.1      518,020      35.5     493,185

  Zhejiang       24.1      244,454     25.7      285,751      26.6      310,375      26.5      329,753      27.9     360,524

  Shanxi         27.9      154,901     28.5      197,298      30.0      246,247      29.6      184,207      31.1     326,969

  Gansu          51        286,128     50.0      251,516      49.5      283,345      48.4      314,798      46.8     294,239

  Yunnan         39.7      176,285     38.6      189,396      39.7      197,028      41.7      216,936      43.4     240,519

  Chongqing      24.4      142,901     26.3      161,200      28.0      180,049      29.0      171,962      30.8     206,088

  Fujian         22.5      129,980     22.8      142,254      23.0      147,755      22.4      152,309      22.3     164,479

  Guangxi        13.3      82,088      14.3      97,452       16.7      120,741      17.8      135,582      18.0     156,428

  Beijing        12.5      130,766     10.9      137,563      11.2      145,759      11.0      153,566      10.4     154,368

  Guizhou        31        97,867      33.9      108,368      36.5      123,740      36.8      139,412      38.5     148,008

  Hunan          24.1      70,750      25.5      84,435       27.5      108,417      30.9      117,613      36.9     133,225

  Jilin          26.3      120,215     21.4      156,736      17.8      134,833      17.1      137,690      16.0     129,540

  Jiangxi        21.8      45,181      24.0      65,685       26.2      74,538       26.7      80,651       23.5     89,012

  Inner Mongolia 13.6      93,020      11.4      68,425       10.8      77,602       8.9       79,391       8.9      85,216

  Guangdong      6.3       38,760      6.4       42,097       7.3       42,963       6.9       43,808       7.0      51,035

  Heilongjiang   5.7       35,379      5.4       47,149       5.4       48,422       4.9       49,124       5.1      46,524

  Shanghai       2.1       17,931      2.4       17,710       2.0       18,794       2.0       31,639       2.0      31,855

  Tianjin        4.1       25,851      3.5       25,182       3.5       22,553       3.5       25,719       36.4     28,870

  Ningxia        2.6       12,430      2.4       7,502        2.3       12,081       2.7       9,242        2.7      17,174

  Qinghai        1.2       4,418       1.6       5,362        1.2       5,105        1.1       4,912        1.1      4,894

  Tibet          0.1       464         0.1       513          0.1       836          0.1       931          0.1      987

  Hainan         0         0           0.0       0.0          0.0       0.0          0         0            0.0      0.0

  National Total 1,061.5   9,798,424   1,078.7   10,642,287   1,112.0   11,323,514   1,087.1   11,986,083   1,71.3   12,895,005

  Source: China                                                                                                      
  Agricultural                                                                                                       
  Statistical                                                                                                        
  Report                                                                                                             
  -------------- --------- ----------- --------- ------------ --------- ------------ --------- ------------ -------- ------------

## Grape Production (1000 Ha and MT) by Province 2003-2007

  -------------- ------ ----------- ------- ----------- --------- ----------- ------- ----------- ------- -----------
                 2003               2004                2005                  2006                2007    

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

  Xinjiang       91.7   1,066,331   92.2    1,241,450   96.2      1,287,642   103.9   1,502,035   109.6   1,654,581

  Hebei          52.1   803,418     53.3    840,916     54.2      863,938     58.1    878,417     57.9    946,886

  Shandong       65.9   761,031     50.9    849,718     46.5      831,401     42.3    845,487     44.2    917,312

  Liaoning       37.4   586,124     36.8    613,683     28.1      581,711     26.8    587,191     25.2    493,775

  Henan          21.6   331,036     25.0    382,743     26.2      412,605     25.0    405,125     26.2    419,473

  Zhejiang       8.2    172,714     9.3     203,076     9.8       219,942     10.4    238,389     12.1    269,051

  Jiangsu        10.8   140,777     10.9    164,829     11.4      153,021     13.0    208,275     12.7    202,401

  Shaanxi        11.4   89,925      12.7    110,842     13.9      139,372     14.7    168,353     15.1    185,261

  Sichuan        11.1   144,409     11.7    142,587     12.1      160,827     12.9    170,534     13.4    180,134

  Anhui          7.6    161,600     9.1     165,377     6.0       173,264     5.8     174,710     5.2     178,298

  Guangxi        8.6    94,210      8.9     106,512     10.0      119,135     11.5    137,047     11.1    158,873

  Jilin          13.8   107,362     10.6    108,831     10.2      109,971     11.0    110,948     11.1    138,885

  Tianjin        5.9    140,060     5.6     132,084     5.1       93,229      5.2     104,103     5.4     109,545

  Gansu          9.4    63,343      9.2     70,002      8.9       77,506      8.9     90,443      10.2    105,950

  Shanxi         13.7   111,885     14.2    116,572     13.2      119,187     10.2    91,699      9.8     104,274

  Yunnan         5.3    42,606      5.3     50,862      5.6       69,734      6.3     90,117      7.0     93,800

  Fujian         4.5    55,801      4.8     67,449      5.0       59,066      5.5     85,010      5.2     86,808

  Hubei          5.7    57,415      5.2     50,519      4.8       49,671      5.2     73,670      5.7     86,313

  Hunan          9.8    36,944      11.7    46,153      12.4      52,255      13.0    59,502      18.9    73,180

  Ningxia        7      41,407      6.9     37,688      7.8       48,154      8.8     64,796      10.2    70,576

  Beijing        4.5    63,053      3.1     57,700      3.2       50,559      3.0     47,377      2.7     47,486

  Shanghai       1.5    27,564      1.7     26,165      1.8       26,681      2.1     33,895      2.7     45,682

  Inner Mongolia 3.5    20,789      4.9     23,339      5.3       29,119      4.5     35,386      4.8     40,989

  Guizhou        3.4    15,895      3.8     17,346      4.5       21,050      4.5     22,516      5.9     32,793

  Chongqing      2.6    17,413      2.1     17,183      2.3       20,727      2.6     18,919      2.7     22,666

  Heilongjiang   2.1    19,122      1.6     27,404      1.7       20,720      1.6     22,728      1.8     21,847

  Jiangxi        1.8    3,631       1.9     3,868       1.9       3,741       1.9     3,856       12.7    9,614

  Tibet          0      0           0.0     318         0.0       103         0.0     114         0.1     250

  Qinghai        0.1    74          0.1     102         0.0       80          0.0     114         N/A     112

  Guangdong      0      0           0.0     0.0         0.0       0.0         0.0     0           0.0     0.0

  Hainan         0      0           0.0     0.0         0.0       0.0         0.0     0           0.0     0.0

  National Total 421    5,175,939   413.5   5,675,318   408,100   5,794,411   418.7   6,270,756   438.4   6,696,814

  Source: China                                                                                           
  Agriculture                                                                                             
  Statistical                                                                                             
  Report                                                                                                  
  -------------- ------ ----------- ------- ----------- --------- ----------- ------- ----------- ------- -----------

## Production, Supply and Demand (PS&D) Tables

### Fresh Apples

<table>
<colgroup>
<col style="width: 12%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Apples, Fresh</strong></td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>07/2005</td>
<td>07/2005</td>
<td></td>
<td>07/2006</td>
<td>07/2006</td>
<td></td>
<td>07/2007</td>
<td>07/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>1899000</td>
<td>1899000</td>
<td>1899000</td>
<td>1950000</td>
<td>1950000</td>
<td>1961800</td>
<td>0</td>
<td>0</td>
<td>1980000</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Bearing Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Non-Bearing Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Commercial Production</td>
<td>26059298</td>
<td>26059298</td>
<td>26059298</td>
<td>23000000</td>
<td>23000000</td>
<td>24800000</td>
<td>0</td>
<td>0</td>
<td>28500000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Production</td>
<td>26059298</td>
<td>26059298</td>
<td>26059298</td>
<td>23000000</td>
<td>23000000</td>
<td>24800000</td>
<td>0</td>
<td>0</td>
<td>28500000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>33671</td>
<td>33671</td>
<td>33671</td>
<td>50000</td>
<td>50000</td>
<td>39782</td>
<td>0</td>
<td>0</td>
<td>42000</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>26092969</td>
<td>26092969</td>
<td>26092969</td>
<td>23050000</td>
<td>23050000</td>
<td>24839782</td>
<td>0</td>
<td>0</td>
<td>28542000</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>18329920</td>
<td>18329920</td>
<td>18329920</td>
<td>15170000</td>
<td>15170000</td>
<td>16058320</td>
<td>0</td>
<td>0</td>
<td>23172000</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>970549</td>
<td>970549</td>
<td>970549</td>
<td>880000</td>
<td>880000</td>
<td>1021462</td>
<td>0</td>
<td>0</td>
<td>870000</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>6792500</td>
<td>6792500</td>
<td>6792500</td>
<td>7000000</td>
<td>7000000</td>
<td>7760000</td>
<td>0</td>
<td>0</td>
<td>4500000</td>
</tr>
<tr class="even">
<td>Withdrawal From Market</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>26092969</td>
<td>26092969</td>
<td>26092969</td>
<td>23050000</td>
<td>23050000</td>
<td>24839782</td>
<td>0</td>
<td>0</td>
<td>28542000</td>
</tr>
</tbody>
</table>

### Trade Matrices for Fresh Apples

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

  **Country**         China, Peoples                      
                      Republic of                         

  **Commodity**       Apples, Fresh                       

  Time Period         　                Units:            MT

  Imports for:        2006                                **2007**

  U.S.                11557             U.S.              14250

  Others                                Others            

  Chile               14526             Chile             17338

  New Zealand         4796              New Zealand       4515

  Japan               135               Japan             292

  France              22                　                　

  South Korea         21                　                　

  Thailand            17                　                　

  　                  　                　                　

  Total for Others    19517                               22145

  Others not Listed   0                                   1

  Grand Total         31074                               36396
  ------------------- ----------------- ----------------- ----------------

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

  **Country**         China, Peoples                      
                      Republic of                         

  **Commodity**       Apples, Fresh                       

  Time Period         　                 Units:           MT

  Exports for:        2006                                **2007**

  U.S.                84                 U.S.             0

  Others                                 Others           

  Russia              141232             Russia           206098

  Indonesia           82204              Indonesia        111011

  Philippines         75478              Philippines      79369

  Vietnam             65029              Thailand         73710

  Thailand            57591              Kazakhstan       66968

  Kyrgyzstan          53152              Vietnam          52396

  Malaysia            43180              Kyrgyzstan       50084

  Kazakhstan          40627              Malaysia         49629

  Bangladesh          26686              Bangladesh       43810

  Hong Kong           26180              UAE              33689

  Total for Others    611359                              766764

  Others not Listed   192875                              252323

  Grand Total         804318                              1019087
  ------------------- ------------------ ---------------- ----------------

### Concentrated Apple Juice

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="9"><p><strong>Apple Juice, Concentrated</strong></p>
<p>(MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>07/2005</td>
<td>07/2005</td>
<td></td>
<td>07/2006</td>
<td>07/2006</td>
<td></td>
<td>07/2007</td>
<td>07/2007</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>4970000</td>
<td>4970000</td>
<td>6792500</td>
<td>7000000</td>
<td>7000000</td>
<td>7760000</td>
<td>0</td>
<td>0</td>
<td>4500000</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>1413</td>
<td>1413</td>
<td>1413</td>
<td>26513</td>
<td>26513</td>
<td>28603</td>
<td>0</td>
<td>0</td>
<td>300000</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>970357</td>
<td>970357</td>
<td>970357</td>
<td>1000000</td>
<td>1000000</td>
<td>1213482</td>
<td>0</td>
<td>0</td>
<td>600000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>354</td>
<td>354</td>
<td>270</td>
<td>120</td>
<td>120</td>
<td>1595</td>
<td>0</td>
<td>0</td>
<td>640</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>972124</td>
<td>972124</td>
<td>972040</td>
<td>1026633</td>
<td>1026633</td>
<td>1243680</td>
<td>0</td>
<td>0</td>
<td>900640</td>
</tr>
<tr class="even">
<td>Exports</td>
<td>895611</td>
<td>895611</td>
<td>893437</td>
<td>930000</td>
<td>930000</td>
<td>893680</td>
<td>0</td>
<td>0</td>
<td>700000</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>50000</td>
<td>50000</td>
<td>50000</td>
<td>45000</td>
<td>45000</td>
<td>50000</td>
<td>0</td>
<td>0</td>
<td>60000</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>26513</td>
<td>26513</td>
<td>28603</td>
<td>51633</td>
<td>51633</td>
<td>300000</td>
<td>0</td>
<td>0</td>
<td>140640</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>972124</td>
<td>972124</td>
<td>972040</td>
<td>1026633</td>
<td>1026633</td>
<td>1243680</td>
<td>0</td>
<td>0</td>
<td>900640</td>
</tr>
</tbody>
</table>

###  Trade Matrix for Concentrated Apple Juice

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

  **Country**       China, Peoples                      
                    Republic of                         

  **Commodity**     Apple Juice,                        
                    Concentrated                        

  Time Period       　                 Units:           MT

  Exports for:      2006                                **2007**

  U.S.              221960             U.S.             367184

  Others                               Others           

  Russia            92721              Netherlands      129688

  Netherlands       82532              Russia           122993

  Japan             68282              Germany          106772

  Germany           63039              Japan            94711

  Canada            29721              Australia        32612

  Australia         28199              Canada           31428

  Ukraine           17461              Ukraine          17754

  Sout Africa       10491              Sout Africa      16569

  Spain             6128               Poland           14458

  U.K.              5752               Turkey           9899

  Total for Others  404326                              576884

  Others not Listed 46341                               87728

  Grand Total       672627                              1031796
  ----------------- ------------------ ---------------- -----------------

### Fresh Pears

<table style="width:100%;">
<colgroup>
<col style="width: 14%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 5%" />
<col style="width: 7%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Pears, Fresh</strong></td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>07/2005</td>
<td>07/2005</td>
<td></td>
<td>07/2006</td>
<td>07/2006</td>
<td></td>
<td>07/2007</td>
<td>07/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>1087200</td>
<td>1087200</td>
<td>1087200</td>
<td>1067200</td>
<td>1067200</td>
<td>1071300</td>
<td>0</td>
<td>0</td>
<td>1060500</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Bearing Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Non-Bearing Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Commercial Production</td>
<td>11986000</td>
<td>11986000</td>
<td>11986000</td>
<td>12580000</td>
<td>12580000</td>
<td>12895000</td>
<td>0</td>
<td>0</td>
<td>13000000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Production</td>
<td>11986000</td>
<td>11986000</td>
<td>11986000</td>
<td>12580000</td>
<td>12580000</td>
<td>12895000</td>
<td>0</td>
<td>0</td>
<td>13000000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>16</td>
<td>16</td>
<td>16</td>
<td>14</td>
<td>14</td>
<td>14</td>
<td>0</td>
<td>0</td>
<td>10</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>11986016</td>
<td>11986016</td>
<td>11986016</td>
<td>12580014</td>
<td>12580014</td>
<td>12895014</td>
<td>0</td>
<td>0</td>
<td>13000010</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>10772126</td>
<td>10772126</td>
<td>10772126</td>
<td>11210014</td>
<td>11210014</td>
<td>11521746</td>
<td>0</td>
<td>0</td>
<td>11520010</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>397890</td>
<td>397890</td>
<td>397890</td>
<td>420000</td>
<td>420000</td>
<td>423268</td>
<td>0</td>
<td>0</td>
<td>450000</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>816000</td>
<td>816000</td>
<td>816000</td>
<td>950000</td>
<td>950000</td>
<td>950000</td>
<td>0</td>
<td>0</td>
<td>1030000</td>
</tr>
<tr class="even">
<td>Withdrawal From Market</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>11986016</td>
<td>11986016</td>
<td>11986016</td>
<td>12580014</td>
<td>12580014</td>
<td>12895014</td>
<td>0</td>
<td>0</td>
<td>13000010</td>
</tr>
</tbody>
</table>

###  Trade Matrix for Fresh Pears

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

  **Country**            China, Peoples                    
                         Republic of                       

  **Commodity**          Pears, Fresh                      

  Time Period            　                 Units:         MT

  Exports for:           2006                              **2007**

  U.S.                   9206               U.S.           15488

  Others                                    Others         

  Indonesia              71765              Indonesia      95556

  Russia                 47432              Hong Kong      43836

  Malaysia               43334              Vietnam        40837

  Hong Kong              37627              Malaysia       38734

  Vietnam                36756              Russia         37589

  Thailand               33009              Thailand       32244

  Singapore              15118              Singapore      14435

  Netherlands            13531              Netherlands    14260

  Canada                 13176              Canada         12218

  Philippines            10247              Philippines    7940

  Total for Others       321995                            337649

  Others not Listed      44097                             51811

  Grand Total            375298                            404948
  ---------------------- ------------------ -------------- ---------------

### Table Grapes

<table style="width:100%;">
<colgroup>
<col style="width: 15%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="9"><p><strong>Grapes, Table, Fresh</strong></p>
<p>(HA)(MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>06/2005</td>
<td>06/2005</td>
<td></td>
<td>06/2006</td>
<td>06/2006</td>
<td></td>
<td>06/2007</td>
<td>06/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>418700</td>
<td>418700</td>
<td>418700</td>
<td>443000</td>
<td>443000</td>
<td>438400</td>
<td>0</td>
<td>0</td>
<td>460000</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Commercial Production</td>
<td>6270756</td>
<td>6270756</td>
<td>6270756</td>
<td>6900000</td>
<td>6900000</td>
<td>6696814</td>
<td>0</td>
<td>0</td>
<td>7000000</td>
</tr>
<tr class="even">
<td>Non-Comm. Production</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>6270756</td>
<td>6270756</td>
<td>6270756</td>
<td>6900000</td>
<td>6900000</td>
<td>6696814</td>
<td>0</td>
<td>0</td>
<td>7000000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>43900</td>
<td>43900</td>
<td>43900</td>
<td>40000</td>
<td>40000</td>
<td>46464</td>
<td>0</td>
<td>0</td>
<td>52000</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>6314656</td>
<td>6314656</td>
<td>6314656</td>
<td>6940000</td>
<td>6940000</td>
<td>6743278</td>
<td>0</td>
<td>0</td>
<td>7052000</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>4354094</td>
<td>4354094</td>
<td>4354094</td>
<td>4838000</td>
<td>4838000</td>
<td>4638979</td>
<td>0</td>
<td>0</td>
<td>4932600</td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>35562</td>
<td>35562</td>
<td>35562</td>
<td>52000</td>
<td>52000</td>
<td>54299</td>
<td>0</td>
<td>0</td>
<td>72000</td>
</tr>
<tr class="even">
<td>For Processing</td>
<td>1925000</td>
<td>1925000</td>
<td>1925000</td>
<td>2050000</td>
<td>2050000</td>
<td>2050000</td>
<td>0</td>
<td>0</td>
<td>2047400</td>
</tr>
<tr class="odd">
<td>Withdrawal From Market</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Distribution</td>
<td>6314656</td>
<td>6314656</td>
<td>6314656</td>
<td>6940000</td>
<td>6940000</td>
<td>6743278</td>
<td>0</td>
<td>0</td>
<td>7052000</td>
</tr>
</tbody>
</table>

###  Trade Matrices for Table Grapes

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

  **Country**          China, Peoples                       
                       Republic of                          

  **Commodity**        Grapes, Table,                       
                       Fresh                                

  Time Period          　                Units:             MT

  Imports for:         2006                                 **2007**

  U.S.                 19184             U.S.               13775

  Others                                 Others             

  Chile                24638             Chile              23028

  Peru                 2123              Peru               5247

  New Zealand          59                New Zealand        725

  　                   　                　                 　

  　                   　                　                 　

  Total for Others     26820                                29000

  Others not Listed    0                                    0

  Grand Total          46004                                42775
  -------------------- ----------------- ------------------ --------------

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

  **Country**           China, Peoples                      
                        Republic of                         

  **Commodity**         Grapes, Table,                      
                        Fresh                               

  Time Period           　                Units:            MT

  Exports for:          2006                                **2007**

  U.S.                  0                 U.S.              0

  Others                                  Others            

  Pakistan              7387              Rusia             15700

  Rusia                 6881              Vietnam           9896

  Hong Kong             6121              Hong Kong         7666

  Vietnam               4439              Pakistan          7549

  Malaysia              3215              Malaysia          6420

  Indonesia             2666              Thailand          3584

  Thailand              1862              Indonesia         2602

  Philippines           315               Sri Lanka         577

  Bangladesh            302               Philippines       262

  Sri Lanka             297               Kyrgyzstan        236

  Total for Others      33485                               54492

  Others not Listed     808                                 877

  Grand Total           34293                               55369
  --------------------- ----------------- ----------------- ---------------