Voluntary Report - public distribution

**Date:** 7/8/2003

**GAIN Report Number:** JA3043

JA9998

**Japan**

**Citrus**

**Increased Competition in the Summer Citrus Market (Update)**

**2003**

**Approved by:**

![](media/image1.wmf)Kevin Latner

#### U.S.Embassy

**Prepared by:**

Kenzo Ito

**Report Highlights:**

In response to demand for Southern Hemisphere citrus during Japan's
summer months, Sunkist is marketing South African packed grapefruits and
lemons. Japan has also lifted a ban on Argentine citrus paving the way
for the first shipment in August.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo \[JA1\]

\[JA\]

Exports from South Africa, a major exporter of summer citrus to Japan,
include Sunkist labeled products for the first time this season. Sunkist
labeled South African grapefruit arrived in Japan last week and Sunkist
lemons are expected to arrive from South Africa next week, according to
Japanese traders. Because the first year is a trial, traders are not
expecting large volumes of South African Sunkist brand citrus products
this year. However, has the below graph demonstrates, imports of
Southern Hemisphere grapefruit and lemon have increased significantly
over the last 5 years.

U.S. citrus growers have been extremely successful marketing U.S. citrus
products in Japan, except during Japan's hot and humid summer season.
Summer temperatures in Tokyo and southern Japan reach over 100 degrees
Fahrenheit and humidity is high. Japanese importers and retailers have
often complained about the lower quality of U.S. citrus products during
the summer season. In response, Japanese traders developed alternate
sources of supply from the Southern Hemisphere, including Chile, South
Africa, and now Argentina. Since 1996, Chile has been successfully
exporting fresh summer lemons and oranges to Japan, and South Africa has
significantly expanded summer grapefruit exports.

As a result of Japan lifting its import ban on Argentine fresh citrus
products on April 25, 2003, Argentina, for the first time, will export
fresh lemons and grapefruit to Japan this summer. Japanese government
quarantine inspectors are already in Argentina and Japanese importers
are expecting the first arrival of Argentine citrus products in August,
according Tokyo traders. The Japanese industry is not expecting large
volumes as the first year includes only trial shipments. Transit time is
5 to 6 weeks from Argentina to Japan.

#### Lemon's Summer Market Shares by Country 

(Imports from June through September) ![](media/image2.wmf)

#### Grapefruit's Summer Market Shares by Country 

(Imports from June through September)

![](media/image3.wmf)

#### Orange's Summer Market Shares by Country 

(Imports from June through September)

![](media/image4.wmf)

**Japanese Lemon Imports in the Summer Season**

(June - September)

  --------- ------------ -------- --------- --------- ----------- -------- --------
  World                                                                    
  Trade                                                                    
  Atlas                                                                    

  Japan -                                                                  
  Imports                                                                  

  Lemons                                                                   
  (in                                                                      
  Metric                                                                   
  Tons)                                                                    

  1998      Country      June     July      August    September   Total    Market
                                                                           Share

            World        7028     10532     9058      5217        31835    100%

            United       6610     7804      5409      3396        23219    73%
            States                                                         

            Chile        42       987       2239      1225        4493     14%

            South Africa 79       277       915       440         1711     5%

            Australia    248      1310      361       0           1919     6%

            New Zealand  35       152       131       155         473      1%

  1999      Country      June     July      August    September   Total    Market
                                                                           Share

            World        9203     8840      8279      6915        33237    100%

            United       8233     5989      4541      3440        22203    67%
            States                                                         

            Chile        178      1426      2318      1534        5456     16%

            South Africa 50       398       834       1360        2642     8%

            Australia    631      880       383       252         2146     6%

            New Zealand  83       118       201       327         729      2%

  2000      Country      June     July      August    September   Total    Market
                                                                           Share

            World        6057     9302      13796     8718        37873    100%

            United       5487     6640      6745      2814        21686    57%
            States                                                         

            Chile        65       1564      4182      3731        9542     25%

            South Africa 221      644       2216      1637        4718     12%

            Australia    217      293       382       357         1249     3%

            New Zealand  54       159       268       176         657      2%

  2001      Country      June     July      August    September   Total    Market
                                                                           Share

            World        5328     9209      10076     6813        31426    100%

            United       4812     3826      3241      1877        13756    44%
            States                                                         

            Chile        302      4104      4630      2841        11877    38%

            South Africa 100      413       1064      1455        3032     10%

            Australia    45       536       800       480         1861     6%

            New Zealand  47       311       339       158         855      3%

  2002      Country      June     July      August    September   Total    Market
                                                                           Share

            World        7673     13498     11236     4879        37286    100%

            United       6011     5176      3005      912         15104    41%
            States                                                         

            Chile        956      5245      5180      3150        14531    39%

            South Africa 371      1389      2042      337         4139     11%

            Australia    91       1246      668       259         2264     6%

            New Zealand  242      439       338       219         1238     3%

  Source of                                                                
  Data:                                                                    
  Japan                                                                    
  Customs                                                                  
  --------- ------------ -------- --------- --------- ----------- -------- --------

**Japanese Grapefruit Imports in the Summer Season**

(June - September)

  ------------ ------------ -------- -------- -------- ----------- -------- ----------
  World Trade                                                               
  Atlas                                                                     

  Japan -                                                                   
  Imports                                                                   

  Grapefruit                                                                
  (in Metric                                                                
  Tons)                                                                     

  1998         Country      June     July     August   September   Total    Market
                                                                            Share

               World        14914    14093    9739     3145        41891    100%

               United       11975    6760     4371     407         23513    56%
               States                                                       

               South Africa 1791     4676     4217     2220        12904    31%

               Swaziland    1146     2657     1149     508         5460     13%

  1999         Country      June     July     August   September   Total    Market
                                                                            Share

               World        24888    23180    11482    8778        68328    100%

               United       17881    9655     1245     2133        30914    45%
               States                                                       

               South Africa 4916     10960    8758     5429        30063    44%

               Swaziland    2090     2564     1478     1211        7343     11%

  2000         Country      June     July     August   September   Total    Market
                                                                            Share

               World        11152    24038    23927    5145        64262    100%

               United       9252     7738     9003     405         26398    41%
               States                                                       

               South Africa 1462     13421    13064    4185        32132    50%

               Swaziland    437      2879     1859     533         5708     9%

  2001         Country      June     July     August   September   Total    Market
                                                                            Share

               World        20343    28322    13681    3652        65998    100%

               United       6560     2295     1634     953         11442    17%
               States                                                       

               South Africa 12387    23141    10523    2377        48428    73%

               Swaziland    1395     2885     1523     321         6124     9%

  2002         Country      June     July     August   September   Total    Market
                                                                            Share

               World        16917    28382    18399    5442        69140    100%

               United       4005     3934     2247     1397        11583    17%
               States                                                       

               South Africa 12261    21425    14978    3883        52547    76%

               Swaziland    650      3023     1174     160         5007     7%

  Source of                                                                 
  Data: Japan                                                               
  Customs                                                                   
  ------------ ------------ -------- -------- -------- ----------- -------- ----------

**Japanese Orange Imports in the Summer Season**

(June - September)

  --------- ------------ -------- -------- -------- ----------- -------- ----------
  World                                                                  
  Trade                                                                  
  Atlas                                                                  

  Japan -                                                                
  Imports                                                                

  Oranges                                                                
  (in                                                                    
  Metric                                                                 
  Tons)                                                                  

  1998      Country      June     July     August   September   Total    Market
                                                                         Share

            World        28753    10553    12982    6903        59191    100%

            United       28271    7600     7225     2864        45960    78%
            States                                                       

            Chile        0        0        3        21          24       0%

            South Africa 90       2618     4432     2068        9208     16%

            Australia    0        333      1124     1642        3099     5%

            Spain        328      0        0        0           328      1%

  1999      Country      June     July     August   September   Total    Market
                                                                         Share

            World        12396    10330    10837    11935       45498    100%

            United       9099     6216     2082     1150        18547    41%
            States                                                       

            Chile        0        42       222      174         438      1%

            South Africa 363      2255     4123     7103        13844    30%

            Australia    0        753      4409     3380        8542     19%

            Spain        2612     1062     0        0           3674     8%

  2000      Country      June     July     August   September   Total    Market
                                                                         Share

            World        21150    11372    10855    9883        53260    100%

            United       20653    8825     7569     4032        41079    77%
            States                                                       

            Chile        0        15       105      540         660      1%

            South Africa 30       2386     2377     3463        8256     16%

            Australia    0        145      767      1774        2686     5%

            Spain        466      0        0        0           466      1%

  2001      Country      June     July     August   September   Total    Market
                                                                         Share

            World        17015    6688     12820    9681        46204    100%

            United       16666    5065     6949     2137        30817    67%
            States                                                       

            Chile        0        117      633      1785        2536     5%

            South Africa 45       1238     4127     3674        9084     20%

            Australia    0        268      1021     2020        3309     7%

            Spain        185      0        0        0           185      0%

  2002      Country      June     July     August   September   Total    Market
                                                                         Share

            World        14907    6911     8583     8590        38991    100%

            United       14850    5831     2995     1761        25437    65%
            States                                                       

            Chile        0        206      697      1826        2729     7%

            South Africa 0        782      3869     3211        7862     20%

            Australia    2        91       1011     1468        2572     7%

            Spain        54       0        0        0           54       0%

  Source of                                                              
  Data:                                                                  
  Japan                                                                  
  Customs                                                                
  --------- ------------ -------- -------- -------- ----------- -------- ----------