Voluntary Report - public distribution

**Date:** 3/16/2007

**GAIN Report Number:** CH7017

CH7017

**China, Peoples Republic of**

**Stone Fruit**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Maurice House

U.S. Embassy

**Prepared by:**

Jorge Sanchez, Wu Bugang and Frances Wei

**Report Highlights:**

Peach and nectarine production is forecast at 8.8 MMT in MY2007, up 5
percent from the previous year. Plum production is forecast to increase
by 11 percent over the previous, largely due to an anticipated peak year
in the production cycle. The Chinese government is developing a fruit
traceability system that can help improve the quality and safety of
domestically produced fruit destined for export and eventually their
competitiveness in the world market. Cherry production is forecast at
145,000 MT in MY2007, up 21 percent from the previous year. Strong
consumer demand has led to rapid increase in cherry imports.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Production 4](#production)

[Peach production grows steadily on stabilized acreage
4](#peach-production-grows-steadily-on-stabilized-acreage)

[Consumer demand for fresh and processed plums driving production
increases
4](#consumer-demand-for-fresh-and-processed-plums-driving-production-increases)

[Growing processing industry accounts for increases for apricot
production
4](#growing-processing-industry-accounts-for-increases-for-apricot-production)

[Favorable returns contributing to cherry production skyrocket
4](#favorable-returns-contributing-to-cherry-production-skyrocket)

[Trade 5](#trade)

[Exports growing slowly to neighboring countries due to short shelf life
of stone fruit
5](#exports-growing-slowly-to-neighboring-countries-due-to-short-shelf-life-of-stone-fruit)

[Cherry imports increasing fast due to strong consumer demand
5](#cherry-imports-increasing-fast-due-to-strong-consumer-demand)

[Policy 5](#policy)

[Registration system in place to improve exported fruit quality
5](#registration-system-in-place-to-improve-exported-fruit-quality)

[Prices 6](#prices)

[Consumption 6](#consumption)

[Consumption growth steady, cherry a new favorite
6](#consumption-growth-steady-cherry-a-new-favorite)

[Marketing 6](#marketing)

[Cherry 6](#cherry)

[Competition: Domestic versus U.S. Cherries
8](#competition-domestic-versus-u.s.-cherries)

[Chile and New Zealand Cherries 8](#chile-and-new-zealand-cherries)

[Plums 8](#plums)

[Peaches/Nectarines and Apricots 9](#peachesnectarines-and-apricots)

[Tables 10](#tables)

[Import Tariff and VAT for Fresh Stone Fruit in 2007
10](#import-tariff-and-vat-for-fresh-stone-fruit-in-2007)

[2002-2005 China Peach Acreage and Production by Province
11](#china-peach-acreage-and-production-by-province)

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

[Fresh peaches and nectarines 12](#fresh-peaches-and-nectarines)

[Trade Matrix 13](#trade-matrix)

[Export Price Table 14](#export-price-table)

[Fresh plums and prunes 15](#fresh-plums-and-prunes)

[Trade Matrix Tables 16](#trade-matrix-tables)

[Export Price Table 17](#export-price-table-1)

[Fresh Apricots 18](#fresh-apricots)

[Trade Matrix Table 19](#trade-matrix-table)

[Export Price Table 20](#export-price-table-2)

[Fresh cherries 21](#fresh-cherries)

[Trade Matrix Tables 22](#trade-matrix-tables-1)

[Export Price table 23](#export-price-table-3)

# Executive Summary

Peach and nectarine production is forecast at 8.8 MMT in the MY2007, up
5 percent from the previous year. Plum production is forecast at nearly
2 MMT in MY2007, up 11 percent from the previous year, largely due to an
anticipated peak year in the production cycle. Cherry production is
forecast at 145,000 MT in MY2007, up 21 percent from the previous year,
as a result of earlier plantings.

Fruit consumption in China is growing at around 6 percent per year.
Stone fruit is unlikely to keep this pace largely due to the short shelf
life of this type of fruit. Most stone fruit is consumed during harvest
season. Farmers near large cities are building more greenhouses in order
to extend the supply season. Cherries are a new favorite in the Chinese
fruit menu and consumption is increasing at an astonishing speed.

China is exporting a limited but growing amount of stone fruit to
neighbor countries. Given the short shelf life of stone fruit, cold
chain transportation is less attractive to local traders. China exported
a record 20,196 MT of fresh peaches and nectarines in 2006 following a
bumper harvest. In 2007, fresh peaches and nectarines are forecast at
22,000 MT. Plum exports are expected to rebound to 7,500 MT in 2007 in
anticipation of a much larger crop. Apricot exports are forecast at
4,500 MT, up nearly 40 percent over last year.

Cherry imports are rapidly increasing due to strong consumer demand.
U.S. cherries are popular in China because of their superb taste,
appearance and quality reputation. Additionally, the inefficiencies of
handling Chinese cherries shorten its shelf life, and significant
transportation costs raise the retail price close to those of imported
U.S. cherries. Although domestic cherries from Yantai and Dalian can be
found during the season, consumers are willing to try higher quality
imported cherry varieties as they are expecting to pay nearly the same
price for domestic cherries.

# Production

## Peach production grows steadily on stabilized acreage

Peach and nectarine production is forecast at 8.8 million metric tons
(MMT) in the 2007 marketing year (MY), up 5 percent from the previous
year, if favorable weather conditions are present during the blossom
season in April or May. MY2006 production was estimated at 8.38 MMT, up
10 percent from the previous year. The rapid growth in production is
expected to slow down after the peach acreage has stabilized. Peach
planted area is forecast at 6.97 million hectares in MY2007, up merely 1
percent from last year.

Increased production costs and crop failure of other fruit have
triggered fruit prices to escalate in recent years. Peach prices,
however, are declining due to abundant supplies, as a result of
increased tree placements coming to bear. As peaches cannot be stored
for long periods of time (even in cold storage), prices drop
dramatically during harvest season (see price table). Consequently, more
stone fruit greenhouse production, including peaches, can be seen in
producing areas close to large cities, although as a percentage of total
production this type of production still limited.

## Consumer demand for fresh and processed plums driving production increases 

Plum production is forecast at nearly 2 MMT in MY2007, up 11 percent
from the previous year, largely due to an anticipated peak year in the
production cycle. Field visits and industry contacts indicate that plum
acreage is also expanding at a faster pace. As a result, plum production
figures for MY2006 were revised to 1.8 MMT, up from the previous
estimate of 1.7 MMT. Likewise, plum production in MY2005 was also
revised to 1.72 MMT from the earlier estimate of 1.68 MMT.

The MY2007 plum acreage is forecast at 410,000 hectares, up nearly 4
percent from the previous year. The expansion of plum sown area is
expected to slow down as market prices become less profitable. In the
past few years, China introduced western varieties that are
larger-sized, tastier and have a longer shelf life. High market prices
have attracted farmers to dedicate larger portions of land to plum
plantations. Another factor contributing to the increased production,
especially in Fujian province, is the growing processing industry. Post
has learned that a significant amount of these plums are processed into
dried fruit and sold across the nation.

## Growing processing industry accounts for increases for apricot production 

Apricot production is forecast at 1.5 MMT in MY2007, up 10 percent from
the previous year, due to rapid expansion of the apricot planted area in
Xinjiang, Shandong and Hebei. The increase is mostly driven by the
accelerated development of the apricot processing industry. The MY2006
production estimate was revised to 1.37 MMT in response to favorable
market conditions and industry expectations. The planted area for
apricots is forecast at 391,000 hectares, up 15 percent from the
previous year.

Nearly half of China's fresh and processed apricots are harvested in
Xinjiang Province. According to industry sources, local governments are
encouraging farmers to plant drought-resistant crops in desert-type
areas as a means to improve farmer incomes. Many large processing
facilities (in apricot paste/nectar and dried apricot production) have
been built in southern Xinjiang over the recent years. As a result, the
planted area for apricot is expanding quickly with this trend likely to
continue in the short term, and if demand for this product catches on,
the trend may extend until the market stabilizes.

## Favorable returns contributing to cherry production skyrocket 

Cherry production is forecast at 145,000 MT in MY2007, up 21 percent
from the previous year, as a result of the rapid expansion. This trend
began in 2000 with plantings now bearing fruit. In MY2006, cherry
production was estimated at 120,000 MT, up 30 percent compared to
MY2005. The cherry sown area is forecast at 52,700 hectares in MY2007,
up 12 percent from 47,100 hectares in MY2006.

Driven by favorable returns since 2000, farmers in the coastal areas of
Shandong and Liaoning provinces have been steadily building or
alternating orchards for cherry production. These new plantings are
gradually maturing and coming to their full production age. As land
suited for this crop became scarce in these two provinces, cherry
plantations expanded to other provinces such as Hebei, Shaanxi, Sichuan
and Beijing. Although farm gate prices have considerably dropped from
the highest levels to \$1.54-\$3.85 per kilo as a result of a quick
expansion in production, farmers can still make a good profit from this
crop. Cherry acreage is unlikely to expand as quickly as it did a few
years ago because China has limited planting areas suitable for this
delicate fruit. However, production is expected to increase at a high
rate in the next few years as earlier plantings mature and increased
popularity drive an increase in greenhouse cherry varieties.

# Trade

## Exports growing slowly to neighboring countries due to short shelf life of stone fruit

China is exporting a limited amount of stone fruit to its Asian
neighbors. Given stone fruit's short shelf life even in cold storages,
cold chain transportation makes shipping stone fruit even less
attractive to Chinese traders. China exported a record 20,196 MT of
fresh peaches and nectarines in 2006 following a bumper harvest with
volume forecast at 22,000 MT in 2007. Russia, Vietnam and Hong Kong are
expected to remain the top buyers of Chinese peaches. Plum exports are
expected to rebound to 7,500 MT in 2007 in anticipation of a much larger
crop. Russia remains the single buyer of Chinese apricots with volume
increasing quickly. Chinese apricot exports are forecast at 4,500 MT, up
nearly 40 percent over last year. China's cherry exports are limited and
unsteady due to small production, but the volume is forecast at 100 MT
in 2007, twice as many as in 2006.

## Cherry imports increasing fast due to strong consumer demand

China imports plums and cherries during the off-season, especially
during the Chinese Lunar New Year usually in January or February.
Although customs statistics indicate a decline in cherry imports,
according to traders the volume is annually growing at a 20-percent
rate. The majority of U.S. cherries are transshipped through grey
channels between Hong Kong and Guangzhou and are not reflected in
official customs numbers. U.S. cherries are popular in China because of
their superb taste, appearance and quality reputation. Plum imports are
declining due to large availability of domestically produced plums. U.S.
plum supply season overlaps with that of domestic plums. However,
different U.S. plum varieties are geographically favored according to
regional taste and appearance preferences.

## 

# Policy

## Registration system in place to improve exported fruit quality

China's General Administration of Quality Supervision, Inspection and
Quarantine (AQSIQ) recently published the Administrative Measures on
Inspection and Quarantine of Exported Fruit that took effect on February
1, 2007. According to the new regulation, packers should register their
orchards and/or packinghouses even if the importing country has signed a
protocol with China. Exporters who do not have their
orchards/packinghouses registered should provide information about the
orchards and packinghouses from which the fruit is sourced. Local
quarantine departments may refuse to inspect the exporting fruit and
provide a certificate if orchard/packinghouse information is lacking.

The Chinese government is hoping that this fruit traceability system can
help improve the quality and safety of domestically produced fruit
destined for export and eventually their competitiveness in the world
market. The requirement may affect Chinese fruit exports in the near
term, but is expected to facilitate exports in the long run.

# Prices

![](media/image2.wmf)

# Consumption

## Consumption growth steady, cherry a new favorite

According to the China Fruit Marketing Association, per capita
consumption of fruit in rural and urban areas reached 37.84 lbs. and
133.74 lbs (17.2 kilograms and 60.79 kilograms) in 2005, up 1 percent
and 8 percent, respectively, over the previous year. In other words,
total consumption of fruit in China increased by 6 percent in 2005. This
rate of growth is expected to carry on in years to come as incomes
continue to rise. Stone fruit consumption is unlikely to keep this pace
largely due to its short shelf-life. Although more cold storage
facilities have been built, they are used mainly for deciduous fruit
like apples. Stone fruit, however, cannot be stored for a long period of
time under the current technology. As a result, most stone fruit is
consumed during the harvest season in the summer months. Farmers in
provinces like Shandong and Liaoning have been increasing the number of
green houses for stone fruit production in order to extend the supply
season. The official percentage of greenhouse stone fruit production is
not available, although it only accounts for a minor share.

Another factor limiting stone fruit consumption is that Chinese
consumers have traditionally believed that eating too many apricots and
plums can cause health problems. This perception is now changing.
Chinese consumers enjoy peaches because of their taste and symbol of
longevity. Cherries are a new favorite in the Chinese fruit menu and
consumption is increasing rapidly.

Additionally, changing dietary habits have contributed to increased
consumption of processed fruit, especially in the case of juice and
juice drinks. In fact, an increasing portion of stone fruit, with the
exception of cherries, is processed into canned fruit (peaches and
apricots), juice and nectar (peaches and apricots), paste (apricots),
and dried fruit (apricot and plums). Additionally, milk produced from
apricot seeds is very popular in China.

# 

# Marketing

## Cherry

Currently, China only imports sweet cherries, (from northwest United
States), due to local consumption habits and taste preferences.
Increased disposable income, high profit margins, and well-established
distribution channels, as well as Chinese consumers' belief in cherries'
nutritional value have all contributed to the rapid growth in
consumption of U.S. sweet cherries in China.

Per Capita Annual Disposable Income of Urban Households 2005

  --------- ------------------------- ----------------- ------------- ------------
  **No.**   **Province**              **Disposable                    **Region**
                                      Income**                        

                                      RMB               USD           

            National Average          10,493.03         **\$1,346**   

  **1.**    **Shanghai                18,645.03         **\$2,391**   East
            (Municipality)**                                          

  **2.**    **Beijing                 17,652.95         **\$2,264**   North
            (Municipality)**                                          

  **3.**    **Zhejiang**              16,293.77         **\$2,089**   East

  **4.**    **Guangdong**             14,769.94         **\$1,894**   South

  **5.**    **Tianjing                12,638.55         **\$1,621**   North
            (Municipality)**                                          

  **6.**    **Fujian**                12,321.31         **\$1,580**   South

  **7.**    **Jiangsu**               12,318.57         **\$1,580**   East
  --------- ------------------------- ----------------- ------------- ------------

Source: China Statistical Yearbook 2006

> Note: 1\$ = 7.8 RMB

The three Chinese ports are authorized to import U.S. cherries directly
include; Guangzhou, Shanghai, and Dalian. **Dalian** is located in the
northern part of China and sources the **Beijing** market; the only
market for U.S. cherries in northern China. According to industry
sources, Dalian's imports in 2006 were nearly zero due to the extended
season of locally produced cherries (to the end of July). The season
normally ends in June. Beijing's geographical proximity to the main
domestic cherry production areas in Yantai and Dalian make U.S. cherries
competitive in price, compared to locally produced cherries.

In 2005, the most developed and affluent areas in the east and south of
China, accounted for as much as 70 percent of the total national GDP.
Similarly, these are also the largest markets for U.S. cherries. In
2006, **Wenzhou**, a city in Zhejiang province with a population of
seven million consumed 1/3 of U.S. cherries imported through the port of
Guangzhou. Even as an undeveloped market for the relatively expensive
U.S. cherries (when compared to local fruits), Wenzhou traders already
receive container loads of U.S. cherries on a daily basis during
shipping season, while traders elsewhere in China place orders only on a
case-by-case basis.

U.S. cherry consumption in **Hangzhou**, the capital of Zhejiang
province, ranked 3^rd^ in average per capita disposable income
nationwide following Shanghai and Beijing, surpassed Shanghai in cherry
consumption making it the second most important market for U.S. cherries
in East China.

Two years ago, **Shanghai** began importing U.S. cherries directly. Due
to their high cost (around \$84 per 20 lb.case), only a few Shanghai
fruit traders ventured in this test market. With progressively more
opportunities for U.S. cherries in the Shanghai market, traders will
likely increase their direct imports.

**Guangzhou** maintains the dominant position in China for wholesale and
distribution of imported fruit. Around 70-80 percent of all imported
fruit enters China through the part of Guangzhou. Direct shipments of
U.S. cherries to Guangzhou and Shanghai ports reached 34,229 cases in
2006, skyrocketing from 5,337 cases in 2005, a 641-percent jump.
Moreover in 2006, 115,000 cases and 28,000 cases of U.S. cherries were
re-exported from Hong Kong and Taiwan, respectively, to Guangzhou
wholesale markets.

Most imported U.S. cherries reach consumers through retail outlets. In
2006, cities like Guangzhou, Wenzhou, and Hangzhou, sourced by the
Guangzhou fruit market, enjoyed a reasonable retail price ranging from
\$12-14/kg, while Shanghai consumers will pay a premium of \$20-40/kg
for U.S. cherries as a result of much smaller import volume through the
Shanghai port. Air shipments of cherries at the beginning of the season
are typically much more expensive than mid-late season arrivals by ocean
freight.

In 2006, unusually hot weather endured in the northwest region of the
United States that adversely impacted the quality and price of U.S.
sweet cherries. Reduced output raised the export price to higher levels.
The cost of importing a case of U.S. sweet cherries to Shanghai peaked
at \$83 and brought the wholesale price to around \$100 per case.
However, despite the high cost, exports to China totaled more than
300,000 cases, including re-exports from Taiwan and Hong Kong. During
the same period, Taiwan and Japan's imports dropped by about 30 percent.
With the continued marketing support by a variety of cooperator groups
and Agricultural Trade Office (ATO), China's consumption of U.S. sweet
cherries will undoubtedly increase in the years to come.

### Competition: Domestic versus U.S. Cherries

Different seasonality and availability in the market from early July to
mid August leave U.S. sweet cherries with no competitors in China. The
season for Chinese cherries is from the end of April through the end of
June, slightly before U.S. sweet cherries enter the market. However, the
inefficiencies of handling Chinese cherries shorten its shelf life, and
significant transportation costs raise the retail price close to those
of imported U.S. cherries. In the production areas of Yantai and Dalian,
cherries are picked from the tree earlier in the morning. Without any
cleaning, they are then packed and shipped to the airport for immediate
air transportation. Although domestic cherries from Yantai and Dalian
can be found during the season, consumers are willing to try the
imported product as they are expecting to pay nearly the same price for
domestic cherries.

California cherries will be available in China in mid-May 2007. Before
direct imports were allowed to mainland China ports, some traders in
south China had handled such products through gray channels and had
negative experiences. Because the thinned-skin delicate California
variety was too fragile for handling, storage, or transportation;
traders suffered sibstantial financial losses. However, industry
representatives in China are optimistic about the promising future
market. Traders in Shanghai and Guangzhou have shown great interest in
importing California cherries directly; the most effective way to make
these available to consumers when they are still fresh. It is difficult
to predict the exact import volume due to its short (availability only
one month from mid-May through mid-June) and limited output.

### Chile and New Zealand Cherries

According to the World Trade Atlas, in 2005 China imported 244 tons of
cherries from New Zealand and none from Chile. Chile and New Zealand
cherries are available in the market at the end of the calendar year,
taking the greatest advantage of the highest sales season: the Spring
Festival (Chinese Lunar New Year). A major fruit importer in northern
China, (who also has a presence in the Guangzhou fruit market), imported
50 containers of Chilean cherries at the end of 2006. Another major
importer based in Guangzhou imported 47 containers, both in time for the
Spring Festival sales in February.

## Plums

Increased wealth calls for greater quality and variety by Chinese
consumers. Booming consumption of imported fruit also benefits greatly
from improved infrastructure, cold-chain storage facilities, and
transportation.

Although plums are currently a small niche market, Chinese consumers are
willing to pay premium prices for high quality imported fruit. According
to the World Trade Atlas, China is the 6^th^ largest export market for
U.S. plums in 2006.

Guangzhou remains the hub for fruit imports from the United States,
including plums. Shanghai and Dalian are also open for direct shipment.
Most U.S. plums arrive in China through Guangzhou, and are then shipped
to major cities like Shanghai and Beijing where disposable incomes
facilitate the sale of high-end imported products.

Imported U.S. plums are found at high-end retail outlets, restaurants,
and four and five star hotels. Retail prices range from \$2.56-3.46/1.1
lb. (RMB 20--27/0.5 kg) during the shipping season (from July through
September). Four different colored plums (red, yellow, black and green)
are available on the market. On-site promotions at retail outlets have
proved to be an effective way to increase product awareness among most
Chinese consumers. Sales have doubled and sometimes tripled during these
promotion periods. According to industry sources, taste preferences for
different plum varieties also vary geographically. Generally, northern
China prefers sweet plums while southern China prefers a tart taste.

Competition for U.S. plums mainly comes from local plums that share the
same season. China began planting U.S. plum varieties in northern China
several years back. The overall quality of locally produced plums has
improved dramatically in recent years. Australian plums are available
from December through January, making them a festival/holiday gift item
for the flourishing Chinese Spring Festival market. Chilean plums become
available between September and December, after the U.S. plum season
ends and before the Australian plum season begins.

## Peaches/Nectarines and Apricots

U.S. peaches/nectarines have not been granted access to China. In 2005,
China imported a total of 141 tons (valued at \$ 280,680) of plums; all
from New Zealand. In 2004, China imported a total of 137 tons of plums
of which 4 tons were from New Zealand and the remaining 133 tons (valued
at \$272,588) from Thailand. China currently does not offer market
access to fresh apricot imports.

# Tables

## Import Tariff and VAT for Fresh Stone Fruit in 2007

  ----------------- --------------------------------- ---------- ---------
  HS Code           Description                       Tariff     VAT

  08091000          Apricots, fresh                   25%        13%

  08092000          Cherries, fresh                   10%        13%

  08093000          Peaches/nectarines, fresh         10%        13%

  08094000          Plums and sloes, fresh            10%        13%

  Source: China                                                  
  Customs                                                        
  ----------------- --------------------------------- ---------- ---------

## 2002-2005 China Peach Acreage and Production by Province

  -------------- ------- ----------- ------- ----------- ------- ----------- ------- -----------
  China Peach                                                                        
  Production                                                                         
  (1000 Ha and                                                                       
  MT) by                                                                             
  Province                                                                           
  2002-2005                                                                          

  Province       2002                2003                2004                2005    

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

  Shandong       108.9   1,210,344   125.9   1,576,537   125.3   1,828,331   126.6   2,011,740

  Hebei          89.4    1,009,618   98.5    1,133,773   101.6   1,223,842   99.0    1,248,910

  Henan          38.7    362,694     47.4    424,846     55.4    536,342     60.2    601,029

  Hubei          38.4    354,276     38.3    404,180     44.7    428,076     43.5    468,766

  Liaoning       18.3    185,209     19.3    229,149     19.0    311,140     20.1    346,978

  Sichuan        24.7    238,376     28.7    269,816     31.9    310,240     34.2    319,039

  Jiangsu        29.6    314,003     29.8    317,105     32.6    326,451     32.8    318,699

  Beijing        17.6    244,870     17.4    264,585     16.8    296,409     17.4    306,210

  Zhejiang       21.0    189,596     21.7    210,067     23.8    259,595     24.6    285,842

  Shaanxi        17.6    143,583     19.1    153,007     22.0    216,680     25.4    280,971

  Anhui          12.9    129,150     15.2    167,674     20.4    188,630     20.6    212,186

  Fujian         25.8    178,057     26.3    195,809     26.3    190,248     25.7    199,653

  Shanxi         6.2     66,379      8.7     102,927     9.9     129,935     9.9     132,355

  Guangxi        8.6     53,354      10.8    72,172      13.2    93,589      15.5    122,080

  Yunnan         17.0    86,388      16.9    95,803      18.0    104,939     18.2    113,385

  Shanghai       7.1     74,063      8.9     101,543     10.0    95,277      7.6     102,818

  Gansu          10.4    69,069      11.5    75,254      13.7    74,933      14.2    102,261

  Hunan          18.1    67,267      17.3    74,305      20.9    83,591      21.6    94,888

  Guangdong      N/A     59,021      N/A     61,173      6.6     67,258      7.6     86,860

  Guizhou        7.8     51,317      11.2    54,254      12.4    58,865      15.7    65,468

  Xinjiang       8.4     27,945      8.9     31,939      10.8    49,390      10.6    56,877

  Chongqing      5.6     41,290      8.0     46,295      9.3     48,719      10.0    55,554

  Tianjin        4.3     44,850      4.3     49,071      4.4     49,006      4.0     48,997

  Jiangxi        9.0     26,505      9.0     26,994      9.6     28,386      10.7    37,392

  Ningxia        1.5     2,028       3.7     8,241       3.7     8,312       1.0     2,913

  Tibet          0.1     619         0.1     850         0.1     1,259       0.2     1,412

  Jilin          0.1     197         0.3     391         0.5     1,121       0.2     612

  Qinghai        N/A     368         N/A     340         N/A     421         N/A     412

  National total 547.1   5,230,436   607.2   6,148,100   662.9   7,010,985   677.1   7,624,207

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

## Production, Supply, and Demand (PSD) Tables

### Fresh peaches and nectarines

  --------------- -------------- ---------- ----------- ---------- ---------- ----------- ------------ ---------- -----------
  **PSD Table**                                                                                                   

  **Country**     **China,                                                                                        
                  Peoples                                                                                         
                  Republic of**                                                                                   

  **Commodity**   **Fresh                                                                 (HA)(1000               
                  Peaches &                                                               TREES)(MT)              
                  Nectarines**                                                                                    

                  2005           Revised                2006       Estimate               2007         Forecast   

                  USDA\          Post\      Post\       USDA\      Post\      Post\       USDA\        Post\      Post\
                  Official       Estimate   Estimate\   Official   Estimate   Estimate\   Official     Estimate   Estimate\
                                            New                               New                                 New

  **Market Year                  01/2006    01/2006                01/2007    01/2007                  01/2008    01/2008
  Begin**                                                                                                         

  Area Planted    696000         6767       677100      715000     715000     690600      0            0          6975000

  Area Harvested  0              0          0           0          0          0           0            0          0

  Bearing Trees   0              0          0           0          0          0           0            0          0

  Non-Bearing     0              0          0           0          0          0           0            0          0
  Trees                                                                                                           

  Total Trees     0              0          0           0          0          0           0            0          0

  Commercial      7500000        0          7609207     8200000    8200000    8385000     0            0          8805000
  Production                                                                                                      

  Non-Comm.       15000          0          15000       15000      15000      15000       0            0          15000
  Production                                                                                                      

  Production      7515000        0          7624207     8215000    8215000    8400000     0            0          8820000

  Imports         141            0          141         120        120        0           0            0          0

  Total Supply    7515141        0          7624348     8215120    8215120    8400000     0            0          8820000

  Fresh Dom.      6523091        0          6617698     7076620    7076620    7193804     0            0          7448000
  Consumption                                                                                                     

  Exports, Fresh  17050          0          17050       18500      18500      20196       0            0          22000

  For Processing  975000         0          989600      1120000    1120000    1186000     0            0          1350000

  Withdrawal From 0              0          0           0          0          0           0            0          0
  Market                                                                                                          

  Total           7515141        0          7624348     8215120    8215120    8400000     0            0          8820000
  Distribution                                                                                                    
  --------------- -------------- ---------- ----------- ---------- ---------- ----------- ------------ ---------- -----------

#### Trade Matrix

+-------------------+--------------+-------------------+--------------+
| ###### Ex         |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | China,       |                   |              |
|                   | Peoples      |                   |              |
|                   | Republic of  |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | Fresh        |                   |              |
|                   | Peaches &    |                   |              |
|                   | Nectarines   |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time Period       |              | Units:            | MT           |
+-------------------+--------------+-------------------+--------------+
| Exports for:      | 2005         |                   | **2006**     |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 0            | U.S.              | 0            |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Russia            | 8355         | Russia            | 8658         |
+-------------------+--------------+-------------------+--------------+
| Hong Kong         | 5313         | Vietnam           | 6634         |
+-------------------+--------------+-------------------+--------------+
| Vietnam           | 2691         | Hong Kong         | 3970         |
+-------------------+--------------+-------------------+--------------+
| Singapore         | 261          | Singapore         | 412          |
+-------------------+--------------+-------------------+--------------+
| Macau             | 165          | Malaysia          | 209          |
+-------------------+--------------+-------------------+--------------+
| Malaysia          | 116          | Macau             | 203          |
+-------------------+--------------+-------------------+--------------+
| Thailand          | 57           | Saudi Arabia      | 41           |
+-------------------+--------------+-------------------+--------------+
| Saudi Arabia      | 41           | Kazakhstan        | 34           |
+-------------------+--------------+-------------------+--------------+
| Indonesia         | 25           | Indonesia         | 30           |
+-------------------+--------------+-------------------+--------------+
| UAE               | 15           | Thailand          | 2            |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 17039        |                   | 20193        |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 11           |                   | 3            |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 17050        |                   | 20196        |
+-------------------+--------------+-------------------+--------------+

#### Export Price Table

+------------------------+--------------+--------------+--------------+
| ###### Prices Table    |              |              |              |
+------------------------+--------------+--------------+--------------+
| **Country**            | China,       |              |              |
|                        | Peoples      |              |              |
|                        | Republic of  |              |              |
+------------------------+--------------+--------------+--------------+
| **Commodity**          | **Fresh      |              |              |
|                        | Peaches &    |              |              |
|                        | Nectarines** |              |              |
+------------------------+--------------+--------------+--------------+
| Prices in              | \$US         | per uom      | MT           |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Year                   | 2005         | 2006         | \% Change    |
+------------------------+--------------+--------------+--------------+
| Jan                    | 130          | 130          | 0%           |
+------------------------+--------------+--------------+--------------+
| Feb                    | 180          | 290          | 61%          |
+------------------------+--------------+--------------+--------------+
| Mar                    | 950          | 150          | -84%         |
+------------------------+--------------+--------------+--------------+
| Apr                    | 410          | 270          | -34%         |
+------------------------+--------------+--------------+--------------+
| May                    | 360          | 240          | -33%         |
+------------------------+--------------+--------------+--------------+
| Jun                    | 340          | 260          | -24%         |
+------------------------+--------------+--------------+--------------+
| Jul                    | 310          | 300          | -3%          |
+------------------------+--------------+--------------+--------------+
| Aug                    | 360          | 300          | -17%         |
+------------------------+--------------+--------------+--------------+
| Sep                    | 270          | 300          | 11%          |
+------------------------+--------------+--------------+--------------+
| Oct                    | 220          | 320          | 45%          |
+------------------------+--------------+--------------+--------------+
| Nov                    | 150          | 150          | 0%           |
+------------------------+--------------+--------------+--------------+
| Dec                    | 130          | 130          | 0%           |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Exchange Rate          | 7.8/1        | Local        |              |
|                        |              | Currency/US  |              |
|                        |              | \$           |              |
+------------------------+--------------+--------------+--------------+
| Date of Quote          | 2/27/2007    | MM/DD/YYYY   |              |
+------------------------+--------------+--------------+--------------+

### Fresh plums and prunes

<table>
<colgroup>
<col style="width: 19%" />
<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: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><h6 id="psd-table">PSD Table</h6></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><p id="china-peoples-republic-of" class="heading">China,
Peoples Republic of</p></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><p id="fresh-plums-prunes" class="heading">Fresh Plums
&amp; Prunes</p></td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</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>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>355000</td>
<td>355000</td>
<td>365000</td>
<td>360000</td>
<td>360000</td>
<td>395000</td>
<td>0</td>
<td>0</td>
<td>410000</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>1680000</td>
<td>1680000</td>
<td>1720000</td>
<td>1710000</td>
<td>1710000</td>
<td>1800000</td>
<td>0</td>
<td>0</td>
<td>1998000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</td>
<td>8800</td>
<td>8800</td>
<td>8800</td>
<td>8000</td>
<td>8000</td>
<td>8000</td>
<td>0</td>
<td>0</td>
<td>8000</td>
</tr>
<tr class="even">
<td>Production</td>
<td>1688800</td>
<td>1688800</td>
<td>1728800</td>
<td>1718000</td>
<td>1718000</td>
<td>1808000</td>
<td>0</td>
<td>0</td>
<td>2006000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>8551</td>
<td>8551</td>
<td>8551</td>
<td>7000</td>
<td>7000</td>
<td>2493</td>
<td>0</td>
<td>0</td>
<td>2000</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>1697351</td>
<td>1697351</td>
<td>1737351</td>
<td>1725000</td>
<td>1725000</td>
<td>1810493</td>
<td>0</td>
<td>0</td>
<td>2008000</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>1064000</td>
<td>1064000</td>
<td>1064000</td>
<td>1091000</td>
<td>1091000</td>
<td>1041000</td>
<td>0</td>
<td>0</td>
<td>1123000</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>7451</td>
<td>7451</td>
<td>7451</td>
<td>8560</td>
<td>8560</td>
<td>6195</td>
<td>0</td>
<td>0</td>
<td>7500</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>625900</td>
<td>625900</td>
<td>665900</td>
<td>625440</td>
<td>625440</td>
<td>763298</td>
<td>0</td>
<td>0</td>
<td>877500</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>1697351</td>
<td>1697351</td>
<td>1737351</td>
<td>1725000</td>
<td>1725000</td>
<td>1810493</td>
<td>0</td>
<td>0</td>
<td>2008000</td>
</tr>
</tbody>
</table>

#### Trade Matrix Tables

+-------------------+--------------+-------------------+--------------+
| ###### Im         |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | China,       |                   |              |
|                   | Peoples      |                   |              |
|                   | Republic of  |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | Fresh Plums  |                   |              |
|                   | & Prunes     |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time Period       |              | Units:            | MT           |
+-------------------+--------------+-------------------+--------------+
| Imports for:      | 2005         |                   | **2006**     |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 0            | U.S.              | 1946         |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| New Zealand       | 8551         | New Zealand       | 547          |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 8551         |                   | 547          |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 0            |                   | 0            |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 8551         |                   | 2493         |
+-------------------+--------------+-------------------+--------------+

+-------------------+--------------+-------------------+--------------+
| ###### Ex         |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | China,       |                   |              |
|                   | Peoples      |                   |              |
|                   | Republic of  |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | Fresh Plums  |                   |              |
|                   | & Prunes     |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time Period       |              | Units:            | MT           |
+-------------------+--------------+-------------------+--------------+
| Exports for:      | 2005         |                   | **2006**     |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 0            | U.S.              | 0            |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Vietnam           | 3526         | Vietnam           | 2421         |
+-------------------+--------------+-------------------+--------------+
| Russia            | 1837         | Russia            | 2230         |
+-------------------+--------------+-------------------+--------------+
| Hong Kong         | 1792         | Hong Kong         | 1079         |
+-------------------+--------------+-------------------+--------------+
| Pakistan          | 88           | Malaysia          | 200          |
+-------------------+--------------+-------------------+--------------+
| Malaysia          | 73           | Macau             | 141          |
+-------------------+--------------+-------------------+--------------+
| Macau             | 64           | UAE               | 43           |
+-------------------+--------------+-------------------+--------------+
| Singapore         | 61           | Singapore         | 41           |
+-------------------+--------------+-------------------+--------------+
| Italy             | 3            | Italy             | 15           |
+-------------------+--------------+-------------------+--------------+
| Spain             | 2            | France            | 14           |
+-------------------+--------------+-------------------+--------------+
| Japan             | 2            | Thailand          | 6            |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 7448         |                   | 6190         |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 3            |                   | 4            |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 7451         |                   | 6194         |
+-------------------+--------------+-------------------+--------------+

####  Export Price Table

+------------------------+--------------+--------------+--------------+
| ###### Prices Table    |              |              |              |
+------------------------+--------------+--------------+--------------+
| **Country**            | China,       |              |              |
|                        | Peoples      |              |              |
|                        | Republic of  |              |              |
+------------------------+--------------+--------------+--------------+
| **Commodity**          | **Fresh      |              |              |
|                        | Plums &      |              |              |
|                        | Prunes**     |              |              |
+------------------------+--------------+--------------+--------------+
| Prices in              | \$US         | per uom      | MT           |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Year                   | 2005         | 2006         | \% Change    |
+------------------------+--------------+--------------+--------------+
| Jan                    | 130          | 140          | 8%           |
+------------------------+--------------+--------------+--------------+
| Feb                    | 120          | 300          | 150%         |
+------------------------+--------------+--------------+--------------+
| Mar                    | 180          | 210          | 17%          |
+------------------------+--------------+--------------+--------------+
| Apr                    | 350          | 410          | 17%          |
+------------------------+--------------+--------------+--------------+
| May                    | 410          | 850          | 107%         |
+------------------------+--------------+--------------+--------------+
| Jun                    | 280          | 240          | -14%         |
+------------------------+--------------+--------------+--------------+
| Jul                    | 230          | 280          | 22%          |
+------------------------+--------------+--------------+--------------+
| Aug                    | 270          | 270          | 0%           |
+------------------------+--------------+--------------+--------------+
| Sep                    | 300          | 390          | 30%          |
+------------------------+--------------+--------------+--------------+
| Oct                    | 180          | 520          | 189%         |
+------------------------+--------------+--------------+--------------+
| Nov                    | 170          | 230          | 35%          |
+------------------------+--------------+--------------+--------------+
| Dec                    | 150          | 140          | -7%          |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Exchange Rate          | 7.8/1        | Local        |              |
|                        |              | Currency/US  |              |
|                        |              | \$           |              |
+------------------------+--------------+--------------+--------------+
| Date of Quote          | 2/27/2007    | MM/DD/YYYY   |              |
+------------------------+--------------+--------------+--------------+

### Fresh Apricots

  --------------- ------------ ---------- ----------- ---------- ---------- ----------- ------------ ---------- -----------
  **PSD Table**                                                                                                 

  **Country**     **China,                                                                                      
                  Peoples                                                                                       
                  Republic                                                                                      
                  of**                                                                                          

  **Commodity**   **Fresh                                                               (HA)(1000               
                  Apricots**                                                            TREES)(MT)              

                  2005         Revised                2006       Estimate               2007         Forecast   

                  USDA\        Post\      Post\       USDA\      Post\      Post\       USDA\        Post\      Post\
                  Official     Estimate   Estimate\   Official   Estimate   Estimate\   Official     Estimate   Estimate\
                                          New                               New                                 New

  **Market Year                01/2006    01/2006                01/2007    01/2007                  01/2008    01/2008
  Begin**                                                                                                       

  Area Planted    282000       3434       296000      315000     315000     340000      0            0          391000

  Area Harvested  0            0          0           0          0          0           0            0          0

  Bearing Trees   0            0          0           0          0          0           0            0          0

  Non-Bearing     0            0          0           0          0          0           0            0          0
  Trees                                                                                                         

  Total Trees     0            0          0           0          0          0           0            0          0

  Commercial      1120000      0          1220000     1250000    1250000    1366400     0            0          1500000
  Production                                                                                                    

  Non-Comm.       17800        0          17800       16000      16000      16000       0            0          15000
  Production                                                                                                    

  Production      1137800      0          1237800     1266000    1266000    1382400     0            0          1515000

  Imports         0            0          0           0          0          0           0            0          0

  Total Supply    1137800      0          1237800     1266000    1266000    1382400     0            0          1515000

  Fresh Dom.      547488       0          616388      568000     568000     635000      0            0          651000
  Consumption                                                                                                   

  Exports, Fresh  1412         0          1412        2000       2000       3249        0            0          4500

  For Processing  588900       0          620000      696000     696000     744151      0            0          859500

  Withdrawal From 0            0          0           0          0          0           0            0          0
  Market                                                                                                        

  Total           1137800      0          1237800     1266000    1266000    1382400     0            0          1515000
  Distribution                                                                                                  
  --------------- ------------ ---------- ----------- ---------- ---------- ----------- ------------ ---------- -----------

###  

#### Trade Matrix Table 

+-------------------+--------------+-------------------+--------------+
| ###### Ex         |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | China,       |                   |              |
|                   | Peoples      |                   |              |
|                   | Republic of  |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | Fresh        |                   |              |
|                   | Apricots     |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time Period       |              | Units:            | MT           |
+-------------------+--------------+-------------------+--------------+
| Exports for:      | 2005         |                   | **2006**     |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 0            | U.S.              |              |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Russia            | 1411         | Russia            | 3249         |
+-------------------+--------------+-------------------+--------------+
| Hong Kong         | 1            |                   |              |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 1412         |                   | 3249         |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 0            |                   | 0            |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 1412         |                   | 3249         |
+-------------------+--------------+-------------------+--------------+

###  

#### Export Price Table

+------------------------+--------------+--------------+--------------+
| ###### Prices Table    |              |              |              |
+------------------------+--------------+--------------+--------------+
| **Country**            | China,       |              |              |
|                        | Peoples      |              |              |
|                        | Republic of  |              |              |
+------------------------+--------------+--------------+--------------+
| **Commodity**          | **Fresh      |              |              |
|                        | Apricots**   |              |              |
+------------------------+--------------+--------------+--------------+
| Prices in              | \$US         | per uom      | MT           |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Year                   | 2005         | 2006         | \% Change    |
+------------------------+--------------+--------------+--------------+
| Jan                    | 130          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Feb                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Mar                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Apr                    | 360          | 350          | -3%          |
+------------------------+--------------+--------------+--------------+
| May                    | 360          | 470          | 31%          |
+------------------------+--------------+--------------+--------------+
| Jun                    | 340          | 570          | 68%          |
+------------------------+--------------+--------------+--------------+
| Jul                    | 430          | 490          | 14%          |
+------------------------+--------------+--------------+--------------+
| Aug                    | 450          | 440          | -2%          |
+------------------------+--------------+--------------+--------------+
| Sep                    | 250          | 600          | 140%         |
+------------------------+--------------+--------------+--------------+
| Oct                    | N/A          | 300          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Nov                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Dec                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Exchange Rate          | 7.8/1        | Local        |              |
|                        |              | Currency/US  |              |
|                        |              | \$           |              |
+------------------------+--------------+--------------+--------------+
| Date of Quote          | 2/27/2007    | MM/DD/YYYY   |              |
+------------------------+--------------+--------------+--------------+

###  

### Fresh cherries

<table>
<colgroup>
<col style="width: 18%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<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"><p id="china-peoples-republic-of-1"
class="heading">China, Peoples Republic of</p></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6">Fresh Cherries,(Sweet&amp;Sour)</td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</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>01/2006</td>
<td>10/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>40500</td>
<td>40500</td>
<td>41000</td>
<td>44500</td>
<td>44500</td>
<td>47100</td>
<td>0</td>
<td>0</td>
<td>52700</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>89600</td>
<td>89600</td>
<td>92000</td>
<td>116500</td>
<td>116500</td>
<td>120000</td>
<td>0</td>
<td>0</td>
<td>145000</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>89600</td>
<td>89600</td>
<td>92000</td>
<td>116500</td>
<td>116500</td>
<td>120000</td>
<td>0</td>
<td>0</td>
<td>145000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>286</td>
<td>286</td>
<td>286</td>
<td>200</td>
<td>200</td>
<td>189</td>
<td>0</td>
<td>0</td>
<td>150</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>89886</td>
<td>89886</td>
<td>92286</td>
<td>116700</td>
<td>116700</td>
<td>120189</td>
<td>0</td>
<td>0</td>
<td>145150</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>89525</td>
<td>89525</td>
<td>91925</td>
<td>116280</td>
<td>116280</td>
<td>119823</td>
<td>0</td>
<td>0</td>
<td>144650</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>61</td>
<td>61</td>
<td>61</td>
<td>100</td>
<td>100</td>
<td>46</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>300</td>
<td>300</td>
<td>300</td>
<td>320</td>
<td>320</td>
<td>320</td>
<td>0</td>
<td>0</td>
<td>400</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>89886</td>
<td>89886</td>
<td>92286</td>
<td>116700</td>
<td>116700</td>
<td>120189</td>
<td>0</td>
<td>0</td>
<td>145150</td>
</tr>
</tbody>
</table>

###  

#### Trade Matrix Tables 

+-------------------+--------------+-------------------+--------------+
| ###### Im         |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | China,       |                   |              |
|                   | Peoples      |                   |              |
|                   | Republic of  |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | Fresh        |                   |              |
|                   | Cherries,    |                   |              |
|                   | (Sweet&Sour) |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time Period       |              | Units:            |              |
+-------------------+--------------+-------------------+--------------+
| Imports for:      | 2005         |                   | **2006**     |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 42           | U.S.              | 151          |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| New Zealand       | 244          | Chile             | 37           |
+-------------------+--------------+-------------------+--------------+
|                   |              | Thailand          | 1            |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 244          |                   | 38           |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 0            |                   | 0            |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 286          |                   | 189          |
+-------------------+--------------+-------------------+--------------+

### 

+-------------------+--------------+-------------------+--------------+
| ###### Ex         |              |                   |              |
| port Trade Matrix |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Country**       | China,       |                   |              |
|                   | Peoples      |                   |              |
|                   | Republic of  |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Commodity**     | Fresh        |                   |              |
|                   | Cherries,    |                   |              |
|                   | (Sweet&Sour) |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time Period       |              | Units:            | MT           |
+-------------------+--------------+-------------------+--------------+
| Exports for:      | 2005         |                   | **2006**     |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 0            | U.S.              | 0            |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Singapore         | 27           | Singapore         | 17           |
+-------------------+--------------+-------------------+--------------+
| Thailand          | 12           | Hong Kong         | 13           |
+-------------------+--------------+-------------------+--------------+
| Malaysia          | 11           | Indonesia         | 13           |
+-------------------+--------------+-------------------+--------------+
| Indonesia         | 5            | Malaysia          | 2            |
+-------------------+--------------+-------------------+--------------+
| Indonesia         | 4            |                   |              |
+-------------------+--------------+-------------------+--------------+
| Netherlands       | 2            |                   |              |
+-------------------+--------------+-------------------+--------------+
|                   |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| Total for Others  | 61           |                   | 45           |
+-------------------+--------------+-------------------+--------------+
| Others not Listed | 0            |                   | 0            |
+-------------------+--------------+-------------------+--------------+
| Grand Total       | 61           |                   | 45           |
+-------------------+--------------+-------------------+--------------+

#### Export Price table

+------------------------+--------------+--------------+--------------+
| ###### Prices Table    |              |              |              |
+------------------------+--------------+--------------+--------------+
| **Country**            | China,       |              |              |
|                        | Peoples      |              |              |
|                        | Republic of  |              |              |
+------------------------+--------------+--------------+--------------+
| **Commodity**          | **Fresh      |              |              |
|                        | Cherries,(S  |              |              |
|                        | weet&Sour)** |              |              |
+------------------------+--------------+--------------+--------------+
| Prices in              | \$US         | per uom      | MT           |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Year                   | 2005         | 2006         | \% Change    |
+------------------------+--------------+--------------+--------------+
| Jan                    | 120          | 390          | 225%         |
+------------------------+--------------+--------------+--------------+
| Feb                    | 180          | 290          | 61%          |
+------------------------+--------------+--------------+--------------+
| Mar                    | 950          | 150          | -84%         |
+------------------------+--------------+--------------+--------------+
| Apr                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| May                    | 3140         | 13333        | 325%         |
+------------------------+--------------+--------------+--------------+
| Jun                    | 3480         | 4490         | 29%          |
+------------------------+--------------+--------------+--------------+
| Jul                    | 1540         | 3350         | 118%         |
+------------------------+--------------+--------------+--------------+
| Aug                    | N/A          | 130          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Sep                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Oct                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Nov                    | N/A          | 130          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
| Dec                    | N/A          | N/A          | #VALUE!      |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Exchange Rate          | 7.8/1        | Local        |              |
|                        |              | Currency/US  |              |
|                        |              | \$           |              |
+------------------------+--------------+--------------+--------------+
| Date of Quote          | 2/27/2007    | MM/DD/YYYY   |              |
+------------------------+--------------+--------------+--------------+