Voluntary Report - Public distribution

**Date:** 4/30/2008

**GAIN Report Number:** CH8028

CH8028

**China, Peoples Republic of**

**Stone Fruit**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)Mark Petry

AGBEIJING

**Prepared by:**

Chanda Beckman, Wu Bugang, and Freddie Xu

**Report Highlights:**

China's MY 2008 production is forecast to increase for all types of
stone fruit. Despite increased production, stone fruit prices are likely
to remain stable or slightly increase during MY 2008, driven by
increasing prices of other food items and escalating costs of
agricultural inputs. The central government has taken actions to help
farmers cope with rising production costs. Imports of U.S. cherries are
expected to increase as well, encouraged by opportunities offered by the
Olympic games.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Peaches 3](#peaches)

[Plums 3](#plums)

[Apricots 4](#apricots)

[Cherries 4](#cherries)

[Price 4](#price)

[Despite Price Increases for Staple Foods, Stone Fruit Prices Stable
4](#despite-price-increases-for-staple-foods-stone-fruit-prices-stable)

[Consumption 5](#consumption)

[Moderate Growth in Stone Fruit Consumption
5](#moderate-growth-in-stone-fruit-consumption)

[Trade 5](#trade)

[Olympics May Encourage Increase in U.S. Exports
5](#olympics-may-encourage-increase-in-u.s.-exports)

[Increases in Production and Quality May Lead to Increased Exports
6](#increases-in-production-and-quality-may-lead-to-increased-exports)

[Policy 6](#policy)

[Government Actions to Mitigate Increased Production Costs
6](#government-actions-to-mitigate-increased-production-costs)

[Farmer Cooperatives 6](#farmer-cooperatives)

[Reduced Tariffs for Chile and New Zealand
6](#reduced-tariffs-for-chile-and-new-zealand)

[Marketing 7](#marketing)

[Market Size 7](#market-size)

[Cherries 7](#cherries-1)

[Plums 7](#plums-1)

[Distribution 7](#distribution)

[Consumer Education/Promotional Activities
8](#consumer-educationpromotional-activities)

[Opportunities 8](#opportunities)

[Challenges 8](#challenges)

[Cherries 8](#cherries-2)

[Plums 8](#plums-2)

[Peaches, Nectarines, and Apricots 9](#peaches-nectarines-and-apricots)

[Tables 10](#tables)

[Import Tariff and VAT for Fresh Stone Fruit in 2008
10](#import-tariff-and-vat-for-fresh-stone-fruit-in-2008)

[2003-2006 China Peach Acreage and Production by Province
10](#china-peach-acreage-and-production-by-province)

[Production, Supply, and Demand (PSD) Table for Fresh Peaches and
Nectarines
11](#production-supply-and-demand-psd-table-for-fresh-peaches-and-nectarines)

[Trade Matrix for Fresh Peaches and Nectarines
12](#trade-matrix-for-fresh-peaches-and-nectarines)

[Export Price for Fresh Peaches and Nectarines
13](#export-price-for-fresh-peaches-and-nectarines)

[PSD Table for Fresh Plums and Prunes
14](#psd-table-for-fresh-plums-and-prunes)

[Trade Matrices for Fresh Plums and Prunes
15](#trade-matrices-for-fresh-plums-and-prunes)

[Export Price for Fresh Plums and Prunes
16](#export-price-for-fresh-plums-and-prunes)

[PS&D Table for Fresh Apricots 17](#psd-table-for-fresh-apricots)

[Trade Matrix for Fresh Apricots 18](#trade-matrix-for-fresh-apricots)

[Export price for Fresh Apricots 19](#export-price-for-fresh-apricots)

[PS&D Table for Fresh Cherries 20](#psd-table-for-fresh-cherries)

[Trade Matrix for Fresh Cherries 21](#trade-matrix-for-fresh-cherries)

# Executive Summary 

Peach production is forecast to increase by eight percent to 8.6 million
metric tons (MMT) in MY 2008. Plum production is forecast at 2.2 MMT, up
10 percent from the previous year, as earlier plantings have begun
bearing fruit and come into full production. Apricot production is
forecast at 1.7 MMT in MY 2008, up nearly 14 percent from the previous
year, mainly attributed to an increase in planted area. Cherry
production is forecast at 174,000 MT in MY 2008, an increase of 16
percent, as more cherry plantings have also reached their full
production cycles. Despite increased production, stone fruit prices are
likely to remain stable or slightly increase during MY 2008, driven by
increasing prices of other food items and escalating costs of
agricultural inputs. The central government has taken actions to help
farmers cope with rising production costs, especially the huge increases
in fertilizer prices. Imports of U.S. cherries are expected to increase
in MY 2008 because of increased market access and anticipated increased
demand during the Olympics in August.

# Production

## Peaches

Peach production is forecast to increase by eight percent to 8.6 million
metric tons (MMT) in marketing year (MY-January-December) 2008[^1], if
normal weather conditions persist during the flowering and bearing
periods (April and May) in major producing areas. Although the weather
in northern China is dryer than normal this spring, recent rains have
alleviated this to some extent. MY 2007 production was revised down to
7.98 MMT, a three percent decrease from the previous year, the result of
a drought in the north and excessive rain in the south during late
spring and early summer. Post reporting trips confirm that peach acreage
continues to decline because of continued lower peach prices stemming
from stagnant demand for fresh peaches. As a result, the planted area is
forecast at 650,000 hectares in MY 2008, down one percent from the
previous season. MY 2006 and 2007 planted area have also been revised
down to 669,500 and 656,000 hectares, respectively. Despite this slight
decrease in acreage, peach production is expected to increase marginally
in the next three to five years given better farm management techniques.

Production costs continue to rise, especially since the second half of
2007. Most agricultural inputs (fertilizer, pesticides, labor, and fuel
costs) are increasing rapidly. Current prices of compound fertilizers
have increased by 30-70 percent from the previous year and some poorer
farmers are choosing to apply less expensive and sometimes less
effective fertilizers that may result in lower quality fruit. Seasonal
labor costs in Shandong Province have increased to U.S. \$5.00 a day, up
20 percent from 2006, and intensive work like bagging and harvesting has
increased to U.S. \$7.00 a day. Water availability for peach production
is also a challenge, especially in China's Northern provinces where
dropping water tables and the encroachment of the Gobi Desert are a
concern. Many rivers and reservoirs in the north are drying up. In most
areas, fruit production is now dependent on rainfall and underground
water.

## Plums

Plum production is forecast at 2.2 MMT in MY 2008 (, up 10 percent from
the previous year, as earlier plantings have begun bearing fruit and
coming to full production. Previous acreage expansion has slowed in
recent years, mostly because of less profitable market prices. The
planted area is forecast at 418,200 hectares, up two percent from the
previous year. Plum production is expected to experience moderate growth
in the next three to five years because of this slight increase in
planted area. Plums produced in northern China are mainly destined for
domestic fresh consumption and a large portion of the plums grown in
southern China are processed into dried or preserved plum products bound
for domestic consumption.

## Apricots

Apricot production is forecast at 1.7 MMT in MY 2008, up nearly 14
percent from the previous year, mainly attributed to an increase in
planted area. Acreage is forecast at 430,000 hectares in MY 2008, up
nearly 10 percent from MY 2007. The quick expansion is largely
attributed to government encouragement, including free or subsidized
seedlings in poor areas of north China such as Inner Mongolia, where
water is lacking and apricots seem to be one of the few cash crops that
can survive the environment and generate income for farmers. Most
apricots grown in these areas are processed into paste and dried fruit,
or their seeds are sold as ingredients for herbal supplements. Apricot
production is expected to continue growing at a relatively fast pace
with the increase in acreage and continued government support.

## Cherries

Cherry production is forecast at 174,000 MT in MY 2008, an increase of
16 percent, as more cherry plantings have reached full production. Many
farmers in Yantai, Shandong Province and Dalian, Liaoning Province have
replaced traditional fruit crops like apples with cherries because of
the increasing popularity of the fruit among domestic consumers.
However, the pace of expansion has shown signs of slowing because the
availability of land suitable for growing this delicate fruit is
limited. Cherry planted area is forecast at 55,000 hectares in MY 2008,
up four percent from the previous year. Cherry acreage is expected to
maintain moderate growth in the next three to five years in Shandong,
Hebei, and Shaanxi provinces, and will result in continued production
growth increases as earlier plantings become productive.

# Price

## Despite Price Increases for Staple Foods, Stone Fruit Prices Stable

Despite increased production, stone fruit prices are likely to remain
stable or slightly increase during MY2008, driven by increasing prices
of other food items and escalating costs of agricultural inputs like
fertilizer and pesticides in China. On April 16, China's National Bureau
of Statistics announced that the Consumer Price Index (CPI) for the
first quarter of 2008 grew eight percent, compared with 2.7 percent the
first quarter of 2007. Food prices, which account for one-third of the
CPI, rose 21 percent in the first quarter of 2008 alone. These increases
are mostly attributed to inflation, increased consumption, and greater
demand for food products throughout China. Prices of staple foods like
pork and grains have increased 69 and 18 percent on average in February.
However, prices of fresh fruit, including stone fruit, experienced only
minor increases largely because price surges of agricultural inputs
occurred after most fruit farmers had already finished farming
activities. In addition, fruit is placed at the bottom of the average
consumer's priority food basket after staples such as grain, meat, and
vegetables. When people are forced to spend more money on basic food
items like grain, they will cut spending on fruit, thus limiting fruit
consumption.

![](media/image2.wmf){width="6.502777777777778in"
height="3.2131944444444445in"}

Source: Ministry of Agriculture

# Consumption

## Moderate Growth in Stone Fruit Consumption

Although there is a great potential for fruit consumption in China, the
actual growth has been moderate and most fruit is still consumed in
wealthier urban areas. The per capita consumption of fresh fruit and
melons in urban areas is posted at 60.2 kg in 2006, up five percent from
2000, according to China's National Bureau of Statistics. The per capita
consumption of fruit in rural areas is about one-third the amount in
urban areas. When it comes to stone fruit, the consumption growth in all
areas of China is even slower because of the short shelf life. In
addition, plums and apricots are not traditionally favored by Chinese
consumers, because it is believed eating too many will make you sick.

Therefore, fresh stone fruit is mainly consumed in cities that are close
to production areas. The one notable exception is cherries, which are
widely popular throughout China and consumption is increasing rapidly,
especially in emerging city markets like Wenzhou, Changsha, and Nanning.

Consumption of processed stone fruit is increasing faster than
consumption of fresh products because of lifestyle changes. Overall
consumption of juice and juice drinks, including peach beverages,
increased overall by more than 18 percent from January-July 2007,
according to industry reports. Dried fruits, especially plums and
apricots are traditional snack foods among young female consumers. Other
processed products like canned peaches, apricot paste, and seeds are
mainly produced for overseas markets.

# Trade

## Olympics May Encourage Increase in U.S. Exports 

U.S. cherries are popular in China during the off-season between June
and August, and imports are likely to double in MY 2008 because of
anticipated increased demand during the Olympics in August. U.S. cherry
producers have invited major Chinese importers to visit the United
States on a trade mission in June 2008, hoping to capitalize on the
Olympic opportunity. The Olympics aside, the majority of cherries and
plums are imported during Chinese New Year, which falls in January or
February each year. This creates opportunities for southern hemisphere
producers like Chile and New Zealand, especially now that both countries
have signed Free Trade Agreements (FTA) with China (see Policy section).
Imports of Chilean plums, for example, jumped to 8,420 MT in MY 2007, up
from zero before the FTA came into force. Chilean plums now account for
78 percent of China's fresh plum imports. While Guangzhou and Hong Kong
remain the major cherry import ports, cherries entering through Shanghai
are increasing at a rapid pace.

## Increases in Production and Quality May Lead to Increased Exports 

Although export volumes of stone fruit account for a small portion of
China's total production, the number is expected to continue growing
because of overall production increases and improved fruit quality. More
farmers have started bagging peaches to attain better looking fruit with
less pesticide residues. Increased production costs and the appreciation
of the Chinese Yuan against the U.S. dollar, however, are likely to
hinder the strong growth momentum. As part of its effort to curb
inflation, China has allowed the Yuan to rise 4.18 percent against the
dollar in the first quarter of 2008, compared to a rise of seven percent
during 2007. On April 23, the exchange rate between the Yuan and the
dollar was quoted at 6.98:1. Another factor limiting stone fruit exports
is the short shelf life of the fruit (about two weeks without cold
storage, a little longer for plums) and current available technology
does not preserve stone fruit for an extended period of time, even in
cold storage. Therefore, China's exports of peaches, plums, and apricots
are concentrated in the harvest season between June and September and
primarily go to neighboring areas like Russia, Vietnam, and Hong Kong.

# 

# Policy

## Government Actions to Mitigate Increased Production Costs

China's financial support for agriculture is primarily aimed at
maintaining stable grain supplies, not fruit production. The central
government, however, has taken actions to help farmers cope with rising
production costs, especially the huge increases in fertilizer prices.
One policy initiative eliminated the VAT on domestically produced and
imported diammonium phosphate (for fertilizer) on January 1, 2008. On
April 17, the government also announced a 100 percent special export
duty on fertilizer and related material exports between April 20 and
September 30, 2008. This is the second such action in 2008. Fertilizer
manufacturers now also enjoy discounts on fuel and electricity rates, as
well as subsidized rail transportation fees. These measures are aimed at
ensuring the supply and stabilizing the price of fertilizers on the
domestic market.

## Farmer Cooperatives

The central government encourages the establishment of farm cooperatives
and published a farmer cooperative law that went into effect July 1,
2007. The government has yet to formulate implementation details with
respect to financing these groups. It is reported that China has around
1.4 million farmer cooperatives in various forms, but only about
one-tenth of these organizations are actually functioning. Most often
these cooperatives are loosely organized and operating on the production
side, rather than the marketing side of the equation. In fact, many
small-sized farmers are not mentally or financially capable of forming
effective cooperatives. While many of China's fruit growers are willing
to work together to increase or improve individual production, Post
contacts indicate that they are uncomfortable with the idea of
collective marketing or branding of their fruit. This is mostly
attributed to the perception of high up-front costs to start such an
organization and the ease of selling directly to a broker or trader
rather than marketing the fruit yourself.

## Reduced Tariffs for Chile and New Zealand

The Free Trade Agreement (FTA) between China and Chile took effect on
October 1, 2006. Under the FTA, Chilean fruit is imported into China at
tariff of four percent in 2008, and that rate will drop to zero by 2010.
This arrangement has benefited the fruit farmers in this South American
country as their supply season falls right on Chinese New Year (in
January or February), a period when consumption of imported fruit
reaches its peak. On April 7, 2008, China signed an FTA with New
Zealand. Under this agreement, import tariffs on fruit will be
eliminated within five years after the agreement comes into force, which
is expected to be October 1, 2008.

# Marketing

## Market Size

### Cherries

A growing middle class and increasing incomes in China has led to
consumer demand for greater quality and more variety of fruits. Imported
fruits are also benefiting from improved infrastructure, cold-chain
storage facilities, and transportation in China. In 2007, U.S. cherry
exports increased in value to U.S. \$1 million, up 99 percent from the
previous year. 2007 was also the first year since 2003 California
cherries enjoyed market access in China. Prior to 2007, market access
was not granted because of phytosanitary concerns related to
Medditerranean Fruit Fly detections in shipments of U.S. cherries from
California.

### Plums

Plums are currently a small niche market in China. In 2007, U.S. plum
exports decreased in value to U.S. \$0.8 million, down 60 percent from
the previous year. However, Chinese consumers do seem willing to pay
premium prices for high quality imported fruit. 2007 is the second year
of official access for California plums to China. Initial excitement
about the opportunities in this market may have been outweighed by new
shipping procedures, direct shipments rather than grey channel
shipments, and other difficulties. One difficulty appears to be a
general reluctance of traders to handle specialty fruit because of the
risks associated with such high value products.

## Distribution

Guangzhou remains the hub for stone fruit imports from the United
States, with Shanghai and Dalian not far behind. In 2007, direct
shipments of U.S. Northwest cherries to China increased in volume by 116
percent to 670 MT, of which 381 MT went to Guangzhou, 263 MT to
Shanghai, and 26 MT to Beijing. It is important to note that direct
shipments to Shanghai increased by 130 percent from 2006 to 2007 and
that 2007 was the first year for direct shipments to Beijing. In 2007,
China imported 12 MT of California cherries. This amount is expected to
increase with continued market access in 2008. 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.

Post estimates that only 20 percent of total cherry consumption in China
is from direct exports from United States, while the remaining 80
percent enters through grey channels. More effort should be spent to
establish stronger trade relationships with local traders in China in
order to encourage direct trade. Education about U.S. product
characteristics and health benefits remains critical to expanding
distribution networks in China. Characteristics such as availability and
varieties of U.S. cherries, packaging offerings, attributes that
differentiate from domestically produced cherries and imports from other
countries, and storage and handling techniques should be highlighted. In
addition, trade/buying missions to visit production areas and meet with
exporters can enhance relationships with local traders and build
confidence in importing U.S. cherries.

Retail stores remain the predominant venue to sell U.S. cherries.
Industry data shows that about 80 percent of U.S. cherry imports are
sold at retail chains like Carrefour and Walmart and 20 percent at
traditional wet markets or smaller fruit stores. Imported U.S. plums are
found in high-end retail outlets, restaurants, and four- and five-star
hotels. Four different colored plums (red, yellow, black, and green) are
available on the market.

## Consumer Education/Promotional Activities

Consumer education is always an indispensable factor in driving demand
for imported products. In-store promotions, tastings, and display of
point-of-purchase materials have proven to be effective in increasing
product awareness among Chinese consumers. Sales of U.S. plums have
doubled and sometimes tripled during these promotion periods. Industry
sources indicate that taste preferences for different plum varieties
vary geographically. Generally, northern China prefers sweet plums while
southern China prefers a more tart tasting fruit.

In addition to on-site promotional activities, reaching targeted
consumers through media exposure also plays an important role in raising
consumer awareness of the premium quality of U.S. cherries. The
incomparable growing conditions for cherries, health benefits, and high
U.S. food safety standards make U.S. cherries appealing to China's
affluent middle class.

## Opportunities

The upcoming 2008 Beijing Olympic Games provide unprecedented
opportunities for imported products. Serving as a catalyst to speed the
pace of infrastructure upgrades, the Olympics have pushed China to
improve its transportation system and cold chain management, issues that
are important for highly perishable products like cherries and plums.
Thousands of foreign visitors and athletes will also boost the demand
for imported high quality fruits.

Emerging city markets (ECMs) such as Hangzhou, Wenzhou, and Chengdu also
offer untapped opportunities for U.S. cherries. The growing population
of well-off citizens in ECMs has had limited exposure to imported food
products, when compared to exposure to high-end or luxury imported
products like automobiles and handbags. Once distribution channels are
identified and consumer education increased in these ECMs, they will
become the next wave escalating imports of U.S. cherries.

## Challenges

### Cherries

U.S. cherries compete with local cherries from the end of May to June.
In north China increased production, improved quality of local cherries,
and low prices make local cherries very competitive and can adversely
impact demand for U.S. cherries. Although China's cold chain management
cannot yet transport large quantities of cherries from production areas
to coastal areas like Shanghai and Guangzhou, the situation is expected
to improve as China continues to invest in infrastructure improvements.
Major cherry orchard owners, together with newly established farm
cooperatives, are considering different ways to preserve cherries long
enough so they arrive at retail locations as though they were just
picked.

Although Chilean cherries do not compete for shelf space with U.S.
product, as they are mainly available during January or February, they
do have some impact on U.S. cherries. U.S. cherries are typically sold
at double the price of Chilean product, so some distributors and
retailers sell Chilean cherries but claim they are of U.S. origin. Faced
with misleading sales tactics, distributors, retailers, and consumers
who lack knowledge about the actual availability of U.S. cherries are
easily confused.

### Plums

Competition for U.S. plums mainly comes from local plums that share the
same season. China began planting U.S. plum varieties in Northern
provinces several years ago. The overall quality of locally produced
plums has improved dramatically in recent years with increased farmer
inputs. New Zealand and Chilean plums are available from January through
February, making them a festival/holiday gift item for the flourishing
Chinese Spring Festival market.

### Peaches, Nectarines, and Apricots

China currently does not offer market access to U.S. fresh peach,
nectarine, or apricot imports.

# Tables

## Import Tariff and VAT for Fresh Stone Fruit in 2008

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

  08091000          Apricots, fresh                     20%        13%

  08092000          Cherries, fresh                     10%        13%

  08093000          Peaches/nectarines, fresh           10%        13%

  08094000          Plums and sloes, fresh              10%        13%

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

## 

## 2003-2006 China Peach Acreage and Production by Province

  -------------- ------- ----------- ------- ----------- ------- ----------- ------- -----------
  China Peach                                                                        
  Production                                                                         
  (1000 Ha and                                                                       
  MT) by                                                                             
  Province                                                                           
  2003-2006                                                                          

  Province       2003                2004                2005                2006    

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

  Shandong       125.9   1,576,537   125.3   1,828,331   126.6   2,011,740   114.3   2,156,308

  Hebei          98.5    1,133,773   101.6   1,223,842   99.0    1,248,910   94.0    1,316,853

  Henan          47.4    424,846     55.4    536,342     60.2    601,029     64.4    650,108

  Hubei          38.3    404,180     44.7    428,076     43.5    468,766     39.3    483,510

  Liaoning       19.3    229,149     19.0    311,140     20.1    346,978     21.2    417,828

  Jiangsu        29.8    317,105     32.6    326,451     32.8    318,699     31.3    349,959

  Sichuan        28.7    269,816     31.9    310,240     34.2    319,039     36.5    330,331

  Shaanxi        19.1    153,007     22.0    216,680     25.4    280,971     26.9    326,387

  Zhejiang       21.7    210,067     23.8    259,595     24.6    285,842     24.5    311,648

  Beijing        17.4    264,585     16.8    296,409     17.4    306,210     17.9    299,783

  Anhui          15.2    167,674     20.4    188,630     20.6    212,186     20.1    226,789

  Fujian         26.3    195,809     26.3    190,248     25.7    199,653     25.6    198,336

  Shanxi         8.7     102,927     9.9     129,935     9.9     132,355     10.9    161,768

  Gansu          11.5    75,254      13.7    74,933      14.2    102,261     14.2    139,340

  Guangxi        10.8    72,172      13.2    93,589      15.5    122,080     15.9    125,757

  Yunnan         16.9    95,803      18.0    104,939     18.2    113,385     20.6    118,974

  Shanghai       8.9     101,543     10.0    95,277      7.6     102,818     7.2     113,167

  Hunan          17.3    74,305      20.9    83,591      21.6    94,888      21.7    102,296

  Guangdong      N/A     61,173      6.6     67,258      7.6     86,860      7.5     87,352

  Xinjiang       8.9     31,939      10.8    49,390      10.6    56,877      10.1    72,038

  Guizhou        11.2    54,254      12.4    58,865      15.7    65,468      16.1    70,621

  Chongqing      8.0     46,295      9.3     48,719      10.0    55,554      10.4    52,649

  Tianjin        4.3     49,071      4.4     49,006      4.0     48,997      4.2     52,399

  Jiangxi        9.0     26,994      9.6     28,386      10.7    37,392      10.8    40,496

  Ningxia        3.7     8,241       3.7     8,312       1.0     2,913       3.6     7,693

  Tibet          0.1     850         0.1     1,259       0.2     1,412       0.1     1,148

  Jilin          0.3     391         0.5     1,121       0.2     612         0.2     676

  Qinghai        N/A     340         N/A     421         N/A     412         N/A     486

  National total 607.2   6,148,100   662.9   7,010,985   677.1   7,624,207   669.5   8,214,700

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

## Production, Supply, and Demand (PSD) Table for Fresh Peaches and Nectarines

<table style="width:100%;">
<colgroup>
<col style="width: 15%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Fresh Peaches &amp; Nectarines</strong></td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
<td></td>
<td>01/2009</td>
<td>01/2009</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>715000</td>
<td>715000</td>
<td>669500</td>
<td>697500</td>
<td>697500</td>
<td>656000</td>
<td>0</td>
<td>0</td>
<td>650000</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>8200000</td>
<td>8200000</td>
<td>8199700</td>
<td>8805000</td>
<td>8805000</td>
<td>7965000</td>
<td>0</td>
<td>0</td>
<td>8585000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</td>
<td>15000</td>
<td>15000</td>
<td>15000</td>
<td>15000</td>
<td>15000</td>
<td>15000</td>
<td>0</td>
<td>0</td>
<td>15000</td>
</tr>
<tr class="even">
<td>Production</td>
<td>8215000</td>
<td>8215000</td>
<td>8214700</td>
<td>8820000</td>
<td>8820000</td>
<td>7980000</td>
<td>0</td>
<td>0</td>
<td>8600000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>120</td>
<td>120</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>122</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>8215120</td>
<td>8215120</td>
<td>8214700</td>
<td>8820000</td>
<td>8820000</td>
<td>7980122</td>
<td>0</td>
<td>0</td>
<td>8600000</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>7076620</td>
<td>7076620</td>
<td>7006000</td>
<td>7448000</td>
<td>7448000</td>
<td>6820000</td>
<td>0</td>
<td>0</td>
<td>7300000</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>18500</td>
<td>18500</td>
<td>20196</td>
<td>22000</td>
<td>22000</td>
<td>24386</td>
<td>0</td>
<td>0</td>
<td>28000</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>1120000</td>
<td>1120000</td>
<td>1188504</td>
<td>1350000</td>
<td>1350000</td>
<td>1135736</td>
<td>0</td>
<td>0</td>
<td>1272000</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>8215120</td>
<td>8215120</td>
<td>8214700</td>
<td>8820000</td>
<td>8820000</td>
<td>7980122</td>
<td>0</td>
<td>0</td>
<td>8600000</td>
</tr>
</tbody>
</table>

## Trade Matrix for Fresh Peaches and Nectarines

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

  **Country**          China, Peoples                     
                       Republic of                        

  **Commodity**        Fresh Peaches &                    
                       Nectarines                         

  Time Period                            Units:           MT

  Exports to:          2006                               2007

  U.S.                 0                 U.S.             0

  Russia               8658              Russia           10566

  Vietnam              6634              Vietnam          9501

  Hong Kong            3970              Hong Kong        3123

  Singapore            412               Singapore        354

  Malaysia             209               Malaysia         326

  Macau                203               Macau            159

  Saudi Arabia         41                Kazakhstan       142

  Kazakhstan           34                North Korea      99

  Indonesia            30                Thailand         48

  Thailand             2                 Saudi Arabia     43

  Total for Non-U.S.   20193                              24361

  Others not Listed    3                                  25

  Grand Total          20196                              24386
  -------------------- ----------------- ---------------- ----------------

## Export Price for Fresh Peaches and Nectarines

  ------------------ --------------------- -------------- ----------------
  **Prices Table**                                        

  **Country**        China, Peoples                       
                     Republic of                          

  **Commodity**      Fresh Peaches &                      
                     Nectarines                           

  Prices in          US\$                  per uom        MT

                                                          

  Year               2006                  2007           \% Change

  Jan                130                   150            15%

  Feb                290                   130            -55%

  Mar                150                   490            227%

  Apr                270                   450            67%

  May                240                   290            21%

  Jun                260                   290            12%

  Jul                300                   260            -13%

  Aug                300                   340            13%

  Sep                300                   340            13%

  Oct                320                   270            -16%

  Nov                150                   140            -7%

  Dec                130                   130            0%

                                                          

  Exchange Rate      7.0/1.00              Local          
                                           Currency/US \$ 

  Date of Quote      4/9/2008              MM/DD/YYYY     
  ------------------ --------------------- -------------- ----------------

## PSD Table for Fresh Plums and Prunes

<table style="width:100%;">
<colgroup>
<col style="width: 16%" />
<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: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Fresh Plums &amp; Prunes</strong></td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
<td></td>
<td>01/2009</td>
<td>01/2009</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>360000</td>
<td>360000</td>
<td>395000</td>
<td>410000</td>
<td>410000</td>
<td>410000</td>
<td>0</td>
<td>0</td>
<td>418200</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>1710000</td>
<td>1710000</td>
<td>1800000</td>
<td>1998000</td>
<td>1998000</td>
<td>1998000</td>
<td>0</td>
<td>0</td>
<td>2200000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</td>
<td>8000</td>
<td>8000</td>
<td>8000</td>
<td>8000</td>
<td>8000</td>
<td>8000</td>
<td>0</td>
<td>0</td>
<td>7500</td>
</tr>
<tr class="even">
<td>Production</td>
<td>1718000</td>
<td>1718000</td>
<td>1808000</td>
<td>2006000</td>
<td>2006000</td>
<td>2006000</td>
<td>0</td>
<td>0</td>
<td>2207500</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>7000</td>
<td>7000</td>
<td>2493</td>
<td>2000</td>
<td>2000</td>
<td>10824</td>
<td>0</td>
<td>0</td>
<td>8000</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>1725000</td>
<td>1725000</td>
<td>1810493</td>
<td>2008000</td>
<td>2008000</td>
<td>2016824</td>
<td>0</td>
<td>0</td>
<td>2215500</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>1091000</td>
<td>1091000</td>
<td>1041000</td>
<td>1123000</td>
<td>1123000</td>
<td>1131942</td>
<td>0</td>
<td>0</td>
<td>1188600</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>8560</td>
<td>8560</td>
<td>6195</td>
<td>7500</td>
<td>7500</td>
<td>7382</td>
<td>0</td>
<td>0</td>
<td>8100</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>625440</td>
<td>625440</td>
<td>763298</td>
<td>877500</td>
<td>877500</td>
<td>877500</td>
<td>0</td>
<td>0</td>
<td>1018800</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>1725000</td>
<td>1725000</td>
<td>1810493</td>
<td>2008000</td>
<td>2008000</td>
<td>2016824</td>
<td>0</td>
<td>0</td>
<td>2215500</td>
</tr>
</tbody>
</table>

## Trade Matrices for Fresh Plums and Prunes

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

  **Country**        China, Peoples                       
                     Republic of                          

  **Commodity**      Fresh Plums &                        
                     Prunes                               

  Time Period                           Units:            MT

  Imports for:       2006                                 **2007**

  U.S.               1946               U.S.              608

  New Zealand        547                Chile             8420

                                        New Zealand       1796

                                                          

                                                          

  Total for Non-U.S. 547                                  10216

  Others not Listed  0                                    0

  Grand Total        2493                                 10824
  ------------------ ------------------ ----------------- -----------------

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

  **Country**        China, Peoples                       
                     Republic of                          

  **Commodity**      Fresh Plums &                        
                     Prunes                               

  Time Period                           Units:            MT

  Exports to:        2006                                 **2007**

  U.S.               0                  U.S.              0

  Vietnam            2421               Russia            3034

  Russia             2230               Vietnam           3004

  Hong Kong          1079               Hong Kong         856

  Malaysia           200                Malaysia          156

  Macau              141                Macau             82

  UAE                43                 Thailand          54

  Singapore          41                 Oman              43

  Italy              15                 UAE               43

  France             14                 Singapore         22

  Thailand           6                  Saudi Arabia      20

                                                          

  Total for Non-U.S. 6190                                 7314

  Others not Listed  4                                    68

  Grand Total        6194                                 7382
  ------------------ ------------------ ----------------- -----------------

## Export Price for Fresh Plums and Prunes

  ----------------- ---------------- ------------------- ----------------
  **Prices Table**                                       

  **Country**       China, Peoples                       
                    Republic of                          

  **Commodity**     Fresh Plums &                        
                    Prunes                               

  Prices in         US\$             per uom             MT

                                                         

  Year              2006             2007                \% Change

  Jan               140              160                 14%

  Feb               300              300                 0%

  Mar               210              480                 129%

  Apr               230              400                 74%

  May               850              920                 8%

  Jun               240              370                 54%

  Jul               280              270                 -4%

  Aug               270              270                 0%

  Sep               390              310                 -21%

  Oct               520              280                 -46%

  Nov               230              180                 -22%

  Dec               140              450                 221%

                                                         

  Exchange Rate     7.0/1            Local Currency/US   
                                     \$                  

  Date of Quote     4/9/2008         MM/DD/YYYY          
  ----------------- ---------------- ------------------- ----------------

## PS&D Table for Fresh Apricots

<table>
<colgroup>
<col style="width: 16%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Fresh Apricots</strong></td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
<td></td>
<td>01/2009</td>
<td>01/2009</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>315000</td>
<td>315000</td>
<td>340000</td>
<td>391000</td>
<td>391000</td>
<td>391000</td>
<td>0</td>
<td>0</td>
<td>430000</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>1250000</td>
<td>1250000</td>
<td>1366400</td>
<td>1500000</td>
<td>1500000</td>
<td>1500000</td>
<td>0</td>
<td>0</td>
<td>1710000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</td>
<td>16000</td>
<td>16000</td>
<td>16000</td>
<td>15000</td>
<td>15000</td>
<td>15000</td>
<td>0</td>
<td>0</td>
<td>15000</td>
</tr>
<tr class="even">
<td>Production</td>
<td>1266000</td>
<td>1266000</td>
<td>1382400</td>
<td>1515000</td>
<td>1515000</td>
<td>1515000</td>
<td>0</td>
<td>0</td>
<td>1725000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>1266000</td>
<td>1266000</td>
<td>1382400</td>
<td>1515000</td>
<td>1515000</td>
<td>1515000</td>
<td>0</td>
<td>0</td>
<td>1725000</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>568000</td>
<td>568000</td>
<td>635000</td>
<td>651000</td>
<td>651000</td>
<td>651000</td>
<td>0</td>
<td>0</td>
<td>683500</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>2000</td>
<td>2000</td>
<td>3249</td>
<td>4500</td>
<td>4500</td>
<td>3078</td>
<td>0</td>
<td>0</td>
<td>3500</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>696000</td>
<td>696000</td>
<td>774151</td>
<td>859500</td>
<td>859500</td>
<td>860922</td>
<td>0</td>
<td>0</td>
<td>1038000</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>1266000</td>
<td>1266000</td>
<td>1382400</td>
<td>1515000</td>
<td>1515000</td>
<td>1515000</td>
<td>0</td>
<td>0</td>
<td>1725000</td>
</tr>
</tbody>
</table>

## Trade Matrix for Fresh Apricots

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

  **Country**        China, Peoples                      
                     Republic of                         

  **Commodity**      Fresh Apricots                      

  Time Period                          Units:            MT

  Exports to:        2006                                2007

  U.S.               0                 U.S.              0

  Russia             3249              Russia            2965

                                       Thailand          59

                                       Germany           24

                                       Netherlands       24

                                       Kazakhstan        5

                                       Hong Kong         1

                                                         

  Total for Non-U.S. 3249                                3078

  Others not Listed  0                                   0

  Grand Total        3249                                3078
  ------------------ ----------------- ----------------- ------------------

## Export price for Fresh Apricots

  --------------------- --------------- ----------------- ---------------
  **Prices Table**                                        

  **Country**           China, Peoples                    
                        Republic of                       

  **Commodity**         Fresh Apricots                    

  Prices in             US\$            per uom           MT

                                                          

  Year                  2006            2007              \% Change

  Jan                   N/A             N/A               N/A

  Feb                   N/A             N/A               N/A

  Mar                   N/A             N/A               N/A

  Apr                   350             480               37%

  May                   470             560               19%

  Jun                   570             480               -16%

  Jul                   490             500               2%

  Aug                   440             480               9%

  Sep                   600             N/A               N/A

  Oct                   300             630               110%

  Nov                   N/A             880               N/A

  Dec                   N/A             750               N/A

                                                          

  Exchange Rate         7.0/1.00        Local Currency/US 
                                        \$                

  Date of Quote         4/9/2008        MM/DD/YYYY        
  --------------------- --------------- ----------------- ---------------

## PS&D Table for Fresh Cherries

<table>
<colgroup>
<col style="width: 17%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Fresh Cherries,(Sweet&amp;Sour)</strong></td>
<td colspan="3">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
<td></td>
<td>01/2009</td>
<td>01/2009</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>44500</td>
<td>44500</td>
<td>47100</td>
<td>52700</td>
<td>52700</td>
<td>52700</td>
<td>0</td>
<td>0</td>
<td>55000</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>116500</td>
<td>116500</td>
<td>120000</td>
<td>145000</td>
<td>145000</td>
<td>150000</td>
<td>0</td>
<td>0</td>
<td>174000</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>116500</td>
<td>116500</td>
<td>120000</td>
<td>145000</td>
<td>145000</td>
<td>150000</td>
<td>0</td>
<td>0</td>
<td>174000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>200</td>
<td>200</td>
<td>189</td>
<td>150</td>
<td>150</td>
<td>611</td>
<td>0</td>
<td>0</td>
<td>3300</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>116700</td>
<td>116700</td>
<td>120189</td>
<td>145150</td>
<td>145150</td>
<td>150611</td>
<td>0</td>
<td>0</td>
<td>177300</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>116280</td>
<td>116280</td>
<td>119823</td>
<td>144650</td>
<td>144650</td>
<td>149954</td>
<td>0</td>
<td>0</td>
<td>176230</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>100</td>
<td>100</td>
<td>46</td>
<td>100</td>
<td>100</td>
<td>57</td>
<td>0</td>
<td>0</td>
<td>70</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>320</td>
<td>320</td>
<td>320</td>
<td>400</td>
<td>400</td>
<td>600</td>
<td>0</td>
<td>0</td>
<td>1000</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>116700</td>
<td>116700</td>
<td>120189</td>
<td>145150</td>
<td>145150</td>
<td>150611</td>
<td>0</td>
<td>0</td>
<td>177300</td>
</tr>
</tbody>
</table>

## Trade Matrix for Fresh Cherries

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

  **Country**        China, Peoples Republic                   
                     of                                        

  **Commodity**      Fresh                                     
                     Cherries,(Sweet&Sour)                     

  Time Period                                Units:            MT

  Imports from:      2006                                      **2007**

  U.S.               151                     U.S.              360

  Chile              37                      Chile             247

  Thailand           1                       New Zealand       4

                                                               

  Total for Non-U.S. 38                                        251

  Others not Listed  0                                         0

  Grand Total        189                                       611
  ------------------ ----------------------- ----------------- ----------------

[^1]: "Marketing year 2008" in this report refers to indicator year
    2008, which begins January 2009 for all varieties of stone fruit.