""

Required Report - public distribution

**Date:** 9/12/2003

**GAIN Report Number:** SP3025

SP3025

**Spain**

**Fresh Deciduous Fruit**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Lloyd J. Fleck

U.S. Embassy

**Prepared by:**

Diego Pazos

**Report Highlights:**

> **Cold weather during the winter, with no late frosts during the
> spring, resulted in good crops of peaches, apples and pears. Grapes --
> both for table and for wine - were hurt by this summer's unusually
> hot, dry weather. Prices for most fruit are extremely high due to
> shorter crops in other EU countries. Producers are reporting very
> profitable returns despite production losses due to the heat wave.
> Although shipments of U.S. apples to Spain have been minimal during
> the past few years, a weaker dollar and high prices for apples in EU
> markets could result in improved prospects in MY 2003/04.**

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Madrid \[SP1\]

\[SP\]

Table of Contents

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

[A. Apples Production. 4](#apples-production.)

[B. Pears Production 6](#b.-pears-production)

[C. Grapes Production 8](#c.-grapes-production)

[Consumption 9](#consumption)

[Trade 11](#trade)

[Marketing 17](#marketing)

#  

# Executive Summary

The Spanish Ministry of Agriculture says that the CY 2003 apple crop
could rise to about 818,300 tons, up 25.4 percent over 2002. The 2003
pear crop is estimated to be about 628,400 tons, up 4.2 percent from
previous year. The grape crop could decline to 320,000 tons, or 3
percent lower than in 2002. The shorter crops in other EU countries are
resulting in extremely profitable prices for most deciduous fruit.

The high prices in the EU and Spain's larger crops of apples and pears
should fuel exports while lowering imports in MY 2003/04. However,
opportunities exist for U.S. apples in Spain during MY 2003/04 due to
the strength of the Euro and higher prices in the Spanish market. In MY
2001/02 (July/June), Spain imported 331 tons of high quality apples from
the United States.

Note: Current exchange rate is:

1 Euro= \$1.09

# Apples Production. 

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

  **Country**       **Spain**                                                            

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

                    2001        Revised    2002       Estimate   2003         Forecast   UOM

                    USDA        Post       USDA       Post       USDA         Post       
                    Official    Estimate   Official   Estimate   Official     Estimate   
                    \[Old\]     \[New\]    \[Old\]    \[New\]    \[Old\]      \[New\]    

  **Market Year                 07/2001               07/2002                 07/2003    MM/YYYY
  Begin**                                                                                

  Area Planted      49000       46000      49000      44674      0            44000      (HA)

  Area Harvested    46500       45000      47000      44000      0            43800      (HA)

  Bearing Trees     0                      0                     0            0          (1000
                                                                                         TREES)

  Non-Bearing Trees                                              0                       (1000
                                                                                         TREES)

  Total Trees       0           0          0          0          0            0          (1000
                                                                                         TREES)

  Commercial        882800      922000     711900     652500     0            778400     (MT)
  Production                                                                             

  Non-Comm.         40000       40000      30000      30000      0            40000      (MT)
  Production                                                                             

  TOTAL Production  922800      962000     741900     682500     0            818400     (MT)

  TOTAL Imports     176400      176376     228000     228000     0            150000     (MT)

  TOTAL SUPPLY      1099200     1138376    969900     910500     0            968400     (MT)

  Domestic Fresh    760000      751636     725000     724400     0            663400     (MT)
  Consump                                                                                

  Exports, Fresh    132000      119540     60000      60000      0            120000     (MT)
  Only                                                                                   

  For Processing    175000      235000     165000     106200     0            165000     (MT)

  Withdrawal From   32200       32200      19900      19900      0            20000      (MT)
  Market                                                                                 

  TOTAL UTILIZATION 1099200     1138376    969900     910500     0            968400     (MT)
  ----------------- ----------- ---------- ---------- ---------- ------------ ---------- ---------

NOTE: Official data for orchard area is updated by the Ministry of
Agriculture every 4 or 5 years. The latest survey, done in 2002,
revealed a 10-percent drop in area compared to the previous survey. The
"new" 2002 data for Area Planted, above, reflects the latest survey.

Apple production has been declining due to a reduction in crop area as
farmers shifted from apples to peaches and nectarines; however, some
recovery is expected in the next few years. Traditional varieties, such
as Starking and Golden, are being replaced by more up-market types, such
as Gala, Fuji and Pink Lady. Although most orchards were in good shape
in late spring, an unrelenting summer heat wave hurt size and quality.
The Gala variety was particularly affected: much of the crop lacked the
red color necessary to be classified as high quality and the size of the
fruit was also reduced.

For MY 2003/04 (July/June), table apple production has been estimated by
the Spanish Ministry of Agriculture at 766,000 tons, some 22 percent
higher than in the previous MY. Cider apples should reach about 52,300
tons, some 99 percent higher than the previous year.

**Table Apple Production - Spain**

**(Metric Tons)**

  ---------------------------- --------------------- ---------------------
  **Autonomous Community**     **2003(Forecast)**    **2002**

  Aragon                       242200                194600

  Catalonia                    358900                270900

  La Rioja-Navarra             33900                 38900

  Galicia                      52000                 42300

  Other                        79000                 77598

  **TOTAL**                    **766000**            **626300**
  ---------------------------- --------------------- ---------------------

About 80 percent of the apple crop is produced in the Ebro river basin
in the northeast of Spain. Since 1995, crop area has fallen from 43,500
hectares to a current level of about 36,000 hectares. The area planted
with cider apples total about 8,000 hectares, located mainly in Asturias
and the Basque Country of Northern Spain.

##  

# B. Pears Production

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

  **Country**     **Spain**                                                                                          

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

                  2001        Revised    2002       Estimate   2003         Forecast   UOM                           

                  USDA        Post       USDA       Post       USDA         Post                                     
                  Official    Estimate   Official   Estimate   Official     Estimate                                 
                  \[Old\]     \[New\]    \[Old\]    \[New\]    \[Old\]      \[New\]                                  

  **Market Year               07/2001               07/2002                 07/2003    MM/YYYY                       
  Begin**                                                                                                            

  Area Planted    40500       34000      40500      32356      0            32000      (HA)                          

  Area Harvested  38500       33500      38500      32000      0            31800      (HA)                          

  Bearing Trees   0           0          0          0          0            0          (1000                         
                                                                                       TREES)                        

  Non-Bearing     0           0          0          0          0            0          (1000                         
  Trees                                                                                TREES)                        

  Total Trees     0           0          0          0          0            0          (1000                         
                                                                                       TREES)                        

  Commercial      694000      694000     606900     606900     0            640000     (MT)                          
  Production                                                                                                         

  Non-Comm.       25000       25000      20000      20000      0            22000      (MT)                          
  Production                                                                                                         

  TOTAL           719000      719000     626900     626900     0            662000     (MT)                          
  Production                                                                                                         

  TOTAL Imports   22500       22559      30000      32000      0            20000      (MT)                          

  TOTAL SUPPLY    741500      741559     656900     658900     0            682000     (MT)                          

  Domestic Fresh  478200      478259     480100     479900     0            442000     (MT)                          
  Consump                                                                                                            

  Exports, Fresh  193300      193300     116800     114000     0            180000     (MT)                          
  Only                                                                                                               

  For Processing  45000       45000      40000      45000      0            40000      (MT)                          

  Withdrawal From 25000       25000      20000      20000      0            20000      (MT)                          
  Market                                                                                                             

  TOTAL           741500      741559     656900     658900     0            682000     (MT)                          
  UTILIZATION                                                                                                        
  --------------- ----------- ---------- ---------- ---------- ------------ ---------- --------- ---- ---- ---- ---- ----

NOTE: Official data for orchard area is updated by the Ministry of
Agriculture every 4 or 5 years. The latest survey, done in 2002,
revealed a 20-percent drop in area compared to the previous survey. The
"new" 2002 data for Area Planted, above, reflects the latest survey.

Favorable weather conditions during the winter and spring have resulted
in a good crop. Fruit quality was only marginally affected by this
summer's heat wave and is reported to be good.

**Pear Production - Spain**

**(Metric Tons)**

  ------------------------------ ---------------------- -----------------
  **Autonomous Community**       **2002 (Forecast)**    **2003
                                                        (Forecast)**

  Aragon                         157165                 144942

  Catalonia                      295623                 301090

  La Rioja-Navarra               45144                  51325

  Extremadura                    21301                  26518

  Murcia                         24790                  17560

  Other                          62877                  98565

  Total                          606900                 640000
  ------------------------------ ---------------------- -----------------

About 77 percent of the pear crop is produced in the Ebro river basin. A
area planted to pears (2002 data) totals 32,256 hectares. Area has risen
by about one percent in the last seven years. Nearly all the pears are
produced under irrigation. The main varieties are Blanquilla,
Conference, Ercolini (Coscia), Limonera (Jules Guyot) and Williams.
Production of the Conference and Williams varieties has risen
dramatically during the last ten years. Current high prices could
encourage new orchards in the next few years to meet demand in both
domestic and EU markets.

# C. Grapes Production

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

  **Country**     **Spain**                                                                                        

  **Commodity**   **Fresh                                      (HA)(MT)                                            
                  Table                                                                                            
                  Grapes**                                                                                         

                  2001        Revised    2002       Estimate   2003       Forecast   UOM                           

                  USDA        Post       USDA       Post       USDA       Post                                     
                  Official    Estimate   Official   Estimate   Official   Estimate                                 
                  \[Old\]     \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]                                  

  **Market Year               01/2001               01/2002               01/2003    MM/YYYY                       
  Begin**                                                                                                          

  Area Planted    30000       23900      30000      23000      0          20000      (HA)                          

  Area Harvested  28000       23000      28000      22500      0          20000      (HA)                          

  Commercial      332400      332400     322000     322000     0          314500     (MT)                          
  Production                                                                                                       

  Non-Comm.       10000       10000      10000      10000      0          10000      (MT)                          
  Production                                                                                                       

  TOTAL           342400      342400     332000     332000     0          324500     (MT)                          
  Production                                                                                                       

  TOTAL Imports   24800       27799      28000      19937      0          15000      (MT)                          

  TOTAL SUPPLY    367200      370199     360000     351937     0          339500     (MT)                          

  Domestic Fresh  242800      241198     242000     223620     0          211500     (MT)                          
  Consump                                                                                                          

  Exports, Fresh  96400       98002      90000      100317     0          100000     (MT)                          
  Only                                                                                                             

  For Processing  20000       22999      20000      20000      0          20000      (MT)                          

  Withdrawal From 8000        8000       8000       8000       0          8000       (MT)                          
  Market                                                                                                           

  TOTAL           367200      370199     360000     351937     0          339500     (MT)                          
  UTILIZATION                                                                                                      
  --------------- ----------- ---------- ---------- ---------- ---------- ---------- --------- ---- ---- ---- ---- ----

The heat wave has caused some losses in grapes: the MY 2003/04 crop is
estimated at 324,000 tons, about three percent lower than in the
previous year. About 62 percent of the table grape crop is located in
the Region of Valencia. Area planted in the crop has been cut in half
during the past decade, from 40,000 hectares in 1994 to about 20,000
hectares in 2003. Nonetheless, the production has remained fairly stable
in the same period due to the implementation of new irrigation systems.
Moscatel, Ideal and Aledo are the main table varieties.

**D. Concentrated Apple Juice Production.**

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

  **Country**     **Spain**                                                                                             

  **Commodity**   **Concentrated                                    (MT)                                                
                  Apple Juice**                                                                                         

                  2001             Revised    2002       Estimate   2003       Forecast   UOM                           

                  USDA Official    Post       USDA       Post       USDA       Post                                     
                  \[Old\]          Estimate   Official   Estimate   Official   Estimate                                 
                                   \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]                                  

  **Market Year                    07/2001               07/2002               07/2003    MM/YYYY                       
  Begin**                                                                                                               

  Deliv. To       175000           175000     165000     80000      0          113000     (MT)                          
  Processors                                                                                                            

  Beginning       2000             2000       1900       8200       2000       1587       (MT)                          
  Stocks                                                                                                                

  Production      18700            25000      17600      11428      0          16142      (MT)                          

  Imports         11600            3090       12600      5459       0          6000       (MT)                          

  TOTAL SUPPLY    32300            30090      32100      25087      2000       23729      (MT)                          

  Exports         17000            14318      16500      16000      0          15000      (MT)                          

  Domestic        13400            7572       13600      7500       0          7500       (MT)                          
  Consumption                                                                                                           

  Ending Stocks   1900             8200       2000       1587       0          1229       (MT)                          

  TOTAL           32300            30090      32100      25087      0          23729      (MT)                          
  DISTRIBUTION                                                                                                          

                  \_               \_         \_         \_                    \_                                       

                  \_               \_         \_         \_                    \_                                       
  --------------- ---------------- ---------- ---------- ---------- ---------- ---------- --------- ---- ---- ---- ---- ----

**Notes**: Data shown in the PS&D table are expressed in terms of 70-71
Brix concentrated juice. According to Spanish processors, seven
kilograms of apples yield 1 kilogram of CAJ of 70-71 degrees Brix. The
number delivered to processors in the CAJ S&D table does not include
apples processed into cider.

As a result of the smaller MY 2002/03 apple crop, concentrated apple
juice (CAJ) production reached only 11,428 tons for the season.

This year's expected larger apple crop and the down grading of Gala
varieties- the color is not dark enough- could send more apples to
processing in MY 2003/04. Processors are concerned about CAJ imports
from China, which are expanding rapidly.

# Consumption

## Consumption Subcategory

**A. Fresh Apple Consumption**

Although overall fruit consumption is increasing, fresh apple
consumption remains relatively stable. The popularity of apple varieties
has been shifting: consumption of Golden and Starking varieties has been
falling and replaced by Gala, Fuji and Pink Lady varieties. Both Spanish
and EU authorities continue organizing promotion campaigns to increase
apple and citrus consumption. Apples are the third most popular fruit in
Spain during winter months, after oranges and bananas.

## 

**B. Fresh Pear Consumption**

Fresh pear consumption is also basically stable, with year-to-year
fluctuations reflecting domestic production levels and availability. The
main varieties consumed are Blanquilla, Conference, Limonera and
Ercolini; Blanquilla is a strong favorite among Spanish consumers. Pears
are consumed mainly during the fall and winter, competing with citrus,
apples and bananas.

**C. Grapes Consumption**

Consumption of table grapes is expected to drop slightly from the
previous year due the fall in production. Moscatel is the most popular
variety. Most of the crop is consumed during September/December within a
few months of the harvest. Seedless grapes and grapes with a low
percentage of sugar are becoming more and more popular.

**D.** **CAJ Consumption**

Apple juice is not widely consumed in Spain. Consumption is estimated at
60 million liters, representing a minimal percentage of the total
beverage market.

# Trade

## Trade Subcategory

A.  **Apples Trade**

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

  **Country**         Spain                 

  **Commodity**       Fresh                 
                      Apples                

  Time Period         MY          Units:    Metric Tons

  Imports for:        2000                  **2001**

  U.S.                531         U.S.      338

  Others                          Others    

  France              197319                76188

  Chile               27098                 31875

  Italy               22357                 19679

  Portugal            12888                 16473

  Argentina           4768                  8629

  Germany             8739                  6714

  Belgium             9749                  4937

  Total for Others    282918                164495

  Others not Listed   16786                 11881

  Grand Total         299704                176376
  ------------------- ----------- --------- ------------------------------

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

  **Country**         Spain                           

  **Commodity**       Fresh Apples                    

  Time Period         MY                    Units:    Metric Tons

  Exports for:        2000                            **2001**

  U.S.                                      U.S.      

  Others                                    Others    

  France              5496                            36395

  Portugal            38121                           33439

  Algeria             0                               8625

  Germany             3222                            6873

  Italy               1072                            5747

  Greece              616                             4566

  Netherlands         1641                            4380

  UK                  2033                            4193

  Total for Others    52201                           104218

  Others not Listed   6588                            15322

  Grand Total         58789                           119540
  ------------------- --------------------- --------- ---------------------

Imports and exports of Spanish apples fluctuate with the size of the
crops in both Spain and EU countries. For instance, the good crop in
2001 resulted in lower imports and higher exports of apples in MY
2001/02. The bulk of Spain's apples trade is with other EU countries.

During MY 2003/04, the good crop in Spain will cause higher exports and
lower imports compared with the previous season. In addition, exports
are getting an extra boost from high prices in other EU countries. Data
for first eleven months of MY 2002/03 (July-2002/May-2003) show imports
of 223,186 tons. Based on this data, imports for the entire marketing
year are estimated about 38 percent higher than in the previous MY.
France, Chile, Italy, Germany, Portugal and Argentina were the major
suppliers.

Spain imported 75 tons of U.S. apples in MY 2002/03. Importers continue
to express interest in U.S. apples, particularly red varieties.
According to trade sources, higher imports of U.S. apples are expected
in 2003/04 due to high prices throughout the EU. The window of
opportunity for U.S. apples in Spain is normally during November-March,
before the Southern Hemisphere crop is available.

For the next few years, higher exports of Spanish summer apples (Gala,
Fuji and Pink Lady) to other EU countries are expected due to the good
quality of these crops.

**B.** **Pears Trade**

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

  **Country**     Spain                             

  **Commodity**   Fresh Pears                       

  Time Period     MY                       Units:   Metric tons

  Imports for:    2000                              **2001**

  U.S.            63                       U.S.     

  Others                                   Others   0

  Belgium         22777                             5459

  Chile           4682                              4916

  Netherlands     10212                             3179

  Germany         3186                              3124

  Argentina       1621                              2638

  France          4158                              1064

  Portugal        774                               1048

  Total for       47410                             21428
  Others                                            

  Others not      3571                              1131
  Listed                                            

  Grand Total     50981                             22559
  --------------- ------------------------ -------- -----------------------

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

  **Country**             Spain                     

  **Commodity**           Fresh Pears               

  Time Period             MY               Units:   Metric tons

  Exports for:            2000                      **2001**

  U.S.                                     U.S.     

  Others                                   Others   

  Italy                   29307                     62673

  Germany                 14255                     27215

  Greece                  16438                     21422

  France                  11795                     19879

  Portugal                10099                     11081

  Belgium                 3476                      9856

  Netherlands             2086                      8395

  Russia                  2739                      7182

  UK                      4069                      5955

  Total for Others        94264                     173658

  Others not Listed       11198                     19625

  Grand Total             105462                    193283
  ----------------------- ---------------- -------- -----------------------

Imports of pears during the first eleven months of MY2002/03 amounted to
30,171 tons, about 50 percent higher than the same period a year
earlier. Imports during CY 2001 totaled 33,964 tons, about 17 percent
lower than CY 2000. The bulk of imports continue to be sourced from
other EU countries and Chile. U.S. pear imports in CY 2001 reached only
65 tons. No U.S. imports had been reported during the previous four
years. Total imports are expected to increase in MY2002/03 as a result
of Spain's lower domestic supplies.

Spain's exports during the first ten months of MY2001/02 totaled 170,495
tons, an increase of 79 percent from the previous year. Major
destinations were Italy, Germany and Greece. Total exports during CY
2001 reached 62,790 Mt, a 49 percent increase from the previous CY. In
MY2002/03, however, exports declined due to the smaller crop.

B.  **Fresh Grapes Trade**

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

  **Country**           Spain                                

  **Commodity**         Fresh Table                          
                        Grapes                               

  Time Period           CY=MY          Units:                Metric Tons

  Imports for:          2001                                 **2002**

  U.S.                  31             U.S.                  27

  Others                               Others                

  Chile                 4712                                 7011

  Italy                 14058                                5483

  South Africa          4041                                 2955

  Netherlands           1444                                 2189

  Belgium               393                                  655

  Germany               861                                  310

  Total for Others      25509                                18603

  Others not Listed     2259                                 1307

  Grand Total           27799                                19937
  --------------------- -------------- --------------------- --------------

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

  **Country**           Spain                                

  **Commodity**         Fresh Table Grapes                   

  Time Period           CY=MY              Units:            Metric Ton

  Exports for:          2001                                 **2002**

  U.S.                                     U.S.              

  Others                                   Others            

  Germany               24412                                25828

  Portugal              20894                                20442

  UK                    22800                                19641

  France                16217                                18140

  Netherlands           4018                                 5139

  Italy                 3590                                 2798

  Total for Others      91931                                91988

  Others not Listed     6071                                 8329

  Grand Total           98002                                100317
  --------------------- ------------------ ----------------- --------------

Due to a better crop, total imports of grapes declined to 19,937 tons
during CY 2002, while exports rose to 100,317 tons. Italy and Chile were
again the major suppliers and Germany Portugal and the UK were the major
buyers. As a result of the smaller crop in other EU countries in CY
2003, stable exports are expected despite a decline in the domestic
crop. Imports are expected to decline due to a shorter crop in EU
countries in CY 2003. Minimal imports of U.S. grapes have been reported
during the last few years. Spain is a net table grape exporter, and U.S.
table grapes have a reduced potential in this market.

## D. CAJ Trade

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

  **Country**             Spain                        

  **Commodity**           Concentrated Apple           
                          Juice                        

  Time Period             MY                 Units:    Metric tons

  Imports for:            2000                         **2001**

  U.S.                    0                  U.S.      0

  Others                                     Others    

  Germany                                              1124

  China                                                626

  Turkey                                               306

  South Africa                                         479

  France                                               311

  Total for Others        0                            2846

  Others not Listed       5970                         243

  Grand Total             6520                         3089
  ----------------------- ------------------ --------- ------------------

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

  **Country**             Spain                         

  **Commodity**           Concentrated Apple            
                          Juice                         

  Time Period             MY                 Units:     Metric Tons

  Exports for:            2000                          **2001**

  U.S.                                       U.S.       30

  Others                                     Others     

  UK                                                    3595

  Germany                                               4472

  Netherlands                                           1846

  Japan                                                 1484

  France                                                910

  Portugal                                              623

  Total for Others        0                             12930

  Others not Listed       20500                         1358

  Grand Total             20500                         14318
  ----------------------- ------------------ ---------- -----------------

Spanish CAJ imports during the first eleven months of MY 2002/03 were
about 50 percent higher than in the same period of MY 2001/02. Imports
from China during the first eleven months of MY 2002/03 shot up to 1,145
tons, or 83 percent higher than in the same period of previous MY.
Besides China, CAJ imports came from Germany and South Africa. Imports
are expected to rise again in MY 2003/04 despite higher domestic
production.

Spanish CAJ exports during the first eleven months of MY 2002/03 rose to
about 14,700 tons, some 30 percent higher than in the same period of
previous marketing year. The United Kingdom, Germany and Netherlands
were the major destinations. Large beginning stocks encouraged this gain
in exports. For MY 2003/04, we expect a drop in exports.

# Marketing

A.  **Apple Marketing**

U.S. quality apples have some market opportunities in Spain. Spanish
consumers prefer crisp, well-colored fruit. Spain's importers and
consumers are already aware of the texture and flavor of U.S. apples.
U.S. Red varieties have the greatest marketing opportunities, followed
by Gala, Fuji and Golden. The main constraint to U.S. apples in the
Spanish market has always been their high prices relative to those from
other suppliers. According to importers, this constraint could be
reduced this season due to a weaker dollar and to higher prices in the
EU. As recently as 1999, Spain imported 5,314 tons of high quality
apples from the U.S.

B.  **Pears Marketing**

Given Spain's position is a net exporter of pears and consumers' strong
preference for the domestic blanquilla variety, the potential market for
U.S. pears is limited. Further, EU suppliers are in a better position to
supply winter pears due to lower transport costs. Spain's imports from
outside the EU are mostly off-season pears from the Southern Hemisphere.

C.  **Grapes Marketing**

Spain is a difficult market for U.S. grapes since it is a major exporter
of grapes and has a long growing season concurrent with the U.S. season.
In addition, the Spanish consumers are not familiar with the U.S.
varieties.