Voluntary Report - public distribution

**Date:** 6/16/2006

**GAIN Report Number:** CH6028

CH6028

**China, Peoples Republic of**

**Canned Deciduous Fruit**

**Annual**

**2006**

**Approved by:**

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

Agricultural Affairs Office, U.S. Embassy, Beijing

**Prepared by:**

Kevin Latner, Wu Bugang, and Caleb O\'Kray

**Report Highlights:**

Canned peach production is forecast to be up 6 percent in MY2006 from
the previous year to 234,050 MT as a result of steady growth in exports
and domestic demand. Canned pears are forecast to be up 7 percent to
57,450 MT, driven by growing exports. Production of canned mixed fruit
and canned apricots is expected to be up 45 percent and 10 percent
respectively to 26,540 MT and 7,400 MT, also due to strong exports.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Beijing \[CH1\]

\[CH\]

Table of Contents

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

[Production 4](#production)

[Stable world and domestic demand push canned peach production up
4](#stable-world-and-domestic-demand-push-canned-peach-production-up)

[Export growth a key factor to expand canned pears, mixed fruit and
apricots
4](#export-growth-a-key-factor-to-expand-canned-pears-mixed-fruit-and-apricots)

[Consumption 5](#consumption)

[Canned fruit consumption up, despite some dietary concern
5](#canned-fruit-consumption-up-despite-some-dietary-concern)

[Trade 7](#trade)

[Canned peach exports growing but dependent on competition from Greek
peaches
7](#canned-peach-exports-growing-but-dependent-on-competition-from-greek-peaches)

[Exports of other canned fruit expanding due to strong world demand
7](#exports-of-other-canned-fruit-expanding-due-to-strong-world-demand)

[Policy 7](#policy)

[Little government support to the private sector
7](#little-government-support-to-the-private-sector)

[Import Tariff and VAT for Canned Deciduous Fruit in 2006
7](#import-tariff-and-vat-for-canned-deciduous-fruit-in-2006)

[Marketing 8](#marketing)

[Limited number of marketing programs focus on major consumption areas
8](#limited-number-of-marketing-programs-focus-on-major-consumption-areas)

[Tables 9](#tables)

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

[Canned peaches 9](#canned-peaches)

[Trade Matrices for Canned Peaches
10](#trade-matrices-for-canned-peaches)

[Canned Pears 11](#canned-pears)

[Export Trade Matrix for Canned Pears
11](#export-trade-matrix-for-canned-pears)

[Canned Mixtures 12](#canned-mixtures)

[Trade Matrices for Canned Mixtures
12](#trade-matrices-for-canned-mixtures)

[Canned Apricots 13](#canned-apricots)

[Export Trade Matrix for Canned Apricots
14](#export-trade-matrix-for-canned-apricots)

# Executive Summary

Canned peach production is forecast to be up 6 percent in MY2006 from
last year to 234,050 MT as a result of steady growth in exports and
domestic demand. Canned pears are forecast to be up 7 percent to 57,450
MT driven by growing exports. Production of canned mixed fruit and
canned apricots is expected to be up 45 percent and 10 percent
respectively to 26,540 MT and 7,400 MT, also attributable to strong
exports.

Industry complains that the fruit canning industry is one of the least
profitable in China. The central government does not provide special
assistance to canning companies that face rising production costs for
inputs including fresh fruit, tin, sugar, fuel, and currency
appreciation.

Domestically, per capita consumption of canned fruit is very low and is
not expected to increase significantly in the short term. Chinese prefer
fresh fruit to canned fruit. The availability of a wide range of fresh
fruit and the perception that canned fruit contains additives further
limits consumption growth. Canned peaches, however, as a traditional
dessert in China, are an exception to the stagnant trend of other canned
fruits. Canned peach consumption is forecast to be up nearly 4 percent
in MY2006 to 145,000 MT. Canned fruit is mainly consumed in northeast
China and in major cities like Beijing and Shanghai.

Limited marketing efforts are focused on northeast China where people
traditionally eat canned fruit after drinking. Overseas buyers of
private label goods contract many export-oriented canneries to produce
canned fruit; a small number of companies with their own brands market
their products at international trade shows or advertise their products
in other venues.

Canned peach exports are growing thanks mainly to the Japanese market,
but depend on competition from Greece, the world top canned peach
supplier. Exports of other canned fruit, while starting from a smaller
base, are expanding quickly thanks to strong world demand.

# Production

## Stable world and domestic demand push canned peach production up

Canned peach production is forecast to be up 6 percent to 234,050 metric
tons (MT) in the 2006 marketing year (MY) as a result of steady growth
in exports and domestic demand. In MY2005, production is estimated to be
up 7 percent to 220,000 MT from 205,000 MT in the previous year.

China produces both canned white peaches and canned yellow peaches.
Currently, canned white peaches account for one fourth of total canned
peach production. Despite the fact that China's fresh peach production
is increasing quite fast, yellow peach production is growing slowly.
Although farmers increased planted acreage for yellow peaches in 2004,
when market prices increased to record highs because of a sharp decline
in yellow peach production in the world's major producing countries, it
will take a couple more years for those groves to work their way into
production.

Industry sources complained that the canning industry is one of the
least profitable within China's food industry. Constraints include
limited domestic market demand, small operations, and low levels of
industrialization. Rising production costs are the most pressing issue.
The prices of fresh white and yellow peaches were recorded at 1.5 RMB
per kilogram (\$US = 8 RMB) and 2.5-3 RMB per kilogram, respectively, in
MY2005, up 10 to 20 percent from the previous year. The costs of tin
(exclusively used for export products since domestic products use glass
jars), sugar, fuel, and labor have increased annually, but market prices
for peaches have not kept pace. Exporting companies also fear future
currency appreciation.

## Export growth a key factor to expand canned pears, mixed fruit and apricots

Canned pears are forecast to be up 7 percent to 57,450 MT in MY2006,
driven by growing exports. In MY2005, production is estimated to be up
nearly 8 percent to 53,500 MT from 49,800 MT in the previous year.

Production of canned mixed fruit and canned apricots is forecast to be
up 45 percent and 10 percent to 26,540 MT and 7,400 MT, respectively, in
MY2006 as a result of strong export growth. In MY2005 canned mixed fruit
and canned apricots are estimated to be up 32 percent and 40 percent to
18,310 MT and 6,680 MT respectively from 13,884 MT and 4,797 MT in the
previous year.

![](media/image2.wmf)

# Consumption

## 

## Canned fruit consumption up, despite some dietary concern

Total canned fruit consumption has increased from the past year due to
the novelty appeal of canned mixed fruit and the growing traditional
consumption of canned peaches. In cold areas like northeast China, the
tradition of serving canned fruit drinks continues. Two thirds of canned
fruit is consumed in northeast China. Other major consumption areas
include Beijing and Shanghai. Dietary concerns and minimal exposure of
canned fruit may constrain major growth in the future. In southern
China, such as Guangdong, few people eat canned fruit. In most parts of
China, people prefer fresh fruit to canned fruit. Per capita consumption
levels of canned fruit are very low and are not expected to increase
significantly in the short term. The availability of a wide variety of
fresh fruit limits consumption growth in canned fruit. Another factor
that affects people's buying interest is the perception among Chinese
that canned fruit contains preservatives that are not good for their
health.

Canned yellow peaches, a traditional canned fruit in China, are the most
popular. As a result, the consumption of canned peaches continues to
grow steadily and is forecast to be up nearly 4 percent to 145,000 MT in
MY2006. The MY2005 consumption is estimated up 3 percent to 139,825 MT
from 135,226 MT in the previous year.

The consumption of other canned fruits is also growing slightly because
people have better access to the products as a result of more
supermarkets in urban areas. The total amount, however, is limited. The
novelty of canned mixed fruit has caused the consumption to grow
rapidly. Canned pear consumption is forecast to be up 2 percent to
17,500 MT in MY2006. In MY2005, consumption is estimated to be up 3
percent to 17,082 MT from 16,493 MT, in the previous year. The
consumption of canned mixed fruit and canned apricots is forecast to be
up 6 percent and 2 percent to 2,840 MT and 1,150 MT, respectively, in
MY2006. In MY2005, consumption is estimated to be up 5 percent and 2
percent respectively to 2,680 MT and 1,120 MT.

The expected natural consumption growth (2.5%: 1% due to population
growth, and 1.5% due to urban migration, assuming an urban market)
contrasts with real consumption growth. The graphs below chart the
difference between the real consumption growth and the expected natural
consumption growth for each different type of canned deciduous fruit.

![](media/image3.wmf)

![](media/image4.wmf)

![](media/image5.wmf)

![](media/image6.wmf)

Real consumption rates weighted by the adjusted consumption rate provide
a slightly different picture from a simple analysis that doesn't allow
for natural growth.

  ----------------------- ----------------------- -----------------------
  Type of Canned Fruit    Real Consumption Rate   Weighted Consumption
                                                  Rate

  Peaches                 4%                      1%

  Pears                   2%                      0.6%

  Mixed Fruit             6%                      2.8%

  Apricots                2%                      0.0%
  ----------------------- ----------------------- -----------------------

# Trade

## 

## Canned peach exports growing but dependent on competition from Greek peaches 

The majority of canned fruit products are contracted for overseas labels
and only a few canneries export their own brands. Most canned white
peaches from China are exported to Japan. Canning companies target the
Japanese market because it offers high prices. Others focus on multiple
markets, which include the U.S., E.U., Russia, Thailand and South Korea,
because they offer lower prices with lower quality standards. The export
volumes of yellow peaches depend on Greece's production, which is the
world's top supplier of canned yellow peaches. Canned peach exports are
forecast to be up 10 percent to 90,000 MT in MY2006. China is estimated
to export 82,000 MT of canned peaches in MY2005, up more than 12 percent
from 72,713 MT in the previous year.

## Exports of other canned fruit expanding due to strong world demand

Canned pear exports are growing quickly to meet European demand. The
MY2006 exports are forecast to be up 11 percent to 40,000 MT. In MY2005
canned pear exports are estimated to be up 9 percent to 36,500 MT from
33,344 MT in the previous year. Canned mixed fruit and canned apricot
exports are increasing even faster and the volumes are forecast to be up
48 percent and 10 percent in MY2006 to 24,000 MT and 6,500 MT,
respectively. In MY2005, export volumes for canned mixed fruit and
canned apricots are estimated to be up 32 percent and 48 percent from
12,234 MT and 3,981 MT in the previous year, respectively.

China imports a limited amount of canned peaches from the U.S. and South
Africa, but volumes are declining rapidly.

# Policy

## 

## Little government support to the private sector 

The Chinese government does not provide special assistance to canning
companies. Like many other companies that export agricultural products,
canneries receive a 13 percent VAT rebate after their products are
exported. If they are considered leading agro-businesses in their
respective provinces, they may get preferential policy support, such as
subsidized loans, from the provincial governments.

Import tariffs and VAT for canned fruit remain unchanged from 2005 (see
tables below). The Chinese canning industry follows the national
standard *GB 11671-2003 Hygienic Standard for Canned Fruits and
Vegetables*, which stipulates the food safety production requirements,
including the use of food additives and testing methods.

## Import Tariff and VAT for Canned Deciduous Fruit in 2006

+-----------------+----------------------------------+---------+-------+
| **HS Code**     | **Description**                  | **T     | **    |
|                 |                                  | ariff** | VAT** |
+-----------------+----------------------------------+---------+-------+
| 20084010        | Pears, in airtight containers    | 20%     | 17%   |
+-----------------+----------------------------------+---------+-------+
| 20085000        | Apricots, prepared or preserved  | 20%     | 17%   |
+-----------------+----------------------------------+---------+-------+
| 20086000        | Cherries, prepared or preserved  | 20%     | 17%   |
+-----------------+----------------------------------+---------+-------+
| 20087010        | Peaches/nectarines, in airtight  | 10%     | 17%   |
|                 | containers                       |         |       |
+-----------------+----------------------------------+---------+-------+
| 20089200        | Mixtures, prepared or preserved  | 10%     | 17%   |
+-----------------+----------------------------------+---------+-------+
| ######## Source |                                  |         |       |
| : China Customs |                                  |         |       |
+-----------------+----------------------------------+---------+-------+

# Marketing

## 

## Limited number of marketing programs focus on major consumption areas 

With the production costs of canned fruit up, canning companies are
limiting extensive expenditure on marketing. What marketing activities
there are focus on major consumption areas such as northeast China.
Billboards, bus advertisements and discount sales at stores are the most
commonly used promotion tools. TV commercials are used occasionally.
While dietary habits do not change overnight, these company-based
marketing activities are expanding consumption.

Overseas buyers for private label goods contract many export-oriented
canneries to produce canned fruit; a small number of companies with
their own brands market their products at international trade shows or
advertise their products on the Internet.

For more information about market developments related to canned fruit
in China, contact one of the following USDA Agricultural Trade Offices:

  --------------------- ------------------------- -----------------------
  USDA ATO Beijing      USDA ATO Guangzhou        USDA ATO Shanghai

  Attn: Mr. LaVerne     Attn: Mr. Keith Schneller Attn: Mr. Ross Kreamer
  Brabant                                         

  Tel: 86-10-8529-6418  Tel: 86-20-8667-7553      Tel: 86-21-6279-8622

  Fax: 86-10-8529-6692  Fax: 86-20-8666-0703      Fax: 86-21-6279-8336

  Email:                Email:                    Email:
  ATOBeijing@usda.gov   ATOGuangzhou@usda.gov     ATOShanghai@usda.gov
  --------------------- ------------------------- -----------------------

# Tables

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

### 

### Canned peaches

+------------------+-------+-------+-------+-------+---+-------+-------+
| #                |       |       |       |       |   |       |       |
| ###### PSD Table |       |       |       |       |   |       |       |
+------------------+-------+-------+-------+-------+---+-------+-------+
| **Country**      | ###   |       |       |       |   |       |       |
|                  | ### C |       |       |       |   |       |       |
|                  | hina, |       |       |       |   |       |       |
|                  |  Peop |       |       |       |   |       |       |
|                  | les R |       |       |       |   |       |       |
|                  | epubl |       |       |       |   |       |       |
|                  | ic of |       |       |       |   |       |       |
+------------------+-------+-------+-------+-------+---+-------+-------+
| **Commodity**    | ##    |       |       |       | ( |       |       |
|                  | ####  |       |       |       | M |       |       |
|                  | Peach |       |       |       | T |       |       |
|                  | es, C |       |       |       | ) |       |       |
|                  | anned |       |       |       | ( |       |       |
|                  |       |       |       |       | M |       |       |
|                  |       |       |       |       | T |       |       |
|                  |       |       |       |       | , |       |       |
|                  |       |       |       |       | N |       |       |
|                  |       |       |       |       | e |       |       |
|                  |       |       |       |       | t |       |       |
|                  |       |       |       |       | W |       |       |
|                  |       |       |       |       | e |       |       |
|                  |       |       |       |       | i |       |       |
|                  |       |       |       |       | g |       |       |
|                  |       |       |       |       | h |       |       |
|                  |       |       |       |       | t |       |       |
|                  |       |       |       |       | ) |       |       |
+------------------+-------+-------+-------+-------+---+-------+-------+
|                  | 2004  | Re    | 2005  | Est   |   | 2006  | For   |
|                  |       | vised |       | imate |   |       | ecast |
+------------------+-------+-------+-------+-------+---+-------+-------+
|                  | USDA  | Post  | USDA  | Post  |   | USDA  | Post  |
|                  | Off   | Est   | Off   | Est   |   | Off   | Est   |
|                  | icial | imate | icial | imate |   | icial | imate |
|                  | \[    |       | \[    |       |   | \[    |       |
|                  | Old\] | \[    | Old\] | \[    |   | Old\] | \[    |
|                  |       | New\] |       | New\] |   |       | New\] |
+------------------+-------+-------+-------+-------+---+-------+-------+
| ######### M      |       | 06    |       | 06    |   |       | 06    |
| arket Year Begin |       | /2004 |       | /2005 |   |       | /2006 |
+------------------+-------+-------+-------+-------+---+-------+-------+
| Deliv. To        | 3     | 3     | 3     | 3     |   | 0     | 3     |
| Processors       | 00750 | 07500 | 09000 | 30000 |   |       | 43575 |
+------------------+-------+-------+-------+-------+---+-------+-------+
| Beginning Stocks | 0     | 0     | 0     | 0     |   | 0     | 0     |
+------------------+-------+-------+-------+-------+---+-------+-------+
| Production       | 2     | 2     | 2     | 2     |   | 0     | 2     |
|                  | 00500 | 05000 | 06500 | 20000 |   |       | 34050 |
+------------------+-------+-------+-------+-------+---+-------+-------+
| Imports          | 5135  | 2939  | 4300  | 1825  |   | 0     | 950   |
+------------------+-------+-------+-------+-------+---+-------+-------+
| TOTAL SUPPLY     | 2     | 2     | 2     | 2     |   | 0     | 2     |
|                  | 05635 | 07939 | 10800 | 21825 |   |       | 35000 |
+------------------+-------+-------+-------+-------+---+-------+-------+
| Exports          | 71090 | 72713 | 75000 | 82000 |   | 0     | 90000 |
+------------------+-------+-------+-------+-------+---+-------+-------+
| Domestic         | 1     | 1     | 1     | 1     |   | 0     | 1     |
| Consumption      | 34545 | 35226 | 35800 | 39825 |   |       | 45000 |
+------------------+-------+-------+-------+-------+---+-------+-------+
| Ending Stocks    | 0     | 0     | 0     | 0     |   | 0     | 0     |
+------------------+-------+-------+-------+-------+---+-------+-------+
| TOTAL            | 2     | 2     | 2     | 2     |   | 0     | 2     |
| DISTRIBUTION     | 05635 | 07939 | 10800 | 21825 |   |       | 35000 |
+------------------+-------+-------+-------+-------+---+-------+-------+

#### Trade Matrices for Canned Peaches

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

  **Country**        China, Peoples                      
                     Republic of                         

  **Commodity**      Peaches, Canned                     

  Time Period                          Units:            MT

  Exports for:       2004                                **2005**

  U.S.               8633              U.S.              13989

  Others                               Others            

  Japan              36733             Japan             37938

  Russia             4960              Thailand          3941

  Yemen              3890              Russia            3918

  New Zealand        2157              South Korea       2739

  Thailand           2036              Yemen             2472

  Saudi Arabia       1307              Canada            1907

  Australia          1288              New Zealand       1820

  South Korea        1178              Philippines       1256

  Czech Republic     959               Saudi Arabia      1159

  Canada             948               Australia         922

  Total for Others   55456                               58072

  Others not Listed  7001                                5343

  Grand Total        71090                               77404
  ------------------ ----------------- ----------------- -----------------

+----------------+------------------+-----------------+--------------+
| ####### Impor  |                  |                 |              |
| t Trade Matrix |                  |                 |              |
+----------------+------------------+-----------------+--------------+
| **Country**    | China, Peoples   |                 |              |
|                | Republic of      |                 |              |
+----------------+------------------+-----------------+--------------+
| **Commodity**  | Peaches, Canned  |                 |              |
+----------------+------------------+-----------------+--------------+
| Time Period    |                  | Units:          | MT           |
+----------------+------------------+-----------------+--------------+
| Imports for:   | 2004             |                 | **2005**     |
+----------------+------------------+-----------------+--------------+
| U.S.           | 3783             | U.S.            | 1345         |
+----------------+------------------+-----------------+--------------+
| Others         |                  | Others          |              |
+----------------+------------------+-----------------+--------------+
| South Africa   | 1040             | South Africa    | 653          |
+----------------+------------------+-----------------+--------------+
| Greece         | 238              | Greece          | 148          |
+----------------+------------------+-----------------+--------------+
| Japan          | 36               | Japan           | 31           |
+----------------+------------------+-----------------+--------------+
| China          | 36               | China           | 16           |
+----------------+------------------+-----------------+--------------+
| South Korea    | 2                | Thailand        | 1            |
+----------------+------------------+-----------------+--------------+
|                |                  | South Korea     | 1            |
+----------------+------------------+-----------------+--------------+
|                |                  |                 |              |
+----------------+------------------+-----------------+--------------+
| Total for      | 1352             |                 | 850          |
| Others         |                  |                 |              |
+----------------+------------------+-----------------+--------------+
| Others not     | 0                |                 | 0            |
| Listed         |                  |                 |              |
+----------------+------------------+-----------------+--------------+
| Grand Total    | 5135             |                 | 2195         |
+----------------+------------------+-----------------+--------------+

### 

###  

### Canned Pears

+-------------------+-------+-------+-------+------+---+-------+-------+
| ####### PSD Table |       |       |       |      |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| **Country**       | ###   |       |       |      |   |       |       |
|                   | ### C |       |       |      |   |       |       |
|                   | hina, |       |       |      |   |       |       |
|                   |  Peop |       |       |      |   |       |       |
|                   | les R |       |       |      |   |       |       |
|                   | epubl |       |       |      |   |       |       |
|                   | ic of |       |       |      |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| **Commodity**     | ##### |       |       |      | ( |       |       |
|                   | # Pea |       |       |      | M |       |       |
|                   | rs, C |       |       |      | T |       |       |
|                   | anned |       |       |      | ) |       |       |
|                   |       |       |       |      | ( |       |       |
|                   |       |       |       |      | M |       |       |
|                   |       |       |       |      | T |       |       |
|                   |       |       |       |      | , |       |       |
|                   |       |       |       |      | N |       |       |
|                   |       |       |       |      | e |       |       |
|                   |       |       |       |      | t |       |       |
|                   |       |       |       |      | W |       |       |
|                   |       |       |       |      | e |       |       |
|                   |       |       |       |      | i |       |       |
|                   |       |       |       |      | g |       |       |
|                   |       |       |       |      | h |       |       |
|                   |       |       |       |      | t |       |       |
|                   |       |       |       |      | ) |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
|                   | 2004  | Re    | 2005  | Esti |   | 2006  | For   |
|                   |       | vised |       | mate |   |       | ecast |
+-------------------+-------+-------+-------+------+---+-------+-------+
|                   | USDA  | Post  | USDA  | Post |   | USDA  | Post  |
|                   | Off   | Est   | Off   | Esti |   | Off   | Est   |
|                   | icial | imate | icial | mate |   | icial | imate |
|                   | \[    |       | \[    |      |   | \[    |       |
|                   | Old\] | \[    | Old\] | \[N  |   | Old\] | \[    |
|                   |       | New\] |       | ew\] |   |       | New\] |
+-------------------+-------+-------+-------+------+---+-------+-------+
| **Market Year     |       | 06    |       | 06/  |   |       | 06    |
| Begin**           |       | /2004 |       | 2005 |   |       | /2006 |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Deliv. To         | 73600 | 79680 | 79200 | 8    |   | 0     | 91900 |
| Processors        |       |       |       | 5600 |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Beginning Stocks  | 0     | 0     | 0     | 0    |   | 0     | 0     |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Production        | 46000 | 49800 | 49500 | 5    |   | 0     | 57450 |
|                   |       |       |       | 3500 |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Imports           | 37    | 37    | 50    | 82   |   | 0     | 50    |
+-------------------+-------+-------+-------+------+---+-------+-------+
| TOTAL SUPPLY      | 46037 | 49837 | 49550 | 5    |   | 0     | 57500 |
|                   |       |       |       | 3582 |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Exports           | 29985 | 33344 | 33000 | 3    |   | 0     | 40000 |
|                   |       |       |       | 6500 |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Domestic          | 16052 | 16493 | 16550 | 1    |   | 0     | 17500 |
| Consumption       |       |       |       | 7082 |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Ending Stocks     | 0     | 0     | 0     | 0    |   | 0     | 0     |
+-------------------+-------+-------+-------+------+---+-------+-------+
| TOTAL             | 46037 | 49837 | 49550 | 5    |   | 0     | 57500 |
| DISTRIBUTION      |       |       |       | 3582 |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+

#### 

#### 

#### Export Trade Matrix for Canned Pears

+---------------+-----------------+-----------------+-----------------+
| #             |                 |                 |                 |
| ###### Export |                 |                 |                 |
|  Trade Matrix |                 |                 |                 |
+---------------+-----------------+-----------------+-----------------+
| **Country**   | China, Peoples  |                 |                 |
|               | Republic of     |                 |                 |
+---------------+-----------------+-----------------+-----------------+
| **Commodity** | Pears, Canned   |                 |                 |
+---------------+-----------------+-----------------+-----------------+
| Time Period   |                 | Units:          | MT              |
+---------------+-----------------+-----------------+-----------------+
| Exports for:  | 2004            |                 | 2005            |
+---------------+-----------------+-----------------+-----------------+
| U.S.          | 12446           | U.S.            | 14126           |
+---------------+-----------------+-----------------+-----------------+
| Others        |                 | Others          |                 |
+---------------+-----------------+-----------------+-----------------+
| Germany       | 5004            | Germany         | 4135            |
+---------------+-----------------+-----------------+-----------------+
| Thailand      | 1577            | Greece          | 3146            |
+---------------+-----------------+-----------------+-----------------+
| Spain         | 1338            | Japan           | 1956            |
+---------------+-----------------+-----------------+-----------------+
| Greece        | 1155            | Canada          | 1577            |
+---------------+-----------------+-----------------+-----------------+
| Canada        | 934             | Spain           | 1100            |
+---------------+-----------------+-----------------+-----------------+
| Japan         | 886             | Italy           | 1033            |
+---------------+-----------------+-----------------+-----------------+
| Yemen         | 659             | Yemen           | 1000            |
+---------------+-----------------+-----------------+-----------------+
| Russia        | 641             | Russia          | 989             |
+---------------+-----------------+-----------------+-----------------+
| Czech         | 571             | Netherlands     | 640             |
| Republic      |                 |                 |                 |
+---------------+-----------------+-----------------+-----------------+
| Thetherlands  | 429             | Thailand        | 421             |
+---------------+-----------------+-----------------+-----------------+
| Total for     | 13194           |                 | 15997           |
| Others        |                 |                 |                 |
+---------------+-----------------+-----------------+-----------------+
| Others not    | 4345            |                 | 4481            |
| Listed        |                 |                 |                 |
+---------------+-----------------+-----------------+-----------------+
| Grand Total   | 29985           |                 | 34604           |
+---------------+-----------------+-----------------+-----------------+

### Canned Mixtures

+------------------+-------+-------+-------+------+---+-------+-------+
| #                |       |       |       |      |   |       |       |
| ###### PSD Table |       |       |       |      |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
| **Country**      | ###   |       |       |      |   |       |       |
|                  | ### C |       |       |      |   |       |       |
|                  | hina, |       |       |      |   |       |       |
|                  |  Peop |       |       |      |   |       |       |
|                  | les R |       |       |      |   |       |       |
|                  | epubl |       |       |      |   |       |       |
|                  | ic of |       |       |      |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
| **Commodity**    | ##    |       |       |      | ( |       |       |
|                  | ####  |       |       |      | M |       |       |
|                  | Canne |       |       |      | T |       |       |
|                  | d Mix |       |       |      | ) |       |       |
|                  | tures |       |       |      | ( |       |       |
|                  |       |       |       |      | M |       |       |
|                  |       |       |       |      | T |       |       |
|                  |       |       |       |      | , |       |       |
|                  |       |       |       |      | N |       |       |
|                  |       |       |       |      | e |       |       |
|                  |       |       |       |      | t |       |       |
|                  |       |       |       |      | W |       |       |
|                  |       |       |       |      | e |       |       |
|                  |       |       |       |      | i |       |       |
|                  |       |       |       |      | g |       |       |
|                  |       |       |       |      | h |       |       |
|                  |       |       |       |      | t |       |       |
|                  |       |       |       |      | ) |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
|                  | 2004  | Re    | 2005  | Esti |   | 2006  | For   |
|                  |       | vised |       | mate |   |       | ecast |
+------------------+-------+-------+-------+------+---+-------+-------+
|                  | USDA  | Post  | USDA  | Post |   | USDA  | Post  |
|                  | Off   | Est   | Off   | Esti |   | Off   | Est   |
|                  | icial | imate | icial | mate |   | icial | imate |
|                  | \[    |       | \[    |      |   | \[    |       |
|                  | Old\] | \[    | Old\] | \[N  |   | Old\] | \[    |
|                  |       | New\] |       | ew\] |   |       | New\] |
+------------------+-------+-------+-------+------+---+-------+-------+
| **Market Year    |       | 06    |       | 06/  |   |       | 06    |
| Begin**          |       | /2004 |       | 2005 |   |       | /2006 |
+------------------+-------+-------+-------+------+---+-------+-------+
| Deliv. To        | 0     | 0     | 0     | 0    |   | 0     | 0     |
| Processors       |       |       |       |      |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
| Beginning Stocks | 0     | 0     | 0     | 0    |   | 0     | 0     |
+------------------+-------+-------+-------+------+---+-------+-------+
| Production       | 9400  | 13884 | 11100 | 1    |   | 0     | 26540 |
|                  |       |       |       | 8310 |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
| Imports          | 913   | 906   | 1200  | 582  |   | 0     | 300   |
+------------------+-------+-------+-------+------+---+-------+-------+
| TOTAL SUPPLY     | 10313 | 14790 | 12300 | 1    |   | 0     | 26840 |
|                  |       |       |       | 8892 |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
| Exports          | 7757  | 12234 | 9300  | 1    |   | 0     | 24000 |
|                  |       |       |       | 6212 |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
| Domestic         | 2556  | 2556  | 3000  | 2680 |   | 0     | 2840  |
| Consumption      |       |       |       |      |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+
| Ending Stocks    | 0     | 0     | 0     | 0    |   | 0     | 0     |
+------------------+-------+-------+-------+------+---+-------+-------+
| TOTAL            | 10313 | 14790 | 12300 | 1    |   | 0     | 26840 |
| DISTRIBUTION     |       |       |       | 8892 |   |       |       |
+------------------+-------+-------+-------+------+---+-------+-------+

#### 

#### Trade Matrices for Canned Mixtures

+--------------------+---------------+---------------+---------------+
| ####### E          |               |               |               |
| xport Trade Matrix |               |               |               |
+--------------------+---------------+---------------+---------------+
| **Country**        | China,        |               |               |
|                    | Peoples       |               |               |
|                    | Republic of   |               |               |
+--------------------+---------------+---------------+---------------+
| **Commodity**      | Canned        |               |               |
|                    | Mixtures      |               |               |
+--------------------+---------------+---------------+---------------+
| Time Period        |               | Units:        | MT            |
+--------------------+---------------+---------------+---------------+
| Exports for:       | 2004          |               | 2005          |
+--------------------+---------------+---------------+---------------+
| U.S.               | 2517          | U.S.          | 3151          |
+--------------------+---------------+---------------+---------------+
| Others             |               | Others        |               |
+--------------------+---------------+---------------+---------------+
| Spain              | 702           | Japan         | 2082          |
+--------------------+---------------+---------------+---------------+
| Canada             | 680           | Canada        | 2071          |
+--------------------+---------------+---------------+---------------+
| Germany            | 620           | Spain         | 2019          |
+--------------------+---------------+---------------+---------------+
| New Zealand        | 323           | Germany       | 1131          |
+--------------------+---------------+---------------+---------------+
| Czech Republic     | 289           | France        | 485           |
+--------------------+---------------+---------------+---------------+
| Japan              | 283           | Australia     | 448           |
+--------------------+---------------+---------------+---------------+
| UAE                | 205           | Russia        | 375           |
+--------------------+---------------+---------------+---------------+
| Puerto Rico        | 187           | Puerto Rico   | 370           |
+--------------------+---------------+---------------+---------------+
| Yemen              | 181           | UK            | 336           |
+--------------------+---------------+---------------+---------------+
| Netherlands        | 136           | UAE           | 333           |
+--------------------+---------------+---------------+---------------+
| Total for Others   | 3606          |               | 9650          |
+--------------------+---------------+---------------+---------------+
| Others not Listed  | 1634          |               | 3163          |
+--------------------+---------------+---------------+---------------+
| Grand Total        | 7757          |               | 15964         |
+--------------------+---------------+---------------+---------------+

+----------------------+---------------+---------------+---------------+
| #######              |               |               |               |
|  Import Trade Matrix |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Country**          | China,        |               |               |
|                      | Peoples       |               |               |
|                      | Republic of   |               |               |
+----------------------+---------------+---------------+---------------+
| **Commodity**        | Canned        |               |               |
|                      | Mixtures      |               |               |
+----------------------+---------------+---------------+---------------+
| Time Period          |               | Units:        | MT            |
+----------------------+---------------+---------------+---------------+
| Imports for:         | 2004          |               | 2005          |
+----------------------+---------------+---------------+---------------+
| U.S.                 | 6             | U.S.          | 2             |
+----------------------+---------------+---------------+---------------+
| Others               |               | Others        |               |
+----------------------+---------------+---------------+---------------+
| Philippines          | 538           | Philippines   | 544           |
+----------------------+---------------+---------------+---------------+
| Thailand             | 363           | Thailand      | 207           |
+----------------------+---------------+---------------+---------------+
| France               | 3             | Singapore     | 17            |
+----------------------+---------------+---------------+---------------+
| South Africa         | 2             | Australia     | 1             |
+----------------------+---------------+---------------+---------------+
| Australia            | 1             |               |               |
+----------------------+---------------+---------------+---------------+
|                      |               |               |               |
+----------------------+---------------+---------------+---------------+
| Total for Others     | 907           |               | 769           |
+----------------------+---------------+---------------+---------------+
| Others not Listed    | 0             |               | 0             |
+----------------------+---------------+---------------+---------------+
| Grand Total          | 913           |               | 771           |
+----------------------+---------------+---------------+---------------+

### Canned Apricots

+-------------------+-------+-------+-------+------+---+-------+-------+
| ####### PSD Table |       |       |       |      |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| **Country**       | ###   |       |       |      |   |       |       |
|                   | ### C |       |       |      |   |       |       |
|                   | hina, |       |       |      |   |       |       |
|                   |  Peop |       |       |      |   |       |       |
|                   | les R |       |       |      |   |       |       |
|                   | epubl |       |       |      |   |       |       |
|                   | ic of |       |       |      |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| **Commodity**     | ##    |       |       |      | ( |       |       |
|                   | ####  |       |       |      | M |       |       |
|                   | Canne |       |       |      | T |       |       |
|                   | d Apr |       |       |      | ) |       |       |
|                   | icots |       |       |      | ( |       |       |
|                   |       |       |       |      | M |       |       |
|                   |       |       |       |      | T |       |       |
|                   |       |       |       |      | , |       |       |
|                   |       |       |       |      | N |       |       |
|                   |       |       |       |      | e |       |       |
|                   |       |       |       |      | t |       |       |
|                   |       |       |       |      | W |       |       |
|                   |       |       |       |      | e |       |       |
|                   |       |       |       |      | i |       |       |
|                   |       |       |       |      | g |       |       |
|                   |       |       |       |      | h |       |       |
|                   |       |       |       |      | t |       |       |
|                   |       |       |       |      | ) |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
|                   | 2004  | Re    | 2005  | Esti |   | 2006  | For   |
|                   |       | vised |       | mate |   |       | ecast |
+-------------------+-------+-------+-------+------+---+-------+-------+
|                   | USDA  | Post  | USDA  | Post |   | USDA  | Post  |
|                   | Off   | Est   | Off   | Esti |   | Off   | Est   |
|                   | icial | imate | icial | mate |   | icial | imate |
|                   | \[    |       | \[    |      |   | \[    |       |
|                   | Old\] | \[    | Old\] | \[N  |   | Old\] | \[    |
|                   |       | New\] |       | ew\] |   |       | New\] |
+-------------------+-------+-------+-------+------+---+-------+-------+
| **Market Year     |       | 06    |       | 06/  |   |       | 06    |
| Begin**           |       | /2004 |       | 2005 |   |       | /2006 |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Deliv. To         | 4940  | 6230  | 5420  | 8684 |   | 0     | 9620  |
| Processors        |       |       |       |      |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Beginning Stocks  | 0     | 0     | 0     | 0    |   | 0     | 0     |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Production        | 3800  | 4797  | 3940  | 6680 |   | 0     | 7400  |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Imports           | 356   | 284   | 260   | 340  |   | 0     | 250   |
+-------------------+-------+-------+-------+------+---+-------+-------+
| TOTAL SUPPLY      | 4156  | 5081  | 4200  | 7020 |   | 0     | 7650  |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Exports           | 3045  | 3981  | 3100  | 5900 |   | 0     | 6500  |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Domestic          | 1111  | 1100  | 1100  | 1120 |   | 0     | 1150  |
| Consumption       |       |       |       |      |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+
| Ending Stocks     | 0     | 0     | 0     | 0    |   | 0     | 0     |
+-------------------+-------+-------+-------+------+---+-------+-------+
| TOTAL             | 4156  | 5081  | 4200  | 7020 |   | 0     | 7650  |
| DISTRIBUTION      |       |       |       |      |   |       |       |
+-------------------+-------+-------+-------+------+---+-------+-------+

#### Export Trade Matrix for Canned Apricots

+-------------------+----------------+----------------+----------------+
| ####### Ex        |                |                |                |
| port Trade Matrix |                |                |                |
+-------------------+----------------+----------------+----------------+
| **Country**       | China, Peoples |                |                |
|                   | Republic of    |                |                |
+-------------------+----------------+----------------+----------------+
| **Commodity**     | Canned         |                |                |
|                   | Apricots       |                |                |
+-------------------+----------------+----------------+----------------+
| Time Period       |                | Units:         | MT             |
+-------------------+----------------+----------------+----------------+
| Exports for:      | 2004           |                | 2005           |
+-------------------+----------------+----------------+----------------+
| U.S.              | 17             | U.S.           | 24             |
+-------------------+----------------+----------------+----------------+
| Others            |                | Others         |                |
+-------------------+----------------+----------------+----------------+
| Germany           | 1067           | Russia         | 1621           |
+-------------------+----------------+----------------+----------------+
| Russia            | 553            | Germany        | 1469           |
+-------------------+----------------+----------------+----------------+
| Czech Republic    | 416            | Japan          | 533            |
+-------------------+----------------+----------------+----------------+
| Australia         | 270            | Estonia        | 446            |
+-------------------+----------------+----------------+----------------+
| Canada            | 244            | Canada         | 410            |
+-------------------+----------------+----------------+----------------+
| Netherlands       | 108            | Australia      | 311            |
+-------------------+----------------+----------------+----------------+
| Israel            | 88             | New Zealand    | 150            |
+-------------------+----------------+----------------+----------------+
| New Zealand       | 77             | UK             | 122            |
+-------------------+----------------+----------------+----------------+
| Estonia           | 54             | France         | 92             |
+-------------------+----------------+----------------+----------------+
| Japan             | 41             | Israel         | 87             |
+-------------------+----------------+----------------+----------------+
| Total for Others  | 2918           |                | 5241           |
+-------------------+----------------+----------------+----------------+
| Others not Listed | 110            |                | 422            |
+-------------------+----------------+----------------+----------------+
| Grand Total       | 3045           |                | 5687           |
+-------------------+----------------+----------------+----------------+

#