Required Report - public distribution

**Date:** 10/6/2005

**GAIN Report Number:** CH5065

CH5065

**China, Peoples Republic of**

**Fresh Deciduous Fruit**

**Annual Deciduous Fruit Report**

**2005**

**Approved by:**

![](media/image1.wmf)Casey Bean

U.S. Embassy Beijing, Office of Agricultural Affairs

**Prepared by:**

Kevin Latner/Wu Bugang

**Report Highlights:**

China's apple production during 2005/06 is forecast down nearly 10% to
21.3 MMT, but CAJ demand is up. As a result, as juice production
ramps-up to meet demand, there may be a shortage of apples for juicing.
While other provinces reduce apple production area, Shaanxi has expanded
production area and streamlined export marketing efforts for apples and
kiwifruit. China exported 842,000 MT of fresh apples in 2004/05 and is
projected to export 990,000 MT in 2005/06, an increase of 20 percent. In
contrast to apples, China's production of pears and grapes is forecast
to increased

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[2005 Apple Production Projected to Drop by Nearly 10%
3](#apple-production-projected-to-drop-by-nearly-10)

[Shaanxi Discovers International Marketing Potential
3](#shaanxi-discovers-international-marketing-potential)

[Farm Consolidation Key to Export Marketing
3](#farm-consolidation-key-to-export-marketing)

[Apple Exports to Neighboring Countries Rising Quickly
4](#apple-exports-to-neighboring-countries-rising-quickly)

[Apple Juice Production Capacity Expanding
4](#apple-juice-production-capacity-expanding)

[Asian Pear Production Sees Steady Increase and Export Growth
4](#asian-pear-production-sees-steady-increase-and-export-growth)

[Grape Production up Despite Decreased Acreage
4](#grape-production-up-despite-decreased-acreage)

[Kiwifruit is expanding quickly in Shaanxi
4](#kiwifruit-is-expanding-quickly-in-shaanxi)

[Fruit Entry Regulation Not Affecting Trade
4](#fruit-entry-regulation-not-affecting-trade)

[Historical Acreage and Production Tables
5](#historical-acreage-and-production-tables)

[2000-2004 China Apple, Pear, and Grape Acreage and Production by
Province
5](#china-apple-pear-and-grape-acreage-and-production-by-province)

[Apples 5](#apples)

[Pears 6](#pears)

[Grapes 7](#grapes)

[Production, Supply, and Demand (PSD) Tables, and Trade Matrices
8](#production-supply-and-demand-psd-tables-and-trade-matrices)

[Apples 8](#apples-1)

[Apple Trade Matrix Tables 9](#apple-trade-matrix-tables)

[Apple Average National Chinese Export Price Table
10](#apple-average-national-chinese-export-price-table)

[Wholesale Market Prices for Apples
11](#wholesale-market-prices-for-apples)

[Concentrated Apple Juice (CAJ) 12](#concentrated-apple-juice-caj)

[CAJ Trade Matrix Tables 13](#caj-trade-matrix-tables)

[CAJ Average National Chinese Export Price Table
14](#caj-average-national-chinese-export-price-table)

[Pears 15](#pears-1)

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

[Pear Average National Chinese Export Price Table
17](#pear-average-national-chinese-export-price-table)

[Wholesale Market Prices for Pears
18](#wholesale-market-prices-for-pears)

[Grapes 19](#grapes-1)

[Grape Trade Matrix Tables 20](#grape-trade-matrix-tables)

[Grape Average National Chinese Export Price Table
21](#grape-average-national-chinese-export-price-table)

[Wholesale Market Prices for Grapes
22](#wholesale-market-prices-for-grapes)

# 2005 Apple Production Projected to Drop by Nearly 10%

China's apple harvest during 2005/06 is forecast to be down 10 percent,
to 21.3 million metric tons (MMT), from last year's bumper crop, and as
a result of poor production in Shandong. Shandong was hit with a frost
in late spring during the blossom season.

Total apple production is also down slightly as apple planting area is
down in many of the traditional growing areas, including Shandong, Hebei
and Liaoning. Government incentives in these regions have encouraged
farmers to move apple production from the plains into more mountainous
regions. The exception is the Shaanxi province, the largest apple
production area in China.

# Shaanxi Discovers International Marketing Potential

Shaanxi Fruit Administrative Bureau, a part of the provincial Shaanxi
Ministry of Agriculture, promotes production, processing and marketing
of provincial apples. The bureau has built a transportation
infrastructure, established certification systems and supported trade
show participation.

Integrated rail-ocean shipping now allows Shaanxi apples to arrive in
Qingdao, Shaanxi's principal port of export, in less than 24 hours, down
from the previous five days. Trucks transporting fruit are exempted from
highway tolls within the province.

The bureau has coordinated with the General Administration for Quality
Supervision and Inspection Quarantine (AQSIQ) to develop and implement
certification of a geographic indicator (GI) for apples. Currently
270,000 hectares, approximately 1/3 of Shaanxi's total production area,
fall under this certification system. The certification provides that
the apples come from land optimally suited for producing apples and meet
China's Greenfood production standard. This standard stipulates
sustainable agriculture objectives (organic fertilizer and biological
pest control) and reduced application of pesticides and fertilizers.
Although consumer research on the acceptance of Greenfood is scarce,
some producers believe that consumers look for the assurances of a
Greenfood label.

The Bureau is funding participation in the major international produce
shows, including U.S.-based Produce Marketing Association (PMA), and has
organized trips for local fruit companies to travel to 16 countries to
attend international fruit shows and engage in other promotional
activities, as well as arrange reverse trade missions to Shaanxi.

As a result of these efforts, Shaanxi has expanded exports, according to
Bureau representatives, and there is increased name recognition in some
southern regional Chinese markets for their certified products.

# Farm Consolidation Key to Export Marketing

While small-scale farming continues to be the norm in China, with the
average farm size less than a ¼ hectare (HA), export oriented companies
are large-scale operations. These large-scale packers may operate as
much as 350 HA, either leasing large tracts of State land, smaller
tracts of land from farmers or city council representatives, or
contracting with individual farmers for output. Packers note that
production controls, including appropriate application of pesticides,
are critical. While products shipped to the most sensitive export
markets were usually from State-leased land, in most cases, fruit is
bagged during the growing season to protect against possible pesticide
residues.

These large-scale packers usually use mechanical graders and their
facilities usually include controlled atmosphere and cold storage
facilities. A few of the largest facilities are EUREPGAP and HACCP
certified.

# Apple Exports to Neighboring Countries Rising Quickly

Apple exports have been rising at an annual rate of almost 20 percent,
with Russia and Southeast Asia being the largest market. China exported
842,000 metric tons (MT) of fresh apples in 2004/05 and is projected to
export 990,000 MT in 2005/06. In addition, according to industry
sources, an additional 1 MMT of apples is shipped "unreported" to Russia
and Vietnam.

# Apple Juice Production Capacity Expanding

China's concentrated apple juice (CAJ) production is forecast at 680,000
MT in 2005/06, up from an estimated 650,000 MT in 2004/05. More than 90
percent of production is exported, and almost half is exported to the
U.S. As a result, some companies in Shaanxi and Shandong are expanding
capacity and foreign enterprises have invested over \$30 million into
Haisheng Juicing Co. and Shandong North Andre Juice.

While production capacity is expanding, the market for juicing apples
may be tight this year as 2005/06's higher quality crop may channel more
products to the fresh market. Chinese apple processors usually consume
lower grade apples and may find supplies lacking, and production of
dedicated juicing apples (low brix level apples) is still developing.

# Asian Pear Production Sees Steady Increase and Export Growth 

During 2005/06, pear production in China is forecast at 11.2 MMT, up
about 5% over the previous year. According to the China Agriculture
Statistical Report, China produced 10.6 MMT of pears in 2004/05.
Increased pear planting area and improved tree management has resulted
in steady increases in overall production.

# Grape Production up Despite Decreased Acreage

After a decade of rapid grape acreage expansion, the pace is slowing and
grape production is estimated up from 5.67 MMT in MY2003 (Jan-Dec 2004)
to only 6.0 MMT in MY2004. While production is up, official planted area
has decreased to 413,500 hectares in 2004, down 2% from the previous
year. Production of table grapes includes green Oblong and Ma Nai in
Xinjiang and Kyoho, Muscat and Red Globe in Hebei, Liaoning and
Shandong. Planting area dedicated to wine grape production has
stabilized since 2003. The main varieties are Merlot, Chardonnay, and
Pinot Noir. In Hebei, the grapes for the wine industry are 40% of the
total grape production in this province

# Kiwifruit is expanding quickly in Shaanxi

The Shaanxi Fruit Bureau has begun an aggressive campaign to develop an
export capacity for Kiwifruit. Current planted area in Shaanxi province
is more than 16,000 hectares and the output exceeded 231,000 MT,
accounting for nearly 60% of the China's total production. New Zealand
industries are rumored to be considering developing production
facilities in Shaanxi. Industry sources indicated that kiwifruit acreage
was increasing by around 670 hectares each year.

# Fruit Entry Regulation Not Affecting Trade 

AQSIQ measures requiring pesticide residue levels on fruit imports into
China meet Chinese standards do not appear to have hampered trade (see
CH5004). Additional requirements of the regulations include
phytosanitary certificates consistent with international standards,
labeling requirements (the package must indicate fruit name, origin, and
packing plant), and that products transshipped though Hong Kong use
their original container, package, and phytosanitary certificate.

# Historical Acreage and Production Tables

## 2000-2004 China Apple, Pear, and Grape Acreage and Production by Province

### Apples

  -------------- --------- ------------ --------- ------------ --------- ------------ ---------- ------------ --------- ------------
  **China Apple                                                                                                         
  Production                                                                                                            
  (1000 Ha and                                                                                                          
  MT) by                                                                                                                
  Province                                                                                                              
  2000-2004**                                                                                                           

  Province       2000                   2001                   2002                   2003                    2004      

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

  Shandong       444.30    6,476,586    397.68    6,163,790    369.00    5,000,017    357.30     6,118,563    340.5     6,690,553

  Shaanxi        395.46    3,885,700    374.29    3,912,713    369.00    3,921,630    401.50     4,617,921    412.1     5,552,054

  Henan          207.00    2,388,997    180.20    2,524,083    168.30    2,603,588    164.50     2,509,614    164.7     2,869,272

  Hebei          328.30    1,806,155    316.50    1,845,447    288.30    1,965,571    276.40     2,002,769    266.5     2,142,882

  Shanxi         177.90    1,629,575    164.73    1,551,595    158.40    1,724,180    154.10     1,801,786    152.7     2,021,372

  Liaoning       195.10    1,231,479    161.90    1,134,657    131.90    1,005,142    115.10     1,089,937    111.8     1,222,119

  Gansu          167.60    690,671      165.90    723,901      163.50    776,004      167.50     829,959      173.2     799,650

  Jiangsu        49.60     695,294      47.73     680,191      46.70     614,555      38.90      494,611      38.0      560,871

  Xinjiang       34.60     299,673      31.17     270,983      30.40     250,396      27.80      263,418      28.9      293,850

  Sichuan        28.60     202,283      26.90     193,972      25.70     206,909      26.80      225,384      26.4      240,481

  Anhui          23.60     302,040      20.68     259,680      17.90     296,552      17.10      221,317      16.1      283,524

  Jilin          24.07     100,543      22.20     97,164       26.10     168,372      25.30      190,133      20.4      241,491

  Heilongjiang   28.60     112,086      25.20     109,689      28.80     183,067      18.40      169,115      16.1      160,003

  Ningxia        21.73     159,462      20.91     126,642      20.40     124,682      20.40      154,927      18.3      156,333

  Beijing        18.00     157,654      16.00     153,174      13.50     144,392      13.20      134,815      12.9      134,753

  Tianjin        10.40     79,466       9.31      68,424       8.30      67,056       7.30       68,069       6.2       64,721

  Inner Mongolia 23.94     46,853       20.90     43,081       16.50     40,350       18.80      51,940       21.4      59,327

  Hubei          9.00      30,224       6.80      21,800       4.30      12,388       4.20       13,458       3.6       10,934

  Yunnan         50.30     101,105      42.28     103,496      37.30     104,816      33.70      13,414       33.1      141,239

  Guizhou        8.08      7,675        7.70      7,854        7.40      9,406        4.80       9,262        6.0       10,263

  Qinghai        4.00      14,144       3.91      9,661        3.90      9,078        3.90       8,246        5.3       7,198

  Chongqing      2.25      7,020        1.98      6,226        1.80      6,225        2.70       6,441        1.8       6,854

  Tibet          1.05      5,299        0.83      5,405        0.50      5,072        0.60       5,577        0.6       5,327

  Zhejiang       0.33      845          0.24      936          0.20      1,100        0.20       810          0.0       0.0

  Fujian         0.20      380          0.20      311          0.10      302          0.00       151          0.1       244

  Shanghai       0.00      21           0.01      111          0.10      135          0.00       139          0.0       158

  Jiangxi        0.00      0            0.00      0            0.00      0            0.00       0            0.0       0.0

  Hunan          0.00      0            0.00      0            0.00      0            0.00       0            0.0       0.0

  Guangdong      0.00      0            0.00      0            0.00      0            0.00       0            0.0       0.0

  Guangxi        0.00      0            0.00      0            0.00      0            0.00       0            0.0       0.0

  Hainan         0.00      0            0.00      0            0.00      0            0.00       0            0.0       0.0

  National Total 2254.01   20,431,230   2066.00   20,014,986   1938.30   19,240,985   1,900.50   21,001,776   1,876.7   23,675,473

  Source: China                                                                                                         
  Agriculture                                                                                                           
  Statistical                                                                                                           
  Report                                                                                                                
  -------------- --------- ------------ --------- ------------ --------- ------------ ---------- ------------ --------- ------------

### Pears

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><p
id="pear-production-1000-ha-and-mt-by-province-2000-2004"
class="heading">Pear Production (1000 Ha and MT) by Province
2000-2004</p></td>
</tr>
<tr class="even">
<td></td>
<td>2000</td>
<td></td>
<td>2001</td>
<td></td>
<td>2002</td>
<td></td>
<td>2003</td>
<td></td>
<td>2004</td>
<td></td>
</tr>
<tr class="odd">
<td>Province</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
</tr>
<tr class="even">
<td>Hebei</td>
<td>218.70</td>
<td>2,551,647</td>
<td>211.50</td>
<td>2,445,536</td>
<td>211.7</td>
<td>2,662,875</td>
<td>213.1</td>
<td>2,820,702</td>
<td>213.3</td>
<td>3,131,868</td>
</tr>
<tr class="odd">
<td>Shandong</td>
<td>60.30</td>
<td>911,298</td>
<td>62.96</td>
<td>961,234</td>
<td>64.1</td>
<td>829,821</td>
<td>74.1</td>
<td>982,562</td>
<td>70.6</td>
<td>1,000,938</td>
</tr>
<tr class="even">
<td>Shaanxi</td>
<td>55.58</td>
<td>458,306</td>
<td>57.95</td>
<td>451,236</td>
<td>57.2</td>
<td>460,171</td>
<td>57.3</td>
<td>689,816</td>
<td>59.8</td>
<td>669,327</td>
</tr>
<tr class="odd">
<td>Anhui</td>
<td>34.40</td>
<td>616,192</td>
<td>34.72</td>
<td>672,389</td>
<td>36.7</td>
<td>767,482</td>
<td>36.5</td>
<td>583,091</td>
<td>38.4</td>
<td>601,134</td>
</tr>
<tr class="even">
<td>Hubei</td>
<td>56.10</td>
<td>633,197</td>
<td>52.80</td>
<td>676,761</td>
<td>50.8</td>
<td>677,021</td>
<td>40.9</td>
<td>563,895</td>
<td>39.7</td>
<td>548,759</td>
</tr>
<tr class="odd">
<td>Sichuan</td>
<td>48.20</td>
<td>344,472</td>
<td>52.30</td>
<td>394,805</td>
<td>61.9</td>
<td>469,702</td>
<td>71.2</td>
<td>547,714</td>
<td>78.9</td>
<td>620,276</td>
</tr>
<tr class="even">
<td>Liaoning</td>
<td>85.70</td>
<td>455,404</td>
<td>87.60</td>
<td>509,942</td>
<td>85.5</td>
<td>412,724</td>
<td>85.5</td>
<td>515,892</td>
<td>88.5</td>
<td>605,679</td>
</tr>
<tr class="odd">
<td>Jiangsu</td>
<td>38.60</td>
<td>390,137</td>
<td>39.71</td>
<td>462,768</td>
<td>43.7</td>
<td>519,451</td>
<td>44.2</td>
<td>502,033</td>
<td>44.7</td>
<td>542,455</td>
</tr>
<tr class="even">
<td>Henan</td>
<td>31.00</td>
<td>333,000</td>
<td>32.80</td>
<td>395,919</td>
<td>35.5</td>
<td>479,640</td>
<td>36.7</td>
<td>433,413</td>
<td>36.4</td>
<td>544,554</td>
</tr>
<tr class="odd">
<td>Gansu</td>
<td>54.50</td>
<td>245,941</td>
<td>52.40</td>
<td>266,001</td>
<td>50.6</td>
<td>266,254</td>
<td>51</td>
<td>286,128</td>
<td>50.0</td>
<td>251,516</td>
</tr>
<tr class="even">
<td>Xinjiang</td>
<td>33.90</td>
<td>194,879</td>
<td>42.67</td>
<td>226,967</td>
<td>45.8</td>
<td>308,989</td>
<td>47.7</td>
<td>249,537</td>
<td>53.3</td>
<td>285,703</td>
</tr>
<tr class="odd">
<td>Zhejiang</td>
<td>16.65</td>
<td>147,563</td>
<td>19.40</td>
<td>188,737</td>
<td>22.1</td>
<td>147,842</td>
<td>24.1</td>
<td>244,454</td>
<td>25.7</td>
<td>285,751</td>
</tr>
<tr class="even">
<td>Yunnan</td>
<td>45.60</td>
<td>158,112</td>
<td>40.90</td>
<td>157,491</td>
<td>38.7</td>
<td>161,000</td>
<td>39.7</td>
<td>176,285</td>
<td>38.6</td>
<td>189,396</td>
</tr>
<tr class="odd">
<td>Shanxi</td>
<td>31.20</td>
<td>128,577</td>
<td>29.78</td>
<td>139,782</td>
<td>30.3</td>
<td>104,019</td>
<td>27.9</td>
<td>154,901</td>
<td>28.5</td>
<td>197,298</td>
</tr>
<tr class="even">
<td>Chongqing</td>
<td>15.11</td>
<td>76,251</td>
<td>18.20</td>
<td>89,316</td>
<td>21.2</td>
<td>100,777</td>
<td>24.4</td>
<td>142,901</td>
<td>26.3</td>
<td>161,200</td>
</tr>
<tr class="odd">
<td>Beijing</td>
<td>10.00</td>
<td>102,693</td>
<td>10.28</td>
<td>115,197</td>
<td>12.1</td>
<td>125,009</td>
<td>12.5</td>
<td>130,766</td>
<td>10.9</td>
<td>137,563</td>
</tr>
<tr class="even">
<td>Fujian</td>
<td>20.90</td>
<td>96,394</td>
<td>21.90</td>
<td>110,029</td>
<td>22.2</td>
<td>125,032</td>
<td>22.5</td>
<td>129,980</td>
<td>22.8</td>
<td>142,254</td>
</tr>
<tr class="odd">
<td>Jilin</td>
<td>39.95</td>
<td>140,779</td>
<td>36.30</td>
<td>75,508</td>
<td>30.6</td>
<td>200,593</td>
<td>26.3</td>
<td>120,215</td>
<td>21.4</td>
<td>156,736</td>
</tr>
<tr class="even">
<td>Guizhou</td>
<td>18.34</td>
<td>47,677</td>
<td>25.30</td>
<td>66,606</td>
<td>28.4</td>
<td>82,385</td>
<td>31</td>
<td>97,867</td>
<td>33.9</td>
<td>108,368</td>
</tr>
<tr class="odd">
<td>Inner Mongolia</td>
<td>27.14</td>
<td>109,605</td>
<td>23.56</td>
<td>103,160</td>
<td>15.1</td>
<td>93,676</td>
<td>13.6</td>
<td>93,020</td>
<td>11.4</td>
<td>68,425</td>
</tr>
<tr class="even">
<td>Guangxi</td>
<td>10.20</td>
<td>60,863</td>
<td>11.50</td>
<td>64,528</td>
<td>12</td>
<td>69,819</td>
<td>13.3</td>
<td>82,088</td>
<td>14.3</td>
<td>97,452</td>
</tr>
<tr class="odd">
<td>Hunan</td>
<td>16.30</td>
<td>35,558</td>
<td>20.20</td>
<td>55,348</td>
<td>20.9</td>
<td>63,237</td>
<td>24.1</td>
<td>70,750</td>
<td>25.5</td>
<td>84,435</td>
</tr>
<tr class="even">
<td>Jiangxi</td>
<td>23.60</td>
<td>42,109</td>
<td>19.20</td>
<td>42,790</td>
<td>21.3</td>
<td>48,795</td>
<td>21.8</td>
<td>45,181</td>
<td>24.0</td>
<td>65,685</td>
</tr>
<tr class="odd">
<td>Guangdong</td>
<td>8.52</td>
<td>42,144</td>
<td>8.00</td>
<td>37,097</td>
<td>7.5</td>
<td>40,318</td>
<td>6.3</td>
<td>38,760</td>
<td>6.4</td>
<td>42,097</td>
</tr>
<tr class="even">
<td>Heilongjiang</td>
<td>5.76</td>
<td>26,250</td>
<td>5.27</td>
<td>27,965</td>
<td>6.8</td>
<td>44,863</td>
<td>5.7</td>
<td>35,379</td>
<td>5.4</td>
<td>47,149</td>
</tr>
<tr class="odd">
<td>Tianjin</td>
<td>3.71</td>
<td>30,172</td>
<td>4.53</td>
<td>27,991</td>
<td>4.2</td>
<td>22,863</td>
<td>4.1</td>
<td>25,851</td>
<td>3.5</td>
<td>25,182</td>
</tr>
<tr class="even">
<td>Shanghai</td>
<td>1.10</td>
<td>17,369</td>
<td>1.30</td>
<td>15,752</td>
<td>1.9</td>
<td>12,752</td>
<td>2.1</td>
<td>17,931</td>
<td>2.4</td>
<td>17,710</td>
</tr>
<tr class="odd">
<td>Ningxia</td>
<td>2.47</td>
<td>9,058</td>
<td>2.25</td>
<td>9,071</td>
<td>2.4</td>
<td>6,707</td>
<td>2.6</td>
<td>12,430</td>
<td>2.4</td>
<td>7,502</td>
</tr>
<tr class="even">
<td>Qinghai</td>
<td>1.10</td>
<td>5,963</td>
<td>1.06</td>
<td>5,525</td>
<td>1.1</td>
<td>5,228</td>
<td>1.2</td>
<td>4,418</td>
<td>1.6</td>
<td>5,362</td>
</tr>
<tr class="odd">
<td>Tibet</td>
<td>0.11</td>
<td>803</td>
<td>0.09</td>
<td>646</td>
<td>0.1</td>
<td>387</td>
<td>0.1</td>
<td>464</td>
<td>0.1</td>
<td>513</td>
</tr>
<tr class="even">
<td>Hainan</td>
<td>0.00</td>
<td>0</td>
<td>0.00</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="odd">
<td>National Total</td>
<td>1,014.7</td>
<td>8,412,413</td>
<td>1,026.0</td>
<td>8,796,097</td>
<td>1,042.4</td>
<td>9,309,432</td>
<td>1,061.5</td>
<td>9,798,424</td>
<td>1,078.7</td>
<td>10,642,287</td>
</tr>
<tr class="even">
<td colspan="11">Source: China Agriculture Statistical Report</td>
</tr>
</tbody>
</table>

### Grapes

  -------------- -------- ----------- -------- ----------- ------- ----------- ------ ----------- ------- -----------
  **Grape                                                                                                 
  Production                                                                                              
  (1000 Ha and                                                                                            
  MT) by                                                                                                  
  Province                                                                                                
  2000-2004**                                                                                             

                 2000                 2001                 2002                2003               2004    

  Province       1000 ha  MT          1000 ha  MT          1000 ha MT          1000   MT          1000 ha MT
                                                                               ha                         

  Xinjiang       59.10    683,645     70.55    661,524     87.9    908,069     91.7   1,066,331   92.2    1,241,450

  Hebei          42.80    523,601     46.34    580,139     51.5    758,280     52.1   803,418     53.3    840,916

  Shandong       36.50    475,325     49.67    619,141     54.6    640,723     65.9   761,031     50.9    849,718

  Liaoning       27.80    430,282     29.70    396,991     35.6    522,061     37.4   586,124     36.8    613,683

  Henan          16.80    208,280     18.15    280,331     20.4    304,982     21.6   331,036     25.0    382,743

  Zhejiang       5.14     114,569     6.20     132,849     7.1     145,171     8.2    172,714     9.3     203,076

  Anhui          4.60     56,156      5.06     76,062      8       100,306     7.6    161,600     9.1     165,377

  Sichuan        7.70     116,037     9.10     120,980     9.8     133,709     11.1   144,409     11.7    142,587

  Jiangsu        5.90     87,697      8.10     114,568     9.9     133,564     10.8   140,777     10.9    164,829

  Tianjin        5.27     102,201     6.00     114,154     5.7     137,909     5.9    140,060     5.6     132,084

  Shanxi         7.10     50,564      9.40     70,236      14      90,686      13.7   111,885     14.2    116,572

  Jilin          11.82    65,716      9.75     62,618      12.7    79,268      13.8   107,362     10.6    108,831

  Guangxi        5.20     39,427      7.80     63,058      8.6     79,197      8.6    94,210      8.9     106,512

  Shaanxi        5.31     41,550      6.87     58,206      10.3    61,896      11.4   89,925      12.7    110,842

  Gansu          4.20     22,194      6.87     32,008      8.8     52,442      9.4    63,343      9.2     70,002

  Beijing        3.10     33,961      4.08     43,361      4.8     50,972      4.5    63,053      3.1     57,700

  Hubei          5.10     74,788      4.90     68,301      4.9     59,850      5.7    57,415      5.2     50,519

  Fujian         2.60     38,702      3.10     39,291      3.9     48,775      4.5    55,801      4.8     67,449

  Yunnan         3.80     17,746      6.30     25,414      4.9     34,539      5.3    42,606      5.3     50,862

  Ningxia        5.42     8,959       6.61     20,582      7       22,639      7      41,407      6.9     37,688

  Hunan          4.00     18,764      5.30     24,218      8.3     28,850      9.8    36,944      11.7    46,153

  Shanghai       1.10     23,124      1.39     23,921      1.8     26,140      1.5    27,564      1.7     26,165

  Inner Mongolia 3.05     15,853      5.04     16,004      3.6     14,408      3.5    20,789      4.9     23,339

  Heilongjiang   2.02     9,611       1.64     10,513      1.6     14,506      2.1    19,122      1.6     27,404

  Chongqing      1.17     9,917       1.47     10,493      1.7     12,137      2.6    17,413      2.1     17,183

  Guizhou        3.54     10,241      3.20     11,306      3.2     14,708      3.4    15,895      3.8     17,346

  Jiangxi        2.90     2,681       1.76     3,294       1.8     3,560       1.8    3,631       1.9     3,868

  Qinghai        0.00     107         0.02     117         0       106         0.1    74          0.1     102

  Guangdong      0.00     0           0.00     0           0       0           0      0           0.0     0.0

  Hainan         0.00     0           0.00     0           0       0           0      0           0.0     0.0

  Tibet          0.00     0           0.00     0           0       0           0      0           0.0     318

  National Total 283.04   3,281,698   334.00   3,679,680   392.4   4,479,453   421    5,175,939   413.5   5,675,318

  Source: China                                                                                           
  Agriculture                                                                                             
  Statistical                                                                                             
  Report                                                                                                  
  -------------- -------- ----------- -------- ----------- ------- ----------- ------ ----------- ------- -----------

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

## Apples

+-------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**     |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Country**       | ####  |       |       |       |       |       |
|                   | ### C |       |       |       |       |       |
|                   | hina, |       |       |       |       |       |
|                   |  Peop |       |       |       |       |       |
|                   | les R |       |       |       |       |       |
|                   | epubl |       |       |       |       |       |
|                   | ic of |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**     | **Ap  |       |       |       | (HA)  |       |
|                   | ples, |       |       |       | (1000 |       |
|                   | Fr    |       |       |       | TREES |       |
|                   | esh** |       |       |       | )(MT) |       |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | 2003  | Re    | 2004  | Est   | 2005  | For   |
|                   |       | vised |       | imate |       | ecast |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                   | Off   | Estim | Off   | Estim | Off   | Estim |
|                   | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                   | \[    | New\] | \[    | New\] | \[    | New\] |
|                   | Old\] |       | Old\] |       | Old\] |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Market Year     |       | 07    |       | 07    |       | 07    |
| Begin**           |       | /2003 |       | /2004 |       | /2005 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Area Planted      | 19    | 19    | 18    | 18    | 0     | 18    |
|                   | 01000 | 00500 | 90000 | 76700 |       | 50000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested    | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Bearing Trees     | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Non-Bearing Trees | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Total Trees       | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Commercial        | 210   | 211   | 202   | 236   | 0     | 213   |
| Production        | 00000 | 00000 | 00000 | 75000 |       | 00000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Non-Comm.         | 0     | 0     | 0     | 0     | 0     | 0     |
| Production        |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Production  | 210   | 211   | 202   | 236   | 0     | 213   |
|                   | 00000 | 00000 | 00000 | 75000 |       | 00000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Imports     | 36853 | 36853 | 45000 | 36945 | 0     | 42000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY      | 210   | 211   | 202   | 237   | 0     | 213   |
|                   | 36853 | 36853 | 45000 | 11945 |       | 42000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Domestic Fresh    | 165   | 166   | 152   | 179   | 0     | 153   |
| Consump           | 28447 | 28447 | 95000 | 94935 |       | 87000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Exports, Fresh    | 7     | 7     | 8     | 8     | 0     | 9     |
| Only              | 08406 | 08406 | 50000 | 42010 |       | 90000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| For Processing    | 38    | 38    | 41    | 48    | 0     | 49    |
|                   | 00000 | 00000 | 00000 | 75000 |       | 65000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Withdrawal From   | 0     | 0     | 0     | 0     | 0     | 0     |
| Market            |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL UTILIZATION | 210   | 211   | 202   | 237   | 0     | 213   |
|                   | 36853 | 36853 | 45000 | 11945 |       | 42000 |
+-------------------+-------+-------+-------+-------+-------+-------+

## 

Industry sources indicated about 7.0-7.5 MT of fresh apples is needed to
produce 1 MT of CAJ at 70/71 Brix.

## Apple Trade Matrix Tables

+-----------------+---------------------+--------------+---------------+
| ###### Impo     |                     |              |               |
| rt Trade Matrix |                     |              |               |
+-----------------+---------------------+--------------+---------------+
| **Country**     | China, Peoples      |              |               |
|                 | Republic of         |              |               |
+-----------------+---------------------+--------------+---------------+
| **Commodity**   | Apples, Fresh       |              |               |
+-----------------+---------------------+--------------+---------------+
| Time Period     |                     | Units:       | MT            |
+-----------------+---------------------+--------------+---------------+
| Imports for:    | 2003                |              | **2004**      |
+-----------------+---------------------+--------------+---------------+
| U.S.            | 18972               | U.S.         | 19465         |
+-----------------+---------------------+--------------+---------------+
| Others          |                     | Others       |               |
+-----------------+---------------------+--------------+---------------+
| Chile           | 13245               | Chile        | 12649         |
+-----------------+---------------------+--------------+---------------+
| New Zealand     | 9267                | New Zealand  | 5101          |
+-----------------+---------------------+--------------+---------------+
| Vietnam         | 131                 | Japan        | 43            |
+-----------------+---------------------+--------------+---------------+
| North Korea     | 19                  |              |               |
+-----------------+---------------------+--------------+---------------+
| Japan           | 1                   |              |               |
+-----------------+---------------------+--------------+---------------+
|                 |                     |              |               |
+-----------------+---------------------+--------------+---------------+
| Total for       | 22663               |              | 17793         |
| Others          |                     |              |               |
+-----------------+---------------------+--------------+---------------+
| Others not      | 0                   |              | 0             |
| Listed          |                     |              |               |
+-----------------+---------------------+--------------+---------------+
| Grand Total     | 41635               |              | 37258         |
+-----------------+---------------------+--------------+---------------+

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

  **Country**            China, Peoples                      
                         Republic of                         

  **Commodity**          Apples, Fresh                       

  Time Period                                Units:          MT

  Exports for:           2003                                **2004**

  U.S.                   58                  U.S.            191

  Others                                     Others          

  Russia                 100225              Russia          113307

  Philippines            67635               Vietnam         94699

  Vietnam                63512               Indonesia       75191

  Indonesia              51757               Philippines     62306

  Thailand               49281               Thailand        52661

  Malaysia               42372               Malaysia        49293

  Kazakhstan             39393               Netherlands     35965

  Singapore              28197               Kazakhstan      32347

  Hong Kong              25636               Singapore       28112

  Netherlands            21117               Hong Kong       27349

  Total for Others       489125                              571230

  Others not Listed      120257                              202478

  Grand Total            609440                              773899
  ---------------------- ------------------- --------------- --------------

## Apple Average National Chinese Export Price Table

+------------------------+--------------+--------------+--------------+
| ###### Prices Table    |              |              |              |
+------------------------+--------------+--------------+--------------+
| **Country**            | China,       |              |              |
|                        | Peoples      |              |              |
|                        | Republic of  |              |              |
+------------------------+--------------+--------------+--------------+
| **Commodity**          | Apples,      |              |              |
|                        | Fresh        |              |              |
+------------------------+--------------+--------------+--------------+
| Prices in              | US\$ FOB     | per uom      | MT           |
+------------------------+--------------+--------------+--------------+
|                        | China        |              |              |
+------------------------+--------------+--------------+--------------+
| Year                   | 2004         | 2005         | \% Change    |
+------------------------+--------------+--------------+--------------+
| Jan                    | 350          | 350          | 0%           |
+------------------------+--------------+--------------+--------------+
| Feb                    | 310          | 330          | 6%           |
+------------------------+--------------+--------------+--------------+
| Mar                    | 390          | 350          | -10%         |
+------------------------+--------------+--------------+--------------+
| Apr                    | 390          | 390          | 0%           |
+------------------------+--------------+--------------+--------------+
| May                    | 430          | 400          | -7%          |
+------------------------+--------------+--------------+--------------+
| Jun                    | 460          | 400          | -13%         |
+------------------------+--------------+--------------+--------------+
| Jul                    | 400          | 400          | 0%           |
+------------------------+--------------+--------------+--------------+
| Aug                    | 330          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Sep                    | 300          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Oct                    | 340          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Nov                    | 360          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Dec                    | 330          | N/A          |              |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Date of Quote          | 9/7/2005     | MM/DD/YYYY   |              |
+------------------------+--------------+--------------+--------------+

## Wholesale Market Prices for Apples

+---------------+------+---------+------+-----+---------+----+-----+
| Region        | N    | No      | Cen  | So  | So      | We | Ch  |
|               | orth | rtheast | tral | uth | uthwest | st | ina |
+---------------+------+---------+------+-----+---------+----+-----+
| Time          | Mon  |         |      |     |         |    |     |
|               | thly |         |      |     |         |    |     |
|               | and  |         |      |     |         |    |     |
|               | q    |         |      |     |         |    |     |
|               | uart |         |      |     |         |    |     |
|               | erly |         |      |     |         |    |     |
|               | ave  |         |      |     |         |    |     |
|               | rage |         |      |     |         |    |     |
|               | pr   |         |      |     |         |    |     |
|               | ices |         |      |     |         |    |     |
|               | in   |         |      |     |         |    |     |
|               | USD  |         |      |     |         |    |     |
|               | per  |         |      |     |         |    |     |
|               | kilo |         |      |     |         |    |     |
|               | gram |         |      |     |         |    |     |
|               |      |         |      |     |         |    |     |
|               | (    |         |      |     |         |    |     |
|               | RMB8 |         |      |     |         |    |     |
|               | .265 |         |      |     |         |    |     |
|               | = US |         |      |     |         |    |     |
|               | \$1) |         |      |     |         |    |     |
+---------------+------+---------+------+-----+---------+----+-----+
| January 2004  | 0.60 | 0.40    | 0.50 | 0   | 0.41    | 0. | 0   |
|               |      |         |      | .91 |         | 21 | .52 |
+---------------+------+---------+------+-----+---------+----+-----+
| February 2004 | 0.49 | 0.36    | 0.60 | 0   | 0.24    | 0. | 0   |
|               |      |         |      | .81 |         | 19 | .49 |
+---------------+------+---------+------+-----+---------+----+-----+
| March 2004    | 0.49 | 0.48    | 0.41 | 0   | 0.25    | 0. | 0   |
|               |      |         |      | .84 |         | 21 | .45 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q1 2004   | 0.53 | 0.41    | 0.50 | 0   | 0.28    | 0. | 0   |
|               |      |         |      | .85 |         | 20 | .49 |
+---------------+------+---------+------+-----+---------+----+-----+
| April 2004    | 0.58 | 0.49    | 0.46 | 0   | 0.57    | 0. | 0   |
|               |      |         |      | .87 |         | 26 | .52 |
+---------------+------+---------+------+-----+---------+----+-----+
| May 2004      | 0.50 | 0.56    | 0.48 | 0   | 0.34    | 0. | 0   |
|               |      |         |      | .85 |         | 30 | .54 |
+---------------+------+---------+------+-----+---------+----+-----+
| June 2004     | 0.63 | 0.29    | 0.51 | 0   | 0.34    | 0. | 0   |
|               |      |         |      | .82 |         | 35 | .56 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q2 2004   | 0.58 | 0.43    | 0.48 | 0   | 0.48    | 0. | 0   |
|               |      |         |      | .85 |         | 30 | .54 |
+---------------+------+---------+------+-----+---------+----+-----+
| July 2004     | 0.48 | 0.40    | 0.50 | 1   | 0.36    | 0. | 0   |
|               |      |         |      | .07 |         | 47 | .66 |
+---------------+------+---------+------+-----+---------+----+-----+
| August 2004   | 0.62 | 0.60    | 0.45 | 1   | 0.34    | 0. | 0   |
|               |      |         |      | .00 |         | 30 | .63 |
+---------------+------+---------+------+-----+---------+----+-----+
| September     | 0.64 | 0.47    | 0.31 | 0   | 0.31    | 0. | 0   |
| 2004          |      |         |      | .81 |         | 23 | .53 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q3 2004   | 0.59 | 0.49    | 0.41 | 0   | 0.33    | 0. | 0   |
|               |      |         |      | .94 |         | 32 | .59 |
+---------------+------+---------+------+-----+---------+----+-----+
| October 2004  | 0.36 | 0.54    | 0.41 | 0   | 0.34    | 0. | 0   |
|               |      |         |      | .69 |         | 20 | .44 |
+---------------+------+---------+------+-----+---------+----+-----+
| November 2004 | 0.58 | 0.35    | 0.32 | 0   | 0.31    | 0. | 0   |
|               |      |         |      | .74 |         | 20 | .45 |
+---------------+------+---------+------+-----+---------+----+-----+
| December 2004 | 0.51 | 0.22    | 0.30 | 0   | 0.31    | 0. | 0   |
|               |      |         |      | .82 |         | 27 | .48 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q4 2004   | 0.50 | 0.37    | 0.34 | 0   | 0.32    | 0. | 0   |
|               |      |         |      | .75 |         | 22 | .46 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg 2004      | 0.55 | 0.43    | 0.43 | 0   | 0.35    | 0. | 0   |
|               |      |         |      | .85 |         | 26 | .52 |
+---------------+------+---------+------+-----+---------+----+-----+
| January 2005  | 0.55 | 0.41    | 0.33 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .82 |         | 33 | .52 |
+---------------+------+---------+------+-----+---------+----+-----+
| February 2005 | 0.52 | 0.55    | 0.35 | 0   | 0.34    | 0. | 0   |
|               |      |         |      | .86 |         | 58 | .57 |
+---------------+------+---------+------+-----+---------+----+-----+
| March 2005    | 0.58 | 0.42    | 0.32 | 0   | 0.34    | 0. | 0   |
|               |      |         |      | .92 |         | 37 | .55 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q1 2005   | 0.55 | 0.46    | 0.33 | 0   | 0.34    | 0. | 0   |
|               |      |         |      | .87 |         | 42 | .55 |
+---------------+------+---------+------+-----+---------+----+-----+
| April 2005    | 0.47 | 0.20    | 0.38 | 0   | 0.30    | 0. | 0   |
|               |      |         |      | .82 |         | 43 | .51 |
+---------------+------+---------+------+-----+---------+----+-----+
| May 2005      | 0.46 | 0.20    | 0.31 | 0   | 0.30    | 0. | 0   |
|               |      |         |      | .77 |         | 49 | .49 |
+---------------+------+---------+------+-----+---------+----+-----+
| June 2005     | 0.47 | 0.33    | 0.30 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .86 |         | 24 | .52 |
+---------------+------+---------+------+-----+---------+----+-----+
| Ave Q2 2005   | 0.47 | 0.25    | 0.33 | 0   | 0.30    | 0. | 0   |
|               |      |         |      | .82 |         | 39 | .51 |
+---------------+------+---------+------+-----+---------+----+-----+
| July 2005     | 0.59 | 0.85    | 0.36 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .75 |         | 21 | .57 |
+---------------+------+---------+------+-----+---------+----+-----+
| August 2005   | 0.54 | 0.60    | 0.53 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .79 |         | 26 | .59 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q3 2005   | 0.57 | 0.73    | 0.44 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .77 |         | 23 | .58 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg 2005 to   | 0.52 | 0.45    | 0.36 | 0   | 0.32    | 0. | 0   |
| date          |      |         |      | .82 |         | 36 | .54 |
+---------------+------+---------+------+-----+---------+----+-----+

## 

Prices do not distinguish varieties and imported versus domestically
produced apples.

## Concentrated Apple Juice (CAJ)

+-------------------+-------+-------+-------+-------+-------+-------+
| ###### PSD Table  |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Country**       | ####  |       |       |       |       |       |
|                   | ### C |       |       |       |       |       |
|                   | hina, |       |       |       |       |       |
|                   |  Peop |       |       |       |       |       |
|                   | les R |       |       |       |       |       |
|                   | epubl |       |       |       |       |       |
|                   | ic of |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**     | **    |       |       |       | (MT)  |       |
|                   | Apple |       |       |       |       |       |
|                   | J     |       |       |       |       |       |
|                   | uice, |       |       |       |       |       |
|                   | Conc  |       |       |       |       |       |
|                   | entra |       |       |       |       |       |
|                   | ted** |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | 2003  | Re    | 2004  | Est   | 2005  | For   |
|                   |       | vised |       | imate |       | ecast |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                   | Off   | Estim | Off   | Estim | Off   | Estim |
|                   | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                   | \[    | New\] | \[    | New\] | \[    | New\] |
|                   | Old\] |       | Old\] |       | Old\] |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Market Year     |       | 07    |       | 07    |       | 07    |
| Begin**           |       | /2003 |       | /2004 |       | /2005 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Deliv. To         | 38    | 38    | 41    | 45    | 0     | 49    |
| Processors        | 00000 | 00000 | 00000 | 00000 |       | 50000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks  | 2392  | 2392  | 1372  | 1372  | 1047  | 51047 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Production        | 5     | 5     | 5     | 6     | 0     | 6     |
|                   | 19000 | 19000 | 65150 | 50000 |       | 80000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Imports           | 679   | 360   | 900   | 803   | 0     | 1200  |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY      | 5     | 5     | 5     | 6     | 1047  | 7     |
|                   | 22071 | 21752 | 67422 | 52175 |       | 32247 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Exports           | 4     | 4     | 5     | 5     | 0     | 6     |
|                   | 85699 | 84692 | 27500 | 56152 |       | 35000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Domestic          | 35000 | 35688 | 38875 | 44976 | 0     | 47247 |
| Consumption       |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks     | 1372  | 1372  | 1047  | 51047 | 0     | 50000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL             | 5     | 5     | 5     | 6     | 0     | 7     |
| DISTRIBUTION      | 22071 | 21752 | 67422 | 52175 |       | 32247 |
+-------------------+-------+-------+-------+-------+-------+-------+

## CAJ Trade Matrix Tables

+----------------+------------------+-------------------+-------------+
| ###### Impor   |                  |                   |             |
| t Trade Matrix |                  |                   |             |
+----------------+------------------+-------------------+-------------+
| **Country**    | China, Peoples   |                   |             |
|                | Republic of      |                   |             |
+----------------+------------------+-------------------+-------------+
| **Commodity**  | Apple Juice,     |                   |             |
|                | Concentrated     |                   |             |
+----------------+------------------+-------------------+-------------+
| Time Period    |                  | Units:            | MT          |
+----------------+------------------+-------------------+-------------+
| Imports for:   | 2003             |                   | **2004**    |
+----------------+------------------+-------------------+-------------+
| U.S.           | 8                | U.S.              | 4           |
+----------------+------------------+-------------------+-------------+
| Others         |                  | Others            |             |
+----------------+------------------+-------------------+-------------+
| Taiwan         | 57               | Kyrgyzstan        | 352         |
+----------------+------------------+-------------------+-------------+
| Australia      | 49               | Japan             | 184         |
+----------------+------------------+-------------------+-------------+
| South Korea    | 23               | China             | 165         |
+----------------+------------------+-------------------+-------------+
| Germany        | 23               | Australia         | 94          |
+----------------+------------------+-------------------+-------------+
| China          | 20               | Israel            | 74          |
+----------------+------------------+-------------------+-------------+
| Hungary        | 12               | South Korea       | 32          |
+----------------+------------------+-------------------+-------------+
| Kazakhstan     | 6                | India             | 19          |
+----------------+------------------+-------------------+-------------+
| Turkey         | 6                | Hungary           | 12          |
+----------------+------------------+-------------------+-------------+
| Netherlands    | 6                | Oman              | 6           |
+----------------+------------------+-------------------+-------------+
| Japan          | 5                | Germany           | 3           |
+----------------+------------------+-------------------+-------------+
| Total for      | 207              |                   | 941         |
| Others         |                  |                   |             |
+----------------+------------------+-------------------+-------------+
| Others not     | 13               |                   | 13          |
| Listed         |                  |                   |             |
+----------------+------------------+-------------------+-------------+
| Grand Total    | 228              |                   | 958         |
+----------------+------------------+-------------------+-------------+

+-------------------+---------------+-------------------+-------------+
| ###### Ex         |               |                   |             |
| port Trade Matrix |               |                   |             |
+-------------------+---------------+-------------------+-------------+
| **Country**       | China,        |                   |             |
|                   | Peoples       |                   |             |
|                   | Republic of   |                   |             |
+-------------------+---------------+-------------------+-------------+
| **Commodity**     | ########      |                   |             |
|                   |  Apple Juice, |                   |             |
|                   |  Concentrated |                   |             |
+-------------------+---------------+-------------------+-------------+
| Time Period       |               | Units:            | MT          |
+-------------------+---------------+-------------------+-------------+
| Exports for:      | 2003          |                   | **2004**    |
+-------------------+---------------+-------------------+-------------+
| U.S.              | 163771        | U.S.              | 239392      |
+-------------------+---------------+-------------------+-------------+
| Others            |               | Others            |             |
+-------------------+---------------+-------------------+-------------+
| Russia            | 46627         | Japan             | 49900       |
+-------------------+---------------+-------------------+-------------+
| Germany           | 44795         | Russia            | 39715       |
+-------------------+---------------+-------------------+-------------+
| Japan             | 39372         | Australia         | 33739       |
+-------------------+---------------+-------------------+-------------+
| Netherlands       | 38852         | Netherlands       | 33290       |
+-------------------+---------------+-------------------+-------------+
| Australia         | 23280         | Canada            | 25600       |
+-------------------+---------------+-------------------+-------------+
| Canada            | 21644         | Germany           | 22056       |
+-------------------+---------------+-------------------+-------------+
| New Zealand       | 4782          | New Zealand       | 5455        |
+-------------------+---------------+-------------------+-------------+
| U.K.              | 4408          | U.K.              | 4136        |
+-------------------+---------------+-------------------+-------------+
| South Africa      | 3775          | Israel            | 3937        |
+-------------------+---------------+-------------------+-------------+
| Israel            | 3627          | South Africa      | 3666        |
+-------------------+---------------+-------------------+-------------+
| Total for Others  | 231162        |                   | 221494      |
+-------------------+---------------+-------------------+-------------+
| Others not Listed | 22614         |                   | 25530       |
+-------------------+---------------+-------------------+-------------+
| Grand Total       | 417547        |                   | 486416      |
+-------------------+---------------+-------------------+-------------+

## CAJ Average National Chinese Export Price Table

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

  **Country**            China, Peoples                     
                         Republic of                        

  **Commodity**          Apple Juice,                       
                         Concentrated                       

  Prices in              US\$ FOB              per uom      MT

                         China                              

  Year                   2004                  2005         \% Change

  Jan                    630                   700          11%

  Feb                    630                   700          11%

  Mar                    650                   690          6%

  Apr                    660                   690          5%

  May                    650                   700          8%

  Jun                    660                   690          5%

  Jul                    670                   690          3%

  Aug                    710                   N/A          

  Sep                    700                   N/A          

  Oct                    690                   N/A          

  Nov                    710                   N/A          

  Dec                    710                   N/A          

                                                            

  Date of Quote          9/7/2005              MM/DD/YYYY   
  ---------------------- --------------------- ------------ -------------

## Pears

+-------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**     |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Country**       | ####  |       |       |       |       |       |
|                   | ### C |       |       |       |       |       |
|                   | hina, |       |       |       |       |       |
|                   |  Peop |       |       |       |       |       |
|                   | les R |       |       |       |       |       |
|                   | epubl |       |       |       |       |       |
|                   | ic of |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**     | **P   |       |       |       | (HA)  |       |
|                   | ears, |       |       |       | (1000 |       |
|                   | Fr    |       |       |       | TREES |       |
|                   | esh** |       |       |       | )(MT) |       |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | 2003  | Re    | 2004  | Est   | 2005  | For   |
|                   |       | vised |       | imate |       | ecast |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                   | Off   | Estim | Off   | Estim | Off   | Estim |
|                   | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                   | \[    | New\] | \[    | New\] | \[    | New\] |
|                   | Old\] |       | Old\] |       | Old\] |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Market Year     |       | 07    |       | 07    |       | 07    |
| Begin**           |       | /2003 |       | /2004 |       | /2005 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Area Planted      | 10    | 10    | 10    | 10    | 0     | 10    |
|                   | 61500 | 61500 | 70000 | 78700 |       | 90000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested    | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Bearing Trees     | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Non-Bearing Trees | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Total Trees       | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Commercial        | 97    | 97    | 102   | 106   | 0     | 112   |
| Production        | 98424 | 98424 | 00000 | 40000 |       | 00000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Non-Comm.         | 0     | 0     | 0     | 0     | 0     | 0     |
| Production        |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Production  | 97    | 97    | 102   | 106   | 0     | 112   |
|                   | 98424 | 98424 | 00000 | 40000 |       | 00000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Imports     | 498   | 498   | 600   | 199   | 0     | 100   |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY      | 97    | 97    | 102   | 106   | 0     | 112   |
|                   | 98922 | 98922 | 00600 | 40199 |       | 00100 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Domestic Fresh    | 89    | 89    | 93    | 97    | 0     | 101   |
| Consump           | 95753 | 95753 | 25600 | 47777 |       | 10100 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Exports, Fresh    | 3     | 3     | 3     | 3     | 0     | 4     |
| Only              | 03169 | 03169 | 50000 | 42422 |       | 10000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| For Processing    | 5     | 5     | 5     | 5     | 0     | 6     |
|                   | 00000 | 00000 | 25000 | 50000 |       | 80000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Withdrawal From   | 0     | 0     | 0     | 0     | 0     | 0     |
| Market            |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL UTILIZATION | 97    | 97    | 102   | 106   | 0     | 112   |
|                   | 98922 | 98922 | 00600 | 40199 |       | 00100 |
+-------------------+-------+-------+-------+-------+-------+-------+

## Pear Trade Matrix Tables

+----------------+-----------------------+---------------+-------------+
| ###### Impor   |                       |               |             |
| t Trade Matrix |                       |               |             |
+----------------+-----------------------+---------------+-------------+
| **Country**    | China, Peoples        |               |             |
|                | Republic of           |               |             |
+----------------+-----------------------+---------------+-------------+
| **Commodity**  | Pears, Fresh          |               |             |
+----------------+-----------------------+---------------+-------------+
| Time Period    |                       | Units:        | MT          |
+----------------+-----------------------+---------------+-------------+
| Imports for:   | 2003                  |               | **2004**    |
+----------------+-----------------------+---------------+-------------+
| U.S.           | 0                     | U.S.          | 0           |
+----------------+-----------------------+---------------+-------------+
| Others         |                       | Others        |             |
+----------------+-----------------------+---------------+-------------+
| New Zealand    | 689                   | New Zealand   | 471         |
+----------------+-----------------------+---------------+-------------+
|                |                       | Japan         | 29          |
+----------------+-----------------------+---------------+-------------+
|                |                       |               |             |
+----------------+-----------------------+---------------+-------------+
|                |                       |               |             |
+----------------+-----------------------+---------------+-------------+
| Total for      | 689                   |               | 500         |
| Others         |                       |               |             |
+----------------+-----------------------+---------------+-------------+
| Others not     | 0                     |               | 0           |
| Listed         |                       |               |             |
+----------------+-----------------------+---------------+-------------+
| Grand Total    | 689                   |               | 500         |
+----------------+-----------------------+---------------+-------------+

+-----------------------+-----------------+--------------+-------------+
| #####                 |                 |              |             |
| # Export Trade Matrix |                 |              |             |
+-----------------------+-----------------+--------------+-------------+
| **Country**           | China, Peoples  |              |             |
|                       | Republic of     |              |             |
+-----------------------+-----------------+--------------+-------------+
| **Commodity**         | Pears, Fresh    |              |             |
+-----------------------+-----------------+--------------+-------------+
| Time Period           |                 | Units:       | MT          |
+-----------------------+-----------------+--------------+-------------+
| Exports for:          | 2003            |              | **2004**    |
+-----------------------+-----------------+--------------+-------------+
| U.S.                  | 6839            | U.S.         | 102         |
+-----------------------+-----------------+--------------+-------------+
| Others                |                 | Others       |             |
+-----------------------+-----------------+--------------+-------------+
| Malaysia              | 47423           | Indonesia    | 73326       |
+-----------------------+-----------------+--------------+-------------+
| Russia                | 37232           | Hong Kong    | 42470       |
+-----------------------+-----------------+--------------+-------------+
| Indonesia             | 36394           | Malaysia     | 37406       |
+-----------------------+-----------------+--------------+-------------+
| Hong Kong             | 32922           | Vietnam      | 36123       |
+-----------------------+-----------------+--------------+-------------+
| Vietnam               | 32026           | Russia       | 31150       |
+-----------------------+-----------------+--------------+-------------+
| Singapore             | 22819           | Thailand     | 19683       |
+-----------------------+-----------------+--------------+-------------+
| Thailand              | 15291           | Singapore    | 12429       |
+-----------------------+-----------------+--------------+-------------+
| Philippines           | 11440           | Netherlands  | 10622       |
+-----------------------+-----------------+--------------+-------------+
| Canada                | 11093           | Philippines  | 9319        |
+-----------------------+-----------------+--------------+-------------+
| Netherlands           | 10094           | Myanmar      | 7049        |
+-----------------------+-----------------+--------------+-------------+
| Total for Others      | 256734          |              | 279577      |
+-----------------------+-----------------+--------------+-------------+
| Others not Listed     | 33403           |              | 38394       |
+-----------------------+-----------------+--------------+-------------+
| Grand Total           | 296976          |              | 318073      |
+-----------------------+-----------------+--------------+-------------+

## Pear Average National Chinese Export Price Table 

+------------------------+--------------+--------------+--------------+
| ###### Prices Table    |              |              |              |
+------------------------+--------------+--------------+--------------+
| **Country**            | China,       |              |              |
|                        | Peoples      |              |              |
|                        | Republic of  |              |              |
+------------------------+--------------+--------------+--------------+
| **Commodity**          | Pears, Fresh |              |              |
+------------------------+--------------+--------------+--------------+
| Prices in              | US\$ FOB     | per uom      | MT           |
+------------------------+--------------+--------------+--------------+
|                        | China        |              |              |
+------------------------+--------------+--------------+--------------+
| Year                   | 2004         | 2005         | \% Change    |
+------------------------+--------------+--------------+--------------+
| Jan                    | 260          | 320          | 23%          |
+------------------------+--------------+--------------+--------------+
| Feb                    | 250          | 290          | 16%          |
+------------------------+--------------+--------------+--------------+
| Mar                    | 330          | 290          | -12%         |
+------------------------+--------------+--------------+--------------+
| Apr                    | 270          | 290          | 7%           |
+------------------------+--------------+--------------+--------------+
| May                    | 270          | 320          | 19%          |
+------------------------+--------------+--------------+--------------+
| Jun                    | 270          | 320          | 19%          |
+------------------------+--------------+--------------+--------------+
| Jul                    | 260          | 340          | 31%          |
+------------------------+--------------+--------------+--------------+
| Aug                    | 290          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Sep                    | 280          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Oct                    | 290          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Nov                    | 290          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Dec                    | 310          | N/A          |              |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Date of Quote          | 9/7/2005     | MM/DD/YYYY   |              |
+------------------------+--------------+--------------+--------------+

## Wholesale Market Prices for Pears

+---------------+------+---------+------+-----+---------+----+-----+
| Region        | N    | No      | Cen  | So  | So      | We | Ch  |
|               | orth | rtheast | tral | uth | uthwest | st | ina |
+---------------+------+---------+------+-----+---------+----+-----+
| Time          | Mon  |         |      |     |         |    |     |
|               | thly |         |      |     |         |    |     |
|               | and  |         |      |     |         |    |     |
|               | q    |         |      |     |         |    |     |
|               | uart |         |      |     |         |    |     |
|               | erly |         |      |     |         |    |     |
|               | ave  |         |      |     |         |    |     |
|               | rage |         |      |     |         |    |     |
|               | pr   |         |      |     |         |    |     |
|               | ices |         |      |     |         |    |     |
|               | in   |         |      |     |         |    |     |
|               | USD  |         |      |     |         |    |     |
|               | per  |         |      |     |         |    |     |
|               | kilo |         |      |     |         |    |     |
|               | gram |         |      |     |         |    |     |
|               |      |         |      |     |         |    |     |
|               | (    |         |      |     |         |    |     |
|               | RMB8 |         |      |     |         |    |     |
|               | .265 |         |      |     |         |    |     |
|               | = US |         |      |     |         |    |     |
|               | \$1) |         |      |     |         |    |     |
+---------------+------+---------+------+-----+---------+----+-----+
| January 2004  | 0.27 | 0.18    | 0.32 | 0   | 0.97    | 0. | 0   |
|               |      |         |      | .36 |         | 26 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| February 2004 | 0.23 | 0.21    | 0.31 | 0   | 0.70    | 0. | 0   |
|               |      |         |      | .41 |         | 24 | .28 |
+---------------+------+---------+------+-----+---------+----+-----+
| March 2004    | 0.29 | 0.18    | 0.27 | 0   | 0.45    | 0. | 0   |
|               |      |         |      | .51 |         | 30 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q1 2004   | 0.27 | 0.19    | 0.30 | 0   | 0.65    | 0. | 0   |
|               |      |         |      | .42 |         | 27 | .30 |
+---------------+------+---------+------+-----+---------+----+-----+
| April 2004    | 0.26 | 0.20    | 0.29 | 0   | 0.40    | 0. | 0   |
|               |      |         |      | .51 |         | 29 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| May 2004      | 0.26 | 0.20    | 0.24 | 0   | 0.42    | 0. | 0   |
|               |      |         |      | .41 |         | 40 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| June 2004     | 0.21 | 0.16    | 0.29 | 0   | 0.42    | 0. | 0   |
|               |      |         |      | .47 |         | 51 | .30 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q2 2004   | 0.24 | 0.19    | 0.28 | 0   | 0.41    | 0. | 0   |
|               |      |         |      | .48 |         | 38 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| July 2004     | 0.19 | 0.23    | 0.20 | 0   | 0.48    | 0. | 0   |
|               |      |         |      | .43 |         | 68 | .32 |
+---------------+------+---------+------+-----+---------+----+-----+
| August 2004   | 0.22 | 0.24    | 0.24 | 0   | 0.43    | 0. | 0   |
|               |      |         |      | .39 |         | 32 | .28 |
+---------------+------+---------+------+-----+---------+----+-----+
| September     | 0.23 | 0.18    | 0.20 | 0   | 0.56    | 0. | 0   |
| 2004          |      |         |      | .31 |         | 18 | .24 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q3 2004   | 0.21 | 0.21    | 0.21 | 0   | 0.50    | 0. | 0   |
|               |      |         |      | .37 |         | 36 | .28 |
+---------------+------+---------+------+-----+---------+----+-----+
| October 2004  | 0.23 | 0.18    | 0.23 | 0   | 0.64    | 0. | 0   |
|               |      |         |      | .39 |         | 20 | .26 |
+---------------+------+---------+------+-----+---------+----+-----+
| November 2004 | 0.25 | 0.24    | 0.27 | 0   | 0.59    | 0. | 0   |
|               |      |         |      | .34 |         | 24 | .28 |
+---------------+------+---------+------+-----+---------+----+-----+
| December 2004 | 0.28 | 0.29    | 0.25 | 0   | 0.64    | 0. | 0   |
|               |      |         |      | .40 |         | 28 | .32 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q4 2004   | 0.25 | 0.23    | 0.26 | 0   | 0.62    | 0. | 0   |
|               |      |         |      | .37 |         | 24 | .28 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg 2004      | 0.24 | 0.21    | 0.26 | 0   | 0.54    | 0. | 0   |
|               |      |         |      | .41 |         | 31 | .29 |
+---------------+------+---------+------+-----+---------+----+-----+
| January 2005  | 0.29 | 0.26    | 0.26 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .41 |         | 25 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| February 2005 | 0.32 | 0.34    | 0.31 | 0   | 0.42    | 0. | 0   |
|               |      |         |      | .50 |         | 35 | .38 |
+---------------+------+---------+------+-----+---------+----+-----+
| March 2005    | 0.33 | 0.28    | 0.26 | 0   | 0.47    | 0. | 0   |
|               |      |         |      | .47 |         | 35 | .36 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q1 2005   | 0.31 | 0.29    | 0.28 | 0   | 0.44    | 0. | 0   |
|               |      |         |      | .46 |         | 32 | .35 |
+---------------+------+---------+------+-----+---------+----+-----+
| April 2005    | 0.34 | 0.17    | 0.29 | 0   | 0.48    | 0. | 0   |
|               |      |         |      | .41 |         | 51 | .35 |
+---------------+------+---------+------+-----+---------+----+-----+
| May 2005      | 0.35 | 0.16    | 0.26 | 0   | 0.48    | 0. | 0   |
|               |      |         |      | .42 |         | 51 | .37 |
+---------------+------+---------+------+-----+---------+----+-----+
| June 2005     | 0.24 | 0.22    | 0.17 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .48 |         | 48 | .32 |
+---------------+------+---------+------+-----+---------+----+-----+
| Ave Q2 2005   | 0.31 | 0.18    | 0.24 | 0   | 0.48    | 0. | 0   |
|               |      |         |      | .44 |         | 50 | .35 |
+---------------+------+---------+------+-----+---------+----+-----+
| July 2005     | 0.25 | 0.29    | 0.21 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .39 |         | 19 | .29 |
+---------------+------+---------+------+-----+---------+----+-----+
| August 2005   | 0.18 | 0.21    | 0.24 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .35 |         | 37 | .26 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q3 2005   | 0.22 | 0.25    | 0.23 | 0   | N/A     | 0. | 0   |
|               |      |         |      | .37 |         | 28 | .27 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg 2005 to   | 0.29 | 0.24    | 0.25 | 0   | 0.46    | 0. | 0   |
| date          |      |         |      | .43 |         | 38 | .33 |
+---------------+------+---------+------+-----+---------+----+-----+

Prices do not distinguish varieties and imported versus domestically
produced pears.

## Grapes

+-------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**     |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Country**       | ####  |       |       |       |       |       |
|                   | ### C |       |       |       |       |       |
|                   | hina, |       |       |       |       |       |
|                   |  Peop |       |       |       |       |       |
|                   | les R |       |       |       |       |       |
|                   | epubl |       |       |       |       |       |
|                   | ic of |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**     | **Gr  |       |       |       | (HA   |       |
|                   | apes, |       |       |       | )(MT) |       |
|                   | T     |       |       |       |       |       |
|                   | able, |       |       |       |       |       |
|                   | Fr    |       |       |       |       |       |
|                   | esh** |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | 2003  | Re    | 2004  | Est   | 2005  | For   |
|                   |       | vised |       | imate |       | ecast |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                   | Off   | Estim | Off   | Estim | Off   | Estim |
|                   | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                   | \[    | New\] | \[    | New\] | \[    | New\] |
|                   | Old\] |       | Old\] |       | Old\] |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Market Year     |       | 01    |       | 01    |       | 01    |
| Begin**           |       | /2004 |       | /2005 |       | /2006 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Area Planted      | 4     | 4     | 4     | 4     | 0     | 4     |
|                   | 45000 | 13500 | 60000 | 15500 |       | 20000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested    | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Commercial        | 56    | 56    | 62    | 60    | 0     | 65    |
| Production        | 00000 | 75000 | 00000 | 10000 |       | 00000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Non-Comm.         | 0     | 0     | 0     | 0     | 0     | 0     |
| Production        |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Production  | 56    | 56    | 62    | 60    | 0     | 65    |
|                   | 00000 | 75000 | 00000 | 10000 |       | 00000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Imports     | 55000 | 58986 | 60000 | 58000 | 0     | 50000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY      | 56    | 57    | 62    | 60    | 0     | 65    |
|                   | 55000 | 33986 | 60000 | 68000 |       | 50000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Domestic Fresh    | 40    | 41    | 45    | 43    | 0     | 47    |
| Consump           | 85000 | 66187 | 85000 | 93000 |       | 70000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Exports, Fresh    | 20000 | 17799 | 25000 | 25000 | 0     | 30000 |
| Only              |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| For Processing    | 15    | 15    | 16    | 16    | 0     | 17    |
|                   | 50000 | 50000 | 50000 | 50000 |       | 50000 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Withdrawal From   | 0     | 0     | 0     | 0     | 0     | 0     |
| Market            |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL UTILIZATION | 56    | 57    | 62    | 60    | 0     | 65    |
|                   | 55000 | 33986 | 60000 | 68000 |       | 50000 |
+-------------------+-------+-------+-------+-------+-------+-------+

## Grape Trade Matrix Tables

+----------------+-----------------------+--------------+-------------+
| ###### Impor   |                       |              |             |
| t Trade Matrix |                       |              |             |
+----------------+-----------------------+--------------+-------------+
| **Country**    | China, Peoples        |              |             |
|                | Republic of           |              |             |
+----------------+-----------------------+--------------+-------------+
| **Commodity**  | Grapes, Table, Fresh  |              |             |
+----------------+-----------------------+--------------+-------------+
| Time Period    |                       | Units:       | MT          |
+----------------+-----------------------+--------------+-------------+
| Imports for:   | 2003                  |              | **2004**    |
+----------------+-----------------------+--------------+-------------+
| U.S.           | 22028                 | U.S.         | 21305       |
+----------------+-----------------------+--------------+-------------+
| Others         |                       | Others       |             |
+----------------+-----------------------+--------------+-------------+
| Chile          | 31137                 | Chile        | 37302       |
+----------------+-----------------------+--------------+-------------+
| South Africa   | 204                   | New Zealand  | 323         |
+----------------+-----------------------+--------------+-------------+
| Mozambique     | 23                    | South Africa | 32          |
+----------------+-----------------------+--------------+-------------+
| Indonesia      | 19                    | Thailand     | 24          |
+----------------+-----------------------+--------------+-------------+
|                |                       |              |             |
+----------------+-----------------------+--------------+-------------+
|                |                       |              |             |
+----------------+-----------------------+--------------+-------------+
| Total for      | 31383                 |              | 37681       |
| Others         |                       |              |             |
+----------------+-----------------------+--------------+-------------+
| Others not     | 0                     |              | 0           |
| Listed         |                       |              |             |
+----------------+-----------------------+--------------+-------------+
| Grand Total    | 53411                 |              | 58986       |
+----------------+-----------------------+--------------+-------------+

+------------------------+-----------------+------------+-------------+
| ####                   |                 |            |             |
| ## Export Trade Matrix |                 |            |             |
+------------------------+-----------------+------------+-------------+
| **Country**            | China, Peoples  |            |             |
|                        | Republic of     |            |             |
+------------------------+-----------------+------------+-------------+
| **Commodity**          | ######## Grape  |            |             |
|                        | s, Table, Fresh |            |             |
+------------------------+-----------------+------------+-------------+
| Time Period            |                 | Units:     | MT          |
+------------------------+-----------------+------------+-------------+
| Exports for:           | 2003            |            | **2004**    |
+------------------------+-----------------+------------+-------------+
| U.S.                   | 1               | U.S.       | 0           |
+------------------------+-----------------+------------+-------------+
| Others                 |                 | Others     |             |
+------------------------+-----------------+------------+-------------+
| Pakistan               | 3966            | Russia     | 5945        |
+------------------------+-----------------+------------+-------------+
| Russia                 | 2618            | Pakistan   | 3504        |
+------------------------+-----------------+------------+-------------+
| Vietnam                | 1298            | Vietnam    | 1739        |
+------------------------+-----------------+------------+-------------+
| Malaysia               | 1290            | Hong Kong  | 1617        |
+------------------------+-----------------+------------+-------------+
| Indonesia              | 761             | Indonesia  | 1200        |
+------------------------+-----------------+------------+-------------+
| Thailand               | 676             | Malaysia   | 1047        |
+------------------------+-----------------+------------+-------------+
| Hong Kong              | 629             | Thailand   | 830         |
+------------------------+-----------------+------------+-------------+
| Philippines            | 507             | Mongolia   | 386         |
+------------------------+-----------------+------------+-------------+
| Mongolia               | 431             | P          | 355         |
|                        |                 | hilippines |             |
+------------------------+-----------------+------------+-------------+
| Singapore              | 369             | Singapore  | 332         |
+------------------------+-----------------+------------+-------------+
| Total for Others       | 12545           |            | 16955       |
+------------------------+-----------------+------------+-------------+
| Others not Listed      | 898             |            | 844         |
+------------------------+-----------------+------------+-------------+
| Grand Total            | 13444           |            | 17799       |
+------------------------+-----------------+------------+-------------+

## Grape Average National Chinese Export Price Table

+------------------------+--------------+--------------+--------------+
| ###### Prices Table    |              |              |              |
+------------------------+--------------+--------------+--------------+
| **Country**            | China,       |              |              |
|                        | Peoples      |              |              |
|                        | Republic of  |              |              |
+------------------------+--------------+--------------+--------------+
| **Commodity**          | Grapes,      |              |              |
|                        | Table, Fresh |              |              |
+------------------------+--------------+--------------+--------------+
| Prices in              | US\$ FOB     | per uom      | MT           |
+------------------------+--------------+--------------+--------------+
|                        | China        |              |              |
+------------------------+--------------+--------------+--------------+
| Year                   | 2004         | 2005         | \% Change    |
+------------------------+--------------+--------------+--------------+
| Jan                    | 390          | 280          | -28%         |
+------------------------+--------------+--------------+--------------+
| Feb                    | 190          | 300          | 58%          |
+------------------------+--------------+--------------+--------------+
| Mar                    | 300          | 390          | 30%          |
+------------------------+--------------+--------------+--------------+
| Apr                    | 520          | 580          | 12%          |
+------------------------+--------------+--------------+--------------+
| May                    | 530          | 360          | -32%         |
+------------------------+--------------+--------------+--------------+
| Jun                    | 340          | 460          | 35%          |
+------------------------+--------------+--------------+--------------+
| Jul                    | 320          | 420          | 31%          |
+------------------------+--------------+--------------+--------------+
| Aug                    | 260          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Sep                    | 490          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Oct                    | 460          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Nov                    | 380          | N/A          |              |
+------------------------+--------------+--------------+--------------+
| Dec                    | 360          | N/A          |              |
+------------------------+--------------+--------------+--------------+
|                        |              |              |              |
+------------------------+--------------+--------------+--------------+
| Date of Quote          | 9/7/2005     | MM/DD/YYYY   |              |
+------------------------+--------------+--------------+--------------+

## Wholesale Market Prices for Grapes

+---------------+------+---------+------+-----+---------+----+-----+
| Region        | N    | No      | Cen  | So  | So      | We | Ch  |
|               | orth | rtheast | tral | uth | uthwest | st | ina |
+---------------+------+---------+------+-----+---------+----+-----+
| Time          | Mon  |         |      |     |         |    |     |
|               | thly |         |      |     |         |    |     |
|               | and  |         |      |     |         |    |     |
|               | q    |         |      |     |         |    |     |
|               | uart |         |      |     |         |    |     |
|               | erly |         |      |     |         |    |     |
|               | ave  |         |      |     |         |    |     |
|               | rage |         |      |     |         |    |     |
|               | pr   |         |      |     |         |    |     |
|               | ices |         |      |     |         |    |     |
|               | in   |         |      |     |         |    |     |
|               | USD  |         |      |     |         |    |     |
|               | per  |         |      |     |         |    |     |
|               | kilo |         |      |     |         |    |     |
|               | gram |         |      |     |         |    |     |
|               |      |         |      |     |         |    |     |
|               | (    |         |      |     |         |    |     |
|               | RMB8 |         |      |     |         |    |     |
|               | .265 |         |      |     |         |    |     |
|               | = US |         |      |     |         |    |     |
|               | \$1) |         |      |     |         |    |     |
+---------------+------+---------+------+-----+---------+----+-----+
| January 2004  | 1.08 | 1.33    | 1.47 | 1   | 0.31    | 0. | 1   |
|               |      |         |      | .87 |         | 60 | .22 |
+---------------+------+---------+------+-----+---------+----+-----+
| February 2004 | 0.80 | 1.04    | 1.96 | 1   | 0.42    | 1. | 1   |
|               |      |         |      | .87 |         | 19 | .27 |
+---------------+------+---------+------+-----+---------+----+-----+
| March 2004    | 1.13 | 1.51    | 2.65 | 2   | 0.36    | 0. | 1   |
|               |      |         |      | .01 |         | 64 | .44 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q1 2004   | 1.00 | 1.29    | 2.03 | 1   | 0.38    | 0. | 1   |
|               |      |         |      | .92 |         | 73 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| April 2004    | 0.97 | 1.02    | 2.97 | 1   | 1.78    | 0. | 1   |
|               |      |         |      | .80 |         | 82 | .49 |
+---------------+------+---------+------+-----+---------+----+-----+
| May 2004      | 0.91 | 1.25    | 2.90 | 1   | 0.39    | 2. | 1   |
|               |      |         |      | .98 |         | 12 | .69 |
+---------------+------+---------+------+-----+---------+----+-----+
| June 2004     | 1.24 | 1.22    | 2.92 | 1   | 0.39    | 1. | 1   |
|               |      |         |      | .66 |         | 88 | .62 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q2 2004   | 1.05 | 1.13    | 2.94 | 1   | 1.22    | 1. | 1   |
|               |      |         |      | .79 |         | 29 | .57 |
+---------------+------+---------+------+-----+---------+----+-----+
| July 2004     | 0.99 | 0.93    | 2.01 | 1   | 0.47    | N  | 1   |
|               |      |         |      | .71 |         | /A | .36 |
+---------------+------+---------+------+-----+---------+----+-----+
| August 2004   | 0.84 | 0.67    | 1.31 | 1   | 0.34    | 0. | 0   |
|               |      |         |      | .28 |         | 39 | .97 |
+---------------+------+---------+------+-----+---------+----+-----+
| September     | 0.70 | 0.37    | 1.09 | 1   | 0.35    | 0. | 0   |
| 2004          |      |         |      | .46 |         | 20 | .91 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q3 2004   | 0.82 | 0.61    | 1.42 | 1   | 0.38    | 0. | 1   |
|               |      |         |      | .48 |         | 27 | .06 |
+---------------+------+---------+------+-----+---------+----+-----+
| October 2004  | 0.42 | 1.23    | 1.28 | 1   | 0.38    | 0. | 0   |
|               |      |         |      | .51 |         | 19 | .95 |
+---------------+------+---------+------+-----+---------+----+-----+
| November 2004 | 0.50 | 1.36    | 1.14 | 1   | 0.38    | 0. | 0   |
|               |      |         |      | .34 |         | 38 | .93 |
+---------------+------+---------+------+-----+---------+----+-----+
| December 2004 | 0.78 | 0.36    | 0.90 | 1   | 0.38    | 0. | 0   |
|               |      |         |      | .55 |         | 48 | .97 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q4 2004   | 0.56 | 1.04    | 1.11 | 1   | 0.38    | 0. | 0   |
|               |      |         |      | .45 |         | 36 | .95 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg 2004      | 0.85 | 1.00    | 1.83 | 1   | 0.57    | 0. | 1   |
|               |      |         |      | .64 |         | 64 | .20 |
+---------------+------+---------+------+-----+---------+----+-----+
| January 2005  | 0.83 | 1.61    | 1.05 | 2   | N/A     | 1. | 1   |
|               |      |         |      | .18 |         | 04 | .25 |
+---------------+------+---------+------+-----+---------+----+-----+
| February 2005 | 0.92 | 1.89    | 0.97 | 2   | 0.39    | 1. | 1   |
|               |      |         |      | .00 |         | 09 | .31 |
+---------------+------+---------+------+-----+---------+----+-----+
| March 2005    | 0.99 | 1.36    | 1.18 | 1   | 0.38    | N  | 1   |
|               |      |         |      | .63 |         | /A | .24 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q1 2005   | 0.91 | 1.62    | 1.07 | 1   | 0.38    | 1. | 1   |
|               |      |         |      | .94 |         | 06 | .27 |
+---------------+------+---------+------+-----+---------+----+-----+
| April 2005    | 0.95 | 0.51    | 1.36 | 1   | 0.38    | N  | 1   |
|               |      |         |      | .69 |         | /A | .14 |
+---------------+------+---------+------+-----+---------+----+-----+
| May 2005      | 1.18 | N/A     | 1.45 | 1   | 1.09    | N  | 1   |
|               |      |         |      | .72 |         | /A | .43 |
+---------------+------+---------+------+-----+---------+----+-----+
| June 2005     | 1.01 | 1.26    | 1.33 | 1   | N/A     | N  | 1   |
|               |      |         |      | .79 |         | /A | .39 |
+---------------+------+---------+------+-----+---------+----+-----+
| Ave Q2 2005   | 1.05 | 0.88    | 1.38 | 1   | 0.61    | N  | 1   |
|               |      |         |      | .73 |         | /A | .32 |
+---------------+------+---------+------+-----+---------+----+-----+
| July 2005     | 0.85 | 1.16    | 0.90 | 1   | N/A     | 0. | 1   |
|               |      |         |      | .53 |         | 42 | .05 |
+---------------+------+---------+------+-----+---------+----+-----+
| August 2005   | 0.57 | 0.76    | 0.83 | 1   | N/A     | 0. | 0   |
|               |      |         |      | .44 |         | 30 | .87 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg Q3 2005   | 0.71 | 0.96    | 0.86 | 1   | N/A     | 0. | 0   |
|               |      |         |      | .48 |         | 36 | .96 |
+---------------+------+---------+------+-----+---------+----+-----+
| Avg 2005 to   | 0.91 | 1.22    | 1.13 | 1   | 0.52    | 0. | 1   |
| date          |      |         |      | .75 |         | 66 | .21 |
+---------------+------+---------+------+-----+---------+----+-----+

Prices do not distinguish varieties and imported versus domestically
produced grapes.