Required Report - public distribution

**Date:** 12/1/2003

**GAIN Report Number:** CH3132

**China, Peoples Republic of**

**Citrus**

**Annual**

**2003**

**Approved by:**

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

U.S. Embassy, Beijing

**Prepared by:**

Casey Bean, Adam Branson, Wu Bugang

**Report Highlights:**

China's tangerine production continues to decline while orange
production increases. During 2003 China's citrus production is forecast
at 12 million metric tons. During the next five to ten years, post
expects China's orange and tangerine yields to improve while total
acreage remains stable. Despite policy initiatives by the Ministry of
Agriculture, citrus production increases will not meet China's
increasing consumer demand for the foreseeable future. China's citrus
imports increased to \$108 million due to the demand for fresh oranges
and frozen orange juice. Exports increased to \$224 million on the
strength of China's canned mandarin production.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

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

[Production 4](#production)

[Total acreage and volume dominated by mandarins, but oranges growing
fast
4](#total-acreage-and-volume-dominated-by-mandarins-but-oranges-growing-fast)

[Mandarin orange production slowly converted to oranges or vegetables
5](#mandarin-orange-production-slowly-converted-to-oranges-or-vegetables)

[Sweet/navel orange planting for fresh and processed consumption growing
5](#sweetnavel-orange-planting-for-fresh-and-processed-consumption-growing)

[Other citrus (e.g. Pomelos, Lemons, Kumquats, Ornamentals) remains
unchanged
5](#other-citrus-e.g.-pomelos-lemons-kumquats-ornamentals-remains-unchanged)

[Processed citrus production growing but not sufficient for demand
6](#processed-citrus-production-growing-but-not-sufficient-for-demand)

[Growers lack capital but costs remain low allowing for slow grove
conversion
7](#growers-lack-capital-but-costs-remain-low-allowing-for-slow-grove-conversion)

[Research and development focus on diseases, density, and grading
uniformity
7](#research-and-development-focus-on-diseases-density-and-grading-uniformity)

[Production Policy 8](#production-policy)

[Ambitious production policy plan aimed at satiating growing consumer
demand
8](#ambitious-production-policy-plan-aimed-at-satiating-growing-consumer-demand)

[Consumption 9](#consumption)

[Fresh citrus consumption strong and expected to grow
9](#fresh-citrus-consumption-strong-and-expected-to-grow)

[Processed citrus consumption far behind other primary citrus growers
10](#processed-citrus-consumption-far-behind-other-primary-citrus-growers)

[Trade 10](#trade)

[Exports outstrip imports but remain a fraction of production
10](#exports-outstrip-imports-but-remain-a-fraction-of-production)

[Effective tax + tariff rates still 30 to 50 percent
10](#effective-tax-tariff-rates-still-30-to-50-percent)

[Fresh orange imports keep growing, especially from the southern
hemisphere
10](#fresh-orange-imports-keep-growing-especially-from-the-southern-hemisphere)

[Canned mandarins bring big dollars to big processing enterprises
11](#canned-mandarins-bring-big-dollars-to-big-processing-enterprises)

[Trade Policy 11](#trade-policy)

[Dialogue and science opens markets while PPQ concerns closes off others
11](#dialogue-and-science-opens-markets-while-pq-concerns-close-others)

[Stocks 12](#stocks)

[Storage improving but often used for other fruits
12](#storage-improving-but-often-used-for-other-fruits)

[Prices 12](#prices)

[Wholesale pricing information availability provides extra insight to
traders
12](#wholesale-pricing-information-availability-provides-extra-insight-to-traders)

[Marketing 13](#marketing)

[Buyer sophistication improving as better looking and safer fruit is in
demand
13](#buyer-sophistication-improving-as-better-looking-and-safer-fruit-is-in-demand)

[Historical Production Tables by Province in 1000 Ha and 1000 MT
15](#historical-production-tables-by-province-in-1000-ha-and-1000-mt)

[2001 and 2002 Production Tables by Citrus Variety in 1000 MT
16](#and-2002-production-tables-by-citrus-variety-in-1000-mt)

[All Citrus Trade 17](#all-citrus-trade)

[Chinese Citrus Imports from the World by Volume and Value
17](#chinese-citrus-imports-from-the-world-by-volume-and-value)

[Chinese Citrus Exports to the World by Volume and Value
18](#chinese-citrus-exports-to-the-world-by-volume-and-value)

[Tariff, VAT, and Effective Rate Reduction Schedule
19](#tariff-vat-and-effective-rate-reduction-schedule)

[Fresh Citrus 19](#fresh-citrus)

[Processed Citrus 19](#processed-citrus)

[Wholesale Market Pricing Data (in RMB per Kilogram: RMB 8.265 = US \$1)
20](#wholesale-market-pricing-data-in-rmb-per-kilogram-rmb-8.265-us-1)

[Orange Prices 20](#orange-prices)

[Mandarin/Tangerine/Satsuma Prices 20](#mandarintangerinesatsuma-prices)

[Pomelo/Grapefruit Prices 21](#pomelograpefruit-prices)

[Lemon/Lime Prices 21](#lemonlime-prices)

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

[Oranges 22](#oranges)

[Tangerines 24](#tangerines)

[Pomelos and Grapefruits 26](#pomelos-and-grapefruits)

[Orange Juice 28](#orange-juice)

[Grapefruit Juice 30](#grapefruit-juice)

# Executive Summary

In the next five years, FAS/Beijing expects China's orange and tangerine
yields and production volume to improve while total acreage remains
stable. China may accomplish this by removing undesirable citrus
orchards and replacing them with integrated orange groves and some
integrated tangerine groves in line with government policy initiatives
to supply a better variety and higher quality of oranges and tangerines.
Production increases may be absorbed on the domestic market as Chinese
consumption of fresh citrus and orange juice outpaces domestic demand.
However, with quality improvements, some export increases are likely as
well. Yet increased import demand should continue, especially for
Southern Hemisphere citrus.

China's 2002 fresh citrus production of nearly 11.9 million metric tons
(MMT) surpassed initial estimates due to earlier than anticipated fruit
yields on citrus lands converted over the past several years. Forecasts
for 2003 production and planting area are higher as well, but official
estimates from China's Ministry of Agriculture (MOA) will not be
available until mid-February. Citrus production increases are likely to
continue as new acreage planted over the past few years bears fruits and
exhausted trees are replaced with better yielding varieties. China's MOA
reports, however, that acreage should stabilize, and with better yields,
production should increase.

Policy initiatives by MOA focus on increasing production by promoting
plantings across advantageous regions with specific desirable varieties
planted for fresh or processed utilization. Industry sources and
government officials report production increases are market-driven with
the majority of the increase absorbed on the domestic market and only
minor export increases. Wholesale market price data from November 2003
indicates that prices are equal or slightly lower than the same time a
year ago while grower costs remained the same or slightly higher. MOA
officials report high-quality citrus prices increased over the past year
and that the lower overall prices are a reflection of the lower prices
for lesser quality fruit.

Primary processed citrus processing continues to be for canned
mandarins. Most of the production depends upon supplying export orders
to meet world demand. Policy makers and industry specialists report
orange juice processing production is increasing as domestic consumption
increases. However, most processors rely on imported single strength or
concentrated juice that is bottled or packaged for the domestic market.

This past marketing year, combined fresh and processed citrus imports
equaled \$108 million and 123,871 MT while combined fresh and processed
exports reached \$224 million and 502,577 MT. This is a far different
picture from the Chinese market of just eight years ago when the October
1995 to September 1996 marketing year fresh and processed citrus imports
into China were only \$3.9 million and 7,603 metric tons (MT) and
exports were \$144 million and 241,390 MT. Although exports still far
outstrip imports, the growth in imports of fresh and processed into
China expanded at a substantial rate. The greatest increases in imports
were for fresh oranges and frozen orange juice while export expansion
derives primarily from canned and fresh mandarin oranges. Some of the
increased trade numbers may reflect a better measure of data, but the
overall trade is growing as Chinese consumers prosper.

China's imports of fresh citrus fruit occur throughout the year, but the
greatest future growth is likely for southern hemisphere citrus. This
past marketing year witnessed the greatest import volume of fresh
oranges during the months of July through October with a peak in
September. Chinese fresh mandarin and orange exports should expand to
cover a greater period of the marketing year. Presently, little fresh
citrus is exported from June to September while most fresh citrus
exports occur from December through April with a peak in December and
January.

# Production

## Total acreage and volume dominated by mandarins, but oranges growing fast

Official statistics are unavailable for 2003 nationwide citrus
production, but estimates range from 11.5 to 12.5 MMT. Much of the
production is of similar varieties and often results in a high-year and
low-year production cycle. The Chinese State Statistic Bureau (SSB)
estimates 2002 citrus production, which should have been at a low-year
in the production cycle, reached 11.9 MMT. This was, in fact, higher
than previously anticipated and an increase of 3.3 percent from 2001. In
2003, it appears that unseasonably hot temperatures in July and August
across major growing regions coupled with water scarcity concerns for
some mandarin orange growing production bases resulted in smaller fruit
sizes and lower production volumes for some areas.

Government officials and industry specialists report planted area should
stabilize near current levels over the next few years with improvements
in grove management resulting in better yields and higher production
volumes. Chinese government officials' report the planting guideline is
to maintain total planted area but to reallocate citrus plantings to
advantageous regions with desirable varieties. However, according to
China's MOA Statistical Abstract, China's planted area increased 130,000
Hectares (Ha) during the past two years. The greatest share of the
increase was last year, when planted area increased 80,000 Ha to 1.405
Million hectares (MHa). Most of the current planted area increases
should be in integrated commercial orange groves as opposed integrated
citrus groves of other varieties. Prior to the increases that began in
2001, citrus planting acreage was stable or declining (1996-1.279 MHa,
1997-1.309 MHa, 1998-1.270 MHa, 1999-1.282 MHa, 2000-1.271 MHa,
2001-1.323 MHa, 2002-1.405 MHa).

China's MOA included "citrus" as one of China's 11 advantageous
agricultural commodities. The plan, which does not provide for national
government funding, calls for increased integrated citrus production and
the coordination of planting for greater season availability and
improved citrus quality (see production Policy). Industry sources
indicate the ideal citrus arrival structure would be 20 percent early,
40 percent middle, and 40 percent late arrival. Plantings under this
plan are designed to develop this arrival structure.

Presently, the primary mandarin orange/tangerine/satsuma (hereinafter
referred to as mandarin orange) production areas are Fujian, Zhejiang,
and Hunan. The primary orange production areas are Sichuan, Guangxi, and
Chongqing. Many of the production areas within these provinces are in
remote mountainous regions where there are significant challenges for
distribution. As such, there is limited interest in investment for
post-harvest treatment facilities or juicing operations. Furthermore,
with current production levels, growers' sales prices are higher than
what would be profitable for juicers or processors. However, the Chinese
government at national, provincial, and county levels is developing
distribution paths and infrastructure to entice domestic and foreign
development.

## 

## Mandarin orange production slowly converted to oranges or vegetables

CRI specialists estimate mandarin orange production accounts for 55
percent of current citrus production and 50 percent of citrus-planted
area. Specialists indicate mandarin orange production occupied as much
as 65 percent of volume and area five years ago. In addition, CRI
specialists indicate that mandarin orange production and planting area
may comprise 40 percent of China's citrus in another 5 to 10 years.
Mandarin orange groves have been removed in favor of increased vegetable
planting or replaced by orange tree plantings over the past several
years. Specialists indicate this trend is likely to continue for the
next several years as growers provide fewer crop inputs and management
resources into mandarin orange groves. With the removal of exhausted
trees and few new plantings of mandarin orange trees, industry
specialists report that as much as 95 percent of mandarin orange trees
produce fruit and with little weather related impacts will bear fruit.

As much as 90 percent of China's mandarin orange rootstock is from
Trifoliate with the remainder of mandarin orange rootstock deriving
primarily from red tangerine (Hong Ju). The preference for these
rootstocks is due to their virus and drought tolerance, cold-hardiness,
the quality of fruit bearing, and the ease of grafting. China's mandarin
orange planting structure favors Satsuma. Miju and Wenzhou Miju may
comprise 60 percent of total mandarin orange production. Pengkan and
Lugan comprise another 30 percent of mandarin orange production. Pengkan
and Lugan have better market potential for fresh export and they, along
with early-arrival tangerine hybrids, should increase their market share
of production. At present, indications are that 80 percent of mandarin
oranges are harvested during the months of October or November. Prior to
these two months, there is another 5 to 10 percent picked while the
fruit is green in late August or September. The remainder of mandarin
oranges may be picked as late as December.

## Sweet/navel orange planting for fresh and processed consumption growing

CRI specialists indicate current sweet and navel orange production
accounts for nearly 30 percent of citrus production and 40 percent of
planted area. Indications are that many of the newly planted areas have
not entered into commercial production. As new sweet and navel orange
groves enter into production, the ratio of production with planted area
should tend to greater parity. Industry specialists report that the
percentage of orange trees bearing fruit was around 83 to 85 percent,
but with the number of new plantings, should move lower.

Government officials, scientists, and processors have a strong interest
in seeing greater volumes of sweet juicing orange varieties planted to
supply adequate volumes necessary for profitable juicing. China's sweet
and navel orange rootstock is also from Trifoliate orange with some
newly planted areas using Swingle. CRI specialists estimate
approximately one-third of China's sweet or navel oranges are of the
Jincheng variety. Jincheng are supposed to be desirable for processing
and available from December through early February. Navel oranges may
comprise another 20 percent of production and planting area with
greatest availability in December. Red River oranges and Harmony oranges
(Bingtangcheng) comprise another 20 percent of fresh orange production
with greatest availability in late-October through November. The
remaining share of orange production is from several other varieties
with limited mid-season availability. Growers, scientists, and
government officials have expressed strong interest in extending the
available season of fresh domestic oranges by planting early and late
maturing varieties.

## Other citrus (e.g. Pomelos, Lemons, Kumquats, Ornamentals) remains unchanged

Pomelo production occupies approximately 10 percent of citrus-planted
area and volume. Precise estimates, however, are unavailable. The
quality and volume of domestic lemon production (primarily Eureakas and
Lisbons) appears growing in Sichuan with one area reporting planted area
of 5.3 ha and 8 million trees yielding 50,000 MT. Kumquat and ornamental
citrus production is unchanged.

## Processed citrus production growing but not sufficient for demand

The Chinese government is projecting to turn the upper and middle
reaches of the Yangtze River into Asia's largest orange processing base
as outlined in its long-term plan (see policy section). Chongqing
launched an ambitious project in 2002 to plant 440,000 mu of orange
groves by the year 2010 with production volume reaching one million MT,
half of which goes to processing. The government is hoping that
large-scale planting of oranges would bring down procurement cost in an
effort to facilitate domestic juicing industry. Given the promising
future of juice consumption in China, some juicing plants have started
building juicing facilities in major orange producing areas even if
large-scale orange groves are not in place yet. Some canned fruit
companies, such as Wuzhongxing in Zhejiang, are also setting up juice
production lines in anticipation of the booming juice consumption.

Around 5% of China's total citrus harvested is processed, with more than
90 percent of the processed citrus going to canned mandarin. The
official production number for canned mandarin is lacking. However,
industry sources estimate that the country produced around 250,000 MT
(1.2-1.5 MT of fresh mandarin makes one MT of canned citrus) of canned
mandarin in 2002. Although the processing capacity is much larger
(between 300,000 MT to 400,000 MT), the actual production is increasing
marginally as the volume depends on world market demand that is expected
to remain stable.

Zhejiang is leading the country in canned citrus production. Other
provinces, such as Hunan and Jiangxi, produce just a small portion.
Zhejiang province contains some 50 fruit canneries, such as Huangyan and
Wuzhouxing, which produce canned citrus from late October through early
February.

Even though China's production of fruit juice and juice drink increases
nearly 50 percent on a yearly basis (2002 production reached 2.1 million
MT), locally produced orange juice remains minimal. The unavailability
of low-cost oranges has prevented Chinese orange juice producers from
making either the quality or quantity of juice to accommodate the
domestic market. China's current production level of orange juice stands
at less than 10,000 MT (single strength) that is used mainly to blend
with imported juice or to produce fruit drinks. In China, producing one
MT of orange juice needs about 5 MT of fresh oranges.

Major juicing plants are located in Chongqing, Sichuan, and Jiangxi with
each having a processing capacity between 10,000 to 100,000 MT per year.
Chinese companies are sourcing out-of-grade oranges for juicing that
cost around 0.6 RMB per kilogram. Out of 500,000 MT of oranges suitable
for juicing, less than 10 percent goes to processing as juice producers
are not willing to pay higher prices or they will lose competitiveness
against imported material.

Other processed citrus products such as tangerine juice, jams (jellies)
and citrus oils (from peel) only account for a small portion of the
total production. China does not produce grapefruit juice.

## Growers lack capital but costs remain low allowing for slow grove conversion

Growers lack individual investment capital and resources for improving
citrus management on their own. Growers rely on income from one season
to the next and are often unable to take large sections of land out of
production at any one time or acquire development loans and assistance.
Industry sources indicate if growers are to become more efficient they
need to move away from conventional or opportunistic production. At
present, grower problems remain small individual land holdings, low
yielding tree varieties, undesirable varieties for processing,
undifferentiated or indistinguishable varieties for fresh consumption,
and poor distribution channels for fresh citrus. Therefore, it is likely
that lower level government offices may intervene to reclaim barren
hillsides and plant orange and mandarin orange trees in an effort to
foster efficient, economic, integrated growing. Apart from planting
integrated orchards, growers' may elect to slowly replace older,
exhausted trees with young trees with greater desirability.

Industry sources report Chinese citrus producers' costs remain low in
comparison to other major citrus producing nations. The greatest share
of production costs for farmers are pesticides, fertilizers, and plant
growth regulators. Some growers and commercial operations hire laborers
for picking. The grower and the grower's family, however, supply most
labor throughout China's citrus producing regions. As a result, most
production costs (detailed below) do not include harvest costs or
distribution costs to post-harvest locations. One of China's research
centers estimates annual grower costs for young orange groves from RMB
3,150 to RMB 4,800 per Ha (US \$381 to US \$581 per Ha). Older orange
groves are typically more expensive and annual costs range higher
between RMB 6,300 to RMB 9,600 per Ha (US \$762 to US \$1,162 per Ha).
MOA officials report research on production costs for mandarin oranges
and tangerines in four key production bases revealed costs of about RMB
0.6 to RMB 0.8 per kilogram of fruit yielded (US \$0.073 to US \$0.097
per kilogram). Mandarin orange growers report annual production costs of
RMB 4,500 to RMB 9,000 per Ha (US \$544 to US \$1,089 per Ha) with per
tree expenditures ranging from RMB 4 to 5 per tree. At these costs,
grower profits are achievable, and if growers were capable, would expand
production area. In some areas, however, growers intentions are to
reduce citrus acreage in favor of vegetable planting, which, although
more time-consuming, result in higher net profit.

## Research and development focus on diseases, density, and grading uniformity

China's Citrus Research Institute (CRI) facilities in Chongqing house
the National Citrus Germplasm Bank, a Citrus Planting Technology Center,
a citrus Storage and Processing Center, a Virus Exclusion Center, and
the MOA Citrus Quality Inspection Center. CRI conducts research on tree
breeding and grafting, tissue culturing, PCR testing, and analysis of
citrus varieties and diseases. CRI is conducting extensive research on
citrus diseases like Greening, Tristeza, Tatter-leaf, Exocortis, and
Satsuma Dwarf Virus with the aim of providing high-quality disease-free
young trees and containerized trees to growers throughout the country
via county agricultural extension offices. These trees are presumably
going to be used in new integrated orchards or as replacements to older
trees.

CRI specialists indicate tree-planting density for mandarin orange and
sweet or navel orange trees is decreasing. Commodity tours, as well,
over the last two years support specialists' indications. Trees were
planted at about 80 trees per mu (1200 trees/Ha) as recent as five years
ago. Now, specialists believe planting density is closer to 55 trees per
mu (825 trees/Ha) and moving lower. Another foreign invested citrus
research center in Chongqing advocates optimal density is much lower at
about 30 to 40 trees per mu (450 to 600 trees/Ha). The center provides
grower extension information to commercial groves near its production
base. It appears growers prefer planting trees in rows and interspacing
young trees with vegetables or oilseed crops. Then, as tree branches
grow fuller, occupy greater space and prevent sunlight exposure from
reaching the ground, the other crops are removed.

The importance of citrus grading is on the rise for growers and industry
specialists. China's State General Administration for Quality
Supervision, Inspection, and Quarantine (AQSIQ) compiled grading
standards based on external and intrinsic features of several citrus
varieties (See:
[www.aqsiq.gov.cn/cms/template/item.html?did=1174&cid=1174\\2103](http://www.aqsiq.gov.cn/cms/template/item.html?did=1174&cid=1174\2103)).
The standards range from triple A (AAA) meaning exceptional to double A
(AA) implying best and single A (A) referring to good. In addition to
these standards, some regions may have developed independent standards
for specialty citrus crops unique to their region.

CRI specialists indicate that about 80 percent of mandarin oranges meet
any of the triple A to single A grade requirements (20 percent AAA, 40
percent AA, and 20 percent A) with 20 percent not reaching grade. The
percentage of fruit not reaching grade is attributed to low prices that
growers receive for mandarin oranges and therefore little incentive to
maintain fruit quality. CRI specialists indicate growers are more
willing to manage orange groves in an attempt to produce better quality
fruit that commands higher prices. As a result, nearly all orange
production is within grade (35 percent AAA, 30 percent AA, 35 percent
A). Out-of-grade mandarins or other citrus fruit is not likely to be
distributed to retail stores or markets, but it can be sold by growers
or consumed, the fruit may not be readily marketable. Out-of-Grade is
attributed to: small fruit size, disease damage, irregular color, and
poor internal qualities of the fruit.

Although not part of the AQSIQ grading standards, MOA introduced
"Wholesome Food" (Wu Gong Hai) Production Standards that are becoming an
industry norm. The standards focus on safer production methods and are
aimed at helping growers' receive a higher farm-gate price for their
product while at the same time conveying product safety to domestic
market and export market consumers.

# Production Policy

## Ambitious production policy plan aimed at satiating growing consumer demand

As indicated in the newest MOA 5-year plan, the Chinese government
developed a strategy to improve citrus production competitiveness. Post
believes the ambitious plan faces significant implementation problems.
Yet, it provides industry with an ideal outline of where to focus
efforts without providing concrete detail. The plan recognizes the
composition of different citrus varieties is not market oriented, with
too many mandarins and too few oranges being produced. Furthermore, it
indicates there are too few citrus varieties suitable for processing and
too few early and late-maturing varieties on the market.

Moreover, the 5-year plan indicates the processing industry is
under-developed with only 2 percent of total fresh production being
exported. The plan confirms that the orange juice industry depends
almost entirely on imports. In addition the plan indicates China\'s
demand for fresh citrus and orange juice will tend to grow rapidly with
the improvement in living standards and that, in the meantime, Chinese
mandarins and canned citrus are price competitive with great export
potential.

The plan calls for the Chinese citrus industry to:

-   Consolidate competitive advantages in the mandarin and canned citrus
    production industry in order to increase exports.

-   Develop variety production used in the orange juice processing
    industry.

-   Promote development of the processing industry to alleviate the
    negative impact of imports on Chinese growers.

-   Increase acreage of early and late-ripening varieties while reducing
    the growing area of the middle-ripening varieties, so as to ensure a
    balanced supply during different seasons of the year.

-   Strengthen the supply of fine and exceptional breeds.

-   Establish export/processing bases of a high standard that are
    environmentally friendly, with economies of scale.

The 5-year plan encourages development of three key production and
planting areas. Indications are that development in the first two areas
began and that development in third region will begin later when the
market situation is appropriate. The first area, along the upper and
middle reaches of the Yangtze River, is being converted into Asia's
largest orange juice processing base. The second key area along the
southern parts of Jiangxi and Hunan provinces should become Asia's
largest high-quality fresh orange production base. The third area, along
the southern reaches of Zhejiang, the western parts of Fujian, and the
eastern portion of Guangdong should become an export base for fresh and
canned mandarins.

The plan concludes that by 2012, the exceptional-quality fruit ratio
should increase from the current 35-percent to over 50-percent, with
per-unit yield increasing from 700 kg/mu (10.5 MT/Ha) to 1500 kg/mu
(22.5 MT/Ha). The per-unit yield of varieties used by the processing
sector should reach 2000 kg/mu (30 MT/Ha). The proportion of early and
late-ripe varieties will rise from 20 percent to 35 percent, with the
market period of fresh fruit being extended from 4 months to 8 months.

# Consumption

## Fresh citrus consumption strong and expected to grow

Industry sources and citrus specialists believe domestic production
increases are directed at meeting increased domestic fresh and processed
citrus consumption. Consumption is increasing as the population develops
greater affluence and is readily able to purchase better fruit. In 2002,
citrus specialists estimated China's per capita consumption of fresh
citrus was 8 kilograms (namely tangerines). USDA ERS publications
estimate 2000/01 U.S. consumption of fresh oranges and tangerines at 6.7
kilograms (12.3 lbs. oranges and 2.6 lbs tangerines). Specialists would
like to see China's per capita fresh consumption rise to 10 kilograms by
2005, 11.5 kilograms by 2010, and 13 kilograms by 2015.

Citrus product quality deteriorates quickly after harvest and negatively
affects consumption even though the number of cold storage facilities is
increasing, post-harvest treatment is improving, and distribution to
major domestic markets is easier and faster. Therefore, at present,
citrus consumption is greatest during the periods during and just after
domestic citrus harvest. Peak consumption for fresh citrus occurs at the
same time as Chinese holidays like the mid-Autumn festival and the
Chinese New Year.

Industry sources believe the greatest share of fresh citrus consumption
currently occurs in growing regions. Improvements in post-harvest
treatment, packing, and distribution are needed if the domestic industry
wants to expand its share of consumption to non-growing regions. Until
that time, imported citrus has greater potential for consumption in
developed cities like Shanghai, Beijing, and Guangzhou. Consumption of
imported citrus in emerging city markets, as evidenced by trade
destination, appears to be increasing.

## Processed citrus consumption far behind other primary citrus growers

Despite canned citrus domination of processed citrus products by volume,
per capita consumption of canned citrus is believed to be small and not
expected to grow significantly in the near future. Domestic consumption
of canned citrus is primarily in restaurants or as food ingredients.
Chinese people prefer fresh fruit to canned fruit because of nutritional
and food safety concerns. More than 90 percent of canned citrus
(mandarin) produced in China is exported.

The demand for orange juice increased incredibly fast over the past few
years. As incomes grow, more people are aware of the nutrition and
convenience of drinking juices. Latest estimates put current per capita
consumption of orange juice at 0.2 liters (L), while the United States
recorded a 19L per capita consumption of orange juice in 2001/02 (ERS
Fruit and Tree Nuts Outlook, Nov. 21, 2003). Estimates are that the
national total consumption will jump to 500,000 MT in 2005, 2 million MT
in 2010, and 2.5 million MT in 2015.

Again, local production of orange juice is unlikely to catch up with the
rapid growth of consumption. Juice manufacturers are reluctant to offer
higher procurement prices in order to keep their product competitive
against imported juice. Farmers, however, are not willing to lower
prices because they need to be able to balance input costs with the
yields they achieve on small orchard operations. Juicing companies that
built large juicing facilities in some orange producing areas are
unwilling to invest in constructing orange bases due to the high costs
and other problems such as land ownership. The government has mapped out
a plan and will use incentives to encourage construction of integrated
orange groves in Sichuan and Chongqing. This is a long-term project
still facing some difficulties such as planting technology. In the
foreseeable future, the gap between demand and supply will mainly be
filled by imports.

# Trade

## Exports outstrip imports but remain a fraction of production

China traded record volumes of fresh and processed citrus over the last
marketing year equaling \$104 million in imports and \$224 million in
exports. Frozen orange juice comprised over 55 percent of the value for
all fresh and processed citrus with fresh oranges comprising another
one-third of the value of imported products. Exports of canned mandarins
comprised over 68 percent of the value of all fresh and processed citrus
exports while fresh mandarins comprised another one-quarter of the
value.

## Effective tax + tariff rates still 30 to 50 percent

China agreed to a tariff rate reduction schedule for a variety of
agricultural products as part of WTO accession. The scheduled rate
reductions for citrus take place until 2004 (see Tariff and VAT rate
tables at the end of this report). As tariff rates continue falling,
there is increased opportunity for fresh citrus to enter China.
Effective rates for fresh citrus in 2003 ranged from 32 percent to 49.2
percent. Effective rates for processed citrus ranged from 25.8 percent
to 53.3 percent. Now, however, sources indicate the largest volume of
imported citrus and other fruits still enter China via Hong Kong
trans-shipment.

## Fresh orange imports keep growing, especially from the Southern Hemisphere

Direct imports into Mainland China are forecast to increase as
inspection and customs policies gain transparency and domestic storage
facilities for imported fruits improve. Traders indicate, however, that
although it is possible to import fruit directly into China at ports
closer to major population and consumption centers, the infrastructure,
distribution, and familiarity of importing fruit through south China and
by Hong-Kong transshipment is still a preferred low-cost method.
However, as Chinese tax authorities increase monitoring and preventing
"gray-channel" trade, the risk/incentive to trans-ship should diminish
and legitimate trade could flourish. And, recent press accounts indicate
the Chinese government is interested in stopping illegal and unmonitored
imports that could introduce plant pests like Mediterranean fruit fly
into the country.

Increased fruit imports should continue to meet domestic demand as
Chinese consumers spend more income on fresh fruits year round. The
strongest potential for increased imports remains during the period
which China does not produce citrus fruits, or in years when production
is affected by water scarcity or weather damage. Same hemisphere exports
to China have potential for further increases if exporters can supply
good quality fruits at low prices. This will likely be determined by the
production situation in those countries. As China produces more early-
and late-season citrus fruits, however, large rates of gain for same
season/hemisphere suppliers does not appear likely. Therefore increased
imports may come from southern hemisphere producers and from low-priced
same season producers.

Some exporters of U.S. fruit have utilized the USDA Supplier Credit
Guarantee Program in order to export American citrus fruit products to
the China/Hong Kong region. Yet, some traders report reluctance to trade
with Chinese and Hong Kong importers for commercial reasons; namely,
some Chinese importers require lengthy payment terms. It appears many
Chinese traders are extended to distributors and wholesalers who are
extended to retailers, restaurants, etc. Therefore, many importers often
wait to make payment until they have received their sales income. On
occasion, importers report problems making foreign currency payments,
too.

## Canned mandarins bring big dollars to big processing enterprises

China's Canned Food Industry Association sources report China exported
around 210,000 MT of canned mandarin in 2002, mainly to Japan, EU
countries and America. This number is expected to grow steadily as world
demand remains stable to slightly increasing. However, the EU recently
announced provisional safeguard measures against Chinese canned citrus
had taken affect. Under this safeguard measure to last 154 days, a
tariff rate quota of 11,937 MT of Chinese canned citrus can be imported
into the EU. Trade exceeding this volume is subject to 155 Euro tariff
per ton. This could reduce China's canned citrus exports to the EU by
one-third. However, the overall export volume should maintain current
levels.

China will keep importing large quantities of orange juice to
accommodate the shortfall resulted from surging demand. Official data
showed China imported 17,730 MT of orange juice concentrate in 2001,
36,782 MT in 2002 and 38,698 MT in the first nine months of 2003. As
tariff rates see minor reduction through 2004 (following significant
cuts in 2002), import growth is more of a market-driven nature. The
largest juice supplier to China was Brazil, followed by Israel, United
States and Netherlands.

As China produces little grapefruit, grapefruit juice is totally
dependent on imports, primarily from the United States. China exports
relatively small juice (mainly re-exports) to some Asian countries
(regions) like Hong Kong. China also exports limited amounts of other
citrus products such as jam, jellies, pastes, etc.

# Trade Policy

## Dialogue and science opens markets while PQ concerns close others

The USDA continues negotiating for broader market access to China. For
now, the 1999 Joint U.S. and P.R.C. Agricultural Cooperation Agreement
provides certain U.S. citrus access to China under the provision that
the two nations adhere to the standards and principles of
internationally accepted Pest Risk Assessments (PRAs). The current list
of states and state counties approved to ship citrus to China should be
available from local and regional USDA Animal and Plant Health
Inspection Service (APHIS) offices.

China's AQSIQ actively pursues broader market access for Chinese citrus
products. Apparently, China's MOA has little input into this process. At
present, the greatest markets for Chinese fresh citrus are in
neighboring countries with limited production and few plant protection
and quarantine concerns. AQSIQ, however, continues requesting for
greater access to developed markets like the United States after
recently beginning fresh shipments to Canada. The PRA being conducted on
Chinese citrus by USDA APHIS remains in progress.

China's announcements to the World Trade Organization (WTO) Committee on
Sanitary and Phyto-Sanitary (SPS) Measures regarding fruit can be
searched for, viewed, and then downloaded from the WTO web site
(<http://www.wto.org/english/tratop_e/sps_e.htm>). Visitors to the site
should search for China under the Notifications on SPS section. The most
notable announcement for U.S. citrus growers is announcement
"G/SPS/N/CHN/P/117" which permits U.S. oranges from certain states and
counties. This SPS measure was issued with China's WTO accession.

Other citrus producing nations continue advocating for greater China
market access. Industry sources indicate Uruguay recently received
approval to begin shipments to China and that agreements with other
large citrus producing nations are still pending. News reports indicate
growing attention paid to imports from large citrus and other fruit
growing nations exporting fruit without a PRA agreement. In some
instances, trade has been closed off, while China Customs, Inspection,
and Quarantine (CIQ) officers may try to counter the negative effect
from press reports with increased plant protection monitoring. Some
citrus, however, continues entering China from countries without
protocols.

# Stocks

## Storage improving but often used for other fruits

No official data for citrus stocks exist. If growers desire to store
fruit, they often elect to keep fruit on the tree, unpicked for as long
as possible. Many growers store citrus on shelves or on the ground
inside homes, simple shelters, and caves. Many growers spray citrus
fruits with fungicides and bag the fruit in plastic to preserve fruit
moisture. Growers indicate this type of storage allows fruit to be kept
for between 1 to 3 months following harvest. Modern cold storage
facilities are improving, however, most facilities seem to stock
deciduous fruit. Some industry specialists indicate there are a few
nitrogen-fixed atmosphere storage facilities that maintain good quality
fruit until the Chinese New Year.

# Prices

## Wholesale pricing information availability provides extra insight to traders

Beginning last year, the MOA published sales price information from
individual wholesale markets for a variety of major agricultural goods
on its website
([www.agri.gov.cn/jghq/gp/](http://www.agri.gov.cn/jghq/gp/)). The
information aims to provide domestic growers and traders with greater
knowledge about market conditions for agricultural goods around the
country. The website provides no data regarding fruit quality or trade
volume. Also, the website neither distinguishes between imported
products that have filtered onto the local market, nor is each market
required to report daily. The positive side, however, is that the
information, albeit limited, provides a general indicator of major
cultivars market prices and seasonal availability across different
regions.

Chinese sweet and navel orange wholesale prices are at their highest
point from June to late October when domestic availability is scarce.
Likewise, when product is scarce, mandarin orange prices are highest
from May to early September. Pomelo and grapefruit pricing has been
relatively stable over the past year. Lemon prices, however, declined
throughout the year.

In some wholesale markets, traders report there is an occasional slight
rise just prior to and during the Chinese New Year. At that time, citrus
sales are equal to the entire volume that some traders achieve for a two
to three month period of time.

  -------------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- -----------
  Converting                                                                                    
  Chinese                                                                                       
  RMB/Kilogram                                                                                  
  to US                                                                                         
  \$/Metric Ton                                                                                 
  (RMB 8.265 =                                                                                  
  US \$1.00)                                                                                    

  RMB/KG         RMB 1/Kg   RMB 2/Kg   RMB 3/Kg   RMB 4/Kg   RMB 5/Kg   RMB 10/Kg   RMB 15/Kg   RMB 20/Kg

  US \$/MT       \$121/MT   \$242/MT   \$363/MT   \$484/MT   \$605/MT   \$1210/MT   \$1815/MT   \$2420/MT
  -------------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- -----------

See the Wholesale Pricing Tables in this report for an indication of
2002/2003 wholesale market price trends. Average imported fruit prices
are available in the Trade Table section of the report.

# Marketing

## Buyer sophistication improving as better looking and safer fruit is in demand

Many USDA cooperators such as the Florida Department of Citrus and
Sunkist, in conjunction with the USDA Agricultural Trade Offices in
China encourage more sophisticated marketing of U.S. fresh and processed
citrus fruits. Hypermarkets will carry good quality citrus fruits year
round. In many instances, there may be several varieties of imported
fruits from several countries placed alongside domestic fruits that are
indistinguishable from imported cultivars. One hypermarket mentioned
that when it held a sale driven promotional event for imported U.S. Red
Delicious apples, the store sold over 2 MT in a day.

Consumers, especially in larger cities, tend to purchase fruit from
retail outlets as opposed to a few years ago when fruit purchases
occurred at wet markets, roadside stands, and farmers markets. In
addition, retailer sophistication in marketing of imported and domestic
fruit improved over the past few years. Sales driven marketing efforts
such as advertisements in newspapers for imported fruits and promotional
point-of-purchase/sale signs are common. "Stickered" fruit featuring
brands from the U.S., New Zealand, Australia, and other countries is
common, too. Yet, some industry sources report skepticism about the
fruit origin since most stickers are identical, may appear on
inappropriate categories (e.g. Sunkist Apples), and due to the costs of
"stickering" each piece of fruit may not occur at the true point of
origin. Therefore, it appears educational efforts may be welcome if
aimed at providing traders, retailers, and consumers with information
about fruit quality and distinguishing features.

Grocery stores, supermarkets, and hypermarkets employ societal marketing
for domestically produced fruits and vegetables. However, the direct
benefits to the environment and the grower society do not appear to
influence consumer consideration. Rather, food quality and safety seems
to influence consumer purchasing behavior and the fruits being marketed
as produced under environmentally and societal friendly patterns impacts
buyers. At present, no known imported fruits are marketed using any of
the above-mentioned standards. However, consumers generally recognize
imported fruit quality and safety may be better and healthier than
domestic fruit.

Different Chinese government agencies (i.e. MOA, Ministry of Health,
State Environmental Protection Administration) developed standards for
"green food," "wholesome food," and "pollutant/pesticide free food" in
order to improve fruit quality and safety. It does not appear as if any
single standard/certification has dominated the production market, but
consumers generally believe these types of certified domestic foods are
healthier or better for their families. Producers' and scientists
identify the MOA wholesome food standard as easier and more practical.
Therefore, overtime, this standard could become the leading production
guideline. Growers can still use pesticides and agri-chemicals, however,
and the products are not considered organic. However, recent EU bans on
certain pesticides could push fruit and vegetable growers into a
position to drastically lower the volume and types of pesticides used.

Additional information about marketing U.S. citrus products can be
obtained from USDA Agricultural Trade Office in Beijing, Guangzhou, and
Shanghai, or the in-China representatives for Sunkist and the Florida
Department of Citrus:

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

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

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

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

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

                                                   

  Sunkist Growers        Florida Dept. of Citrus   

  Attn: Mr. Robin Wang   Attn: Mr. Louis Ng        

  Tel: 86-21-6875-9971   Tel: 86-21-6247-3840      

  Fax: 86-21-6875-9961   Fax: 86-21-6247-3448      

  Email:                 Email:                    
  shengming@sh163.net    lnash@public.sta.net.cn   
  ---------------------- ------------------------- -----------------------

# Historical Production Tables by Province in 1000 Ha and 1000 MT

+---------+-----+------+-----+------+------+------+------+------+
| Orchard |     |      |     |      |      |      |      |      |
| Area    |     |      |     |      |      |      |      |      |
| and     |     |      |     |      |      |      |      |      |
| Pro     |     |      |     |      |      |      |      |      |
| duction |     |      |     |      |      |      |      |      |
| by      |     |      |     |      |      |      |      |      |
| P       |     |      |     |      |      |      |      |      |
| rovince |     |      |     |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
|         | 1   |      | 2   |      | 2001 |      | 2002 |      |
|         | 999 |      | 000 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
|         | 1   | 1000 | 1   | 1000 | 1000 | 1000 | 1000 | 1000 |
|         | 000 | MT   | 000 | MT   | Ha   | MT   | Ha   | MT   |
|         | Ha  |      | Ha  |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Fujian  | 14  | 1    | 13  | 1    | 1    | 1    | 1    | 1    |
|         | 8.6 | ,589 | 7.9 | ,306 | 64.2 | ,810 | 63.8 | ,932 |
+---------+-----+------+-----+------+------+------+------+------+
| Sichuan | 15  | 1    | 15  | 1    | 1    | 1    | 1    | 1    |
|         | 2.5 | ,162 | 5.2 | ,328 | 63.8 | ,498 | 80.7 | ,662 |
+---------+-----+------+-----+------+------+------+------+------+
| Z       | 13  | 2    | 12  | 972  | 1    | 1    | 1    | 1    |
| hejiang | 2.9 | ,120 | 5.2 |      | 23.9 | ,638 | 24.0 | ,643 |
+---------+-----+------+-----+------+------+------+------+------+
| Hunan   | 24  | 1    | 24  | 1    | 2    | 1    | 2    | 1    |
|         | 5.8 | ,497 | 7.9 | ,259 | 53.5 | ,588 | 61.8 | ,489 |
+---------+-----+------+-----+------+------+------+------+------+
| Guangxi | 10  | 1    | 11  | 880  | 1    | 1    | 1    | 1    |
|         | 5.1 | ,062 | 0.0 |      | 15.7 | ,321 | 18.0 | ,373 |
+---------+-----+------+-----+------+------+------+------+------+
| Gu      | 7   | 836  | 8   | 811  | 94.3 | 1    | 1    | 1    |
| angdong | 9.4 |      | 2.2 |      |      | ,135 | 05.9 | ,234 |
+---------+-----+------+-----+------+------+------+------+------+
| Hubei   | 10  | 993  | 9   | 946  | 98.5 | 1    | 1    | 939  |
|         | 2.4 |      | 9.1 |      |      | ,072 | 00.3 |      |
+---------+-----+------+-----+------+------+------+------+------+
| Ch      | 6   | 527  | 6   | 584  | 68.8 | 599  | 92.6 | 657  |
| ongqing | 0.0 |      | 3.2 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Jiangxi | 17  | 539  | 16  | 283  | 1    | 434  | 1    | 490  |
|         | 7.8 |      | 9.3 |      | 54.5 |      | 66.4 |      |
+---------+-----+------+-----+------+------+------+------+------+
| S       | 4.5 | 134  | 4.8 | 102  | 4.4  | 137  | 6.0  | 159  |
| hanghai |     |      |     |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Guizhou | 3   | 113  | 3   | 101  | 33.4 | 128  | 34.9 | 135  |
|         | 4.2 |      | 2.9 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Yunnan  | 1   | 89   | 1   | 92   | 21.6 | 102  | 23.2 | 118  |
|         | 7.6 |      | 9.5 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Shaanxi | 1   | 30   | 1   | 35   | 13.5 | 42   | 14.6 | 59   |
|         | 1.0 |      | 2.1 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Jiangsu | 3.2 | 62   | 3.3 | 43   | 3.5  | 55   | 3.3  | 49   |
+---------+-----+------+-----+------+------+------+------+------+
| Henan   | 4.6 | 14   | 4.9 | 21   | 4.7  | 22   | 4.0  | 22   |
+---------+-----+------+-----+------+------+------+------+------+
| Hainan  | 0.6 | 11   | 2.2 | 14   | 2.6  | 15   | 2.6  | 18   |
+---------+-----+------+-----+------+------+------+------+------+
| Anhui   | 2.0 | 7    | 1.8 | 5    | 2.6  | 9    | 2.3  | 8    |
+---------+-----+------+-----+------+------+------+------+------+
| Gansu   | 0.7 | 2    | 0.2 | 2    | 0.2  | 3    | 0.2  | 3    |
+---------+-----+------+-----+------+------+------+------+------+
| Total   | 1   | 10   | 1   | 8    | 1,3  | 11   | 1,4  | 11   |
|         | ,28 | ,787 | ,27 | ,783 | 23.7 | ,608 | 04.6 | ,990 |
|         | 2.9 |      | 1.7 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Pro     |     |      |     |      |      |      |      |      |
| duction |     |      |     |      |      |      |      |      |
| Source: |     |      |     |      |      |      |      |      |
| State   |     |      |     |      |      |      |      |      |
| Sta     |     |      |     |      |      |      |      |      |
| tistics |     |      |     |      |      |      |      |      |
| Ye      |     |      |     |      |      |      |      |      |
| arbooks |     |      |     |      |      |      |      |      |
|         |     |      |     |      |      |      |      |      |
| P       |     |      |     |      |      |      |      |      |
| lanting |     |      |     |      |      |      |      |      |
| Area    |     |      |     |      |      |      |      |      |
| Source: |     |      |     |      |      |      |      |      |
| M       |     |      |     |      |      |      |      |      |
| inistry |     |      |     |      |      |      |      |      |
| of      |     |      |     |      |      |      |      |      |
| Agri    |     |      |     |      |      |      |      |      |
| culture |     |      |     |      |      |      |      |      |
| Ab      |     |      |     |      |      |      |      |      |
| stracts |     |      |     |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+

# 2001 and 2002 Production Tables by Citrus Variety in 1000 MT

<table>
<colgroup>
<col style="width: 12%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><p
id="citrus-production-by-groups-in-2001-and-2002-by-volume-in-1000-metric-tons"
class="heading">Citrus Production by Groups in 2001 and 2002 by volume
in 1000 Metric Tons</p></td>
</tr>
<tr class="even">
<td rowspan="2"></td>
<td colspan="5">2001</td>
<td colspan="5">2002</td>
</tr>
<tr class="odd">
<td>1000MT</td>
<td>Gan</td>
<td>Ju</td>
<td>Cheng</td>
<td>You</td>
<td>1000MT</td>
<td>Gan</td>
<td>Ju</td>
<td>Cheng</td>
<td>You</td>
</tr>
<tr class="even">
<td>Shanghai</td>
<td>137</td>
<td>0.0</td>
<td>137.5</td>
<td>0.0</td>
<td>0.0</td>
<td>159</td>
<td>0.0</td>
<td>159.4</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="odd">
<td>Jiangsu</td>
<td>55</td>
<td>21.1</td>
<td>33.7</td>
<td>0.0</td>
<td>0.0</td>
<td>49</td>
<td>15.1</td>
<td>34.0</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="even">
<td>Zhejiang</td>
<td>1,590</td>
<td>522.9</td>
<td>926.2</td>
<td>16.1</td>
<td>124.4</td>
<td>1,602</td>
<td>626.6</td>
<td>811.4</td>
<td>20.5</td>
<td>143.5</td>
</tr>
<tr class="odd">
<td>Anhui</td>
<td>9</td>
<td>0.2</td>
<td>9.1</td>
<td>0.0</td>
<td>0.0</td>
<td>8</td>
<td>0.2</td>
<td>7.8</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="even">
<td>Fujian</td>
<td>1,794</td>
<td>494.7</td>
<td>794.2</td>
<td>116.4</td>
<td>389.0</td>
<td>1,911</td>
<td>516.2</td>
<td>835.2</td>
<td>132.4</td>
<td>427.3</td>
</tr>
<tr class="odd">
<td>Jiangxi</td>
<td>412</td>
<td>125.2</td>
<td>227.4</td>
<td>47.4</td>
<td>11.5</td>
<td>456</td>
<td>92.7</td>
<td>259.2</td>
<td>91.1</td>
<td>12.6</td>
</tr>
<tr class="even">
<td>Henan</td>
<td>22</td>
<td>0.0</td>
<td>21.8</td>
<td>0.0</td>
<td>0.0</td>
<td>22</td>
<td>0.0</td>
<td>21.8</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="odd">
<td>Hubei</td>
<td>1,069</td>
<td>269.3</td>
<td>699.6</td>
<td>97.9</td>
<td>2.1</td>
<td>930</td>
<td>237.3</td>
<td>604.2</td>
<td>85.7</td>
<td>2.5</td>
</tr>
<tr class="even">
<td>Hunan</td>
<td>1,588</td>
<td>501.1</td>
<td>906.9</td>
<td>133.6</td>
<td>46.9</td>
<td>1,489</td>
<td>482.5</td>
<td>831.4</td>
<td>128.7</td>
<td>46.6</td>
</tr>
<tr class="odd">
<td>Guangdong</td>
<td>1,135</td>
<td>408.1</td>
<td>222.1</td>
<td>111.5</td>
<td>393.2</td>
<td>1,234</td>
<td>401.4</td>
<td>284.3</td>
<td>133.5</td>
<td>414.8</td>
</tr>
<tr class="even">
<td>Guangxi</td>
<td>1,321</td>
<td>861.5</td>
<td>0.0</td>
<td>210.1</td>
<td>249.1</td>
<td>1,373</td>
<td>868.9</td>
<td>0.0</td>
<td>241.3</td>
<td>263.2</td>
</tr>
<tr class="odd">
<td>Hainan</td>
<td>15</td>
<td>7.2</td>
<td>2.1</td>
<td>5.3</td>
<td>0.3</td>
<td>18</td>
<td>8.9</td>
<td>2.5</td>
<td>6.6</td>
<td>0.4</td>
</tr>
<tr class="even">
<td>Chongqing</td>
<td>591</td>
<td>198.4</td>
<td>175.5</td>
<td>170.0</td>
<td>47.6</td>
<td>654</td>
<td>223.0</td>
<td>169.6</td>
<td>198.8</td>
<td>62.7</td>
</tr>
<tr class="odd">
<td>Sichuan</td>
<td>1,480</td>
<td>556.1</td>
<td>386.8</td>
<td>430.1</td>
<td>107.0</td>
<td>1,638</td>
<td>669.1</td>
<td>385.0</td>
<td>444.8</td>
<td>139.4</td>
</tr>
<tr class="even">
<td>Guizhou</td>
<td>123</td>
<td>62.4</td>
<td>49.4</td>
<td>7.2</td>
<td>3.8</td>
<td>133</td>
<td>64.9</td>
<td>53.7</td>
<td>8.4</td>
<td>6.1</td>
</tr>
<tr class="odd">
<td>Yunnan</td>
<td>98</td>
<td>28.1</td>
<td>58.5</td>
<td>5.8</td>
<td>5.7</td>
<td>117</td>
<td>35.9</td>
<td>66.8</td>
<td>7.6</td>
<td>6.2</td>
</tr>
<tr class="even">
<td>Shaanxi</td>
<td>41</td>
<td>25.2</td>
<td>14.7</td>
<td>0.0</td>
<td>1.1</td>
<td>54</td>
<td>6.4</td>
<td>45.4</td>
<td>1.5</td>
<td>0.6</td>
</tr>
<tr class="odd">
<td>Gansu</td>
<td>3</td>
<td>0.0</td>
<td>2.6</td>
<td>0.7</td>
<td>0.0</td>
<td>3</td>
<td>0.0</td>
<td>2.9</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="even">
<td>Total</td>
<td>11,483</td>
<td>4,081.7</td>
<td>4,667.8</td>
<td>1,352.0</td>
<td>1,381.6</td>
<td>11,850</td>
<td>4,249.1</td>
<td>4,574.6</td>
<td>1,500.8</td>
<td>1,525.9</td>
</tr>
<tr class="odd">
<td colspan="11">Source: Chinese Ministry of Agriculture Statistical
Abstract</td>
</tr>
</tbody>
</table>

Note: The above classifications are provided by China's MOA. "Gan"
refers to some oranges, but primarily mandarin
oranges/tangerines/satsumas. "Ju" refers exclusively to mandarin
oranges/tangerines/satsumas. Cheng refers exclusively to oranges. "You"
refer to pomelos and grapefruits.

# All Citrus Trade

## Chinese Citrus Imports from the World by Volume and Value

  ----------- -------------------- ------------ ------------ ------------ ------------ ------------ ------------
  Fresh and                                                                                         
  Processed                                                                                         
  Citrus                                                                                            
  Imports                                                                                           

                                   Volume (MT)                            Value (US \$              
                                                                          Million)                  

  HS Code     Description          10/00-9/01   10/00-9/02   10/02-9/03   10/00-9/01   10/00-9/02   10/02-9/03

  080510      Oranges              57,082       42,828       59,749       26.842       21.840       36.917

  080520      Mandarins            5,680        5,701        8,412        1.957        1.972        4.048

  08052010    -Chiao-kan           0            0            1,152        0.000        0.000        0.588

  08052020    -Broad-Leafed        0            0            0            0.000        0.000        0.000

  08052090    -Other Mandarins     5,680        5,701        7,260        1.956        1.972        3.460

  080540      Grapefruit           3,269        3,509        3,597        1.438        1.178        1.550

  080530      *~~Lemons/Limes~~*   5,736        840          0            2.804        0.388        0.000

  080550      *Lemons/Limes*       0            2,930        5,303        0.000        1.378        3.666

  080590      *Other Citrus*       0            8            15           0.000        0.009        0.057

  200791      Citrus Jams/Jellies  53           61           45           0.053        0.075        0.071

  200830      Citrus Prep.         255          562          1,163        0.197        0.340        0.922

  200911      Frozen OJ            12,848       33,226       42,112       12.497       39.644       53.284

  200912      *OJ \<20 Brix*       0            235          862          0.000        0.171        0.507

  200919      *OJ \>20 Brix*       3,277        2,610        1,611        2.297        2.002        2.085

  200921      *Grapefruit Juice    0            139          331          0.000        0.121        0.345
              \<20 Brix*                                                                            

  200929      *Grapefruit Juice    0            195          295          0.000        0.312        0.477
              \>20 Brix*                                                                            

  200930      *~~Citrus Fruit      265          13           0            0.355        0.022        0.000
              Juice~~*                                                                              

  200931      *Citrus Fruit Juice  0            103          219          0.000        0.049        0.144
              \<20 Brix*                                                                            

  200939      *Citrus Fruit Juice  0            192          157          0.000        0.225        0.272
              \>20 Brix*                                                                            

  Source of                                                                                         
  Data: China                                                                                       
  Customs                                                                                           
  ----------- -------------------- ------------ ------------ ------------ ------------ ------------ ------------

## Chinese Citrus Exports to the World by Volume and Value

  ----------- -------------------- ------------ ------------ ------------ ------------ ------------ ------------
  Fresh and                                                                                         
  Processed                                                                                         
  Citrus                                                                                            
  Exports                                                                                           

                                   Volume (MT)                            Value (US \$              
                                                                          Million)                  

  HS Code     Description          10/00-9/01   10/00-9/02   10/02-9/03   10/00-9/01   10/00-9/02   10/02-9/03

  080510      Oranges              2341         5322         14108        0.332        0.861        4.926

  080520      Mandarins            155058       169242       219660       39.193       41.692       55.062

  08052010    -Chiao-kan           8520         6918         7235         0.869        0.968        0.970

  08052020    -Broad-Leafed        0            747          267          0.000        0.176        0.091

  08052090    -Other Mandarins     146538       161577       212159       38.324       40.548       54.001

  080530      *~~Lemons/Limes~~*   86           37           0            0.040        0.006        0.000

  080540      Grapefruit           5244         7404         12522        0.781        1.482        2.017

  080550      *Lemons/Limes*       0            35           39           0.000        0.013        0.011

  080590      *Other Citrus*       11390        10677        9761         1.968        2.941        2.860

  200791      Citrus Jams/Jellies  201          103          1573         0.175        0.072        2.070

  200830      Citrus Prep.         169488       216749       240863       119.824      126.049      153.930

  200911      Frozen OJ            1677         2229         2961         2.109        2.542        2.665

  200912      *OJ \<20 Brix*       0            296          117          0.000        0.232        0.056

  200919      *OJ \>20 Brix*       923          620          446          0.818        0.561        0.414

  200921      *Grapefruit Juice    0            129          198          0.000        0.146        0.217
              \<20 Brix*                                                                            

  200929      *Grapefruit Juice    0            0            1            0.000        0.000        0.001
              \>20 Brix*                                                                            

  200930      *~~Citrus Fruit      726          41           0            0.491        0.032        0.000
              Juice~~*                                                                              

  200931      *Citrus Fruit Juice  0            306          285          0.000        0.171        0.147
              \<20 Brix*                                                                            

  200939      *Citrus Fruit Juice  0            57           42           0.000        0.077        0.064
              \>20 Brix\]*                                                                          

  Source of                                                                                         
  Data: China                                                                                       
  Customs                                                                                           
  ----------- -------------------- ------------ ------------ ------------ ------------ ------------ ------------

# Tariff, VAT, and Effective Rate Reduction Schedule

## Fresh Citrus

  ------------ ---------------------- -------- ------- ----------- -------- ------- -----------
  Scheduled                                                                         
  Tariff Rate                                                                       
  Reductions                                                                        
  for Fresh                                                                         
  Citrus                                                                            

                                      2003                         2004             

  HS Code      Description            Tariff   VAT     Effective   Tariff   VAT     Effective

  8051000      Oranges                16.8%    13.0%   32.0%       11.0%    13.0%   25.4%

  8052010      Mandarins (Chiao-kan)  17.6%    13.0%   32.9%       12.0%    13.0%   26.6%

  8052020      Mandarins              17.6%    13.0%   32.9%       12.0%    13.0%   26.6%
               (Broad-leafed)                                                       

  8052090      Mandarins (Other)      17.6%    13.0%   32.9%       12.0%    13.0%   26.6%

  8054000      Grapefruits/Pomelos    17.6%    13.0%   32.9%       12.0%    13.0%   26.6%

  8055000      Lemons and Limes       16.8%    13.0%   32.0%       11.0%    13.0%   25.4%

  8059000      Citrus, Other          32.0%    13.0%   49.2%       30.0%    13.0%   46.9%

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

## Processed Citrus

  ------------ --------------------------- -------- ------- ----------- -------- ------- -----------
  Scheduled                                                                              
  Tariff Rate                                                                            
  Reductions                                                                             
  for                                                                                    
  Processed                                                                              
  Citrus                                                                                 

                                           2003                         2004             

  HS Code      Description                 Tariff   VAT     Effective   Tariff   VAT     Effective

  20079100     Citrus, Jams and Jellies    30.0%    17.0%   52.1%       30.0%    17.0%   52.1%

  20083010     Citrus, In Airtight         22.0%    17.0%   42.7%       20.0%    17.0%   40.4%
               Containers                                                                

  20083090     Citrus, Non-Airtight        22.0%    17.0%   42.7%       20.0%    17.0%   40.4%
               Containers                                                                

  20091100     Frozen Orange Juice         7.5%     17.0%   25.8%       7.5%     17.0%   25.8%

  20091200     Non-Frozen Orange Juice     31.0%    17.0%   53.3%       30.0%    17.0%   52.1%
               \<20 Brix                                                                 

  20091900     Non-Frozen Orange Juice     31.0%    17.0%   53.3%       30.0%    17.0%   52.1%
               \>20 Brix                                                                 

  20092100     Grapefruit Juice \<20 Brix  19.0%    17.0%   39.2%       15.0%    17.0%   34.6%

  20092900     Grapefruit Juice \>20 Brix  19.0%    17.0%   39.2%       15.0%    17.0%   34.6%

  20093100     Other Citrus Juice \<20     21.4%    17.0%   42.0%       18.0%    17.0%   38.1%
               Brix                                                                      

  20093900     Other Citrus Juice \>20     21.4%    17.0%   42.0%       18.0%    17.0%   38.1%
               Brix                                                                      

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

# Wholesale Market Pricing Data (in RMB per Kilogram: RMB 8.265 = US \$1)

## Orange Prices

+--------------+--------+--------+---------+---------+------+--------+
| Product      | Tian   |        |         | Qi      |      |        |
|              | Cheng  |        |         | Cheng   |      |        |
+--------------+--------+--------+---------+---------+------+--------+
| Date         | Min    | Max    | Avg     | Min     | Max  | Avg    |
+--------------+--------+--------+---------+---------+------+--------+
| 11/6/2002    | 2.8    | 14     | 9.1     | 1.6     | 14   | 5.43   |
+--------------+--------+--------+---------+---------+------+--------+
| 12/12/2002   | 1      | 12     | 3.2     | 1.3     | 14   | 4.3    |
+--------------+--------+--------+---------+---------+------+--------+
| 1/9/2003     | 0.9    | 12     | 2.911   | 1.4     | 7    | 3.437  |
+--------------+--------+--------+---------+---------+------+--------+
| 2/11/2003    | 1.3    | 12     | 3.29    | 1.6     | 5    | 3.095  |
+--------------+--------+--------+---------+---------+------+--------+
| 3/11/2003    | 1.3    | 8      | 2.775   | 1.8     | 13   | 3.64   |
+--------------+--------+--------+---------+---------+------+--------+
| 4/7/2003     | 1.3    | 11     | 3.06    | 1.3     | 6    | 3.1    |
+--------------+--------+--------+---------+---------+------+--------+
| 5/12/2003    | 1.2    | 11     | 3.48    | 1.6     | 14   | 3.78   |
+--------------+--------+--------+---------+---------+------+--------+
| 6/6/2003     | 2      | 8      | 4.04    | 1.5     | 12   | 7.513  |
+--------------+--------+--------+---------+---------+------+--------+
| 7/9/2003     | 9      | 11     | 9.7     | 1.2     | 13   | 7.8    |
+--------------+--------+--------+---------+---------+------+--------+
| 8/12/2003    | 7.43   | 11     | 9.11    | 1.2     | 14   | 8.88   |
+--------------+--------+--------+---------+---------+------+--------+
| 9/8/2003     | 10     | 10.4   | 10.2    | 4.6     | 14   | 10.32  |
+--------------+--------+--------+---------+---------+------+--------+
| 10/8/2003    | 2.2    | 11     | 7.867   | 4.6     | 13   | 9.6    |
+--------------+--------+--------+---------+---------+------+--------+
| 11/3/2003    | 2.2    | 11.5   | 8.03    | 1.8     | 12   | 7      |
+--------------+--------+--------+---------+---------+------+--------+
| Tiancheng:   |        |        |         |         |      |        |
| Sweet        |        |        |         |         |      |        |
| Oranges      |        |        |         |         |      |        |
|              |        |        |         |         |      |        |
| Qicheng:     |        |        |         |         |      |        |
| Navel Orange |        |        |         |         |      |        |
+--------------+--------+--------+---------+---------+------+--------+

## Mandarin/Tangerine/Satsuma Prices

  ------------ ------ ----- ------- ------- ----- ------ ------ ----- ------ ------ ----- ------- ------ ----- -----
  Product      Lu Gan               Guang                Hong                Mi                   Jiao         
                                    Gan                  Gan                 Ju\*                 Gan          

  Date         Min    Max   Avg     Min     Max   Avg    Min    Max   Avg    Min    Max   Avg     Min    Max   Avg

  11/6/2002    0.67   3.6   2.11                                             0.8    5     1.53                 

  12/12/2002   0.8    5     2.5     1.4     1.8   1.6    1.2    2.2   1.7    0.6    3.2   1.6                  

  1/9/2003     0.9    5     2.287   0.8     1.8   1.3    0.8    2.6   1.47   0.65   4.2   1.73                 

  2/11/2003    1.5    4     2.208                        1      2.4   1.59   1      2.4   1.61    2.2    2.4   2.3

  3/11/2003    1.3    2.6   1.91                         0.92   2     1.46   0.9    2     1.475   0.8    2     1.4

  4/7/2003     0.9    3     2.12    2       8     5      1.2    1.8   1.55   1      3     1.77    0.8    6     2.8

  5/12/2003    1.6    3.5   2.5     0.9     5     2.06                       1.5    2.4   1.93    2.4    2.4   2.4

  6/6/2003     1.6    12    3.77    0.9     1.2   1.05                       1.5    1.5   1.5                  

  7/9/2003     2.4    2.8   2.6     1.2     1.2   1.2                        0.8    1.6   1.3                  

  8/12/2003    2.4    2.6   2.5     1.2     1.2   1.2                        1.6    5     3.3                  

  9/8/2003                                                                   0.9    6     2.06                 

  10/8/2003                         1.7     1.7   1.7                        0.8    2.4   1.48                 

  11/3/2003    3.3    3.3   3.3     1.8     1.8   1.8                        0.8    3.6   1.48                 

  \*Miju:                                                                                                      
  Similar to                                                                                                   
  Satsuma and                                                                                                  
  most common                                                                                                  
  canned                                                                                                       
  variety.                                                                                                     
  ------------ ------ ----- ------- ------- ----- ------ ------ ----- ------ ------ ----- ------- ------ ----- -----

## Pomelo/Grapefruit Prices 

(RMB 8.265 = US \$1)

<table>
<colgroup>
<col style="width: 16%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 11%" />
<col style="width: 10%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td>Product</td>
<td colspan="3">Changsha Huyou</td>
<td colspan="3">Youzi</td>
<td colspan="3">ShatianYou</td>
</tr>
<tr class="even">
<td>Date</td>
<td>Min</td>
<td>Max</td>
<td>Avg</td>
<td>Min</td>
<td>Max</td>
<td>Avg</td>
<td>Min</td>
<td>Max</td>
<td>Avg</td>
</tr>
<tr class="odd">
<td>11/6/2002</td>
<td>3.6</td>
<td>3.6</td>
<td>3.6</td>
<td>1.4</td>
<td>3</td>
<td>1.97</td>
<td>1.6</td>
<td>1.8</td>
<td>1.65</td>
</tr>
<tr class="even">
<td>12/12/2002</td>
<td>1.2</td>
<td>6</td>
<td>2.5</td>
<td>1</td>
<td>3</td>
<td>2.3</td>
<td>1.2</td>
<td>3</td>
<td>2</td>
</tr>
<tr class="odd">
<td>1/9/2003</td>
<td>1.1</td>
<td>3</td>
<td>1.91</td>
<td>0.7</td>
<td>5.6</td>
<td>2.38</td>
<td>1.65</td>
<td>4.5</td>
<td>2.54</td>
</tr>
<tr class="even">
<td>2/11/2003</td>
<td>1.25</td>
<td>2.2</td>
<td>1.862</td>
<td>1.3</td>
<td>4</td>
<td>2.44</td>
<td>1.8</td>
<td>3.1</td>
<td>2.5</td>
</tr>
<tr class="odd">
<td>3/11/2003</td>
<td>1.4</td>
<td>3</td>
<td>2.067</td>
<td>1.9</td>
<td>2.5</td>
<td>2.22</td>
<td>1.6</td>
<td>4</td>
<td>2.867</td>
</tr>
<tr class="even">
<td>4/7/2003</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>1.6</td>
<td>3.4</td>
<td>2.625</td>
</tr>
<tr class="odd">
<td>5/12/2003</td>
<td>0.9</td>
<td>3</td>
<td>1.7</td>
<td>0.9</td>
<td>11</td>
<td>3.27</td>
<td>1.6</td>
<td>4</td>
<td>2.525</td>
</tr>
<tr class="even">
<td>6/6/2003</td>
<td>1.6</td>
<td>5</td>
<td>2.73</td>
<td>1.2</td>
<td>2</td>
<td>1.453</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>7/9/2003</td>
<td></td>
<td></td>
<td></td>
<td>2.6</td>
<td>12</td>
<td>7.3</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>8/12/2003</td>
<td></td>
<td></td>
<td></td>
<td>1.2</td>
<td>2.6</td>
<td>2</td>
<td>4</td>
<td>4</td>
<td>4</td>
</tr>
<tr class="odd">
<td>9/8/2003</td>
<td></td>
<td></td>
<td></td>
<td>1.7</td>
<td>10</td>
<td>3.71</td>
<td>2</td>
<td>2</td>
<td>2</td>
</tr>
<tr class="even">
<td>10/8/2003</td>
<td>3.4</td>
<td>3.4</td>
<td>3.4</td>
<td>1.4</td>
<td>3.5</td>
<td>2.27</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>11/3/2003</td>
<td>2.6</td>
<td>2.6</td>
<td>2.6</td>
<td>1.6</td>
<td>3</td>
<td>2.12</td>
<td>1.8</td>
<td>2.3</td>
<td>2.1</td>
</tr>
<tr class="even">
<td colspan="10"><p>Changsha Huyou: Pomelo originating from the Changsha
area of China</p>
<p>Youzi: Pomelo or grapefruit</p>
<p>Shatian You: Pomelo originating from the Shatian area of
China</p></td>
</tr>
</tbody>
</table>

## Lemon/Lime Prices

  ------------------------ -------------- ---------------- ----------------
  Product                  Ning Meng                       

  Date                     Min            Max              Avg

  11/6/2002                6.5            12               9.79

  12/12/2002               3.8            10               7.8

  1/9/2003                 2.5            11               7.07

  2/11/2003                5.6            15               9.32

  3/11/2003                2.8            10.5             7.9

  4/7/2003                 2              16               7.73

  5/12/2003                5              12               8.7

  6/6/2003                 1.8            10               7.05

  7/9/2003                 3              10               7

  8/12/2003                3              12               8.167

  9/8/2003                 4              10               7.1

  10/8/2003                4              10               6.38

  11/3/2003                2              10               5.6

  Ningmeng: Any citrus of                                  
  the lemon/lime variety                                   
  ------------------------ -------------- ---------------- ----------------

# Production, Supply, and Demand (PSD) Tables

## Oranges

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

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

  **Commodity**        **Fresh                                      (HECTARES)(1000   
                       Oranges**                                    TREES)(1000 MT)   

                       2001        Revised    2002       Estimate   2003              Forecast

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

  **Market Year                    10/2001               10/2002                      10/2003
  Begin**                                                                             

  Area Planted         410000      410000     432000     562000     0                 570000

  Area Harvested       350000      0          360000     0          0                 0

  Bearing Trees        332000      0          336000     0          0                 0

  Non-Bearing Trees    58590       0          60800      0          0                 0

  TOTAL No. Of Trees   390590      0          396800     0          0                 0

  Production           3598        3598       3232       3600       0                 3675

  Imports              42          42         60         60         0                 55

  TOTAL SUPPLY         3640        3640       3292       3660       0                 3730

  Exports              5           5          5          14         0                 20

  Fresh Dom.           3612        3612       3264       3601       0                 3660
  Consumption                                                                         

  Processing           23          23         23         45         0                 50

  TOTAL DISTRIBUTION   3640        3640       3292       3660       0                 3730
  -------------------- ----------- ---------- ---------- ---------- ----------------- ----------

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

  **Country**             China, Peoples                  
                          Republic of                     

  **Commodity**           Fresh Oranges                   

  Time Period             Oct - Sep       Units:          MT

  Imports for:            2001                            **2002**

  U.S.                    See below       U.S.            See below

  Others                                  Others          

  U.S.                    20630           U.S.            32359

  New Zealand             20029           New Zealand     22374

  South Africa            2125            South Africa    4883

  Nepal                   31              Egypt           97

  Brazil                  8               Taiwan          33

  Chile                   4               Thailand        3

  Germany                 1                               

  Thailand                1                               

  Total for Others        42829                           59749

  Others not Listed       0                               0

  Grand Total             42829                           59749
  ----------------------- --------------- --------------- ---------------

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

  **Country**             China, Peoples                  
                          Republic of                     

  **Commodity**           Fresh Oranges                   

  Time Period             Oct - Sep       Units:          MT

  Exports for:            2001                            **2002**

  U.S.                    0               U.S.            0

  Others                                  Others          

  Hong Kong               3971            Hong Kong       9848

  Vietnam                 45              Vietnam         1928

  Macau                   387             Macau           1227

  Singapore               689             Singapore       570

  Russia                  52              Russia          212

  Malaysia                123             Malaysia        121

  Indonesia               26              Indonesia       106

  Philippines             0               Philippines     48

  Canada                  23              Canada          27

  North Korea             3               North Korea     16

  Total for Others        5319                            14103

  Others not Listed       3                               5

  Grand Total             5322                            14108
  ----------------------- --------------- --------------- ---------------

##  Tangerines

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

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

  **Commodity**        **Fresh                                         (HECTARES)(1000   
                       Tangerines**                                    TREES)(1000 MT)   

                       2001           Revised    2002       Estimate   2003              Forecast

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

  **Market Year                       10/2001               10/2002                      10/2003
  Begin**                                                                                

  Area Planted         715000         715000     715500     702500     0                 695000

  Area Harvested       675000         0          680000     0          0                 0

  Bearing Trees        578232         0          556500     0          0                 0

  Non-Bearing Trees    102060         0          100700     0          0                 0

  TOTAL No. Of Trees   680292         0          657200     0          0                 0

  Production           6268           6268       5353       6545       0                 6500

  Imports              6              6          5          8          0                 10

  TOTAL SUPPLY         6274           6274       5358       6553       0                 6510

  Exports              169            169        170        220        0                 230

  Fresh Dom.           5780           5780       4837       5982       0                 5900
  Consumption                                                                            

  Processing           325            325        351        351        0                 0

  TOTAL DISTRIBUTION   6274           6274       5358       6553       0                 6130
  -------------------- -------------- ---------- ---------- ---------- ----------------- ----------

+-----------------------+--------------+--------------+--------------+
| #####                 |              |              |              |
| # Import Trade Matrix |              |              |              |
+-----------------------+--------------+--------------+--------------+
| **Country**           | China,       |              |              |
|                       | Peoples      |              |              |
|                       | Republic of  |              |              |
+-----------------------+--------------+--------------+--------------+
| **Commodity**         | Fresh        |              |              |
|                       | Tangerines   |              |              |
+-----------------------+--------------+--------------+--------------+
| Time Period           | Oct - Sep    | Units:       | MT           |
+-----------------------+--------------+--------------+--------------+
| Imports for:          | 2001         |              | **2002**     |
+-----------------------+--------------+--------------+--------------+
| U.S.                  | See below    | U.S.         | See below    |
+-----------------------+--------------+--------------+--------------+
| Others                |              | Others       |              |
+-----------------------+--------------+--------------+--------------+
| U.S.                  | 234          | U.S.         | 56           |
+-----------------------+--------------+--------------+--------------+
| New Zealand           | 5133         | New Zealand  | 7071         |
+-----------------------+--------------+--------------+--------------+
| Taiwan                | 19           | Taiwan       | 1201         |
+-----------------------+--------------+--------------+--------------+
| Japan                 | 103          | Japan        | 42           |
+-----------------------+--------------+--------------+--------------+
| Australia             | 211          | Australia    | 25           |
+-----------------------+--------------+--------------+--------------+
|                       |              | Thailand     | 18           |
+-----------------------+--------------+--------------+--------------+
| Total for Others      | 5700         |              | 8413         |
+-----------------------+--------------+--------------+--------------+
| Others not Listed     | 1            |              | 0            |
+-----------------------+--------------+--------------+--------------+
| Grand Total           | 5701         |              | 8413         |
+-----------------------+--------------+--------------+--------------+

+-----------------------+--------------+--------------+--------------+
| #####                 |              |              |              |
| # Export Trade Matrix |              |              |              |
+-----------------------+--------------+--------------+--------------+
| **Country**           | China,       |              |              |
|                       | Peoples      |              |              |
|                       | Republic of  |              |              |
+-----------------------+--------------+--------------+--------------+
| **Commodity**         | Fresh        |              |              |
|                       | Tangerines   |              |              |
+-----------------------+--------------+--------------+--------------+
| Time Period           | Oct - Sep    | Units:       | MT           |
+-----------------------+--------------+--------------+--------------+
| Exports for:          | 2001         |              | **2002**     |
+-----------------------+--------------+--------------+--------------+
| U.S.                  | 0            | U.S.         | 0            |
+-----------------------+--------------+--------------+--------------+
| Others                |              | Others       |              |
+-----------------------+--------------+--------------+--------------+
| Vietnam               | 16104        | Vietnam      | 53365        |
+-----------------------+--------------+--------------+--------------+
| Malaysia              | 41973        | Malaysia     | 44590        |
+-----------------------+--------------+--------------+--------------+
| Indonesia             | 21841        | Indonesia    | 25490        |
+-----------------------+--------------+--------------+--------------+
| Singapore             | 14942        | Singapore    | 22867        |
+-----------------------+--------------+--------------+--------------+
| Philippines           | 34821        | Philippines  | 22198        |
+-----------------------+--------------+--------------+--------------+
| Russia                | 17171        | Russia       | 19545        |
+-----------------------+--------------+--------------+--------------+
| Hong Kong             | 8158         | Hong Kong    | 16550        |
+-----------------------+--------------+--------------+--------------+
| Canada                | 11445        | Canada       | 11311        |
+-----------------------+--------------+--------------+--------------+
| Macau                 | 712          | Macau        | 1112         |
+-----------------------+--------------+--------------+--------------+
| Krygyzstan            | 64           | Krygyzstan   | 836          |
+-----------------------+--------------+--------------+--------------+
| Total for Others      | 167231       |              | 217864       |
+-----------------------+--------------+--------------+--------------+
| Others not Listed     | 2011         |              | 1796         |
+-----------------------+--------------+--------------+--------------+
| Grand Total           | 169242       |              | 219660       |
+-----------------------+--------------+--------------+--------------+

## Pomelos and Grapefruits

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

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

  **Commodity**        **Fresh                                         (HECTARES)(1000   
                       Grapefruit**                                    TREES)(1000 MT)   

                       2001           Revised    2002       Estimate   2003              Forecast

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

  **Market Year                       10/2001               10/2002                      10/2003
  Begin**                                                                                

  Area Planted         0              0          0          0          0                 0

  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 No. Of Trees   0              0          0          0          0                 0

  Production           0              1382       0          1526       0                 1540

  Imports              0              4          0          4          0                 5

  TOTAL SUPPLY         0              1386       0          1530       0                 1545

  Exports              0              7          0          13         0                 15

  Fresh Dom.           0              1379       0          1517       0                 1530
  Consumption                                                                            

  Processing           0              0          0          0          0                 0

  TOTAL DISTRIBUTION   0              1386       0          1530       0                 1545
  -------------------- -------------- ---------- ---------- ---------- ----------------- ----------

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

  **Country**             China, Peoples                  
                          Republic of                     

  **Commodity**           Fresh                           
                          Grapefruit                      

  Time Period             Oct - Sep       Units:          MT

  Imports for:            2001                            **2002**

  U.S.                    See below       U.S.            See below

  Others                                  Others          

  U.S.                    927             U.S.            502

  Thailand                2372            Thailand        2044

  Taiwan                  200             Taiwan          1052

  Japan                   11                              

  Total for Others        3510                            3598

  Others not Listed       0                               0

  Grand Total             3510                            3598
  ----------------------- --------------- --------------- ---------------

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

  **Country**             China, Peoples                  
                          Republic of                     

  **Commodity**           Fresh                           
                          Grapefruit                      

  Time Period             Oct - Sep       Units:          MT

  Exports for:            2001                            **2002**

  U.S.                    0               U.S.            13

  Others                                  Others          

  Hong Kong               3802            Hong Kong       9073

  Macau                   861             Macau           1127

  Canada                  1460            Canada          1052

  Philippines             837             Philippines     641

  Singapore               353             Singapore       232

  Malaysia                19              Malaysia        149

  Indonesia               46              Indonesia       66

  UK                      11              Russia          43

  Netherlands             11              France          21

  Panama                  4               UK              19

  Total for Others        7404                            12423

  Others not Listed       0                               86

  Grand Total             7404                            12522
  ----------------------- --------------- --------------- ---------------

## Orange Juice

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

  **Country**          **China,                                    Degrees    
                       Peoples                                     Brix       
                       Republic                                               
                       of**                                                   

  **Commodity**        **Juice,                                    (MT)       
                       Orange**                                               

                       2001       Revised    2002       Estimate   2003       Forecast

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

  **Market Year                   01/2001               01/2001               01/2001
  Begin**                                                                     

  Deliv. To Processors 23         23         23         23         0          0

  Beginning Stocks     0          0          0          0          0          0

  Production           0          10000      0          12000      0          0

  Imports              0          200204     0          300000     0          0

  TOTAL SUPPLY         0          210204     0          312000     0          0

  Exports              0          16648      0          18000      0          0

  Domestic Consumption 0          193556     0          294000     0          0

  Ending Stocks        0          0          0          0          0          0

  TOTAL DISTRIBUTION   0          210204     0          312000     0          0
  -------------------- ---------- ---------- ---------- ---------- ---------- ----------

+----------------------+-------------+------------------+-------------+
| ######               |             |                  |             |
|  Import Trade Matrix |             |                  |             |
+----------------------+-------------+------------------+-------------+
| **Country**          | China,      |                  |             |
|                      | Peoples     |                  |             |
|                      | Republic of |                  |             |
+----------------------+-------------+------------------+-------------+
| **Commodity**        | Juice,      |                  |             |
|                      | Orange      |                  |             |
+----------------------+-------------+------------------+-------------+
| Time Period          | Oct-Sep     | Units:           | MT          |
+----------------------+-------------+------------------+-------------+
| Imports for:         | 2001        |                  | **2002**    |
+----------------------+-------------+------------------+-------------+
| U.S.                 | 4286        | U.S.             | 3848        |
+----------------------+-------------+------------------+-------------+
| Others               |             | Others           |             |
+----------------------+-------------+------------------+-------------+
| Brazil               | 25057       | Brazil           | 26105       |
+----------------------+-------------+------------------+-------------+
| Israel               | 3365        | Israel           | 9153        |
+----------------------+-------------+------------------+-------------+
| Australia            | 1393        | Netherlands      | 3002        |
+----------------------+-------------+------------------+-------------+
| Denmark              | 523         | Australia        | 438         |
+----------------------+-------------+------------------+-------------+
| Netherlands          | 322         | Italy            | 303         |
+----------------------+-------------+------------------+-------------+
| Italy                | 232         | Belgium          | 302         |
+----------------------+-------------+------------------+-------------+
| Spain                | 168         | Germany          | 118         |
+----------------------+-------------+------------------+-------------+
| South Africa         | 125         | Taiwan           | 98          |
+----------------------+-------------+------------------+-------------+
| Germany              | 69          | South Korea      | 56          |
+----------------------+-------------+------------------+-------------+
| Belgium              | 56          | South Africa     | 50          |
+----------------------+-------------+------------------+-------------+
| Total for Others     | 31310       |                  | 39625       |
+----------------------+-------------+------------------+-------------+
| Others not Listed    | 240         |                  | 250         |
+----------------------+-------------+------------------+-------------+
| Grand Total          | 31550       |                  | 39875       |
+----------------------+-------------+------------------+-------------+

+----------------------+-------------+------------------+-------------+
| ######               |             |                  |             |
|  Export Trade Matrix |             |                  |             |
+----------------------+-------------+------------------+-------------+
| **Country**          | China,      |                  |             |
|                      | Peoples     |                  |             |
|                      | Republic of |                  |             |
+----------------------+-------------+------------------+-------------+
| **Commodity**        | Juice,      |                  |             |
|                      | Orange      |                  |             |
+----------------------+-------------+------------------+-------------+
| Time Period          | Oct-Sep     | Units:           | MT          |
+----------------------+-------------+------------------+-------------+
| Exports for:         | 2001        |                  | **2002**    |
+----------------------+-------------+------------------+-------------+
| U.S.                 | 2           | U.S.             | 8           |
+----------------------+-------------+------------------+-------------+
| Others               |             | Others           |             |
+----------------------+-------------+------------------+-------------+
| Hong Kong            | 2702        | Hong Kong        | 3287        |
+----------------------+-------------+------------------+-------------+
| Nigeria              | 85          | Taiwan           | 87          |
+----------------------+-------------+------------------+-------------+
| Taiwan               | 53          | Japan            | 23          |
+----------------------+-------------+------------------+-------------+
| Macau                | 3           | Italy            | 1           |
+----------------------+-------------+------------------+-------------+
| Myanmar              | 2           |                  |             |
+----------------------+-------------+------------------+-------------+
| North Korea          | 1           |                  |             |
+----------------------+-------------+------------------+-------------+
| Total for Others     | 2846        |                  | 3398        |
+----------------------+-------------+------------------+-------------+
| Others not Listed    | 0           |                  | 0           |
+----------------------+-------------+------------------+-------------+
| Grand Total          | 2848        |                  | 3406        |
+----------------------+-------------+------------------+-------------+

## Grapefruit Juice

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

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

  **Commodity**        **Juice,                                        (MT)       
                       Grapefruit**                                               

                       2001           Revised    2002       Estimate   2003       Forecast

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

  **Market Year                       10/2001               10/2002               10/2003
  Begin**                                                                         

  Deliv. To Processors 0              0          0          0          0          0

  Beginning Stocks     0              0          0          0          0          0

  Production           0              0          0          0          0          0

  Imports              194            194        295        295        440        440

  TOTAL SUPPLY         194            194        295        295        440        440

  Exports              32             32         49         49         75         75

  Domestic Consumption 162            162        246        246        365        365

  Ending Stocks        0              0          0          0          0          0

  TOTAL DISTRIBUTION   194            194        295        295        440        440
  -------------------- -------------- ---------- ---------- ---------- ---------- ----------

+-----------------------+----------------+----------------+------------+
| #####                 |                |                |            |
| # Import Trade Matrix |                |                |            |
+-----------------------+----------------+----------------+------------+
| **Country**           | China, Peoples |                |            |
|                       | Republic of    |                |            |
+-----------------------+----------------+----------------+------------+
| **Commodity**         | Fresh          |                |            |
|                       | Grapefruit     |                |            |
+-----------------------+----------------+----------------+------------+
| Time Period           | Oct - Sep      | Units:         | MT         |
+-----------------------+----------------+----------------+------------+
| Imports for:          | 2001           |                | **2002**   |
+-----------------------+----------------+----------------+------------+
| U.S.                  | See below      | U.S.           | See below  |
+-----------------------+----------------+----------------+------------+
| Others                |                | Others         |            |
+-----------------------+----------------+----------------+------------+
| U.S.                  | 927            | U.S.           | 502        |
+-----------------------+----------------+----------------+------------+
| Thailand              | 2372           | Thailand       | 2044       |
+-----------------------+----------------+----------------+------------+
| Taiwan                | 200            | Taiwan         | 1052       |
+-----------------------+----------------+----------------+------------+
| Japan                 | 11             |                |            |
+-----------------------+----------------+----------------+------------+
| Total for Others      | 3510           |                | 3598       |
+-----------------------+----------------+----------------+------------+
| Others not Listed     | 0              |                | 0          |
+-----------------------+----------------+----------------+------------+
| Grand Total           | 3510           |                | 3598       |
+-----------------------+----------------+----------------+------------+

+-----------------+----+----------------+----------------+-------------+
| ###### Expo     |    |                |                |             |
| rt Trade Matrix |    |                |                |             |
+-----------------+----+----------------+----------------+-------------+
| **Country**     |    | China, Peoples |                |             |
|                 |    | Republic of    |                |             |
+-----------------+----+----------------+----------------+-------------+
| **Commodity**   |    | Juice,         |                |             |
|                 |    | Grapefruit     |                |             |
+-----------------+----+----------------+----------------+-------------+
| Time Period     |    | Oct-Sep        | Units:         | MT          |
+-----------------+----+----------------+----------------+-------------+
| Exports for:    |    | 2001           |                | **2002**    |
+-----------------+----+----------------+----------------+-------------+
| U.S.            |    | 0              | U.S.           | 0           |
+-----------------+----+----------------+----------------+-------------+
| Others          |    |                | Others         |             |
+-----------------+----+----------------+----------------+-------------+
| Hong Kong       |    | 32             | Hong Kong      | 47          |
+-----------------+----+----------------+----------------+-------------+
|                 |    |                | Bangladesh     | 2           |
+-----------------+----+----------------+----------------+-------------+
| Total for       |    | 32             |                | 49          |
| Others          |    |                |                |             |
+-----------------+----+----------------+----------------+-------------+
| Others not      |    |                |                |             |
| Listed          |    |                |                |             |
+-----------------+----+----------------+----------------+-------------+
| Grand Total     | 32 |                |                | 49          |
+-----------------+----+----------------+----------------+-------------+