Required Report - public distribution

**Date:** 12/1/2004

**GAIN Report Number:** CH4062

CH4062

**China, Peoples Republic of**

**Citrus**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Ralph Gifford

U.S. Embassy, Beijing

**Prepared by:**

Wu Bugang

**Report Highlights:**

China's MY 2004/05 citrus production is forecast between 13-14 MMT.
Total acreage remains stable, with orange area growing slightly and
tangerine area declining. In the next few years, citrus production will
likely stabilize at current levels while quality improves. Government
support focuses on technical extension and market information but there
is no significant investment. Demand for high quality fruit will outpace
production over the short to medium run leading to fresh orange and
other citrus import growth.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

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

[Production 3](#production)

[Acreage and production stable or slightly higher with improved quality
3](#acreage-and-production-stable-or-slightly-higher-with-improved-quality)

[Tangerines predominate, but orange production catching up on increased
area
4](#tangerines-predominate-but-orange-production-catching-up-on-increased-area)

[Wholesome farming improves fruit quality with lower costs
4](#wholesome-farming-improves-fruit-quality-with-lower-costs)

[Canned citrus dominates processed products, orange juice limited
5](#canned-citrus-dominates-processed-products-orange-juice-limited)

[Government support focuses on technology extension and information
5](#government-support-focuses-on-technology-extension-and-information)

[Consumption 6](#consumption)

[Domestic production of high quality citrus will not satisfy increasing
demand
6](#domestic-production-of-high-quality-citrus-will-not-satisfy-increasing-demand)

[Fast-growing juice consumption will be accommodated by imports
6](#fast-growing-juice-consumption-will-be-accommodated-by-imports)

[Trade 6](#trade)

[Tangerines dominate fresh citrus exports; orange exports growing
6](#tangerines-dominate-fresh-citrus-exports-orange-exports-growing)

[Canned mandarins lead the exports in processed citrus; OJ keeps robust
imports
7](#canned-mandarins-lead-the-exports-in-processed-citrus-oj-keeps-robust-imports)

[Trade policy 7](#trade-policy)

[Price 8](#price)

[Wholesale market prices available online, fruit prices flat
8](#wholesale-market-prices-available-online-fruit-prices-flat)

[Stocks 8](#stocks)

[Little investment seen in building cold storage on low returns
8](#little-investment-seen-in-building-cold-storage-on-low-returns)

[Marketing 8](#marketing)

[Buyer collecting fruit at groves becomes most commonly used marketing
practice
8](#buyer-collecting-fruit-at-groves-becomes-most-commonly-used-marketing-practice)

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

[2002 and 2003 Production Tables by Citrus Variety in 1000 MT
11](#and-2003-production-tables-by-citrus-variety-in-1000-mt)

[All Citrus Trade 12](#all-citrus-trade)

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

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

[Tariff, VAT, and Effective Rate for Citrus in 2005
14](#tariff-vat-and-effective-rate-for-citrus-in-2005)

[Fresh Citrus 14](#fresh-citrus)

[Processed Citrus 14](#processed-citrus)

[Imported Citrus Variety and Country/Region Eligibility List
15](#imported-citrus-variety-and-countryregion-eligibility-list)

[Wholesale Market Price Data 16](#wholesale-market-price-data)

[Wholesale Market Quarterly Prices for Oranges
16](#wholesale-market-quarterly-prices-for-oranges)

[Wholesale Market Quarterly Prices for Tangerines
16](#wholesale-market-quarterly-prices-for-tangerines)

[Wholesale Market Prices for Pomelos
17](#wholesale-market-prices-for-pomelos)

[Wholesale Market Prices for Lemons/Limes
17](#wholesale-market-prices-for-lemonslimes)

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

[Oranges 18](#oranges)

[Tangerines 20](#tangerines)

[Pomelos and Grapefruits 22](#pomelos-and-grapefruits)

[Orange Juice 24](#orange-juice)

[Grapefruit Juice 26](#grapefruit-juice)

# Executive Summary

Official data indicates China produced a record 13.5 MMT of total citrus
in MY2003/04 in a high year of the biannual production cycle. The
MY2004/05 crop is forecast at the same level even though it is on a down
year, as more trees mature. Citrus acreage over the next few years
should remain stable at 1.5 MHa due to policy adjustments and
geographic/climatic constraints. Yields and quality will maintain steady
improvement through more rational farming practices and management.

The Ministry of Agriculture's (MOA) national plan for citrus production
in advantageous regions is outlined in its strategy to "plant suitable
varieties in suitable areas." To achieve this goal, all levels of
government are helping farmers obtain desirable varieties and adopt
wholesome farming practices through research institutes and extension
work. There are also incentives to attract large agro-businesses to
invest in the marketing and processing sectors.

Orange production occupies an increasing share of total citrus
production in China, but the supply of high quality fruit will not be
sufficient to meet growing demand anytime soon. Although domestic juice
consumption is increasing dramatically, Chinese juicing companies source
only a tiny share of domestic fruit. Large supplies of juicing oranges
are simply unavailable and the short supply season makes operation costs
even higher.

Fruit quality is improving steadily, yet post-harvest handling such as
grading, washing, waxing, and packing remains primitive. There are no
nationally recognized brand names and there is very little domestic
marketing. Domestic citrus is mostly early- to middle-arrival varieties
harvested in September-December. As cold storage facilities remain
insufficient, domestic fresh citrus is rarely found on the market from
April to August.

Government and industry infrastructure construction and competitive
prices boosted China's citrus exports, which also benefited from lower
duties from trade pacts with ASEAN countries. Fresh tangerines have been
the main export, mostly to neighboring countries, while canned citrus,
being the largest processed citrus, has found stable buyers in developed
markets in North America, the EU, and Japan.

Although citrus export volume is much greater than imports, fresh orange
import growth is steady. Unlike Chinese oranges, imported oranges are
available throughout the year and their appearance and taste attract
many high-income urban residents. Imports of FCOJ have grown even
faster. Increasing juice consumption is driven by income growth and
health concerns. Imported juice will remain the major supply source
given limited Chinese production. Reports of reclassification of FCOJ
into a higher-tariff category (see Trade) could raise prices, slowing
demand growth.

# Production

## Acreage and production stable or slightly higher with improved quality

Official data on citrus production will not be available until the State
Statistical Bureau (SSB) publishes its preliminary statistical report in
the first quarter of 2005. Post estimates the MY2004/05 citrus harvest,
despite a drought in southern China from September through November, at
between 13 and 14 MMT; stable or slightly higher than 2003. With
tangerine production flat, oranges make up most of the increase as
acreage grows and mature trees yield more. MY2003/04 production estimate
has been raised to 13.5 MMT in line with SSB reports on a high-year of
the production cycle, an increase of 12 percent. Although dry weather
resulted in smaller-sized fruit, the overall quality improved given
better management and farming skills. Obtaining accurate official data
is not an easy task in China, as farmers tend to underreport their
production volume due to concerns about paying more taxes. The
government has announced elimination of the agricultural tax in five
years' time, but each province decides how fast to implement the cut.
Analysts hope future SSB data will more closely reflect reality. Some
media reports predict the 2004 citrus crop could top 15 MMT.

Citrus is planted in 19 provinces and municipalities, with major
producing regions in southern China. According to MOA statistics, citrus
acreage reached 1.5 MHa in 2003. Planted area dedicated to citrus
farming is projected to stay at the current levels in the next few years
given limited availability of suitable land, both geographically and
climatically. New legislation from July 2004 is expected to make
reclaiming unused land for commercial production more difficult. The
Administrative Reconsideration Law provides that a contractor needs to
get the concurrence from landowners and pay compensation when
contracting other's land. Under the old system, a farmer could be
obliged to follow an administrative order to grow a certain crop on
allocated land, or contract his land to others to grow the crop when a
lower-level government was pursuing a regional development program. MOA
says citrus plantings have been moving from eastern regions to central
parts of China and from plains to more hilly areas on economic reasons.
The majority of citrus groves are operated by individual rural
households on government-allocated land ranging from a couple of mu to
dozens of mu (15 mu = 1 hectare).

## Tangerines predominate, but orange production catching up on increased area 

More than 90 percent of citrus is harvested between September and
December, with early (September-October), middle (November-December) and
late maturing varieties (January-June) accounting for 15 percent, 75
percent and 10 percent, respectively. Industry specialists indicate
loose-skin tangerine (Satsuma mandarins, tangerines and Clementines)
acreage accounts for 55 percent of total citrus area but is gradually
giving way to oranges. Main tangerine producing provinces are Zhejiang,
Fujian, Sichuan, Hunan, Hubei, Guangxi, and Guangdong. All feature
locally bred varieties. Navel and sweet oranges occupy more than 35
percent of citrus-planted area and an estimated 30 percent of total
production. Main orange producing areas are Sichuan, Guangxi, Jiangxi,
Chongqing, Guangdong, Hunan, and Jiangxi. The areas grow varieties or
hybrids introduced from overseas. SSB statistics show a lower orange
volume, most likely because farmers do not distinguish oranges from
mandarins ("gan") when reporting production. Pomelos and a few
grapefruit from Fujian, Guangxi, and Sichuan, together with lemons and
limes from Sichuan make up the remaining 10 per cent of acreage and
production.

## Wholesome farming improves fruit quality with lower costs

MOA data indicates the national average citrus yield is around 7.5 MT
per hectare. Reports indicate on average 30 percent of harvested citrus
is considered top quality. Despite price increases for inputs such as
chemicals and fertilizers in recent years, production costs remain
basically unchanged or lower due to new farming practices that reduce
chemical and fertilizer application. Government offices at several
levels encourage and assist adoption of so-called "wholesome" farming in
which fruit farmers build hog pens near orchards and apply manure as
fertilizer and also adopt bio-chemicals/insects to control pests and
diseases. A recent MOA report showed the cost of producing one kilogram
of oranges was RMB 0.7-1.3 (RMB 8.265 = USD 1) and tangerines RMB
0.4-0.7, not including labor costs. Farmers consider earnings from
citrus as adequate even though increased production resulted in flat
market prices over recent years.

Farmers usually graft and prune trees by themselves or hire laborers for
\$2-3 per person per day. Labor will remain cheap and abundant for the
next 5 to 10 years, but could become expensive and scarce in the long
run; particularly in more developed coastal provinces.

New plantings are rare. Farmers, instead, prefer to top graft new
varieties provided by public-funded research institutes. This practice
allows trees to bear fruit in one year. Farmers normally replace only a
small fraction (less than 20 percent) of their groves with new seedlings
in any year to avoid a complete loss of income. Research institutes
recommend new citrus groves planted to be 750 stems per hectare, but
tree density in some old groves ranges from 1,200 to 1,500 stems per
hectare. MOA officials indicate the national average density rate was
900 trees per hectare. The government encourages lower-density planting
to improve fruit quality, yet farmers in some areas are reluctant to
thin standing trees for fear of production losses. In some areas,
farmers face difficulties in controlling pests and diseases. Other
constraints identified by the government and farmers include low yields,
limited land for expansion, occasional freezing temperatures, inadequate
sunshine (Sichuan), high temperatures (Guangdong), and difficulties
integrating groves for commercial production given current production
models and small operations.

## Canned citrus dominates processed products, orange juice limited

Less than 10 percent of harvested citrus goes to processing. Canned
"mandarin oranges" dominate processed citrus products. Canned citrus is
primarily produced in Zhejiang province and canneries depend heavily on
exports. The domestic market is limited, as consumers prefer fresh fruit
that is widely availability. Post estimates China produced nearly
320,000 MT of canned citrus in MY2003/04 market year. MY2004/05
production is forecast to fall below 300,000 MT due to increased costs
and tariff rate quotas imposed by the EU (see Trade). Small canneries in
Zhejiang will have a hard time as the 2004 production season begins in
October. As world market demand remains stable, the production volume is
expected to stand near current levels or grow only marginally in the
next few years. The trend has been to move canned citrus processing
businesses from coastal areas to inner citrus-producing provinces like
Hunan and Hubei as labor costs rise. For example, one Hubei official
indicated the province would see its canned citrus production increase
from 20,000 MT in 2003 to 50,000 MT in 2004.

Local orange juice production lags far behind the dramatic growth in
demand. Demand will expand robustly in the years to come. Industry
sources indicate only about 1,000 MT of orange juice concentrate is
produced in China at this time, mainly in Chongqing municipality.
Production is limited because large volumes of low-cost oranges for
juicing are simply unavailable. The local Jincheng variety (sweet
orange) is desirable for both fresh consumption and juicing; yet the
sourcing costs of such oranges makes the final product uncompetitive
with imported concentrate. Furthermore, juicing plants can only operate
about three months a year due to fruit seasonality, further raising
costs. Chinese companies are using lower grade and cheaper oranges as
raw materials for juicing. Industry sources estimate that in China it
takes approximately 14 MT of oranges to produce one MT of concentrated
orange juice. One major juicing company, with the support of the local
government, has invested in new juicing facilities in Chongqing. The
plan will take 4-5 years for the estimated 100,000 mu of orange
varieties dedicated to juicing to begin bearing fruit. Similar
investment is also seen in Guangxi province. Some experts advise Chinese
juicing companies to produce fresh orange juice blended with tangerine
juice to compete with juice from imported concentrate.

## Government support focuses on technology extension and information

MOA mapped out an ambitious national plan for citrus production in
advantageous regions (see 2003 Citrus Annual, CH3132). The plan calls
for integrated production with an extended supply season. The plan would
turn the upper and middle reaches of Yangtze River basin into an orange
juice production base and the Jiangxi-Hunan-Guangxi belt into a navel
orange base. Both would be the largest orange-producing areas in Asia by
the year 2012. To realize this goal, local government levels are
instructed to adopt favorable land use policies and encourage
enterprises to invest in these regions and set up leading
agro-businesses. Government support also stresses introducing new
varieties and farming technologies through research institutes and
extension services, establishing a market information system, and
training farmers. However, achieving these ambitious goals will prove
extremely difficult: despite government encouragement, private companies
must decide whether such investment is profitable, and current prices
for citrus and citrus products are not high enough to guarantee success.
New land available for citrus planting is scarce, and other crops
competitive, so increases in area will depend on farmers agreeing to
change crops.

On the quality side, in 2002, MOA launched a "Wholesome Food Action
Plan" calling for wholesome farming practices for all agricultural
products to reach the quality threshold of a medium level developed
country in five to eight years. Many provinces already have removed the
agricultural specialty tax that was once levied on cash crops including
fruit. The central government has promised to eliminate the regular
agricultural tax within five years; how fast to phase out the tax is up
to each province. Rural credit remains a significant national policy
problem, but loans, usually less than RMB 10,000, are available to some
farmers.

Despite policy and technical extension service support, government
investment and information services support is weak. Sometimes different
levels of government find it difficult conveying messages to farmers.
For example, some farmers refuse to chop down trees in exchange of
better quality fruit, and, in some cases, farmers are too poor to invest
in managing their groves or adopting new farming methods.

## 

# Consumption

## Domestic production of high quality citrus will not satisfy increasing demand 

China's overall fruit consumption will grow significantly as consumer
incomes grow, particularly in urban areas. MOA officials estimate
China's per capita consumption of citrus at 9 kilograms, lower than the
world average. Another government agency forecasts per capita
consumption will reach 11.7 kilograms and 16 kilograms, in 2015 and 2030
respectively, based on current consumption trends and purchasing ability
growth. As supermarkets and hypermarkets selling quality fruit bloom in
large and medium cities, traditional wet market are disappearing. Most
experts agree demand for high quality fruit will far outpace domestic
production for the foreseeable future. Despite overall fruit quality
improvements, top grade fruit accounts for only 30 percent of
production.

## Fast-growing juice consumption will be accommodated by imports

Demand for orange juice will continue increasing dramatically. Juicing
companies' increasingly advertise the nutritional benefits of orange
juice through all media. Young consumers are driving drink consumption
at a fantastic speed with demands for drinks with different juice
contents. MOA reports per capita consumption of orange juice in China
was 0.1 liter in 2001 and it is expected to reach 0.5 liters in 2005 and
2 liters in 2010. This translates into 650,000 MT in 2005 and 2.6 MMT of
orange juice consumption in 2010. Forecasts may be overly optimistic
given constraints, but the growth rate remains amazing. The local
juicing industry will not be able to produce such quantities of orange
juice in the absence of sufficient raw materials. A few companies have
invested in juicing facilities and commercial groves, but it will take
years before sizable orange juice volume is produced. Imports, mostly
from Brazil, will satisfy the thirst for orange juice in the short to
medium term.

# Trade

## Tangerines dominate fresh citrus exports; orange exports growing

Tangerines dominate China's exports of fresh citrus. Primary export
markets are Southeast Asia, Russia and Canada. China exported more than
295,000 MT of tangerines in MY 2003/04, nearly 40 percent above the
previous year due to a bumper harvest. The trend is likely to continue
in MY 2004/05 given abundant fruit and stable prices. China's fresh
citrus is shipped mainly during the September to November production
season.

Navel and Valencia oranges are the principle fresh citrus fruit imports.
The United States was the largest supplier of oranges to China, followed
by Australia --usually transshipped through New Zealand-- and South
Africa. The demand for imported oranges is strong and stable. Sunkist
orange varieties, by no means all genuine Sunkist, supply the market
almost year round. Navel oranges start arriving in November-December and
serve the market until May, and then Valencia oranges become available
and remain in supply through October. Southern hemisphere countries
primarily export oranges during their production season in July-October.
In general, orange imports see the largest volumes in August and
September, just prior to China's Mid-Autumn Festival and National Day
when locally produced oranges are rare. Although more oranges are
arriving directly at northern ports such as Qingdao and Dalian, about 85
percent of imported oranges enter through southern Chinese ports or are
transshipped in Hong Kong due to tax privileges and more experience in
trade. At the same time, locally produced oranges have improved in both
quality and quantity, and with convenient transportation systems and
competitive prices, will take an increasing share of Hong Kong and
Vietnamese markets.

## Canned mandarins lead the exports in processed citrus; OJ keeps robust imports

China exported 274,860 MT of canned citrus in MY 2003, up 14 percent on
year, mainly to the United States, Europe and Japan. On November 7,
2003, the European Commission announced it would impose a temporary duty
of 155 Euro per ton on imported canned citrus following the Spanish
government calls for safeguard measures against the increasing volume of
imported processed citrus. Subsequently the EU instituted safeguard
measures and imposed a Tariff Rate Quota (TRQ) on Chinese processed
citrus in May 2004. The quota was set at 30,843 MT between 11 April 2004
and 10 April 2005, an amount that is a half of previous annual export
volumes to Europe.

China's orange juice import growth is explosive. Brazil remains the
single largest supplier of orange juice to China (80 percent), followed
by Israel. U.S. juice is of better quality, but more expensive thereby
limiting its appeal. U.S. exports of orange juice to China dropped
dramatically from 3,809 MT in 2003 to 245 MT in 2004. Imported juice was
shipped into the country year round, but faded in August and September
when there were large arrivals of fresh oranges. Large juice imports
arrive in April and May, just prior to the peak summer demand for
drinks.

# Trade policy

Tariffs for fresh and processed citrus reached their final bound rate in
2004 following China's 2001 Accession to the WTO (see 2003 Citrus Annual
CH3132). With no further tariff reductions scheduled, the effective rate
(tariff + VAT) remains high at between 25 percent and 50 percent for
most items. Industry sources indicate that the General Administration of
Customs notified its local customs offices in July that concentrated
orange juice shipped at temperatures greater than minus 18 degree
Celsius would be classified as "not frozen" orange juice as opposed to
"frozen," thereby imposing a tariff of 30 percent instead of 7.5
percent. As most juice is shipped at this temperature, the
reclassification will probably slow down juice imports. Both domestic
industry and the Brazilian citrus export group have complained and
lobbied the Ministry of Finance, the tax setting body, to reconsider
this policy change. The new classification makes it difficult to
distinguish concentrate from single strength in trade data because under
the new classification they are both treated as "not frozen".

China has protocols with the United States, New Zealand, Thailand, South
Africa, and Uruguay to allow fresh citrus shipments to China (see
attached table of "Citrus Variety and Country/Region Eligibility List"
or CH4048). China's quarantine authorities (AQSIQ) have pushed for
Chinese citrus access to the U.S. market, but USDA's APHIS has not
scheduled a pest risk assessment (PRA).

On August 6, 2004, China notified to the WTO a draft revision to the
existing Administrative Measures of Inspection, Quarantine and
Supervision on Entry Fruit in effect since January 1, 2000 (CH1058).
With planned implementation on November 20, 2004, these Measures put new
requirements for exporters, notably SPS requirements to be written into
contracts, new language to be included in exporting country's Quarantine
Certificate, Hong Kong and Macao fruit transshipments to receive
additional certification, and Chinese language labeling for certain
items to be applied on packing. Although this revised regulation has not
yet been implemented, exporters should carefully study and discuss this
regulation and its implication with importers (see GAIN report CH4036).

# 

# Price

## Wholesale market prices available online, fruit prices flat 

MOA publishes on its web site
([www.agri.gov](http://www.agri.gov/)[.cn/jghq/gp]{.underline})
wholesales market prices for a wide range of agricultural products on a
daily basis. Also available through local government extension services
and publications, this price information has become the major
information source for fruit buyers and sellers. Prices do not
distinguish between imported and locally produced fruit, but do provide
indication about the general price situation across the country.

The attached tables contain average quarterly wholesale prices for
citrus in different regions. As reflected in the tables, citrus prices
have been fluctuating within small ranges over the past few years.
However, prices vary significantly from production areas to consumption
areas. The price peaks normally appear in the third quarter of the year
when stocks drop to the lowest levels prior to new crop harvest. Prices
in the tables have been converted into U.S. dollars.

# Stocks

## Little investment seen in building cold storage on low returns

Very little citrus is stored for long periods due to a lack of large
cold storage facilities in citrus production regions. Farmers store
citrus in their houses, self-built storage facilities or underground in
plastic, with or without first dipping or spraying with preserving
agents. Some growers keep oranges unpicked until New Year or even later
to Spring Festival in late January or early February in hope of higher
prices. Over the years, local governments and industry built some small
storage facilities for fruit. The national storage capacity is estimated
at 12 MMT, less than 20% of the total fruit production. Cold chain
distribution lacks and is used only for high-end fruit, in most cases
imported fruit. Industry and growers have considered building cold
storage, yet no significant investments have taken place in citrus
producing regions due to high costs and low returns. Industry sources
indicate that, unlike deciduous fruit that can be stored as long as a
year, the citrus storage period lasts only 3-5 months before fruit
quality starts deteriorating.

# Marketing

## Buyer collecting fruit at groves becomes most commonly used marketing practice

In China, citrus marketing mainly relies on traders or their agents.
During citrus maturation season, traders negotiate prices directly with
citrus growers based on fruit quality. They hire laborers to pick the
fruit and truck the citrus to provincial or regional wholesale markets
where the fruit is sold to retailers, hotels and individuals. In other
cases, farmers pick the fruit by themselves and ship it to local agents
who later sell the fruit to wholesalers coming from other regions.
Simple hand or machine grading based on size and appearance may happen
after harvest, but washing and waxing are rare. Traders seem to have
built this distribution network through years of fruit business and most
citrus growers have accepted this type of marketing channel. Although
farmer groups are forming, their marketing role is limited due to a lack
of resources and experience in fruit business. The government is
reviewing its policies on agricultural cooperatives.

In some citrus producing areas, such as Hunan and Jiangxi, local
governments organize citrus festivals to attract outside buyers. A
national agricultural expo that takes place each year in Beijing is
aimed at promoting national brands for quality farm produce. Some citrus
brands exist, but few enjoy national recognition. Governments at
different levels are encouraging leading agro-businesses to achieve such
a goal. Some trading companies are promoting their citrus online, but
volume sold through this type of advertisement seems marginal.

Citrus grading standards exist, and can be downloaded from China's
quarantine agency's web site
(www.aqsiq.gov.cn/cms/template/item_dzwjy.html?did=1792&cid=1174\\2103).
MOA has created an expert committee to develop industry standards for
oranges that will be published in the near future. The new industry
standards provide specifications for size, color and brix that will
become the basis of citrus grading and eventually facilitate the overall
quality of Chinese citrus.

Sunkist has made its oranges known and liked by Chinese consumers
through innovative promotion activities and extensive advertisements.
The dark side of this success is that nearly all imported oranges, as
well as the best domestic ones, get labeled as "Sunkist." Sunkist labels
even appear on apples and kiwifruit. Despite complaints by industry and
the U.S. government, this sort of IPR violation is too widespread to
control at this time. Foreign suppliers target large high-income cities
like Guangzhou, Beijing, Shanghai, Dalian, and Qingdao. Promotions in
hypermarkets are the most commonly used marketing activity. Wholesale
market promotions aim at improving wholesalers and consumers knowledge
of products. Seminars for importers and update them with new crop
information and developments. Billboards and advertisements on buses
have gradually replaced TV commercials. Despite higher prices, people
are attracted by imported orange's size uniformity, color and taste.
Some hotels and higher-income urban residents are stable buyers of
imported oranges. Unlike domestic citrus, that is highly seasonal due to
variety and lack of storage facilities, imported oranges can be found
all year long.

# 

Contact the following USDA Agricultural Trade Offices in China or
in-country representatives for Sunkist and Florida Department of Citrus
for additional information about marketing and new developments related
to 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: 86-21-6888-9835   Tel: 86-21-6247-3840      

  Fax: 86-21-5877-5839   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 |     |      |     |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
|         | 2   |      | 2   |      | 2002 |      | 2003 |      |
|         | 000 |      | 001 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
|         | 1   | 1000 | 1   | 1000 | 1000 | 1000 | 1000 | 1000 |
|         | 000 | MT   | 000 | MT   | Ha   | MT   | Ha   | MT   |
|         | Ha  |      | Ha  |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Fujian  | 13  | 1    | 16  | 1    | 1    | 1    | 1    | 1    |
|         | 7.9 | ,306 | 4.2 | ,810 | 63.8 | ,932 | 64.0 | ,944 |
+---------+-----+------+-----+------+------+------+------+------+
| Sichuan | 15  | 1    | 16  | 1    | 1    | 1    | 1    | 1    |
|         | 5.2 | ,328 | 3.8 | ,498 | 80.7 | ,662 | 91.7 | ,862 |
+---------+-----+------+-----+------+------+------+------+------+
| Z       | 12  | 972  | 12  | 1    | 1    | 1    | 1    | 1    |
| hejiang | 5.2 |      | 3.9 | ,638 | 24.0 | ,643 | 25.0 | ,767 |
+---------+-----+------+-----+------+------+------+------+------+
| Hunan   | 24  | 1    | 25  | 1    | 2    | 1    | 2    | 1    |
|         | 7.9 | ,259 | 3.5 | ,588 | 61.8 | ,489 | 59.9 | ,728 |
+---------+-----+------+-----+------+------+------+------+------+
| Guangxi | 11  | 880  | 11  | 1    | 1    | 1    | 1    | 1    |
|         | 0.0 |      | 5.7 | ,321 | 18.0 | ,373 | 22.0 | ,521 |
+---------+-----+------+-----+------+------+------+------+------+
| Gu      | 8   | 811  | 9   | 1    | 1    | 1    | 1    | 1    |
| angdong | 2.2 |      | 4.3 | ,135 | 05.9 | ,234 | 49.9 | ,351 |
+---------+-----+------+-----+------+------+------+------+------+
| Hubei   | 9   | 946  | 9   | 1    | 1    | 939  | 1    | 1    |
|         | 9.1 |      | 8.5 | ,072 | 00.3 |      | 09.6 | ,241 |
+---------+-----+------+-----+------+------+------+------+------+
| Ch      | 6   | 584  | 6   | 599  | 92.6 | 657  | 96.3 | 752  |
| ongqing | 3.2 |      | 8.8 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Jiangxi | 16  | 283  | 15  | 434  | 1    | 490  | 1    | 620  |
|         | 9.3 |      | 4.5 |      | 66.4 |      | 86.0 |      |
+---------+-----+------+-----+------+------+------+------+------+
| S       | 4.8 | 102  | 4.4 | 137  | 6.0  | 159  | 9.5  | 174  |
| hanghai |     |      |     |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Guizhou | 3   | 101  | 3   | 128  | 34.9 | 135  | 33.9 | 150  |
|         | 2.9 |      | 3.4 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Yunnan  | 1   | 92   | 2   | 102  | 23.2 | 118  | 25.1 | 133  |
|         | 9.5 |      | 1.6 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Shaanxi | 1   | 35   | 1   | 42   | 14.6 | 59   | 16.6 | 99   |
|         | 2.1 |      | 3.5 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Jiangsu | 3.3 | 43   | 3.5 | 55   | 3.3  | 49   | 3.2  | 54   |
+---------+-----+------+-----+------+------+------+------+------+
| Henan   | 4.9 | 21   | 4.7 | 22   | 4.0  | 22   | 8.1  | 30   |
+---------+-----+------+-----+------+------+------+------+------+
| Hainan  | 2.2 | 14   | 2.6 | 15   | 2.6  | 18   | 2.5  | 15   |
+---------+-----+------+-----+------+------+------+------+------+
| Anhui   | 1.8 | 5    | 2.6 | 9    | 2.3  | 8    | 2.2  | 11   |
+---------+-----+------+-----+------+------+------+------+------+
| Gansu   | 0.2 | 2    | 0.2 | 3    | 0.2  | 3    | 0.2  | 3    |
+---------+-----+------+-----+------+------+------+------+------+
| Total   | 1   | 8    | 1   | 11   | 1,4  | 11   | 1,5  | 13   |
|         | ,27 | ,783 | ,32 | ,608 | 04.6 | ,990 | 05.7 | ,454 |
|         | 1.7 |      | 3.7 |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+
| Pro     |     |      |     |      |      |      |      |      |
| duction |     |      |     |      |      |      |      |      |
| Source: |     |      |     |      |      |      |      |      |
| State   |     |      |     |      |      |      |      |      |
| Sta     |     |      |     |      |      |      |      |      |
| tistics |     |      |     |      |      |      |      |      |
| Ye      |     |      |     |      |      |      |      |      |
| arbooks |     |      |     |      |      |      |      |      |
|         |     |      |     |      |      |      |      |      |
| P       |     |      |     |      |      |      |      |      |
| lanting |     |      |     |      |      |      |      |      |
| Area    |     |      |     |      |      |      |      |      |
| Source: |     |      |     |      |      |      |      |      |
| M       |     |      |     |      |      |      |      |      |
| inistry |     |      |     |      |      |      |      |      |
| of      |     |      |     |      |      |      |      |      |
| Agri    |     |      |     |      |      |      |      |      |
| culture |     |      |     |      |      |      |      |      |
| Ab      |     |      |     |      |      |      |      |      |
| stracts |     |      |     |      |      |      |      |      |
+---------+-----+------+-----+------+------+------+------+------+

# 2002 and 2003 Production Tables by Citrus Variety in 1000 MT

<table style="width:100%;">
<colgroup>
<col style="width: 15%" />
<col style="width: 8%" />
<col style="width: 7%" />
<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-2002-and-2003-by-volume-in-1000-metric-tons"
class="heading">Citrus Production by Groups in 2002 and 2003 by volume
in 1000 Metric Tons</p></td>
</tr>
<tr class="even">
<td rowspan="2"></td>
<td colspan="5">2002</td>
<td colspan="5">2003</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>159</td>
<td>0.0</td>
<td>159.4</td>
<td>0.0</td>
<td>0.0</td>
<td>174</td>
<td>0.0</td>
<td>174.4</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="odd">
<td>Jiangsu</td>
<td>49</td>
<td>15.1</td>
<td>34.0</td>
<td>0.0</td>
<td>0.0</td>
<td>54</td>
<td>12.5</td>
<td>41.7</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="even">
<td>Zhejiang</td>
<td>1,642</td>
<td>626.6</td>
<td>811.4</td>
<td>20.5</td>
<td>143.5</td>
<td>1,767</td>
<td>752.4</td>
<td>769.4</td>
<td>30.7</td>
<td>169.0</td>
</tr>
<tr class="odd">
<td>Anhui</td>
<td>8</td>
<td>0.2</td>
<td>7.8</td>
<td>0.0</td>
<td>0.0</td>
<td>11</td>
<td>0.1</td>
<td>10.6</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="even">
<td>Fujian</td>
<td>1,931</td>
<td>516.2</td>
<td>835.2</td>
<td>132.4</td>
<td>427.3</td>
<td>1,944</td>
<td>508.0</td>
<td>818.4</td>
<td>133.3</td>
<td>472.3</td>
</tr>
<tr class="odd">
<td>Jiangxi</td>
<td>490</td>
<td>92.7</td>
<td>259.2</td>
<td>91.1</td>
<td>12.6</td>
<td>620</td>
<td>104.9</td>
<td>333.7</td>
<td>141.4</td>
<td>12.3</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>30</td>
<td>0.0</td>
<td>29.5</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="odd">
<td>Hubei</td>
<td>939</td>
<td>237.3</td>
<td>604.2</td>
<td>85.7</td>
<td>2.5</td>
<td>1,241</td>
<td>363.5</td>
<td>743.0</td>
<td>105.9</td>
<td>6.2</td>
</tr>
<tr class="even">
<td>Hunan</td>
<td>1,489</td>
<td>482.5</td>
<td>831.4</td>
<td>128.7</td>
<td>46.6</td>
<td>1,728</td>
<td>559.9</td>
<td>951.1</td>
<td>163.4</td>
<td>53.3</td>
</tr>
<tr class="odd">
<td>Guangdong</td>
<td>1,234</td>
<td>401.4</td>
<td>284.3</td>
<td>133.5</td>
<td>414.8</td>
<td>1,351</td>
<td>434.2</td>
<td>365.3</td>
<td>171.2</td>
<td>380.8</td>
</tr>
<tr class="even">
<td>Guangxi</td>
<td>1,373</td>
<td>868.9</td>
<td>0.0</td>
<td>241.3</td>
<td>263.2</td>
<td>1,521</td>
<td>944.3</td>
<td>0.0</td>
<td>295.7</td>
<td>281.3</td>
</tr>
<tr class="odd">
<td>Hainan</td>
<td>18</td>
<td>8.9</td>
<td>2.5</td>
<td>6.6</td>
<td>0.4</td>
<td>15</td>
<td>1.3</td>
<td>3.3</td>
<td>8.9</td>
<td>0.6</td>
</tr>
<tr class="even">
<td>Chongqing</td>
<td>657</td>
<td>223.0</td>
<td>169.6</td>
<td>198.8</td>
<td>62.7</td>
<td>752</td>
<td>259.7</td>
<td>195.8</td>
<td>225.5</td>
<td>67.4</td>
</tr>
<tr class="odd">
<td>Sichuan</td>
<td>1,662</td>
<td>669.1</td>
<td>385.0</td>
<td>444.8</td>
<td>139.4</td>
<td>1,862</td>
<td>714.6</td>
<td>408.9</td>
<td>511.9</td>
<td>184.9</td>
</tr>
<tr class="even">
<td>Guizhou</td>
<td>135</td>
<td>64.9</td>
<td>53.7</td>
<td>8.4</td>
<td>6.1</td>
<td>150</td>
<td>73.2</td>
<td>58.4</td>
<td>10.3</td>
<td>6.9</td>
</tr>
<tr class="odd">
<td>Yunnan</td>
<td>118</td>
<td>35.9</td>
<td>66.8</td>
<td>7.6</td>
<td>6.2</td>
<td>133</td>
<td>41.9</td>
<td>72.3</td>
<td>10.0</td>
<td>6.5</td>
</tr>
<tr class="even">
<td>Shaanxi</td>
<td>59</td>
<td>6.4</td>
<td>45.4</td>
<td>1.5</td>
<td>0.6</td>
<td>99</td>
<td>72.0</td>
<td>17.6</td>
<td>0.6</td>
<td>0.2</td>
</tr>
<tr class="odd">
<td>Gansu</td>
<td>3</td>
<td>0.0</td>
<td>2.9</td>
<td>0.0</td>
<td>0.0</td>
<td>3</td>
<td>0.0</td>
<td>3.2</td>
<td>0.0</td>
<td>0.0</td>
</tr>
<tr class="even">
<td>Total</td>
<td>11,990</td>
<td>4,249.1</td>
<td>4,574.6</td>
<td>1,500.8</td>
<td>1,525.9</td>
<td>13,454</td>
<td>4,842.7</td>
<td>4,996.5</td>
<td>1,808.6</td>
<td>1,641.8</td>
</tr>
<tr class="odd">
<td colspan="11">Source: Chinese Ministry of Agriculture Statistical
Abstract</td>
</tr>
</tbody>
</table>

# 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          10/00-9/02   10/02-9/03   10/03-9/04   10/00-9/02   10/02-9/03   10/03-9/04

  080510      Oranges              42,828       59,749       53,059       21.840       36.917       37.729

  080520      Mandarins            5,701        8,412        6,332        1.972        4.048        3.896

  08052010    -Chiao-kan           0            1,152        22           0.000        0.588        0.022

  08052020    -Broad-Leafed        0            0            1,312        0.000        0.000        0.875

  08052090    -Other Mandarins     5,701        7,260        4,998        1.972        3.460        2.999

  080540      Grapefruit           3,509        3,597        2,195        1.178        1.550        1.467

  080530      *~~Lemons/Limes~~*   840          0            0            0.388        0.000        0

  080550      *Lemons/Limes*       2,930        5,303        5,921        1.378        3.666        5.148

  080590      *Other Citrus*       8            15           28           0.009        0.057        0.02

  200791      Citrus Jams/Jellies  61           45           152          0.075        0.071        0.23

  200830      Citrus Prep.         562          1,163        2,365        0.340        0.922        1.66

  200911      Frozen OJ            33,226       42,112       47,675       39.644       53.284       52.615

  200912      *OJ \<20 Brix*       235          862          1,299        0.171        0.507        0.962

  200919      *OJ \<20 Brix*       2,610        1,611        4,206        2.002        2.085        4.513

  200921      *Grapefruit Juice    139          331          460          0.121        0.345        0.367
              \<20 Brix*                                                                            

  200929      *Grapefruit Juice    195          295          329          0.312        0.477        0.576
              \<20 Brix*                                                                            

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

  200931      *Citrus Fruit Juice  103          219          350          0.049        0.144        0.215
              \<20 Brix*                                                                            

  200939      *Citrus Fruit Juice  192          157          58           0.225        0.272        0.121
              \>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          10/00-9/02   10/02-9/03   10/03-9/04   10/00-9/02   10/02-9/03   10/03-9/04

  080510      Oranges              5322         14108        28,792       0.861        4.926        9.09

  080520      Mandarins            169242       219660       298,684      41.692       55.062       93.111

  08052010    -Chiao-kan           6918         7235         3,446        0.968        0.970        1.512

  08052020    -Broad-Leafed        747          267          136          0.176        0.091        0.076

  08052090    -Other Mandarins     161577       212159       295,101      40.548       54.001       76.218

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

  080540      Grapefruit           7404         12522        15,207       1.482        2.017        2.642

  080550      *Lemons/Limes*       35           39           253          0.013        0.011        0.093

  080590      *Other Citrus*       10677        9761         11,048       2.941        2.860        3.48

  200791      Citrus Jams/Jellies  103          1573         1,794        0.072        2.070        2.081

  200830      Citrus Prep.         216749       240863       274,860      126.049      153.930      164.728

  200911      Frozen OJ            2229         2961         2,540        2.542        2.665        2.568

  200912      *OJ \<20 Brix*       296          117          49           0.232        0.056        0.024

  200919      *OJ \<20 Brix*       620          446          529          0.561        0.414        0.461

  200921      *Grapefruit Juice    129          198          187          0.146        0.217        0.207
              \<20 Brix*                                                                            

  200929      *Grapefruit Juice    0            1            1            0.000        0.001        0.002
              \<20 Brix*                                                                            

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

  200931      *Citrus Fruit Juice  306          285          47           0.171        0.147        0.028
              \<20 Brix*                                                                            

  200939      *Citrus Fruit Juice  57           42           15           0.077        0.064        0.026
              \>20 Brix\]*                                                                          

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

# Tariff, VAT, and Effective Rate for Citrus in 2005

## Fresh Citrus

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

  08051000      Oranges                   11.0%       13.0%      25.4%

  08052010      Mandarins (Chiao-kan)     12.0%       13.0%      26.6%

  08052020      Mandarins (Broad-leafed)  12.0%       13.0%      26.6%

  08052090      Mandarins (Other)         12.0%       13.0%      26.6%

  08054000      Grapefruits/Pomelos       12.0%       13.0%      26.6%

  08055000      Lemons and Limes          11.0%       13.0%      25.4%

  08059000      Citrus, Other             30.0%       13.0%      46.9%

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

## Processed Citrus

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

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

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

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

  20091100       Frozen Orange Juice           7.5%     17.0%   25.8%

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

  20091900       Non-Frozen Orange Juice \<20  30.0%    17.0%   52.1%
                 Brix                                           

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

  20092900       Grapefruit Juice \<20 Brix    15.0%    17.0%   34.6%

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

  20093900       Other Citrus Juice \<20 Brix  18.0%    17.0%   38.1%

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

# Imported Citrus Variety and Country/Region Eligibility List 

(as of November 5, 2004)

  ------------------------------------ -----------------------------------
  Citrus Variety                       Exporting Country/Region

  Citrus-Tangerines/Satsuma/Mandarin   U.S. (parts of California, Florida,
                                       Arizona, Texas), New Zealand,
                                       Thailand, Uruguay, South Africa,
                                       Taiwan

  Citrus-Oranges                       U.S. (parts of California, Florida,
                                       Arizona, Texas), New Zealand,
                                       Thailand, Uruguay, South Africa

  Citrus-Grapefruit/Pomelo             U.S. (parts of California, Florida,
                                       Arizona, Texas), Thailand, Uruguay,
                                       South Africa, Taiwan

  Citrus-Lemons/Limes                  U.S. (parts of California, Florida,
                                       Arizona, Texas), New Zealand,
                                       Uruguay, South Africa
  ------------------------------------ -----------------------------------

# Wholesale Market Price Data 

## Wholesale Market Quarterly Prices for Oranges

  -------------- ------------ ------- ----------- ------- ----------- ------ ----------
  Region         Central      North   Northeast   South   Southwest   West   Avg. per
                                                                             kg

  Time           (Quarterly                                                  
                 average                                                     
                 prices in                                                   
                 USD per                                                     
                 kilogram,                                                   
                 RMB 8.265 =                                                 
                 US \$1)                                                     

  Avg Q3 2002    N/A          1.50    1.21        N/A     N/A         N/A    1.36

  Avg Q4 2002    0.37         0.92    0.70        0.58    N/A         0.27   0.63

  Avg 2002       0.37         1.11    0.87        0.58    N/A         0.27   0.87

  Avg Q1 2003    0.26         0.46    0.56        0.43    0.21        0.37   0.42

  Avg Q2 2003    0.31         0.68    0.99        0.48    0.20        0.33   0.54

  Avg Q3 2003    0.84         1.09    1.37        0.83    N/A         0.16   1.04

  Avg Q4 2003    0.26         0.99    0.89        0.78    N/A         0.27   0.71

  Avg 2003       0.40         0.85    1.00        0.65    0.20        0.30   0.72

  Avg Q1 2004    0.25         0.51    0.81        0.48    0.18        0.17   0.43

  Avg Q2 2004    0.23         0.69    0.98        0.41    0.14        0.24   0.47

  Avg Q3 2004    N/A          1.16    1.54        0.64    0.11        N/A    0.82

  Avg Q4 2004    0.27         0.92    1.12        0.96    0.17        N/A    0.89

  Avg 2004       0.24         0.83    1.07        0.59    0.14        0.21   0.64
  -------------- ------------ ------- ----------- ------- ----------- ------ ----------

## Wholesale Market Quarterly Prices for Tangerines

  -------------- ------------ ------- ----------- ------- ----------- ------ ----------
  Region         Central      North   Northeast   South   Southwest   West   Avg. per
                                                                             kg

  Time           (Quarterly                                                  
                 average                                                     
                 prices in                                                   
                 USD per                                                     
                 kilogram,                                                   
                 RMB 8.265 =                                                 
                 US \$1)                                                     

  Avg Q3 2002    0.13         0.19    0.24        N/A     N/A         N/A    0.19

  Avg Q4 2002    0.19         0.22    0.27        0.31    0.11        0.23   0.23

  Avg 2002       0.17         0.21    0.26        0.31    0.11        0.23   0.22

  Avg Q1 2003    0.20         0.22    0.26        0.23    0.48        0.26   0.24

  Avg Q2 2003    0.21         0.29    0.25        0.37    0.31        0.25   0.28

  Avg Q3 2003    0.16         0.23    0.33        0.22    0.24        0.47   0.26

  Avg Q4 2003    0.17         0.18    0.23        0.21    0.13        0.23   0.20

  Avg 2003       0.18         0.23    0.27        0.26    0.26        0.28   0.25

  Avg Q1 2004    0.20         0.23    0.23        0.28    0.24        0.22   0.23

  Avg Q2 2004    0.20         0.22    0.20        0.27    0.31        0.26   0.24

  Avg Q3 2004    0.18         0.28    0.33        0.29    0.25        N/A    0.26

  Avg Q4 2004    0.16         0.22    0.20        0.24    0.20        0.28   0.22

  Avg 2004       0.19         0.24    0.24        0.27    0.26        0.25   0.24
  -------------- ------------ ------- ----------- ------- ----------- ------ ----------

## Wholesale Market Prices for Pomelos

  -------------- ------------ ------- ----------- ------- ----------- ------ ----------
  Region         Central      North   Northeast   South   Southwest   West   Avg. per
                                                                             kg

  Time           (Quarterly                                                  
                 average                                                     
                 prices in                                                   
                 USD per                                                     
                 kilogram,                                                   
                 RMB 8.265 =                                                 
                 US \$1)                                                     

  Avg Q3 2002    0.23         0.29    0.44        0.25    N/A         N/A    0.30

  Avg Q4 2002    0.25         0.27    0.60        0.23    0.22        0.31   0.33

  Avg 2002       0.24         0.27    0.55        0.24    0.22        0.31   0.32

  Avg Q1 2003    0.26         0.33    0.45        0.24    N/A         0.45   0.34

  Avg Q2 2003    0.21         0.28    0.73        0.19    N/A         0.27   0.27

  Avg Q3 2003    0.27         0.33    1.08        0.12    N/A         0.16   0.40

  Avg Q4 2003    0.27         0.30    0.38        0.21    N/A         0.36   0.29

  Avg 2003       0.25         0.31    0.67        0.21    N/A         0.30   0.33

  Avg Q1 2004    0.24         0.36    0.51        0.26    0.23        0.30   0.30

  Avg Q2 2004    0.22         0.31    0.51        0.28    0.34        0.30   0.30

  Avg Q3 2004    0.32         0.34    0.38        0.24    0.30        0.48   0.31

  Avg Q4 2004    0.25         0.30    0.37        0.20    0.24        0.33   0.28

  Avg 2004       0.26         0.33    0.43        0.25    0.28        0.33   0.30
  -------------- ------------ ------- ----------- ------- ----------- ------ ----------

## Wholesale Market Prices for Lemons/Limes 

  -------------- ------------ ------- ----------- ------- ----------- ------ ----------
  Region         Central      North   Northeast   South   Southwest   West   Avg. per
                                                                             kg

  Time           (Quarterly                                                  
                 average                                                     
                 prices in                                                   
                 USD per                                                     
                 kilogram,                                                   
                 RMB 8.265 =                                                 
                 US \$1)                                                     

  Avg Q3 2002    1.21         0.85    1.45        N/A     N/A         1.33   1.21

  Avg Q4 2002    1.18         0.98    1.30        0.70    N/A         1.45   1.13

  Avg 2002       1.19         0.93    1.35        0.70    N/A         1.39   1.16

  Avg Q1 2003    0.99         0.92    0.97        1.15    N/A         1.33   1.00

  Avg Q2 2003    0.92         0.89    1.27        0.70    N/A         N/A    1.01

  Avg Q3 2003    1.13         0.68    1.05        1.32    N/A         N/A    0.98

  Avg Q4 2003    0.90         0.59    1.33        0.43    N/A         N/A    0.83

  Avg 2003       0.99         0.75    1.16        0.83    N/A         1.33   0.95

  Avg Q1 2004    1.21         1.11    1.31        N/A     N/A         N/A    1.20

  Avg Q2 2004    1.11         0.75    1.47        1.06    0.48        N/A    1.05

  Avg Q3 2004    0.70         1.04    1.77        1.27    N/A         N/A    1.14

  Avg Q4 2004    1.21         0.92    1.19        0.84    N/A         N/A    1.10

  Avg 2004       1.01         0.96    1.45        1.10    0.48        N/A    1.12
  -------------- ------------ ------- ----------- ------- ----------- ------ ----------

# Production, Supply, and Demand (PSD) Tables

## Oranges

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

  **Country**          China,                                                        
                       Peoples                                                       
                       Republic                                                      
                       of                                                            

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

                       2002       Revised    2003       Estimate   2004              Forecast

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

  **Market Year                   10/2002               10/2003                      10/2004
  Begin**                                                                            

  Area Planted         562000     570000     570000     581400     0                 590120

  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           3600       3600       3675       4036       0                 4200

  Imports              60         60         55         55         0                 58

  TOTAL SUPPLY         3660       3660       3730       4091       0                 4258

  Exports              14         14         20         29         0                 35

  Fresh Dom.           3601       3625       3660       4037       0                 4195
  Consumption                                                                        

  Processing           45         21         50         25         0                 28

  TOTAL DISTRIBUTION   3660       3660       3730       4091       0                 4258
  -------------------- ---------- ---------- ---------- ---------- ----------------- ----------

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

  **Country**                 China,                             
                              Peoples                            
                              Republic of                        

  **Commodity**               Fresh                              
                              Oranges                            

  Time Period                 Oct-Sep       Units:               MT

  Imports for:                2002                               **2003**

  U.S.                        32359         U.S.                 32267

  Others                                    Others                

  New Zealand                 22374         New Zealand          16923

  South Africa                4883          South Africa         3477

  Egypt                       97            Uruguay              284

  Taiwan                      33            Chile                101

  Thailand                    3             Brazil               5

                                            Taiwan               1

                                            Thailand             1

  Total for Others            59749                              53059

  Others not Listed           0                                  0

  Grand Total                 59749                              53059
  --------------------------- ------------- -------------------- ----------

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

  **Country**       China, Peoples                    
                    Republic of                       

  **Commodity**     Fresh Oranges                     

  Time Period       Oct-Sep           Units:          MT

  Exports for:      2002                              **2003**

  U.S.              0                 U.S.            0

  Others                              Others          

  Hong Kong         9848              Hong Kong       17461

  Vietnam           1928              Vietnam         4931

  Macau             1227              Singapore       1778

  Singapore         570               Russia          1410

  Russia            212               Thailand        881

  Malaysia          121               Macau           877

  Indonesia         106               Malaysia        822

  Philippines       48                Kazakhstan      224

  Canada            26                Indonesia       212

  North Korea       16                Philippines     100

  Total for Others  14102                             28696

  Others not Listed 6                                 96

  Grand Total       14108                             28792
  ----------------- ----------------- --------------- -------------------

## Tangerines

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

  **Country**          China,                                                          
                       Peoples                                                         
                       Republic of                                                     

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

                       2002         Revised    2003       Estimate   2004              Forecast

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

  **Market Year                     10/2002               10/2003                      10/2004
  Begin**                                                                              

  Area Planted         702500       702500     695000     695000     0                 688000

  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           6545         6545       6500       6870       0                 6950

  Imports              8            7          10         5          0                 4

  TOTAL SUPPLY         6553         6552       6510       6875       0                 6954

  Exports              220          212        230        295        0                 368

  Fresh Dom.           5982         5980       5900       6100       0                 6061
  Consumption                                                                          

  Processing           351          360        380        480        0                 525

  TOTAL DISTRIBUTION   6553         6552       6510       6875       0                 6954
  -------------------- ------------ ---------- ---------- ---------- ----------------- ----------

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

  **Country**             China,                           
                          Peoples                          
                          Republic of                      

  **Commodity**           Fresh                            
                          Tangerines                       

  Time Period             Oct-Sep       Units:             MT

  Imports for:            2002                             **2003**

  U.S.                    56            U.S.               755

  Others                                Others             

  New Zealand             6886          New Zealand        3737

  Taiwan                  259           North Korea        216

  Japan                   42            South Korea        216

  Thailand                17            Japan              43

                                        Uruguay            24

                                        Taiwan             7

  Total for Others        7204                             4243

  Others not Listed       0                                0

  Grand Total             7260                             4998

  **Export Trade Matrix**                                  

  **Country**             China,                           
                          Peoples                          
                          Republic of                      

  **Commodity**           Fresh                            
                          Tangerines                       

  Time Period             Oct-Sep       Units:             MT

  Exports for:            2002                             **2003**

  U.S.                    0             U.S.               24

  Others                                Others             

  Vietnam                 53365         Vietnam            99158

  Malaysia                44387         Malaysia           55948

  Indonesia               25393         Indonesia          34839

  Philippines             22198         Russia             30932

  Russia                  19342         Philippines        24956

  Singapore               19176         Hong Kong          18186

  Hong Kong               13300         Singapore          12502

  Canada                  11311         Canada             11062

  Macau                   1058          North Korea        1927

  Kyrgyzstan              836           Kyrgyzstan         1881

  Total for Others        210366                           291391

  Others not Listed       1793                             3686

  Grand Total             212159                           295101
  ----------------------- ------------- ------------------ ---------------

## Pomelos and Grapefruits

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

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

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

                       2002         Revised    2003       Estimate   2004              Forecast

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

  **Market Year                     10/2002               10/2003                      10/2004
  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            1526       0          1642       0                 1724

  Imports              0            4          0          2          0                 4

  TOTAL SUPPLY         0            1530       0          1644       0                 1728

  Exports              0            13         0          15         0                 18

  Fresh Dom.           0            1517       0          1629       0                 1710
  Consumption                                                                          

  Processing           0            0          0          0          0                 0

  TOTAL DISTRIBUTION   0            1530       0          1644       0                 1728
  -------------------- ------------ ---------- ---------- ---------- ----------------- ----------

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

  **Country**               China, Peoples                 
                            Republic of                    

  **Commodity**             Fresh                          
                            Grapefruit                     

  Time Period               Oct-Sep        Units:          MT

  Imports for:              2002                           **2003**

  U.S.                      502            U.S.            789

  Others                                   Others          

  Thailand                  2044           Taiwan          899

  Taiwan                    1052           Thailand        503

                                           South Africa    3

  Total for Others          3096                           1405

  Others not Listed         0                              0

  Grand Total               3598                           2194
  ------------------------- -------------- --------------- ---------------

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

  **Country**               China, Peoples                 
                            Republic of                    

  **Commodity**             Fresh                          
                            Grapefruit                     

  Time Period               Oct-Sep        Units:          MT

  Exports for:              2002                           **2003**

  U.S.                      13             U.S.            0

  Others                                   Others          

  Hong Kong                 9073           Hong Kong       10873

  Macau                     1127           Philippines     1359

  Canada                    1052           Canada          1253

  Philippines               641            Macau           674

  Singapore                 232            Netherlands     319

  Malaysia                  149            Malaysia        197

  Indonesia                 66             France          131

  Belgium                   52             Belgium         112

  Russia                    43             Singapore       99

  France                    21             Russia          74

  Total for Others          12456                          15091

  Others not Listed         53                             116

  Grand Total               12522                          15207
  ------------------------- -------------- --------------- ---------------

## Orange Juice

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

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

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

                       2002       Revised    2003       Estimate   2004       Forecast

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

  **Market Year                   10/2002               10/2003               10/2004
  Begin**                                                                     

  Deliv. To Processors 45000      21000      50000      25000      0          28000

  Beginning Stocks     0          0          0          0          0          0

  Production           1800       1500       2000       1800       0          2000

  Imports              43723      42525      54246      48592      0          53450

  TOTAL SUPPLY         45523      44025      56246      50392      0          55450

  Exports              3406       3054       3600       2636       0          1850

  Domestic Consumption 42117      40971      52646      47756      0          53600

  Ending Stocks        0          0          0          0          0          0

  TOTAL DISTRIBUTION   45523      44025      56246      50392      0          55450
  -------------------- ---------- ---------- ---------- ---------- ---------- ----------

Note: figures have been converted into concentrated orange juice using a
ratio of 6:1 single strength and concentrate. Products under HS codes
20091200 and 20091900 are both treated as single strength juice.

+----------------+------------------+------------------+--------------+
| **Import Trade |                  |                  |              |
| Matrix**       |                  |                  |              |
|                |                  |                  |              |
|                |                  |                  |              |
+----------------+------------------+------------------+--------------+
| **Country**    | China, Peoples   |                  |              |
|                | Republic of      |                  |              |
+----------------+------------------+------------------+--------------+
| **Commodity**  | Juice, Orange    |                  |              |
+----------------+------------------+------------------+--------------+
| Time Period    | Oct-Sep          | Units:           | MT           |
+----------------+------------------+------------------+--------------+
| Imports for:   | 2002             |                  | **2003**     |
+----------------+------------------+------------------+--------------+
| U.S.           | 3809             | U.S.             | 245          |
+----------------+------------------+------------------+--------------+
| Others         |                  | Others           |              |
+----------------+------------------+------------------+--------------+
| Brazil         | 26059            | Brazil           | 39094        |
+----------------+------------------+------------------+--------------+
| Israel         | 8628             | Israel           | 8300         |
+----------------+------------------+------------------+--------------+
| Netherlands    | 2838             | Netherlands      | 354          |
+----------------+------------------+------------------+--------------+
| Italy          | 303              | Italy            | 239          |
+----------------+------------------+------------------+--------------+
| Belgium        | 302              | Australia        | 148          |
+----------------+------------------+------------------+--------------+
| Australia      | 124              | Spain            | 89           |
+----------------+------------------+------------------+--------------+
| Taiwan         | 100              | South Africa     | 43           |
+----------------+------------------+------------------+--------------+
| Germany        | 97               | Hong Kong        | 23           |
+----------------+------------------+------------------+--------------+
| Spain          | 57               | South Korea      | 15           |
+----------------+------------------+------------------+--------------+
| Pakistan       | 44               | Taiwan           | 8            |
+----------------+------------------+------------------+--------------+
| Total for      | 38552            |                  | 48313        |
| Others         |                  |                  |              |
+----------------+------------------+------------------+--------------+
| Others not     | 164              |                  | 34           |
| Listed         |                  |                  |              |
+----------------+------------------+------------------+--------------+
| Grand Total    | 42525            |                  | 48592        |
+----------------+------------------+------------------+--------------+

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

  **Country**       China, Peoples                          
                    Republic of                             

  **Commodity**     Juice, Orange                           

  Time Period       Oct-Sep             Units:              MT

  Exports for:      2002                                    **2003**

  U.S.              2                   U.S.                0

  Others                                Others              

  Hong Kong         2941                Hong Kong           2368

  Taiwan            87                  Australia           132

  Japan             23                  Japan               72

                                        Taiwan              57

                                        North Korea         3

                                        Singapore           2

                                                            

  Total for Others  3051                                    2634

  Others not Listed 1                                       2

  Grand Total       3054                                    2636
  ----------------- ------------------- ------------------- ---------------

Note: figures have been converted into concentrated orange juice using a
ratio of 6:1 between single strength and concentrate. Products under HS
codes 20091200 and 20091900 are both treated as single strength juice.

## Grapefruit Juice

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

  **Country**          China,                                                   
                       Peoples                                                  
                       Republic of                                              

  **Commodity**        Juice,                                        (MT)       
                       Grapefruit                                               

                       2002         Revised    2003       Estimate   2004       Forecast

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

  **Market Year                     10/2002               10/2003               10/2004
  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              0            104        0          132        0          160

  TOTAL SUPPLY         0            104        0          132        0          160

  Exports              0            33         0          31         0          35

  Domestic Consumption 0            71         0          101        0          125

  Ending Stocks        0            0          0          0          0          0

  TOTAL DISTRIBUTION   0            104        0          132        0          160
  -------------------- ------------ ---------- ---------- ---------- ---------- ----------

Note: figures have been converted into concentrated grapefruit juice
using a ratio of 6:1 between single strength and concentrate. Products
under HS codes 20092100 and 20092900 are both treated as single strength
juice.

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

  **Country**         China, Peoples                      
                      Republic of                         

  **Commodity**       Juice, Grapefruit                   

  Time Period         Oct-Sep           Units:            MT

  Imports for:        2002                                **2003**

  U.S.                71                U.S.              99

  Others                                Others            

  South Africa        12                Israel            10

  Spain               6                 South Korea       10

  Israel              6                 Japan             4

  Australia           4                 Australia         3

  Japan               2                 South Africa      2

  South Korea         2                 Taiwan            2

                                                          

  Total for Others    32                                  31

  Others not Listed   1                                   2

  Grand Total         104                                 132
  ------------------- ----------------- ----------------- ---------------

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

  **Country**       China, Peoples                         
                    Republic of                            

  **Commodity**     Juice, Grapefruit                      

  Time Period       Oct-Sep              Units:            MT

  Exports for:      2002                                   **2003**

  U.S.              0                    U.S.              0

  Others                                 Others            

  Hong Kong         31                   Hong Kong         29

  Bangladesh        2                    Singapore         2

                                                           

  Total for Others  33                                     31

  Others not Listed 0                                      0

  Grand Total       33                                     31
  ----------------- -------------------- ----------------- ---------------

Note: figures have been converted into concentrated grapefruit juice
using a ratio of 6:1 between single strength and concentrate. Products
under HS codes 20092100 and 20092900 are both treated as single strength
juice.