""""

Required Report - public distribution

**Date:** 8/27/2003

**GAIN Report Number:** MX3116

MX0000

**Mexico**

**Fresh Deciduous Fruit**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)David Williams

#### Mexico City

**Prepared by:**

Dulce Flores/ Gabriel Hernandez

**Report Highlights:**

Apple production for MY 2003/04 is forecast at 490,000 MT. Apple imports
are forecast to increase very slightly as the apple anti-dumping duty on
U.S. Red and Golden Delicious apples is expected to limit import
volumes. However, the U.S. is expected to continue to be largest
supplier of apples. Pear production is forecast to increase slightly to
32,500 MT. The volume of imported U.S. pears is expected to increase as
the domestic market continues to rely on imports. Table grape production
is forecast at 178,300 MT. Grape imports from the U.S. are expected to
continue to grow.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Annual Report

Mexico \[MX1\]

\[MX\]

TABLE OF CONTENTS

[SECTION I. SITUATION AND OUTLOOK 3](#section-i.-situation-and-outlook)

[APPLES 3](#apples)

[PRODUCTION 3](#production)

[CONSUMPTION 3](#consumption)

[TRADE 4](#trade)

[POLICY 4](#policy)

[MARKETING 4](#marketing)

[CONCENTRATED APPLE JUICE 5](#concentrated-apple-juice)

[PRODUCTION AND TRADE 5](#production-and-trade)

[PEAR 6](#pear)

[PRODUCTION 6](#production-1)

[CONSUMPTION 6](#consumption-1)

[TRADE 6](#trade-1)

[MARKETING 7](#marketing-1)

[TABLE GRAPES 7](#table-grapes)

[PRODUCTION 7](#production-2)

[CONSUMPTION 7](#consumption-2)

[TRADE 8](#trade-2)

[MARKETING 8](#marketing-2)

[SECTION II. STATISTICAL TABLES 9](#section-ii.-statistical-tables)

[Apples, PS&D Tables 9](#apples-psd-tables)

[Pears, PS&D Table 10](#pears-psd-table)

[Table Grape, PS&D Table 11](#table-grape-psd-table)

[Trade Matrix Apples 12](#trade-matrix-apples)

[Trade Matrix Pears 12](#trade-matrix-pears)

[Trade Matrix Table Grapes 13](#trade-matrix-table-grapes)

[Apple Price 14](#apple-price)

[Table Grape Prices 15](#table-grape-prices)

[Pear Prices 16](#pear-prices)

[Tariffs for Chile 17](#tariffs-for-chile)

# SECTION I. SITUATION AND OUTLOOK 

# APPLES 

## PRODUCTION

The MY 2003/04 (August/July) is forecast at 490,000 MT. Trade sources
indicate that weather conditions in Chihuahua, the main apple producing
state, were good. There were no freezing temperatures during the
flowering season, and a few hailstorms caused minimal damage to the
unprotected crop. In general, the color, size and quality of apples
harvested are expected to be good. The national average yield for MY
2003/04 is forecast at 8 MT/Ha. Yields in Chihuahua are forecast at 13.6
MT/ha. The production estimate for MY 2002/03 was revised upward based
on preliminary official estimates and better-than-expected yields, due
to good weather conditions. Non-commercial production for MY 2002/03 was
revised downward as some areas were converted either to commercial
planting areas or uprooted. Chihuahua, Coahuila and Durango account for
80 percent of total Mexican apple production. Production data for MY
2001/02 remains unchanged.

Area planted for MY 2003/04 is forecast to increase slightly because
Chihuahua is increasing area planted. Some large growers in the northern
states are optimistic, due to the higher prices achieved for domestic
apples in the market as a result of the antidumping duty on U.S. apples.
Therefore, growers are planting some new areas or renewing old orchards.
However the planting rate almost offsets the uprooting rate in
Chihuahua. Growers indicate, however, that increasing costs of
production, and tight credit, could restrict future expansion. Yields
are forecast to continue increasing, due to increased density in planted
areas. To remain competitive, some old orchards are being replaced with
higher-yielding and higher-density apple trees (600 trees per hectare or
more), using new technology and irrigation systems. According to
growers, almost 70 percent of the area in Chihuahua is planted with the
Golden Delicious variety, and 30 percent with Red Delicious variety. The
Gala variety area comprises less than 5 percent of the total planted
area in Chihuahua. According to growers, high-density varieties account
for approximately 20 percent of Chihuahua's planted area. The remainder
of the apple producing areas is planted at the more traditional 200
trees per hectare. Most areas in Chihuahua are irrigated. Data for area
planted and harvested for MY 2002/03 was updated based on preliminary
official data. Official area planted and harvested for MY 2001/02
remains unchanged.

Grower prices for Red and Golden Delicious apples in Chihuahua were
about \$4 to \$4.50 pesos/kg (US\$0.40 to \$0.44/kg) during MY 2002/03,
and growers expect similar prices for MY 2003/04. Costs of production
range from \$22,000 to \$35,000 pesos/Ha. (US\$2,095 to \$3,333/Ha).
This cost will depend on whether growers have frost protection
equipment, hail protection equipment, and new irrigation systems.
According to producers, packing costs, which depend on imported inputs,
have increased more than 10 percent, due to the peso's depreciation
against the U.S. dollar.

## CONSUMPTION

Apple consumption for MY 2003/04 is forecast at 556,000 MT. Although
good demand is expected, the antidumping duties imposed on U.S. Red and
Golden Delicious apples, in August 2002, will result in fewer (compared
to pre-2002/03 levels) U.S. apples available in the market at affordable
prices. The apple consumption estimate for MY 2002/03 was revised
upward, based on higher-than-expected demand. MY 2001/02 consumption
remains unchanged. According to growers, apples for processing for MY
2003/04 will be approximately 90,000 MT, but the final amount will
depend upon international prices for concentrated apple juice, which
have not been favorable. Apple supplies for processing for MY 2001/02
and 2002/03 remain unchanged.

The new apple crop in Chihuahua is expected to hit the market by the
beginning of September. Domestic apple production competes heavily from
January to March with other fruits like mango and papaya. U.S. apple
imports dominated the market after April 2003 despite higher prices than
the domestic ones, and higher prices compared to 2002, due to the
antidumping duty. Wholesale prices for U.S. Red Delicious apples began
at an average price of approximately US\$25.09 per 18/kg box in March
2003, and ended at US\$23.14 per box by the end of August 2003. Retail
prices were about 62 percent above the wholesale prices, mainly during
September/October 2002. A kilogram of imported apples in the large
supermarkets were priced on average at \$22 to \$24 pesos (US\$2.07 to
\$2.26/kg). Prices for domestic apples for MY 2003/04 are expected to
continue to be high.

## TRADE

Apple imports for MY 2003/04 are forecast slightly higher at 156,000 MT.
Imported apples from the United States decreased due to the antidumping
duties imposed on U.S. Red and Golden Delicious apples in August, 2002
(see report MX2120), and, if the same duty continues, growth of imported
U.S. apples is expected to continue to be slow. Another factor that
could affect fruit imports is the weakness of the Mexican peso versus
the U.S. dollar. Although the peso's depreciation against the U.S.
dollar has been gradual, importers are always cautious in avoiding
exchange-rate risks and will tend to limit the volume of apples they
import at any one time. Other U.S. states, like Virginia, exported Rome
Beauty apples during February and March 2003. Since this variety is not
subject to the antidumping duty, they were more affordable, but the
smaller sizes hampered consumer acceptance.

Apple imports for MY 2002/03 were revised upward to 155,000 MT, based on
increased demand. Available data show that Chilean and Canadian apples
have gained more market share, due to the void left by the U.S. apples.
The estimate for MY 2001/02 remains unchanged.

Red and Golden Delicious varieties continue to account for almost all
U.S. apple exports to Mexico. While Mexican consumers like the size and
color of U.S. apples, Mexican apples are said to be sweeter. The U.S.
apple industry will continue to face strong competition from other
countries, especially Chile. Apples from Argentina and South Africa
continue to be imported, but are still not significant.

## POLICY

The NAFTA safeguards for United States and Canadian apples were
completely lifted as of January 1, 2003, bringing the duty to zero. For
Chilean apples, the 2003 import quota will be 2,621.4 MT at the
low-tariff rate of 5% and a snapback of 23%. Apples from other countries
are subject to a 20% duty.

## MARKETING

Despite the imposition of anti-dumping duties, the United States is
expected to remain the main apple supplier to the Mexican market. The
U.S. apple industry's continued market and in-store promotion efforts
have significantly contributed to creating a market for U.S. apples in
Mexico. However, due to the imposition of antidumping duties and the
subsequent decrease in the volume of U.S. apple imports since the last
quarter of 2002, promotion efforts have been limited. On the other hand,
fruit importers are expecting Chile to send larger volumes of apples now
that U.S. apples will have a lower presence in the Mexican market.

Mexican consumers still prefer the Red and Golden Delicious varieties
more than any others. Commercially, these two varieties have a
competitive advantage over other varieties because of their longer shelf
life. Another variety widely demanded by consumers is the Rome Beauty,
which is mainly used for baking and cooking. The Royal Gala has become
more attractive to the Mexican consumer and is being sold in most
supermarkets. Moreover, the Chilean producers are also marketing Royal
Gala in Mexico.

Mexican producers continue doing market promotions and are advertising
Mexican apples on the radio and certain TV spots. Chilean producers have
been working aggressively to penetrate the Mexican market and have
introduced several varietal characteristics in an effort to target
different population groups. Their promotion strategy focuses on price
more than on quality. According to traders, Chile is investing in
in-store demonstrations and advertisements. Argentina and South Africa
continue to export as well. According to traders, other countries like
France and China continue to show an interest in the Mexican fruit
market.

# CONCENTRATED APPLE JUICE

## PRODUCTION AND TRADE

Reliable concentrated apple juice (CAJ) production numbers are difficult
to obtain as there is no Mexican statistical data available. Industry
tends to keep partial information, most of which is proprietary.
According to industry sources, there are about nine primary processing
plants in Mexico, of which the most important are four plants in
Chihuahua. The industry indicated that the entry of China\'s CAJ into
the U.S. market reduced Mexico's market share. The industry indicates
there are difficulties in obtaining fruit at affordable prices. Fruit
for the processing industry for MY 2003/04 is expected to be at
US\$93.45 per MT. However, since 2003 crop fruit damage is small, prices
for fruit for processing could go higher. During MY 2002/03 some
processing plants in Chihuahua could only afford to pay about US\$47 per
MT and were unable to get fruit, other plants payed higher prices near
US\$90 per MT. According to the industry, the amount of apples destined
for processing for MY 2003/04 will continue at the same level as in
other years. There is no information available on CAJ production, but it
is expected to continue at low levels, unless international prices
increase. Fruit for the processing industry is forecast at about 90,000
MT for MY 2003/04, the same level as in MY 2001/02 and 2002/03.
Reportedly, few plants worked during MY 2002/03.

The United States is Mexico's largest CAJ market. According to Mexican
trade data, CY 2002 exports show a decrease in Mexican exports of CAJ to
the United States, due to low international prices. However, U.S. trade
data differs and shows the reverse \-- a slight increase in Mexican CAJ
exports to the United States. This difference may be a result of the
adjustment in the Mexican tariff categories (see report MX 2120). Three
processing plants in Chihuahua are geared towards the export market and
they normally export 80 percent of their total CAJ production to the
United States. Although Mexico traditionally imports little CAJ, imports
are increasing because of low international prices.

# PEAR

## PRODUCTION

Pear production in Mexico is not very significant, thus periodic data is
not available from the Mexican government. Total pear production in
Mexico for MY 2003/04 (July/June) is forecast at 32,500 MT, a slight
increase compared to MY 2002/03. Although there has been good weather,
production is not expected to increase much, as growers are not
investing much in this crop. Approximately 85 percent of the area
planted in Mexico is non-irrigated. Rainfall was good during the growing
season. Overall, pear area planted and harvested has declined. The lack
of financial support, high costs of production, scarce water supplies in
pear producing regions, and disease problems have resulted in an almost
stagnant industry. Some growers, however, have begun to experiment with
planting more disease-resistant and long shelf-life varieties. Growers
indicated that, unless more credit becomes available, area planted for
MY 2003/04 will be forecast at 4,800 has. Michoacan and Puebla are
Mexico's main pear producing states, accounting for 75 percent of total
Mexican production.

Pear production estimates for MY 2002/03 were revised downward based on
official estimates, reflecting some weather related problems in
Michoacan where yields were slightly down. Planting and harvesting data
have also been revised downward, according to recent estimates.
Michoacan decreased non-irrigated area planted due to low yields. Pear
production for MY 2000/01 remains unchanged.

## CONSUMPTION

Domestic supply continues to rely on imports, mainly from the United
States, because Mexican pear production is minimal and not expanding.
Pear consumption for MY 2003/04 is forecast at 122,500 MT. However, if
fewer apples are available in the market as a result of the effect of
anti-dumping duties imposed on U.S. Red and Golden Delicious apples,
more pears could be consumed instead. Pear consumption estimates for MY
2002/03 were revised downward because of higher prices and a lower
demand. Consumption estimates for MY 2001/02 remain unchanged.

U.S. wholesale pear prices have increased since January 2003 and
remained high until the end of the season at approximately US\$24 to
US\$30 per 20 kg box. Chilean pears were priced similarly by the end of
July 2003. Pears from Argentina averaged US\$23 to \$25 per box. Traders
report that pear imports have been steady despite slightly higher
prices, but that sales have been slow. Mexicans prefer the Anjou variety
followed by the Bartlett variety. The remaining varieties of pears are
not yet in high demand by consumers in Mexico.

## TRADE

Pear imports for MY 2003/04 are forecast to increase to 92,000 MT.
According to traders, the depreciation of the peso against the U.S.
dollar could affect trade of imported pears. However, good demand is
still expected. Pear import estimates for MY 2002/03 were revised
upward, due to better-than-expected demand. Also, the void left by
imported U.S. apples was partly filled with pears. U.S. Bartlett pears
are usually imported during July, August and September, while U.S. Anjou
pears are imported toward the end of September and October. The pear
import estimate for MY 2001/02 remains unchanged. The presence of
Chilean pears is still not very significant in the Mexican market, but
they are of fair to good quality and were priced lower than U.S. pears
in 2003. Under the different trade agreements, the import duty on pears
from the U.S., Chile, and Argentina is zero. Exports from Argentina are
expected to continue to be low.

## MARKETING

The United States remains Mexico's main pear supplier. Market promotion
efforts for U.S. pears continue in several Mexican cities, supermarkets
and street markets. According to traders, in-store promotions have
helped to increase sales. Most of the imported pears are from
Washington, Oregon and California. Of total imports, U.S. pears account
for approximately 94 percent of the market, while Chilean pears
represent approximately 5 percent.

Due to limited production, Mexican pears are almost exclusively sold
through local, small markets; very few are sold through supermarkets.
One of the Mexican pear varieties which consumers like is the Kiefer
variety, better known as Pera Piña. Low production, however, keeps it
from having an impact on market preferences.

# 

# TABLE GRAPES

## PRODUCTION

Total table grape production for MY 2004 (Jan/Dec) is forecast at
178,300 MT, a slight decrease compared to MY 2003 production, because MY
2003 enjoyed excellent weather conditions that might not be repeated in
MY 2004. Total production, however, is difficult to determine since
price relationships between table grapes, raisin grapes, and industrial
grapes in any given period might attract more grapes into or out of each
market. Table grape production for MY 2003 was revised downward from
previous estimates to 182,000 MT. Due to excellent weather conditions,
producers in Sonora had an earlier start in harvesting and good yields.

Area planted and harvested for MY 2004 is forecast to grow. Sonora is
expected to continue increasing area planted, due to attractive
international prices. Area planted for MY 2003 was revised downward
based on official estimates, but still reflects an increase compared to
MY 2002. Area harvested for MY 2003 was revised upward based on official
sources, as new grape areas started to produce commercially Area planted
and harvested estimates for MY 2002 reflect recent official data. All
area for table grapes is irrigated.

The state of Sonora accounts for almost 70 percent of the total area
planted to table grapes. However, lack of water still limits larger
expansions. The national average yield forecast for MY 2004 is expected
at 9.8 MT/Ha but is dependent on cultural practices. The national
average yield for MY 2003 is estimated at 10.0 MT/Ha. Sonora has an
average yield of 12 MT/Ha. According to producers, the cost of
production in Sonora for 2003 was between US\$5,000/Ha and US\$7,000/Ha,
depending on inputs. Producers indicate that expansion is limited mainly
by low water availability from aquifers in Sonora. As a result,
producers are trying to become more efficient by increasing yields
instead of increasing acreage. The high cost of production and high
interest rates for credit also limit table grape expansion. In fact,
producers state that the only credit to which they have access comes
from U.S. brokers and distributors, who give them advance payments for
harvesting and packing table grapes.

## CONSUMPTION

Table grape consumption for MY 2004 is forecast at 146,300 MT. Table
grapes will keep on selling as long as prices continue to be affordable.
However, the weakness of the Mexican peso versus the U.S. dollar will
increase the prices of imported product and thus affect consumer
purchasing power. The consumption estimate for MY 2003 was revised
downward from previous estimates, because of reduced consumer purchasing
power. However, it still reflects an increase compared to MY 2002
consumption. Consumption estimates for MY 2002 were revised downward
because of more grapes being diverted to the export market. Wholesale
prices for domestic Perlette grapes began in June 2003 at approximately
US\$8.40/10 kg box, lower than the June 2002 prices of US\$9.10/10 kg
box. Domestic prices remained more or less similar during the season.
Imported Red Globe grapes in June 2003 were U.S.\$11.77/ 9 kg box. The
Thompson variety is the most widely sold in Mexico because consumers
prefer seedless grapes. Following this variety in consumer preference is
the Red Globe and the Superior varieties.

## TRADE

Table grape imports for MY 2004 are forecast at 100,000 MT. According to
traders, the depreciation of the peso versus the U.S. dollar will affect
trade of imported grapes. However, good demand is still expected. U.S.
and Chilean imports have a zero duty and both countries continue to
increase exports to the Mexican market. Imports for MY 2003 were revised
upward, due to better-than-expected demand. According to traders, U.S.
promotional efforts to export table grape varieties to Mexico other than
Red Globe or Thompson, are resulting in increased sales. Table grape
import estimates for MY 2002 were revised upward based on Mexican trade
data. U.S. table grapes can only be imported from California, due to
Mexico's phytosanitary restrictions on table grapes from other U.S.
states.

According to producers, table grape exports for MY 2004 are forecast at
132,000 MT, assuming that international demand continues to be good.
Exports for MY 2002 and 2003 were revised upward, due to good demand
from the international market and an earlier harvest and access to the
international market. Most of Mexico's table grapes are exported to the
U.S. Growers indicated that export f.o.b. prices at the beginning of the
season, May 2003, were about US\$28/10 kg box of perlettes and about
US\$22/box of flame seedless; however prices plummeted at the end of May
to approximately US\$12/box. Mexican export prices usually range between
US\$14 and \$16/box.

U.S. and Chilean table grape production seasons differ and there is no
important direct competition between grapes from these countries. U.S.
suppliers export to Mexico from January to February and from August to
December, before and after the Mexican season. Chile usually exports
from January to April and from June to July. Under the Mexico-Chile Free
Trade Agreement, Chilean table grapes are duty free from January 1 to
April 14, and from June 1 to December 31. Mexican importers must obtain
an import permit from April 15 to May 31.

The Mexico -- European Union (EU) Trade Agreement, signed in 2000, has a
duty rebate wherein the grape tariff on Mexican table grapes exported to
the EU will be reduced from 12.6 % to zero by 2008. However, Mexico has
not been able to take advantage of this agreement, since most of its
grapes are being exported to the U.S.

## MARKETING

The Unites States is expected to remain Mexico's main supplier of table
grapes, largely as a result of market promotion efforts by the U.S.
table grape exporters. U.S. promotional efforts of different table grape
varieties have resulted in an increase of imports into the Mexican
market. Chile, on the other hand, puts very limited resources into
promoting its grapes in Mexico.

# SECTION II. STATISTICAL TABLES

## Apples, PS&D Tables

  ------------------ ---------- ---------- ---------- ------------ ---------- ----------
  PSD Table                                                                   

  Country            Mexico                                                   

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

                     2001                  2002                    2003       
                     Revised               Estimate                Forecast   

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

  Market Year Begin  08/2001               08/2002                 08/2003    

  Area Planted       62395      62395      62500      62475        0          63500

  Area Harvested     60997      60997      60600      60890        0          61500

  Bearing Trees      13724      13724      13635      13700        0          13837

  Non-Bearing Trees  314        314        427        356          0          450

  Total Trees        14038      14038      14062      14056        0          14287

  Commercial         434679     434679     457000     472616       0          483000
  Production                                                                  

  Non-Comm.          8000       8000       8000       7000         0          7000
  Production                                                                  

  TOTAL Production   442679     442679     465000     479616       0          490000

  TOTAL Imports      189581     189581     112000     155000       0          156000

  TOTAL SUPPLY       632260     632260     577000     634616       0          646000

  Domestic Fresh     542260     542260     487000     544616       0          556000
  Consump                                                                     

  Exports, Fresh     0          0          0          0            0          0
  Only                                                                        

  For Processing     90000      90000      90000      90000        0          90000

  Withdrawal From    0          0          0          0            0          0
  Market                                                                      

  TOTAL UTILIZATION  632260     632260     577000     634616       0          646000
  ------------------ ---------- ---------- ---------- ------------ ---------- ----------

## Pears, PS&D Table

  ------------------ ---------- ---------- ---------- ------------ ---------- ------------
  PSD Table                                                                   

  Country            Mexico                                                   

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

                     2001                  2002                    2003       
                     Revised               Estimate                Forecast   

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

  Market Year Begin  07/2001               07/2002                 07/2003    

  Area Planted       4892       4892       4900       4820         0          4800

  Area Harvested     4858       4858       4860       4683         0          4750

  Bearing Trees      1015       1015       1018       979          0          992

  Non-Bearing Trees  7          7          8          28           0          10

  Total Trees        1022       1022       1026       1007         0          1002

  Commercial         31468      31468      32000      30951        0          31500
  Production                                                                  

  Non-Comm.          1500       1500       1500       1000         0          1000
  Production                                                                  

  TOTAL Production   32968      32968      33500      31951        0          32500

  TOTAL Imports      89436      89436      89500      91000        0          92000

  TOTAL SUPPLY       122404     122404     123000     122951       0          124500

  Domestic Fresh     120404     120404     121000     120951       0          122500
  Consump                                                                     

  Exports, Fresh     0          0          0          0            0          0
  Only                                                                        

  For Processing     2000       2000       2000       2000         0          2000

  Withdrawal From    0          0          0          0            0          0
  Market                                                                      

  TOTAL UTILIZATION  122404     122404     123000     122951       0          124500
  ------------------ ---------- ---------- ---------- ------------ ---------- ------------

## Table Grape, PS&D Table

  ------------------- ---------- ---------- ---------- ---------- ---------- ----------
  PSD Table                                                                  

  Country             Mexico                                                 

  Commodity           Fresh                            (HA)(MT)              
                      Table                                                  
                      Grapes                                                 

                      2001                  2002                  2003       
                      Revised               Estimate              Forecast   

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

  Market Year Begin   01/2002               01/2003               01/2004    

  Area Planted        20700      18178      21000      18700      0          19000

  Area Harvested      17600      17817      17700      18100      0          18200

  Commercial          198200     173942     188000     180200     0          176500
  Production                                                                 

  Non-Comm.           2000       2000       1800       1800       0          1800
  Production                                                                 

  TOTAL Production    200200     175942     189800     182000     0          178300

  TOTAL Imports       83000      96820      87000      97000      0          100000

  TOTAL SUPPLY        283200     272762     276800     279000     0          278300

  Domestic Fresh      159200     143751     166800     147000     0          146300
  Consump                                                                    

  Exports, Fresh Only 124000     129011     110000     132000     0          132000

  For Processing      0          0          0          0          0          0

  Withdrawal From     0          0          0          0          0          0
  Market                                                                     

  TOTAL UTILIZATION   283200     272762     276800     279000     0          278300
  ------------------- ---------- ---------- ---------- ---------- ---------- ----------

## Trade Matrix Apples 

## 

  ----------------- ----------- ----- ----------------- ------------- -----
  Apples                              **Unit: Metric                  
                                      Tons**                          

  **Exports for MY                    **Imports for MY                
  2002                                2002 *(Aug-Jul*                 
  *(Aug-Jul****)*                     from:**                         
  **to:**                                                             

  **U.S.**          **2**             **U.S.**          **151,609**   

                                                                      

  **BELIZE**        **.5**            **CHILE**         **30,171**    

  **OTHER**         **0**             **OTHER**         **6,003**     

  **TOTAL**         **2.5**           **TOTAL**         **187,783**   
  ----------------- ----------- ----- ----------------- ------------- -----

  ----------------- ----------- ----- ----------------- ------------- -----
  Apples                              **Unit: Metric                  
                                      Tons**                          

  **Exports for MY                    **Imports for MY                
  2003                                2003                            
  *(Aug-Jul****)*                     *(Aug-Jul****)*                 
  **to:**                             **from:**                       

  **U.S.**          **0**             **U.S.**          **101,026**   

                                                                      

  **EL SALVADOR**   **21**            **CHILE**         **36,037**    

  **OTHER**         **0**             **OTHER**         **10,938**    

  **TOTAL**         **21**            **TOTAL**         **148,046**   
  ----------------- ----------- ----- ----------------- ------------- -----

**SOURCE**: Global Trade Information Services, Inc. World Trade Atlas,
Mexico Edition, May 2003.

Note: Figures for MY 2003 as of May 31, 2003.

## Trade Matrix Pears 

## 

  ----------------- ----------- ----- ----------------- ------------ -----
  **Pears**                           **Unit: Metric                 
                                      Tons**                         

  **Exports for MY                    **Imports for MY               
  2002                                2002 *(Aug-Jul*                
  *(Aug-Jul****)*                     from:**                        
  **to:**                                                            

  **U.S.**          **58**            **U.S.**          **82,361**   

                                                                     

  **EL SALVADOR**   **15**            **CHILE**         **4,654**    

  **OTHER**         **0**             **OTHER**         **2,289**    

  **TOTAL**         **73**            **TOTAL**         **89,304**   
  ----------------- ----------- ----- ----------------- ------------ -----

  ----------------- ----------- ----- ----------------- ------------ -----
  Pears                               **Unit: Metric                 
                                      Tons**                         

  **Exports for MY                    **Imports for MY               
  2003                                2003                           
  *(Aug-Jul****)*                     *(Aug-Jul****)*                
  **to:**                             **from:**                      

  **U.S.**          **56**            **U.S.**          **80,290**   

                                                                     

  **EL SALVADOR**   **8**             **CHILE**         **3,147**    

  **OTHER**         **1**             **OTHER**         **1,917**    

  **TOTAL**         **65**            **TOTAL**         **85,354**   
  ----------------- ----------- ----- ----------------- ------------ -----

**SOURCE**: Global Trade Information Services, Inc. World Trade Atlas,
Mexico Edition, May 2003.

## Trade Matrix Table Grapes

  ----------------- ------------- ----- ----------------- ------------ -----
  **Table grapes**                      **Unit: Metric                 
                                        Tons**                         

  **Exports for MY                      **Imports for MY               
  2002                                  2002 *(Jan-Dec)*               
  *(Jan-Dec****)*                       from:**                        
  **to:**                                                              

  **U.S.**          **127,831**         **U.S.**          **56,909**   

                                                                       

  **EL SALVADOR**   **234**             **CHILE**         **39,911**   

  **OTHER**         **946**             **OTHER**         **0**        

  **TOTAL**         **129,011**         **TOTAL**         **96,820**   
  ----------------- ------------- ----- ----------------- ------------ -----

  ----------------- ------------ ----- ----------------- ------------ -----
  **Table grapes**                     **Unit: Metric                 
                                       Tons**                         

  **Exports for MY                     **Imports for MY               
  2003                                 2003 *(Jan-Dec)*               
  *(Jan-Dec****)*                      from:**                        
  **to:**                                                             

  **U.S.**          **56,783**         **U.S.**          **3,241**    

                                                                      

  **CANADA**        **30**             **CHILE**         **40,502**   

  **OTHER**         **0**              **OTHER**                      

  **TOTAL**         **56,813**         **TOTAL**         **43,743**   
  ----------------- ------------ ----- ----------------- ------------ -----

**SOURCE**: Global Trade Information Services, Inc. World Trade Atlas,
Mexico Edition, May 2003.

Note: Figures for MY 2003 as of May 31, 2003.

## Apple Price

+--------------+---------------+---------------+----------------------+
| **[Average   |               |               |                      |
| Monthly      |               |               |                      |
| Wholesale    |               |               |                      |
| Apple Import |               |               |                      |
| Prices]{.    |               |               |                      |
| smallcaps}** |               |               |                      |
|              |               |               |                      |
| **[Red       |               |               |                      |
| Delicious    |               |               |                      |
| Pesos        |               |               |                      |
| /kilogram]{. |               |               |                      |
| smallcaps}** |               |               |                      |
+--------------+---------------+---------------+----------------------+
| Month        | 2002          | 2003          | Change %             |
+--------------+---------------+---------------+----------------------+
| January      |               |               |                      |
+--------------+---------------+---------------+----------------------+
| February     | 10.96         |               |                      |
+--------------+---------------+---------------+----------------------+
| March        | 10.85         | 14.87         | 37.05                |
+--------------+---------------+---------------+----------------------+
| April        | 11.77         | 14.66         | 24.55                |
+--------------+---------------+---------------+----------------------+
| May          | 13.61         | 14.78         | 8.60                 |
+--------------+---------------+---------------+----------------------+
| June         | 12.38         | 14.44         | 16.64                |
+--------------+---------------+---------------+----------------------+
| July         | 13.11         | 14.35         | 9.45                 |
+--------------+---------------+---------------+----------------------+
| August       | 13.16         | 14.16         | 6.83                 |
+--------------+---------------+---------------+----------------------+
| September    | 13.33         |               |                      |
+--------------+---------------+---------------+----------------------+
| October      |               |               |                      |
+--------------+---------------+---------------+----------------------+
| November     |               |               |                      |
+--------------+---------------+---------------+----------------------+
| December     |               |               |                      |
+--------------+---------------+---------------+----------------------+
| CIF-Mexico   |               |               |                      |
| City         |               |               |                      |
+--------------+---------------+---------------+----------------------+

+--------------+---------------+---------------+----------------------+
| **[Average   |               |               |                      |
| Monthly      |               |               |                      |
| Wholesale    |               |               |                      |
| Apple        |               |               |                      |
| Domestic     |               |               |                      |
| Prices]{.    |               |               |                      |
| smallcaps}** |               |               |                      |
|              |               |               |                      |
| **[Red       |               |               |                      |
| Delicious    |               |               |                      |
| Pesos        |               |               |                      |
| /kilogram]{. |               |               |                      |
| smallcaps}** |               |               |                      |
+--------------+---------------+---------------+----------------------+
| Month        | 2002          | 2003          | Change %             |
+--------------+---------------+---------------+----------------------+
| January      | 9.13          | 10.98         | 20.26                |
+--------------+---------------+---------------+----------------------+
| February     | 8.96          | 11.05         | 63.62                |
+--------------+---------------+---------------+----------------------+
| March        |               |               |                      |
+--------------+---------------+---------------+----------------------+
| April        |               |               |                      |
+--------------+---------------+---------------+----------------------+
| May          |               |               |                      |
+--------------+---------------+---------------+----------------------+
| June         |               |               |                      |
+--------------+---------------+---------------+----------------------+
| July         |               |               |                      |
+--------------+---------------+---------------+----------------------+
| August       |               |               |                      |
+--------------+---------------+---------------+----------------------+
| September    | 11.93         |               |                      |
+--------------+---------------+---------------+----------------------+
| October      | 11.66         |               |                      |
+--------------+---------------+---------------+----------------------+
| November     | 10.55         |               |                      |
+--------------+---------------+---------------+----------------------+
| December     | 11.00         |               |                      |
+--------------+---------------+---------------+----------------------+
| CIF-Mexico   |               |               |                      |
| City         |               |               |                      |
+--------------+---------------+---------------+----------------------+

Source: Sevicio Nacional de Informacion de Mercados

2002 Exchange Rate Avg.: U.S.\$1.00 = 9.82 pesos

Aug 1, 2003 Exchange Rate: U.S.\$1.00 = 10.52 pesos

Shaded area indicates that prices for domestic apples were not
available.

## Table Grape Prices

+-----------------+---------------+------------------+-----------------+
| **[Average      |               |                  |                 |
| Monthly         |               |                  |                 |
| Wholesale Grape |               |                  |                 |
| Import          |               |                  |                 |
| Prices          |               |                  |                 |
| ]{.smallcaps}** |               |                  |                 |
|                 |               |                  |                 |
| **[Globe        |               |                  |                 |
| Pesos/kilogram  |               |                  |                 |
| ]{.smallcaps}** |               |                  |                 |
+-----------------+---------------+------------------+-----------------+
| Month           | 2002          | 2003             | Change %        |
+-----------------+---------------+------------------+-----------------+
| January         | 19.88         | 15.93            | (19.87)         |
+-----------------+---------------+------------------+-----------------+
| February        | 17.72         | 15.00            | (15.35)         |
+-----------------+---------------+------------------+-----------------+
| March           | 13.70         | 15.08            | 10.07           |
+-----------------+---------------+------------------+-----------------+
| April           | 12.77         | 15.32            | 19.97           |
+-----------------+---------------+------------------+-----------------+
| May             | 12.22         | 14.57            | 19.23           |
+-----------------+---------------+------------------+-----------------+
| June            | 15.55         | 13.82            | (11.13)         |
+-----------------+---------------+------------------+-----------------+
| July            | N/A           | 15.91            | N/A             |
+-----------------+---------------+------------------+-----------------+
| August          | 18.33         | 18.30            | (0.16)          |
+-----------------+---------------+------------------+-----------------+
| September       | 15.00         |                  |                 |
+-----------------+---------------+------------------+-----------------+
| October         | 14.59         |                  |                 |
+-----------------+---------------+------------------+-----------------+
| November        | 13.81         |                  |                 |
+-----------------+---------------+------------------+-----------------+
| December        | 17.78         |                  |                 |
+-----------------+---------------+------------------+-----------------+
| CIF-Mexico City |               |                  |                 |
+-----------------+---------------+------------------+-----------------+

Source: Sevicio Nacional de Informacion de Mercados

2002 Exchange Rate Avg.: U.S.\$1.00 = 9.82 pesos

Aug 1, 2003 Exchange Rate: U.S.\$1.00 = 10.52 pesos

**Shaded area indicates that prices were not available**

+--------------+---------------+---------------+----------------------+
| [**Average   |               |               |                      |
| Monthly      |               |               |                      |
| Wholesale    |               |               |                      |
| Grape        |               |               |                      |
| Domestic     |               |               |                      |
| P**rices]    |               |               |                      |
| {.smallcaps} |               |               |                      |
|              |               |               |                      |
| **[Perlette  |               |               |                      |
| Pesos        |               |               |                      |
| /kilogram]{. |               |               |                      |
| smallcaps}** |               |               |                      |
+--------------+---------------+---------------+----------------------+
| Month        | 2002          | 2003          | Change %             |
+--------------+---------------+---------------+----------------------+
| January      |               |               |                      |
+--------------+---------------+---------------+----------------------+
| February     |               |               |                      |
+--------------+---------------+---------------+----------------------+
| March        |               |               |                      |
+--------------+---------------+---------------+----------------------+
| April        |               |               |                      |
+--------------+---------------+---------------+----------------------+
| May          |               |               |                      |
+--------------+---------------+---------------+----------------------+
| June         | 9.00          | 8.95          | (0.56)               |
+--------------+---------------+---------------+----------------------+
| July         | 8.75          | 8.81          | 0.69                 |
+--------------+---------------+---------------+----------------------+
| August       | 8.87          |               |                      |
+--------------+---------------+---------------+----------------------+
| September    |               |               |                      |
+--------------+---------------+---------------+----------------------+
| October      |               |               |                      |
+--------------+---------------+---------------+----------------------+
| November     |               |               |                      |
+--------------+---------------+---------------+----------------------+
| December     |               |               |                      |
+--------------+---------------+---------------+----------------------+
| CIF-Mexico   |               |               |                      |
| City         |               |               |                      |
+--------------+---------------+---------------+----------------------+

Source: Sevicio Nacional de Informacion de Mercados

2002 Exchange Rate Avg.: U.S.\$1.00 = 9.82 pesos

Aug 1, 2003 Exchange Rate: U.S.\$1.00 = 10.52 pesos

## Pear Prices

+---------------+----------------+----------------+--------------------+
| **[Average    |                |                |                    |
| Monthly       |                |                |                    |
| Wholesale     |                |                |                    |
| Pear Import   |                |                |                    |
| Prices]{      |                |                |                    |
| .smallcaps}** |                |                |                    |
|               |                |                |                    |
| **[D'anjou    |                |                |                    |
| Pes           |                |                |                    |
| os/kilogram]{ |                |                |                    |
| .smallcaps}** |                |                |                    |
+---------------+----------------+----------------+--------------------+
| Month         | 2002           | 2003           | Change %           |
+---------------+----------------+----------------+--------------------+
| January       | 11.26          | 12.20          | 8.35               |
+---------------+----------------+----------------+--------------------+
| February      | 10.82          | 12.78          | 18.11              |
+---------------+----------------+----------------+--------------------+
| March         | 11.11          | 13.29          | 19.62              |
+---------------+----------------+----------------+--------------------+
| April         | 11.80          | 13.33          | 12.97              |
+---------------+----------------+----------------+--------------------+
| May           | 12.12          | 12.93          | 6.68               |
+---------------+----------------+----------------+--------------------+
| June          | 12.05          | 15.20          | 26.14              |
+---------------+----------------+----------------+--------------------+
| July          | 13.64          | 16.67          | 22.21              |
+---------------+----------------+----------------+--------------------+
| August        | 14.90          | 17.22          | 15.50              |
+---------------+----------------+----------------+--------------------+
| September     |                |                |                    |
+---------------+----------------+----------------+--------------------+
| October       | 12.78          |                |                    |
+---------------+----------------+----------------+--------------------+
| November      | 12.35          |                |                    |
+---------------+----------------+----------------+--------------------+
| December      | 12.11          |                |                    |
+---------------+----------------+----------------+--------------------+
| CIF-Mexico    |                |                |                    |
| City          |                |                |                    |
+---------------+----------------+----------------+--------------------+

Source: Sevicio Nacional de Informacion de Mercados

2002 Exchange Rate Avg.: U.S.\$1.00 = 9.82 pesos

Aug 1, 2003 Exchange Rate: U.S.\$1.00 = 10.52 pesos

Shaded area indicates that prices for imported pears were not available.

## Tariffs for Chile

+-----------------------+---------+-------------+--------+-----------+
| **TARIFF REDUCTION    |         |             |        |           |
| SCHEDULE**            |         |             |        |           |
|                       |         |             |        |           |
| **-CHILEAN APPLES,    |         |             |        |           |
| PEARS & GRAPES-**     |         |             |        |           |
+-----------------------+---------+-------------+--------+-----------+
|                       |         |             |        |           |
+-----------------------+---------+-------------+--------+-----------+
| *                     | **[     |             | **[Pe  | **[Gra    |
| *[Year]{.smallcaps}** | Apples] |             | ars]{. | pes]{.sma |
|                       | {.small |             | smallc | llcaps}** |
|                       | caps}** |             | aps}** |           |
+-----------------------+---------+-------------+--------+-----------+
|                       | *       | **TRQ       | **     | **Duty    |
|                       | *Duty** | (MT)**      | Duty** | ^/d^**    |
+-----------------------+---------+-------------+--------+-----------+
| 1998                  | 13.3%   | 2,156.7     | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+
| 1999                  | 11.7%   | 2,200.0     | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+
| 2000                  | 10.0%   | 2,26        | 0%     | 0%        |
|                       |         | 4.5^/**f**^ |        |           |
+-----------------------+---------+-------------+--------+-----------+
| 2001                  | 8.3%    | 2,377.7     | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+
| 2002                  | 6.7%    | 2,496.6     | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+
| 2003                  | 5.0%    | 2,621.4     | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+
| 2004                  | 3.3%    | 2,752.4     | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+
| 2005                  | 1.7%    | 2,890.0     | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+
| Starting 1/1/2006     | 0.0%    | 0^/**g**^   | 0%     | 0%        |
+-----------------------+---------+-------------+--------+-----------+

**Source: Office of Agricultural Affairs based on information from
Mexico's *Diario Oficial* (Federal Register) published on July 28,
1999.**

> **^/d^** Grape imports made between January 1 to April 14, and June 1
> to December 31 are duty free Imports, from April 15 to May 31 must
> have an import permit to be duty free.
>
> **^/f^** Initial TRQ that will be incremented on an annual basis five
> percent up from the previous figure starting on 2000 up to 2005
> inclusive.
>
> **^/g^** Starting on January 1^st^. 2006, imports of Chilean fresh
> apples will be duty free and not subjected to TRQ quotas.