Voluntary Report - public distribution

**Date:** 9/29/2008

**GAIN Report Number:** CH8085

CH8085

**China, Peoples Republic of**

**Canned Deciduous Fruit**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)William Westman

AGBEIJING

**Prepared by:**

Chanda Beckman, Wu Bugang and Freddie Xu

**Report Highlights:**

Canned peach production is forecast at 372,500 MT in MY 2008, up 23
percent from the previous year, due to growing demand in both the
domestic and international markets. An abundant supply of fresh yellow
peaches has kept farm gate prices roughly unchanged from last year,
despite significant increases in production costs. Domestic consumption
of canned yellow peaches continues to grow steadily at a rate of more
than 20 percent a year in China, while consumption of other canned
fruits remains moderate. China's exports of canned peaches are forecast
at 180,000 MT in MY 2008, up 20 percent from the revised estimate for
the previous year. The United States remains the largest buyer of
Chinese canned yellow peaches, canned pears, and canned mixed fruit.
China imports small quantities of canned yellow peaches for use in the
baking industry and for high-end consumers.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

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

[Production 3](#production)

[Consumption 4](#consumption)

[Trade 4](#trade)

[Exports 4](#exports)

[Imports 5](#imports)

[Policy 5](#policy)

[Marketing 5](#marketing)

[Product 5](#product)

[Packaging 6](#packaging)

[Pricing 6](#pricing)

[Promotion 7](#promotion)

[Distribution 7](#distribution)

[Opportunities and Challenges 7](#opportunities-and-challenges)

[Tables 8](#tables)

[Production, Supply, and Demand (PS&D) Table for Canned Peaches
8](#production-supply-and-demand-psd-table-for-canned-peaches)

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

[Production, Supply, and Demand (PS&D) Table for Canned Pears
10](#production-supply-and-demand-psd-table-for-canned-pears)

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

[Production, Supply, and Demand (PS&D) Table for Canned Apricots
12](#production-supply-and-demand-psd-table-for-canned-apricots)

[Trade Matrix for Canned Apricots 13](#trade-matrix-for-canned-apricots)

[Production, Supply, and Demand (PS&D) Table for Canned Mixtures
14](#production-supply-and-demand-psd-table-for-canned-mixtures)

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

# Executive Summary

Canned peach production is forecast at 372,500 MT in MY 2008, up 23
percent from the previous year, due to growing demand in both the
domestic and international markets. Canned pears, mixed fruit, and
apricots are forecast up at 90,000 MT, 78,000 MT, and 21,450 MT in MY
2008, up 13 percent, 55 percent and 47 percent, respectively, from the
previous season and fueled by strong world demand.

Last year's tight supplies of fresh yellow peaches have eased this
season, as new plantings began bearing, especially in Anhui and Jiangsu
Provinces. An abundant supply of fresh yellow peaches has kept farm gate
prices roughly unchanged from last year, despite significant increases
in production costs. Supplies of other fresh fruit like white peaches,
pears, and apricots are more than sufficient thanks to increased
production, resulting in unchanged or only slight decreases in prices.

Domestic consumption of canned yellow peaches continues to grow steadily
at a rate of more than 20 percent a year in China. Consumption of other
canned fruits remains moderate due to a longstanding consumer perception
that canned products are not as fresh. To increase sales, canneries have
begun putting more marketing efforts into the domestic market.

China's exports of canned fruit are expected to continue increasing,
driven by strong world demand. The United States remains the largest
buyer of Chinese canned yellow peaches, canned pears, and canned mixed
fruit. China imports small quantities of canned yellow peaches for use
in the baking industry and for high-end consumers. The volume of imports
is increasing quickly, in tandem with China's growing baking sector.

# Production

Canned peach production is forecast at 372,500 metric tons (MT) in
market year (MY June-May) 2008, up 23 percent from the revised estimate
of 301,500 MT in MY 2007, due to growing demand from both the domestic
and international markets. Canned pears, mixed fruit, and apricots are
forecast at 90,000 MT, 78,000 MT, and 21,450 MT in MY 2008, up 13
percent, 55 percent, and 47 percent, respectively, from the previous
season and mainly fueled by strong world demand. Production estimates of
canned peaches, canned pears, and canned mixed fruit in MY 2007 are
revised up to 301,500 MT, 79,500 MT and 50,200 MT, respectively, up from
the previous 269,000 MT, 64,000 MT and 33,000 MT to echo this trend.

Tight supplies of fresh yellow peaches have eased this season, as new
plantings began bearing, especially in Anhui and Jiangsu Provinces. An
abundant supply of fresh yellow peaches has kept farm gate prices
roughly unchanged from last year despite increases in production costs.
Fresh yellow peaches were priced at U.S. \$0.24-0.32 per kg (1.6-2.2
RMB) during the harvest period. However, steep increases in the price of
most agricultural inputs are impacting producers. Fertilizer prices
jumped by as much as 100 percent in 2008 from a year earlier and labor
costs have increased to U.S. \$5.9-7.3 per day (40-50 RMB), double the
daily rate of U.S. \$2.9-4.4 (20-30 RMB) in 2007. Fruit quality in 2008,
however, is much less desirable when compared with MY 2007 production,
due to excessive rain and a general lack of proper orchard management by
growers. Supplies of other fresh fruit like white peaches, pears, and
apricots are more than sufficient due to increased production, resulting
in unchanged or slightly lower prices.

Fruit processors are also faced with increased costs of other production
materials such as fuel and tin plates for canning. China's Producer
Price Index (PPI) increased by 10.1 percent in August on a yearly basis,
the highest level in ten years. Export-oriented enterprises are further
impacted by the appreciation of the Chinese Renminbi (RMB), which has
gained 10 percent against the U.S. dollar from a year ago. All of this
has led Chinese canneries to raise their export prices for canned
peaches by 10-15 percent compared to last year. The average export
prices for canned peaches in MY 2007 were quoted at U.S. \$900/MT, up
eight percent from MY 2006.

Many small canning factories may be forced out of the export market
because of increased costs, and will turn to the domestic market
instead. However, some large canneries have expanded their processing
and storage capacity in a bid to extend the production season and
produce more diverse products to satisfy varying consumer preferences.

## 

# Consumption

Industry sources indicate domestic consumption of traditional canned
yellow peaches continues to grow steadily in China, at a rate of more
than 20 percent a year. More than 50 percent of the canned fruit sold in
China is canned yellow peaches. Most canned peaches are sold in markets
north of the Yangtze River and northeast China holds the largest market
share. Imported canned yellow peaches are mainly sold in southern China,
where consumers prefer harder flesh peaches. With per capita consumption
of canned fruit at less than one kilogram, compared with about 90
kilograms in the United States, there is great potential for development
of the canned fruit market in China. This is especially true for canned
yellow peaches, the favorite canned fruit for consumers, once perception
towards canned fruit begins to change. Typically fresh fruit is
preferred to canned fruit because consumers feel canned fruit is not as
healthful and many believe that canned fruit contains preservatives that
are harmful to their health.

The belief that canned fruit is not as healthy as fresh fruit has had a
negative impact on buying activities for canned fruit, especially canned
pears and apricots. While consumption of yellow peaches is growing
steadily, consumption of canned pears and apricots has experienced only
moderate growth. The lack of reliable and dominant brands also limits
buying interest as consumers place greater importance on food safety.
Industry sources indicate that locally-produced high quality canned
fruit is sold much faster than lower-end products. Very few processors
focus on the domestic market, as the majority of canned fruit produced
in China is destined for export under private labels. In addition to
establishing brand recognition, development of new products may also
help boost sales volumes. A Zhejiang cannery has developed a soft pack
canned fruit product as a convenient alternative traditional glass jar
packaging. This new product is being marketed to domestic consumers.

Given the hardships faced by Chinese canneries mentioned above, more and
more canneries are expected to shift their focus to the domestic market
to increase sales. However, large supermarkets in China demand high
entrance fees, so fruit processors are increasingly targeting small and
medium-sized supermarkets and chain stores.

# 

# Trade

## Exports

China's canned fruit industry is heavily dependent on exports. Canned
peaches account for the greatest share of China's total canned deciduous
fruit exports. World demand for canned yellow peaches remains strong,
and China's exports of canned peaches are forecast at 180,000 MT in MY
2008, up 20 percent from the revised estimate for the previous year. The
United States remains the largest export market for Chinese canned
yellow peaches, which mainly fill the low-end market. The U.S. imported
46,876 MT of canned peaches from China in 2007, up 130 percent from the
previous year. The trend is likely to continue in MY 2008 in light of
decreased yellow peach production in California due to a frost. Emerging
markets for China's canned peaches include Russia, South Africa, South
America, and neighboring Asian countries like South Korea and Thailand.
European buyers, such as France and Germany, have expressed some
interest in Chinese canned peaches in the wake of strong prices for
Greek products. China's canned white peach exports are quite stable,
with Japan being the single largest buyer.

Canned mixed fruit exports are also expected to increase rapidly, driven
by fast growing world demand. The volume is forecast at 77,800 MT in MY
2008, up 55 percent from the revised estimate for 2007. The United
States is also the largest importer of Chinese canned mixed fruit with
its import volume soaring to 21,394 MT in 2007, up 145 percent from
2006. Other major buyers like Canada, Germany, Spain, and Japan also
increased imports of Chinese canned mixed fruit, driven by consumer
demand.

Canned apricot exports are forecast at 20,320 MT in MY 2008, up nearly
50 percent from 13,599 MT in MY 2007, due largely to particular consumer
preference for the product in Russia and Germany, whose combined imports
account for 50 percent of total China exports. Canned pears, however,
are experiencing relatively slower growth in the export market, with
volume forecast at 71,000 MT in MY 2008, up 16 percent from the previous
year. The U.S. again takes the lion's share, followed by Thailand,
Germany, and Greece.

## Imports

China imports canned yellow peaches to accommodate its fast developing
baking industry and high-end consumers such as expatriates. While the
volume is still low, it is increasing quite rapidly. Canned yellow peach
imports are forecast at 7,500 MT in MY 2008, up 60 percent from the
revised estimate of 4,672 MT last year. The United States and South
Africa remain the top two suppliers to China, with products known for
being larger and harder fruit, with a nicer color when compared with
locally-produced counterparts.

Canned mixtures are another product that China imports and the volume is
growing steadily, with MY 2008 imports forecast at 3,600 MT, up from
3,066 in MY 2007, and 2,648 MT in MY 2006. The Philippines remains the
single largest supplier to China. Canned mixed fruit is mainly imported
to supply up-scale hotels and restaurants, as well as a small number of
high-end consumers.

# 

# Policy

China's central government generally encourages food processing
industries that consume products in bulk, because they can provide a
reliable source of income for growers. Large canneries generally enter
contracts with fruit growers to provide fresh fruit directly to their
facility. With the assistance of the government's rural extension
services, the enterprises regulate and direct farming practices like
pesticide application to ensure fruit quality and safety. Leading
agro-businesses (also called "Dragon Head" enterprises) enjoy support
from the provincial or county level governments. Such support includes
subsidized loans from the state-owned banks or preferential tax
arrangements. Most canneries, however, are small in size and have a hard
time securing bank loans, especially after the central government
adopted tighter banking policies earlier this year in the wake of
China's overheating economy. Recently published legislation on labor
contracting and environmental protection aimed at protecting employee
rights and the environment have created additional financial burdens for
the small enterprises in China's canning industry.

# Marketing

## Product

Most Chinese consumers prefer fresh fruit to canned product. As a
result, China's fruit canneries largely concentrate on export markets. A
manager from a large cannery in Shandong Province indicated that
domestic sales account for only 15 percent of their total production.
This focus on the export market also means domestic suppliers do not
have many products designed specifically to meet local consumer
preferences. Chinese consumers prefer canned yellow peaches, followed by
canned mixed fruits. Normally, Chinese consumers prefer large peach
halves with a harder texture and a deep yellow color. Currently, only
one local variety, Ba Fan, can meet these preferences. Other Chinese
varieties are either too soft or the color is not appealing. Canned
yellow peaches from other countries like the United States, South
Africa, and Greece enjoy a competitive advantage on these features. The
variety of yellow peaches from California is especially favored by a
local cannery based in Shandong Province. The company is considering
growing this variety in China to supply the domestic market.

## Packaging 

Packaging plays a very important role in the success of food products in
China. This is especially true of canned fruit products, as Chinese
consumers prefer to inspect the fruit before making purchasing
decisions. As a result, most local canneries have replaced cans with
glass jars so that consumers can see the fruit. Other packaging
innovations are evolving as well. Canneries that still use cans as
containers are adding pull tops, while others are using soft cans (jars
made of transparent plastic). In the retail sector, glass jars and soft
cans are more widely used for locally produced products, while imported
products largely still use the conventional cans, and cans are still
preferred in the service sector. As shown in the chart below, each
package has its pros and cons.

  --------------------------- -------------- -------------- --------------
  Comparison of Different                                   
  Packages                                                  

                              Cans           Glass Jars     Soft Cans

  Easy for transportation     yes            no             yes

  Easy for consumers'         no             yes            yes
  inspection                                                

  Easy to carry               yes            no             yes

  Easy to open                no             yes            yes

  Compatible with different   yes            yes            no (suitable
  packing sizes                                             for
                                                            snack-size)
  --------------------------- -------------- -------------- --------------

## 

## Pricing

In the retail sector, the pricing of domestic canned fruit from
different manufacturers is quite similar. By contrast, a huge price
difference ranging from 50-400 percent exists between imported canned
fruit and locally produced varieties. For this reason, imported products
sold at a relatively cheaper price are the most popular. As far as food
service is concerned, the

price of imported product is usually double that of locally produced.
Even among locally produced canned fruit, a price gap is beginning to
emerge due to new product differentiation. Industry insiders suggest
that some bakery shops are willing to pay a higher price for superior
quality. However, supply of these higher quality canned fruits cannot
meet the demand from the industry.

## 

## Promotion 

Local manufacturers have limited budget resources dedicated to educating
local consumers or conducting public marketing campaigns. The industry's
marketing efforts primarily focus on the northeast China region that
habitually consumes canned fruits. Billboards, bus advertisements, and
free tastings are commonly used promotional tools.

## Distribution 

With domestic canned fruit consumption so limited, sales of imported
canned peaches, pears, and apricots through retail channels to
individual consumers are minimal. These products are found only at a few
high-end retail outlets that target expatriate consumers.

The emerging Chinese baking industry uses the majority of imported
canned peaches, pears, and apricots. Cakes and other bakery items
garnished with these sliced fruits are common items in China's premium
bakery shops. Consumers may not necessarily eat these fruit garnishes,
but colorful and uniform fruit contribute to the appearance of the
dessert, making it look fresher and healthier. Compared with
locally-produced canned fruit, imported products have the advantage of
superior taste and uniform shape and texture and are therefore widely
used by bakeries, even though imported products cost significantly more
than the local product. When the visual appearance is not an important
factor, domestically produced canned fruit is used to reduce production
costs. ![](media/image4.wmf){width="3.8756944444444446in"
height="1.7909722222222222in"}

## Opportunities and Challenges

Both domestic canneries and distributors of imported canned fruits
predict that the domestic consumption of locally produced and imported
canned yellow peaches will continue to grow at an annual rate of 20
percent in the next three to five years. However, consumption growth
rates in other canned fruits will be slower. One large cannery has set a
goal of doubling its domestic sales of canned yellow peaches within the
next three years. The emerging baking industry in China foresees a
promising future for imported canned yellow peaches, but challenges
still exist. Counterfeiting has a large impact on trade. For instance,
one brand of yellow peaches imported from South Africa previously sold
to bakery shops, but was counterfeited after its success and hence
influenced the trade. Several traders believe that counterfeiting will
send the market price into disarray and have a negative impact on an
otherwise lucrative trade. The counterfeiting issue has not occurred in
the retail sector yet, but canned deciduous fruits face other challenges
in retailing, including lack of consumer education. Chinese consumers
hold a long-standing perception that canned fruit contains preservatives
and not as flavorful as fresh fruits. Industry groups and canneries are
planning to invest greater efforts towards changing this perception
through media campaigns.

# 

# Tables

## Production, Supply, and Demand (PS&D) Table for Canned Peaches

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Peaches, Canned</strong></td>
<td colspan="3">(MT)(MT, Net Weight)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>06/2006</td>
<td>06/2006</td>
<td></td>
<td>06/2007</td>
<td>06/2007</td>
<td></td>
<td>06/2008</td>
<td>06/2008</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>343575</td>
<td>343575</td>
<td>358000</td>
<td>403500</td>
<td>403500</td>
<td>453000</td>
<td>0</td>
<td>0</td>
<td>558750</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>234050</td>
<td>234050</td>
<td>244050</td>
<td>269000</td>
<td>269000</td>
<td>301500</td>
<td>0</td>
<td>0</td>
<td>372500</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>4300</td>
<td>4300</td>
<td>3875</td>
<td>3000</td>
<td>3000</td>
<td>4672</td>
<td>0</td>
<td>0</td>
<td>7500</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>238350</td>
<td>238350</td>
<td>247925</td>
<td>272000</td>
<td>272000</td>
<td>306172</td>
<td>0</td>
<td>0</td>
<td>380000</td>
</tr>
<tr class="even">
<td>Exports</td>
<td>102000</td>
<td>102000</td>
<td>112963</td>
<td>115000</td>
<td>115000</td>
<td>149196</td>
<td>0</td>
<td>0</td>
<td>180000</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>136350</td>
<td>136350</td>
<td>134962</td>
<td>157000</td>
<td>157000</td>
<td>156976</td>
<td>0</td>
<td>0</td>
<td>200000</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>238350</td>
<td>238350</td>
<td>247925</td>
<td>272000</td>
<td>272000</td>
<td>306172</td>
<td>0</td>
<td>0</td>
<td>380000</td>
</tr>
</tbody>
</table>

## Trade Matrices for Canned Peaches

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

  **Country**      China, Peoples                        
                   Republic of                           

  **Commodity**    Peaches, Canned                       

  Time Period                       Units:               MT

  Imports for:     2006                                  **2007**

  U.S.             2244             U.S.                 1440

  Others                            Others               

  South Africa     1271             South Africa         939

  China            159              China                247

  Greece           156              Greece               37

  Philippines      18               South Korea          1

  South Korea      17               Italy                1

  Italy            12               Germany              1

  Thailand         2                                      

                                                          

  Total for Others 1635                                  1226

  Others not       0                                     0
  Listed                                                 

  Grand Total      3879                                  2666
  ---------------- ---------------- -------------------- -----------------

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

  **Country**      China, Peoples                        
                   Republic of                           

  **Commodity**    Peaches, Canned                       

  Time Period                       Units:               MT

  Exports for:     2006                                  **2007**

  U.S.             20390            U.S.                 46876

  Others                            Others               

  Japan            38498            Japan                37013

  Russia           6572             Thailand             11861

  Yemen            4930             Russia               9885

  South Korea      3710             South Korea          6089

  New Zealand      2952             Yemen                5296

  Mexico           2446             Mexico               4419

  Canada           2250             Canada               3479

  Saudi Arabia     1432             New Zealand          3226

  Estonia          1276             Estonia              2924

  Thailand         1142             Saudi Arabia         1718

  Total for Others 65208                                 85910

  Others not       6931                                  15687
  Listed                                                 

  Grand Total      92529                                 148473
  ---------------- ---------------- -------------------- -----------------

## Production, Supply, and Demand (PS&D) Table for Canned Pears

<table style="width:100%;">
<colgroup>
<col style="width: 15%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Pears, Canned</strong></td>
<td colspan="3">(MT)(MT, Net Weight)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>06/2006</td>
<td>06/2006</td>
<td></td>
<td>06/2007</td>
<td>06/2007</td>
<td></td>
<td>06/2008</td>
<td>06/2008</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>91900</td>
<td>95120</td>
<td>106080</td>
<td>102400</td>
<td>10240</td>
<td>127200</td>
<td>0</td>
<td>0</td>
<td>144000</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>57450</td>
<td>59450</td>
<td>66300</td>
<td>64000</td>
<td>64000</td>
<td>79500</td>
<td>0</td>
<td>0</td>
<td>90000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>50</td>
<td>150</td>
<td>41</td>
<td>210</td>
<td>210</td>
<td>18</td>
<td>0</td>
<td>0</td>
<td>10</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>57500</td>
<td>59600</td>
<td>66341</td>
<td>64210</td>
<td>64210</td>
<td>79518</td>
<td>0</td>
<td>0</td>
<td>90010</td>
</tr>
<tr class="even">
<td>Exports</td>
<td>40000</td>
<td>42000</td>
<td>48729</td>
<td>46000</td>
<td>46000</td>
<td>61282</td>
<td>0</td>
<td>0</td>
<td>71000</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>17500</td>
<td>17600</td>
<td>17612</td>
<td>18210</td>
<td>18210</td>
<td>18236</td>
<td>0</td>
<td>0</td>
<td>19010</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>57500</td>
<td>59600</td>
<td>66341</td>
<td>64210</td>
<td>64210</td>
<td>79518</td>
<td>0</td>
<td>0</td>
<td>90010</td>
</tr>
</tbody>
</table>

## Trade Matrix for Canned Pears

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

  **Country**      China, Peoples                        
                   Republic of                           

  **Commodity**    Pears, Canned                         

  Time Period                         Units:             MT

  Exports for:     2006                                  **2007**

  U.S.             17570              U.S.               23352

  Others                              Others             

  Germany          2647               Thailand           7571

  Greece           2249               Germany            6687

  Japan            2226               Greece             5299

  Thailand         2009               Japan              3576

  Canada           1531               Canada             2112

  Russia           1422               Spain              1929

  Spain            1206               Russia             1678

  Netherlands      584                Yemen              718

  Yemen            562                Australia          710

  Italy            459                Italy              705

  Total for Others 14895                                 30985

  Others not       3614                                  6736
  Listed                                                 

  Grand Total      36079                                 61073
  ---------------- ------------------ ------------------ -----------------

## Production, Supply, and Demand (PS&D) Table for Canned Apricots

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Canned Apricots</strong></td>
<td colspan="3">(MT)(MT, Net Weight)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>06/2006</td>
<td>06/2006</td>
<td></td>
<td>06/2007</td>
<td>06/2007</td>
<td></td>
<td>06/2008</td>
<td>06/2008</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>9260</td>
<td>12800</td>
<td>13065</td>
<td>17550</td>
<td>17550</td>
<td>18915</td>
<td>0</td>
<td>0</td>
<td>27800</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>7400</td>
<td>9850</td>
<td>10050</td>
<td>13500</td>
<td>13500</td>
<td>14550</td>
<td>0</td>
<td>0</td>
<td>21450</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>250</td>
<td>300</td>
<td>217</td>
<td>200</td>
<td>200</td>
<td>250</td>
<td>0</td>
<td>0</td>
<td>120</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>7650</td>
<td>10150</td>
<td>10267</td>
<td>13700</td>
<td>13700</td>
<td>14800</td>
<td>0</td>
<td>0</td>
<td>21570</td>
</tr>
<tr class="even">
<td>Exports</td>
<td>6500</td>
<td>9000</td>
<td>9118</td>
<td>12500</td>
<td>12500</td>
<td>13599</td>
<td>0</td>
<td>0</td>
<td>20320</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>1150</td>
<td>1150</td>
<td>1149</td>
<td>1200</td>
<td>1200</td>
<td>1201</td>
<td>0</td>
<td>0</td>
<td>1250</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>7650</td>
<td>10150</td>
<td>10267</td>
<td>13700</td>
<td>13700</td>
<td>14800</td>
<td>0</td>
<td>0</td>
<td>21570</td>
</tr>
</tbody>
</table>

## Trade Matrix for Canned Apricots

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

  **Country**      China, Peoples                        
                   Republic of                           

  **Commodity**    Canned Apricots                       

  Time Period                         Units:             MT

  Exports for:     2006                                  **2007**

  U.S.             127                U.S.               865

  Others                              Others             

  Russia           3052               Russia             3916

  Germany          1440               Germany            2007

  Japan            678                Estonia            1233

  Estonia          587                France             765

  New Zealand      456                Belgium            456

  Australia        314                New Zealand        443

  Canda            313                Canada             403

  Netherlands      261                Japan              402

  UK               214                Czech Republic     355

  Czech Republic   198                Australia          310

  Total for Others 7513                                  10290

  Others not       539                                   1538
  Listed                                                 

  Grand Total      8179                                  12693
  ---------------- ------------------ ------------------ -----------------

## Production, Supply, and Demand (PS&D) Table for Canned Mixtures

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="6"><strong>Canned Mixtures</strong></td>
<td colspan="3">(MT)(MT, Net Weight)</td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>06/2006</td>
<td>06/2006</td>
<td></td>
<td>06/2007</td>
<td>06/2007</td>
<td></td>
<td>06/2008</td>
<td>06/2008</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>24500</td>
<td>26800</td>
<td>34200</td>
<td>33000</td>
<td>33000</td>
<td>50200</td>
<td>0</td>
<td>0</td>
<td>78000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>3000</td>
<td>2450</td>
<td>2648</td>
<td>3000</td>
<td>3000</td>
<td>3066</td>
<td>0</td>
<td>0</td>
<td>3600</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>27540</td>
<td>29250</td>
<td>36848</td>
<td>36000</td>
<td>36000</td>
<td>53266</td>
<td>0</td>
<td>0</td>
<td>81600</td>
</tr>
<tr class="even">
<td>Exports</td>
<td>24000</td>
<td>26300</td>
<td>33931</td>
<td>32800</td>
<td>32800</td>
<td>50098</td>
<td>0</td>
<td>0</td>
<td>77800</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>3540</td>
<td>2950</td>
<td>2917</td>
<td>3200</td>
<td>3200</td>
<td>3168</td>
<td>0</td>
<td>0</td>
<td>3800</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>27540</td>
<td>29250</td>
<td>36848</td>
<td>36000</td>
<td>36000</td>
<td>53266</td>
<td>0</td>
<td>0</td>
<td>81600</td>
</tr>
</tbody>
</table>

## Trade Matrices for Canned Mixtures

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

  **Country**          China, Peoples                       
                       Republic of                          

  **Commodity**        Canned Mixtures                      

  Time Period                            Units:             MT

  Imports for:         2006                                 **2007**

  U.S.                 5                 U.S.               1

  Others                                 Others             

  Philippines          2084              Philippines        1815

  Thailand             211               Thailand           97

  Malaysia             9                 South Korea        8

  South Korea          4                 South Africa       1

  Italy                2                 Australia          1

  South Africa         1                 Taiwan             1

                                         Vietnam            1

                                                            

  Total for Others     2311                                 1924

  Others not Listed    1                                    0

  Grand Total          2317                                 1925
  -------------------- ----------------- ------------------ --------------

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

  **Country**          China, Peoples                      
                       Republic of                         

  **Commodity**        Canned Mixtures                     

  Time Period                            Units:            MT

  Exports for:         2006                                **2007**

  U.S.                 8741              U.S.              21394

  Others                                 Others            

  Canada               2274              Canada            3904

  Japan                1229              Germany           2607

  Germany              1048              Spain             1823

  New Zealand          910               Japan             1325

  Czech Republic       507               Angola            1268

  Russia               454               Austria           1184

  Australia            450               Russia            1149

  Spain                447               Australia         1072

  Yemen                410               New Zealand       859

  Netherlands          407               Israel            802

  Total for Others     8136                                15993

  Others not Listed    3868                                9723

  Grand Total          20745                               47110
  -------------------- ----------------- ----------------- ---------------