Required Report - public distribution

**Date:** 9/10/2003

**GAIN Report Number:** JA3067

JA3067

**Japan**

**Fresh Deciduous Fruit**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Kevin Latner

#### U.S.Embassy

**Prepared by:**

Kenzo Ito

**Report Highlights:**

Japanese table grape production in 2003 is estimated at 230,000 tons,
down approximately 1 percent from the previous year. Good packaging and
handling practices by California growers and shippers have improved
fruit quality and extended shelf life, giving California Red Globes an
excellent reputation for quality in Japan. Japanese apple production in
2003 is estimated at 891,700 tons, down approximately 4 percent from the
previous year. Japanese apple imports were only 108 tons in 2002, a
significant decline from the previous year. Western pear production in
Japan was up approximately 10 percent from the previous year in 2002.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tokyo \[JA1\]

\[JA\]

Table of Contents

[The 2003 Japanese Table Grape Production Expected to Decline 1 Percent
3](#the-2003-japanese-table-grape-production-expected-to-decline-1-percent)

[California Red Globes Established An Excellent Reputation for Quality
in Japan
3](#california-red-globes-established-an-excellent-reputation-for-quality-in-japan)

[Chilean Red Globes Continue to Sell Well in Japan
4](#chilean-red-globes-continue-to-sell-well-in-japan)

[Japanese Apple Production in 2003 Expected to Decline 4 Percent
4](#japanese-apple-production-in-2003-expected-to-decline-4-percent)

[Japanese Apple Imports Declined Significantly in 2002
5](#japanese-apple-imports-declined-significantly-in-2002)

[Japanese Western Pear Production Keeps Rising
5](#japanese-western-pear-production-keeps-rising)

[Import Duties on Fresh Apples and Table Grapes
5](#import-duties-on-fresh-apples-and-table-grapes)

[PS&D Tables and Trade Matrices 6](#psd-tables-and-trade-matrices)

[Fresh Apple PS&D Table 6](#fresh-apple-psd-table)

[Fresh Apple Export Trade Matrix 7](#fresh-apple-export-trade-matrix)

[Fresh Apple Import Trade Matrix 8](#fresh-apple-import-trade-matrix)

[Fresh Apple Wholesale Price Table
9](#fresh-apple-wholesale-price-table)

[Fresh Pear PS&D Table 10](#fresh-pear-psd-table)

[Fresh Pear Export Trade Matrix 11](#fresh-pear-export-trade-matrix)

[Fresh Pear Import Trade Matrix 12](#fresh-pear-import-trade-matrix)

[Fresh Pear Wholesale Price Table 13](#fresh-pear-wholesale-price-table)

[Fresh Table Grape PS&D Table 14](#fresh-table-grape-psd-table)

[Fresh Table Grape Export Trade Matrix
15](#fresh-table-grape-export-trade-matrix)

[Fresh Table Grape Import Trade Matrix
16](#fresh-table-grape-import-trade-matrix)

[Fresh Table Grape Wholesale Price Table
17](#fresh-table-grape-wholesale-price-table)

# The 2003 Japanese Table Grape Production Expected to Decline 1 Percent

![](media/image2.wmf)

Japanese table grape production has been declining for over 10 years.
Production is estimated at 230,000 metric tons in 2003, down
approximately 1 percent from the previous year, according to the
Ministry of Agriculture, Forestry and Fisheries (MAFF). Japan
experienced fairly good weather when table grapes were flowering and
pollinating in the spring and grapes. Kyoho, large and dark purple
colored grapes, is the most commonly grown variety in Japan, accounting
for approximately 34 percent of Japan's grape production. Kyoho is
followed by the following varieties; Delaware (19%), Pione (9%), Muscat
(6%), Campbell-Early (6%), Koshu (4%), and Kaiji (2%). Production of
both Kyoho and Pione increased 3 percent from the previous year, while
Delaware declined 7 percent. Production declines are mostly a result of
Japan's aging farm population leaving farming and taking harvest area
out of production. Japan's harvest area is estimated at 19,500 hectares
in 2003, a decline of approximately 1 percent from the previous season.

In mid-September, Tokyo supermarkets sold a cluster of Kyoho grapes (362
grams) for \$2.86 (318 yen), Kaiji grapes (304 grams) for \$2.68 (298
yen), and Muscat (668 grams) for \$7.71 (856 yen). Kaiji grapes are
similar to California Red Globes.

# California Red Globes Established An Excellent Reputation for Quality in Japan 

![](media/image3.wmf)The quality of California table grapes is fairly
stable throughout the season, with high Brix levels, according to Tokyo
traders. The arrival fruit quality is reportedly excellent and the fruit
has a long shelf-life to market. Grape clusters are individually wrapped
with a sheet of paper and carefully packaged in a 9-kilogram box.
California table grapes are shipped in temperature-controlled
containers. Good packaging and handling practices by California growers
and shippers have significantly improved fruit quality and extended
shelf life.

Peak sales of California Red Globes start in mid-October, at the end of
the domestic season. The quality of Japanese table grapes was irregular
this season due to the cool weather in July and August. Sales of
California table grapes are expected to do well this fall, according to
Tokyo traders.

California table grapes have a strong competitive advantage in the
Japanese market, according to retail specialists. Japanese retailers can
sell California Red Globes at less than half the price of Japan's best
selling Kyoho variety. In a drastic change from past years, consumers
are looking for value in their food purchases.

Tokyo's major supermarkets sold California Red Globes for \$2.68 (298
yen) a cluster of 700 -- 800 grams, while domestic table grapes sold for
\$3.58 (398 yen) for a cluster of 350 -- 400 grams. Tokyo supermarket
buyers usually estimate that California Red Globes can sell for \$0.35 -
\$0.40 (39 -- 45 yen) per 100 grams and will sometimes sell for \$0.26
(29 yen) per 100 grams as a sales item. California Thomson Seedless will
sell for \$0.52 (58 yen) per 100 grams, slightly higher than Red Globes
because shipment is only by airfreight. The 2003 crop of California Red
Globes arrived in Japan in early-September, and was traded at \$34.23
(3,800 yen) for a 9-KG case at Tokyo Ohta Wholesale Market.

In 2002, Japan imported 3,224 metric tons of California table grapes
(mainly Red Globes and Thomson Seedless), valued at \$5.42 million
(CIF).

# Chilean Red Globes Continue to Sell Well in Japan

In the 2003 season (January-June), Chile exported 8,797 metric tons of
table grapes to Japan, up 6.0 percent from the previous season, valued
at \$11.66 million (CIF). The quality of Chilean table grapes was
unstable due to transportation problems, according to Tokyo traders.
Chile does not compete with California in the table grape market.

# Japanese Apple Production in 2003 Expected to Decline 4 Percent

![](media/image4.wmf)Japanese apple production in 2003 is estimated at
891,700 metric tons, down approximately 4 percent from the previous
year, according to the Ministry of Agriculture, Forestry and Fisheries
(MAFF). In the spring, the Japanese apple industry conducted a
fruit-thinning program in order to improve the quality of apples, but
there are still many small-sized fruit in the 2003 crop, according to
Tokyo traders. Apple growers in Aomori Prefecture experienced production
difficulties when a typhoon hit the region in mid-September. The
industry estimated that approximately 10 percent of the fruit was
damaged in some regions. Aomori Prefecture, approximately 500 miles
North-East of Tokyo, produces approximately 52 percent of the nation's
apples. The Fuji is the most popular variety grown in Japan, accounting
for approximately 55 percent of the nation's apple production.
Harvesting of Fuji, a late-crop variety, begins in mid-October. Tsugaru,
Jonagold and Ohrin are also popular, with approximately 13, 10 and 9
percent of total production, respectively. Harvest of the early-crop
Tsugaru began in August and will finish in mid-October. The quality,
Brix (sweetness) level, and fruit color and taste are reportedly good
for all apple varieties this season.

The Japanese apple industry estimates that 145,000 metric tons of the
2003 apples will go to processing, of which 125,000 metric tons go to
juice while the rest go to canning and jam processing.

The 2003 apple harvesting area is estimated at 41,700 hectares, down
approximately 2 percent from the previous year, according to MAFF. This
decline is due to orchard closures as a result of Japan's aging farm
population.

In mid-September, Tokyo supermarkets sold Tsugaru apples at \$0.89 (99
yen) for a medium sized fruit or at \$5.22 (580 yen) for a bag of 6
medium-size apples. This price range is similar to last year. Tsugaru
apples were traded at \$21.62 (2,400 yen) for a 10-kilogram box (36
apples in a box) at Tokyo Ohta Wholesale Market.

# Japanese Apple Imports Declined Significantly in 2002

Japanese apple imports were only 108 metric tons in the 2002 season,
less than one third the previous season. Australia exported three
container loads (107 metric tons) of Tasmania Fuji apples to Japan in
June 2003. South Korea exported 0.6 metric tons of Fuji apples in
October 2002. Small sized Tasmanian Fuji apples were not well received
by Japanese consumers, according to Tokyo supermarket specialists. Tokyo
supermarkets sold Australian Fuji apples for \$1.15 (128 yen) per fruit
when the first shipments arrived, and discounted them to approximately
\$0.45 (50 yen) per fruit later in the season.

There were no imports of U.S. apples in 2002.

# Japanese Western Pear Production Keeps Rising

![](media/image5.wmf)

Japanese Western pear production in 2002 was 31,100 metric tons, up
approximately 10 percent from the previous year, according to the
Ministry of Agriculture, Forestry and Fisheries (MAFF). Traditionally,
Japan produces Japanese sand pears, which have significantly different
fruit flesh texture than Western pears. La France and Bartlett are two
major Western pear varieties grown in Japan. Yamagata Prefecture, 250
miles North of Tokyo, harvests approximately 61 percent of the nation's
Western pears. Western pear production is relatively new in Japan.
Western pear trees were planted in Yamagata prefecture as a part of the
region's agricultural development.

The harvested area for the 2002 Western pear was 1,730 hectares, up
approximately 2 percent from the previous year.

Japan continues to ban imports of U.S. pears due to phytosanitary
concerns.

# Import Duties on Fresh Apples and Table Grapes 

These duties are not subject to further reductions. The applicable
import duties are:

+-----------------------+------------------+--------------------------+
| DESCRIPTION           |                  | DUTY RATE                |
|                       |                  |                          |
| TARIFF CODE (HS)      |                  |                          |
+-----------------------+------------------+--------------------------+
| Fresh Apples          |                  | 17.0 %                   |
|                       |                  |                          |
| 0808.10-000           |                  |                          |
+-----------------------+------------------+--------------------------+
| Fresh Table Grapes    | 3/1 -- 10/31     | 17.0 %                   |
|                       |                  |                          |
| 0806.10-000           |                  |                          |
+-----------------------+------------------+--------------------------+
|                       | 11/1 -- 2/28     | 7.8 %                    |
+-----------------------+------------------+--------------------------+

All duties are charged on a CIF basis.

# PS&D Tables and Trade Matrices

## Fresh Apple PS&D Table

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

  **Country**       **Japan**                                                 

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

                    2001        Revised    2002       Estimate   2003         Forecast

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

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

  Area Planted      45900       45900      45000      45000      0            44100

  Area Harvested    43100       43100      42400      42400      0            41700

  Bearing Trees     42300       42300      41600      41600      0            40900

  Non-Bearing Trees 3610        3610       3400       3400       0            3200

  Total Trees       45910       45910      45000      45000      0            44100

  Commercial        829500      829500     812500     809400     0            787800
  Production                                                                  

  Non-Comm.         101200      101200     99400      116400     0            103900
  Production                                                                  

  TOTAL Production  930700      930700     911900     925800     0            891700

  TOTAL Imports     349         349        1000       108        0            100

  TOTAL SUPPLY      931049      931049     912900     925908     0            891800

  Domestic Fresh    776203      776203     762900     768705     0            731800
  Consump                                                                     

  Exports, Fresh    6546        6546       5000       12203      0            15000
  Only                                                                        

  For Processing    148300      148300     145000     145000     0            145000

  Withdrawal From   0           0          0          0          0            0
  Market                                                                      

  TOTAL UTILIZATION 931049      931049     912900     925908     0            891800
  ----------------- ----------- ---------- ---------- ---------- ------------ ----------

## Fresh Apple Export Trade Matrix

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

  **Country**         Japan                                

  **Commodity**       Fresh Apples                         

  Time Period         Jul. - Jun.        Units:            Metric Tons

  Exports for:        2001                                 **2002**

  U.S.                46                 U.S.              58

  Others                                 Others            

  Taiwan              5637               Taiwan            11580

  Hong Kong           371                Hong Kong         231

  Thailand            165                Thailand          199

  Singapore           119                Indonesia         60

  South Korea         94                 Singapore         28

  Indonesia           58                 French Oceania    18

  French Oceania      24                 Philippines       12

  Philippines         10                 Guam              11

  Guam                8                                     

                                                            

  Total for Others    6486                                 12139

  Others not Listed   14                                   6

  Grand Total         6546                                 12203
  ------------------- ------------------ ----------------- ---------------

## Fresh Apple Import Trade Matrix

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

  **Country**         Japan                                

  **Commodity**       Fresh Apples                         

  Time Period         Jul. - Jun.        Units:            Metric Tons

  Imports for:        2001                                 **2002**

  U.S.                0                  U.S.              0

  Others                                 Others            

  Australia           167                Australia         107

  South Korea         182                South Korea       1

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

  Total for Others    349                                  108

  Others not Listed   0                                    0

  Grand Total         349                                  108
  ------------------- ------------------ ----------------- ---------------

## Fresh Apple Wholesale Price Table

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

  **Country**         Japan                                  

  **Commodity**       Fresh Apples                           

  Prices in           Yen                 per uom            KG

                                                             

  Year                2002                2003               \% Change

  Jan                 175                 181                3%

  Feb                 161                 176                9%

  Mar                 176                 190                8%

  Apr                 200                 219                10%

  May                 213                 252                18%

  Jun                 232                 315                36%

  Jul                 261                 358                37%

  Aug                 294                                    -100%

  Sep                 207                                    -100%

  Oct                 210                                    -100%

  Nov                 199                                    -100%

  Dec                 180                                    -100%

                                                             

  Exchange Rate       111.37              Local Currency/US  
                                          \$                 

  Date of Quote       9/29/2003           MM/DD/YYYY         
  ------------------- ------------------- ------------------ -------------

## Fresh Pear PS&D Table

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

  **Country**       **Japan**                                                 

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

                    2001        Revised    2002       Estimate   2003         Forecast

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

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

  Area Planted      19350       19350      19040      18950      0            18550

  Area Harvested    18100       18100      17810      17830      0            17350

  Bearing Trees     4380        4380       4340       4340       0            4300

  Non-Bearing Trees 440         440        410        400        0            360

  Total Trees       4820        4820       4750       4740       0            4660

  Commercial        365600      365600     393200     373300     0            375000
  Production                                                                  

  Non-Comm.         31400       31400      33100      33300      0            32300
  Production                                                                  

  TOTAL Production  397000      397000     426300     406600     0            407300

  TOTAL Imports     907         907        700        193        0            200

  TOTAL SUPPLY      397907      397907     427000     406793     0            407500

  Domestic Fresh    394586      394586     423500     403678     0            404300
  Consump                                                                     

  Exports, Fresh    2821        2821       3000       2615       0            2700
  Only                                                                        

  For Processing    500         500        500        500        0            500

  Withdrawal From   0           0          0          0          0            0
  Market                                                                      

  TOTAL UTILIZATION 397907      397907     427000     406793     0            407500
  ----------------- ----------- ---------- ---------- ---------- ------------ ----------

## Fresh Pear Export Trade Matrix

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

  **Country**          Japan                               

  **Commodity**        Fresh Pears                         

  Time Period          Jul. - Jun.    Units:               Metric Tons

  Exports for:         2001                                **2002**

  U.S.                 376            U.S.                 366

  Others                              Others               

  Hong Kong            1760           Hong Kong            1650

  Taiwan               458            Taiwan               509

  Singapore            104            Australia            31

  Netherlands          28             Singapore            26

  South Korea          24             Netherlands          14

  Malaysia             24             Guam                 7

  Indonesia            14             Malaysia             3

  Australia            10                                   

  Guam                 7                                    

                                                            

  Total for Others     2429                                2240

  Others not Listed    16                                  9

  Grand Total          2821                                2615
  -------------------- -------------- -------------------- ---------------

## Fresh Pear Import Trade Matrix

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

  **Country**          Japan                               

  **Commodity**        Fresh Pears                         

  Time Period          Jul. - Jun.    Units:               Metric Tons

  Imports for:         2001                                **2002**

  U.S.                 0              U.S.                 0

  Others                              Others               

  South Korea          907            South Korea          193

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

  Total for Others     907                                 193

  Others not Listed    0                                   0

  Grand Total          907                                 193
  -------------------- -------------- -------------------- ---------------

## Fresh Pear Wholesale Price Table

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

  **Country**          Japan                              

  **Commodity**        Fresh Pears                        

  Prices in            Yen               per uom          KG

                                                          

  Year                 2002              2003             \% Change

  Jan                  214               242              13%

  Feb                  214               236              10%

  Mar                  213               218              2%

  Apr                  167               239              43%

  May                  307               173              -44%

  Jun                  927               970              5%

  Jul                  390               426              9%

  Aug                  269                                -100%

  Sep                  229                                -100%

  Oct                  189                                -100%

  Nov                  209                                -100%

  Dec                  270                                -100%

                                                          

  Exchange Rate        111.37            Local            
                                         Currency/US \$   

  Date of Quote        9/29/2003         MM/DD/YYYY       
  -------------------- ----------------- ---------------- -----------------

## Fresh Table Grape PS&D Table

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

  **Country**        **Japan**                                               

  **Commodity**      **Fresh                                      (HA)(MT)   
                     Table                                                   
                     Grapes**                                                

                     2001        Revised    2002       Estimate   2003       Forecast

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

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

  Area Planted       21200       20900      20800      20600      0          20300

  Area Harvested     19700       19700      19500      19500      0          19300

  Commercial         214800      212300     215000     210600     0          210000
  Production                                                                 

  Non-Comm.          20400       19400      20800      19400      0          15000
  Production                                                                 

  TOTAL Production   235200      231700     235800     230000     0          225000

  TOTAL Imports      13000       11836      17324      12000      0          12000

  TOTAL SUPPLY       248200      243536     253124     242000     0          237000

  Domestic Fresh     219670      215475     224600     213950     0          211950
  Consump                                                                    

  Exports, Fresh     30          61         24         50         0          50
  Only                                                                       

  For Processing     28500       28000      28500      28000      0          25000

  Withdrawal From    0           0          0          0          0          0
  Market                                                                     

  TOTAL UTILIZATION  248200      243536     253124     242000     0          237000
  ------------------ ----------- ---------- ---------- ---------- ---------- ----------

## Fresh Table Grape Export Trade Matrix

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

  **Country**       Japan                                

  **Commodity**     Fresh Table Grapes                   

  Time Period       Jan. - Dec.        Units:            Metric Tons

  Exports for:      2001                                 **2002**

  U.S.              0                  U.S.              0

  Others                               Others            

  Hong Kong         36                 Taiwan            43

                                       Hong Kong         18

                                                          

                                                          

                                                          

                                                          

                                                          

                                                          

                                                          

                                                          

  Total for Others  36                                   61

  Others not Listed 0                                    0

  Grand Total       36                                   61
  ----------------- ------------------ ----------------- -----------------

## Fresh Table Grape Import Trade Matrix

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

  **Country**       Japan                                

  **Commodity**     Fresh Table Grapes                   

  Time Period       Jan. - Dec.        Units:            Metric Tons

  Imports for:      2001                                 **2002**

  U.S.              3222               U.S.              3224

  Others                               Others            

  Chile             7784               Chile             8295

  Mexico            345                Mexico            248

  Taiwan            122                Taiwan            48

  New Zealand       23                 New Zealand       19

  China             11                 South Korea       1

  South Korea       2                                     

                                                          

                                                          

                                                          

                                                          

  Total for Others  8287                                 8611

  Others not Listed 1                                    1

  Grand Total       11510                                11836
  ----------------- ------------------ ----------------- -----------------

## Fresh Table Grape Wholesale Price Table

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

  **Country**       Japan                                  

  **Commodity**     Fresh Table Grapes                     

  Prices in         Yen                 per uom            KG

                                                           

  Year              2002                2003               \% Change

  Jan               587                 732                25%

  Feb               529                 634                20%

  Mar               605                 1182               95%

  Apr               2640                2951               12%

  May               1556                1704               10%

  Jun               917                 1014               11%

  Jul               735                 813                11%

  Aug               664                                    -100%

  Sep               526                                    -100%

  Oct               487                                    -100%

  Nov               635                                    -100%

  Dec               700                                    -100%

                                                           

  Exchange Rate     111.37              Local Currency/US  
                                        \$                 

  Date of Quote     9/29/2003           MM/DD/YYYY         
  ----------------- ------------------- ------------------ ---------------