Required Report - Public distribution

**Date:** 11/15/2007

**GAIN Report Number:** CH7085

CH7085

**China, Peoples Republic of**

**Fresh Deciduous Fruit**

**Annual**

**2007**

**Approved by:**

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

AGBEIJING

**Prepared by:**

Wu Bugang, Evid Liu, Eric Trachtenberg, and Chanda Beckman

**Report Highlights:**

China's MY 2007 apple production is forecast at 23 million MT, down 12
percent from the previous year, because of cold temperatures in the
spring and a down year in the production cycle. Concentrated apple juice
(CAJ) production is forecast to exceed 1 million MT, up three percent
from the previous year's 970,357 MT. Pear production is forecast at
12.58 million MT, up five percent from the previous year because of
improved yields. Table grape production is forecast at 6.9 million MT,
up 10 percent from a year ago, as a result of increased plantings. Lower
apple production is expected to reduce CAJ exports and encourage
imports. Pear and grape exports are likely to increase, given higher
production and improved quality.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[**Executive Summary 4**](#executive-summary)

[Production 5](#production)

[Apples 5](#apples)

[MY 2007 Production Decreases 5](#my-2007-production-decreases)

[Acreage Continues to Expand, Varieties Remain Consistent
5](#acreage-continues-to-expand-varieties-remain-consistent)

[Rising Cost of Inputs 5](#rising-cost-of-inputs)

[Concentrated Apple Juice (CAJ) 5](#concentrated-apple-juice-caj)

[Strong World Demand Pushes CAJ Production and Prices Up
5](#strong-world-demand-pushes-caj-production-and-prices-up)

[Shortage of Juicing Apples 5](#shortage-of-juicing-apples)

[CAJ Production Capacity Increases Rapidly
6](#caj-production-capacity-increases-rapidly)

[Pears 6](#pears)

[Production Increases, but Planting Area Declines Slightly
6](#production-increases-but-planting-area-declines-slightly)

[Grapes 6](#grapes)

[China's Grape Acreage Expands 6](#chinas-grape-acreage-expands)

[Prices 6](#prices)

[Prices Increase for all Fresh Deciduous Fruits
6](#prices-increase-for-all-fresh-deciduous-fruits)

[Consumption 7](#consumption)

[Consumption Increasing with Incomes
7](#consumption-increasing-with-incomes)

[Price-Sensitive Consumers Demand more High Quality Fruit
7](#price-sensitive-consumers-demand-more-high-quality-fruit)

[Juice Consumption Rapidly Increasing
7](#juice-consumption-rapidly-increasing)

[Trade 7](#trade)

[Imports 7](#imports)

[Apple Imports to Rebound 7](#apple-imports-to-rebound)

[China Still Largest Market for California Table Grapes
8](#china-still-largest-market-for-california-table-grapes)

[Exports 8](#exports)

[Increased Export Inspections for Apples to Impact Volume
8](#increased-export-inspections-for-apples-to-impact-volume)

[Stable Demand for Pear Exports 8](#stable-demand-for-pear-exports)

[Volume of Grape Exports Small, but has Growth Potential
8](#volume-of-grape-exports-small-but-has-growth-potential)

[Policy 8](#policy)

[No Direct Support 8](#no-direct-support)

[Technical Support 8](#technical-support)

[Law on Farm Product Quality and Safety
9](#law-on-farm-product-quality-and-safety)

[New Farmer Cooperative Regulation
9](#new-farmer-cooperative-regulation)

[AQSIQ Mandates Orchard and Packing House Registration
9](#aqsiq-mandates-orchard-and-packing-house-registration)

[Marketing 9](#marketing)

[Competition 9](#competition)

[U.S. Fruit Competes with Domestic Supply
9](#u.s.-fruit-competes-with-domestic-supply)

[Price Constraints 10](#price-constraints)

[Regional Markets 10](#regional-markets)

[Weak Cold Chain 10](#weak-cold-chain)

[IPR Protection 10](#ipr-protection)

[Marketing Tips 11](#marketing-tips)

[Other Relevant Reports 11](#other-relevant-reports)

[FAS Beijing Reports 11](#fas-beijing-reports)

[Tables 12](#tables)

[China Apple Production and Acreage by Province 2002-2006
12](#china-apple-production-and-acreage-by-province-2002-2006)

[Pear Production and Acreage by Province 2002-2006
13](#pear-production-and-acreage-by-province-2002-2006)

[Grape Production and Acreage by Province 2002-2006
14](#grape-production-and-acreage-by-province-2002-2006)

[Fresh Apple Production, Supply and Supply (PS&D) Table
15](#fresh-apple-production-supply-and-supply-psd-table)

[Fresh Apple Trade Matrices 16](#fresh-apple-trade-matrices)

[Apple Export Prices 17](#apple-export-prices)

[Concentrated Apple Juice (CAJ) Production, Supply and Demand (PS&D)
Table
18](#concentrated-apple-juice-caj-production-supply-and-demand-psd-table)

[CAJ Export Matrix and Prices 19](#caj-export-matrix-and-prices)

[Fresh Pear Production, Supply and Demand (PS&D) Table
20](#fresh-pear-production-supply-and-demand-psd-table)

[Fresh Pear Export Matrix and Prices
21](#fresh-pear-export-matrix-and-prices)

[Fresh Grape Production, Supply and Demand (PS&D) Table
22](#fresh-grape-production-supply-and-demand-psd-table)

[Table Grape Trade Matrices 23](#table-grape-trade-matrices)

[Table Grape Export Prices 24](#table-grape-export-prices)

# Executive Summary

China's marketing year (MY, July-June) apple production is forecast at
23 million tons (MT), down 12 percent from the previous year, because
cold and dry spring weather resulted in fewer blossoms in Shandong and
Shaanxi, two of China's largest apple producing provinces. The smaller
crop also comes from a down year in the production cycle. Concentrated
apple juice (CAJ) production is forecast to exceed 1 million MT. This is
up three percent from an already large 970,357 MT production in MY 2006,
driven by strong world demand and a crop failure in Poland, another
major CAJ supplier.

MY 2007 (July-June) pear production is forecast at 12.58 million MT, up
five percent from MY 2006, as yields and fruit quality steadily increase
in major producing areas such as Hebei and Shandong Provinces. China's
MY 2007 (June-May) grape production is forecast at 6.9 million MT, up 10
percent from 6.27 million MT in MY 2006. This was the result of
increased planting area for both table and wine grapes, boosted by
favorable prices and the development of China's wine industry.

Although there is no direct support or subsidies given to fruit
producers, China does provide policy and technical support to growers.
For example, a newly published law on farmer cooperatives provides the
legal basis for financial support to farmers' economic groups. The
government is also focusing more on improving food quality and safety --
moves that should add value to Chinese production.

Apple imports are expected to rebound in MY 2007 because of reduced
domestic production. Although customs data show China's imports of
grapes are declining, industry sources believe trade is increasing
through unofficial channels. China remains the largest market for
California table grapes.

China's rapid expansion of apple exports is likely to slow in MY 2007
because of tightened supplies, higher prices, and more stringent control
over exported fruit by inspection and quarantine authorities. Pear
exports are expected to continue to increasing, given stable world
demand. Exports of table grapes, though small in volume, are likely to
continue rapid growth as a result of improved quality and handling
ability.

# Production

## Apples 

### MY 2007 Production Decreases

MY 2007 apple production is forecast at 23 million MT. This is down 12
percent from the previous year because cold and dry spring weather
resulted in fewer blossoms in Shandong and Shaanxi, two of China's
leading apple producing provinces. The smaller crop is also attributed
to a down year in the production cycle. Overall crop quality improved in
MY 2007, except for a somewhat less-attractive surface on some Shaanxi
apples because of persistent rain just before harvest in that region.
China harvested a record 26 million MT of apples in MY 2006, revised up
from Post's earlier estimate of 24.5 million MT to echo revised industry
figures.

### Acreage Continues to Expand, Varieties Remain Consistent

Apple acreage is forecast at 1.95 million hectares (HA) in MY 2007, up
three percent from the previous year, driven by high prices and
increased demand for juicing apples. Acreage expansion is occurring in
the Yellow Plateau area, especially in Shaanxi Province, where more
juicing apples are being planted on vacant hills and in valleys. Fuji
apples still dominate the apple crop, accounting for about 60 percent of
total production. The increased planting of early maturing varieties
such as Gala (seen earlier this decade) seems to have slowed as consumer
preference and market prices are less attractive for the variety.

### Rising Cost of Inputs

Production costs including fertilizer, pesticides, and labor continue to
rise quickly. For example, MY 2007 prices of fertilizers were 25 percent
higher than MY 2006 prices. Water is also a challenge for apple growers
in northern China since rainfall and underground water remain the main
sources of water for crop irrigation. Irrigation costs on average 1,200
Renminbi (U.S. \$160) several times per growing season to water one
hectare of orchard.

## Concentrated Apple Juice (CAJ)

### Strong World Demand Pushes CAJ Production and Prices Up

MY 2007 (July-June) CAJ production is forecast to exceed one million MT,
up three percent from the previous year, driven by strong world demand.
To reflect this, post's earlier MY 2006 production estimate has been
revised up significantly to 970,357 MT from 710,000 MT. In the wake of
sky-rocketing orange juice prices, many international buyers have
shifted to apple juice. Apple juice is consumed directly and is also
used for blending with other juices as a drink ingredient or sweetener.
The increased demand for Chinese CAJ in MY 2007 is also the result of an
expected reduction of CAJ production in Poland, another major supplier,
where the MY 2007 apple crop is forecast to drop by half because of
severe frost. Tightened supplies of apples and strong demand have pushed
CAJ prices up to U.S. \$1,800-1,900 per ton. Chinese juice producers
predict CAJ prices will continue this upward trend over the next three
years, until new plantings begin bearing fruit and production increases.
However, industry sources also warn that rapidly increasing CAJ prices
may force buyers to look for other fruit juice alternatives.

### Shortage of Juicing Apples

Given strong demand and the shortage of juicing apples, Chinese crushing
companies are paying double what they paid last year to purchase the
apples they can find. Previously, crushers only sourced non-commercial
grade apples for juicing; however, crushers will now pay the higher
price for fresh consumption grade apples because the demand for juice is
so great. Juicing apples are priced at 1,550 Renminbi (U.S. \$207) per
MT. About seven MT of fresh apples are required to produce one MT of
CAJ. The financial burden of higher prices may pose an even greater
challenge to Chinese crushers, who normally have to pay cash up front
when purchasing apples from farmers.

### CAJ Production Capacity Increases Rapidly

China's CAJ production capacity has rapidly expanded since 2004,
especially in Shaanxi Province. Industry sources report crushing
capacity has reached 5,000 MT per hour in 2007, up 285 percent from
2002. The five top juicing companies: Zhonglu, Haisheng, North Andre,
Hengxing, and Tongda, account for over 70 percent of China's total CAJ
production. More than 90 percent of the CAJ produced in China is
exported, mainly to the United States, the EU, Russia, Japan, Canada,
and Australia. Export prices have seen double digit growth for three
consecutive years.

## Pears

### Production Increases, but Planting Area Declines Slightly

Pear production is forecast at 12.58 million MT in MY 2007, up five
percent from MY 2006, as yields increase steadily in major producing
areas including Hebei and Shandong Provinces. MY 2007 pear acreage
continues its slight declining trend from 2006, with planted area
forecast at 1.06 million HA. This two-percent reduction from last year
is a result of lower prices compared to apples. At the same time,
production is shifting from the traditional Ya and Snow pears to new
varieties such as Golden, Huangguan, and Nanguo. Two processing
facilities for pear juice have recently been built in Hebei, the top
pear producing province, and are expected to absorb lower grade pears in
the area.

## Grapes

### China's Grape Acreage Expands

China's MY 2007 grape production is forecast at 6.9 million MT, up 10
percent from 6.27 million MT in MY 2006. This change is the result of
expanding planting area of both table and wine grapes. Grape acreage is
forecast at 443,000 hectares in MY 2007, up six percent from MY 2006
because of high prices, despite some fluctuations. The expansion of
acreage is mostly in northwestern China including Xinjiang, Gansu, and
Ningxia, as well as in the Yangtze Delta area. Table grapes represent 70
to 80 percent of total production and are mostly Kyoho varieties with
the share of Red Globe rapidly catching up. Wine grape planting area is
also expanding fairly rapidly, boosted by China's increasing wine
consumption. Industry sources indicate wine consumption in Beijing is
growing at more than 20 percent annually.

## 

# Prices

## Prices Increase for all Fresh Deciduous Fruits

According to the National Statistic Bureau, the production costs of
apples and pears increased by 12.5 percent and 11.7 percent,
respectively, in 2006. Farm gate prices for fresh apples have increased
significantly to 4.6-5.0 Renminbi per kilogram (U.S. \$6.10-6.70) in the
beginning of MY 2007. This is up more than 30 percent from the previous
year and is the result of reduced domestic production and tighter
supplies. Juicing apple prices are also quickly catching up to fresh
apple prices.

Despite increased production, pear prices are expected to increase from
earlier low levels, boosted by strong apple prices. Industry sources
indicate when apple prices are high, the price-conscious Chinese
consumer will substitute with fresh pears. Grape prices vary greatly
from city to city. September 2007 Red Globe prices, for example, ranged
from U.S. \$.57/kilo in West China, to U.S. \$2.55/kilo in the South.

![](media/image2.wmf){width="6.835416666666666in"
height="2.6597222222222223in"}

# Consumption

## Consumption Increasing with Incomes

Consumption of fresh fruit continues to grow, along with rising incomes
and increasingly health conscious consumers. The National Statistic
Bureau reported that per capita consumption of fresh fruit in urban
areas increased to 57 kilograms per year in 2005, up from 41 kilograms
in 1990. The volume is estimated to further increase to 60 kilograms in
2006, while per capita consumption of fresh fruit in rural areas is
estimated at 20 kilograms annually.

## Price-Sensitive Consumers Demand more High Quality Fruit 

Consumers not only select fruit based on flavor and appearance, they are
becoming increasingly aware of and concerned about food safety.
Therefore, higher grade fruit and products produced with standardized
farming practices are sought out by a growing number of consumers,
especially in urban areas. However, the willingness to pay is limited
because Chinese consumers are also price-sensitive. High quality fruit
is still in short supply, so more and more consumers are choosing to buy
fruit in supermarkets instead of wet markets. The modern retail venue is
believed to provide safer and more reliable fruit. However, the higher
prices of fresh apples in MY 2007 may limit overall consumption.

## Juice Consumption Rapidly Increasing

The majority of Chinese consumers prefer fresh fruit over juice.
However, fruit juice and drink consumption is increasing rapidly in
urban areas because of dietary changes from tea and hot water to fruit
juices and drinks, especially among the younger urban generation. The
rapid development of the juice industry is also attributed to aggressive
entrepreneurial efforts, and the increase in modern facilities like
supermarkets. According to an industry report, China produced 2.3
billion liters of juice and juice drinks in 2006, up 18 percent from
2005.

# Trade 

## Imports

### Apple Imports to Rebound

Apple imports are expected to rebound to 50,000 million MT in MY 2007,
up from 33,671 million MT in MY 2006, as a result of the reduced
domestic crop. The U.S. Red Delicious variety, however, is gradually
losing market share. Chinese consumers do not particularly like the
flavor of Red Delicious, but continue to buy them as gifts during
holidays because of their beautiful appearance and bright color.
Although China's market has not officially opened to all U.S. varieties,
some can be found on the market -- even on some supermarket shelves, and
the volume is increasing. If allowed entry, U.S. apples would compete
well with Chilean and New Zealand counterparts. While New Zealand Galas
are prized for their appearance, their prices are also higher than U.S.
apples.

### China Still Largest Market for California Table Grapes

Although Chinese customs data shows the overall import volume of grapes
is declining, industry sources indicate imports of grapes through
unofficial channels are actually increasing, because the cost to use
these channels is much less expensive. ASEAN countries enjoy a "0"
tariff on agricultural products to China's market, including for fruit.
Yet, China remains the largest market for California table grapes.
Although domestically produced Red Globes are increasing in quantity,
U.S. grapes look and taste better, and sizing is larger and more
consistent than the local product. U.S. grapes are consumed mainly
during the Moon Festival (September) and the National Day (October)
holidays, while Chilean grape exporters target Chinese Spring Festival
(January or February).

## Exports

### Increased Export Inspections for Apples to Impact Volume

The rapid expansion of apple exports is likely to slow in MY 2007,
because of tightened supplies and higher prices, coupled with more
stringent control over exported fruit by China's inspection and
quarantine authorities. Some exporters reported fewer orders from
international buyers because of increased export prices. A carton of
apples weighing 10 kilograms is currently priced at U.S. \$8.50, up 20
percent from the previous season. The General Administration of Quality,
Inspection and Quarantine (AQSIQ) now requires that all exported fruit
be sourced only from registered orchards and packing houses. This
requirement will further raise the price of apple exports, especially
exports to neighboring countries like Russia and the ASEAN countries
(see Policy).

### Stable Demand for Pear Exports

Pear exports are expected to continue growing, given stable world
demand. The main export destinations for Chinese pears are Southeast
Asian countries and the volume is growing steadily. Pear exports to
Europe and North America are quite limited, because Asian pears are not
traditionally favored by western consumers.

### Volume of Grape Exports Small, but has Growth Potential

Exports of table grapes, despite being small in volume, are likely to
continue rapid growth as a result of improved quality and handling
capacity. However, even with these improvements, Chinese grape growers
still pursue quantity rather than quality, so post-harvest handling like
cold storage lags behind other countries. Industry sources believe that
further efforts to improve handling will help position China's grapes
much better on the world market.

# Policy

## No Direct Support

The central government provides no direct support to fruit producers,
but it does provide analytical and policy support, such as identifying
advantageous planting areas for certain fruit. In 2003, the Ministry of
Agriculture issued a five-year-plan identifying two geographic areas as
being the most suitable for apple production (see
[CH3121](http://www.fas.usda.gov/gainfiles/200309/145986081.pdf)). A
similar plan is being formulated for pear and grape production and is
expected to be published soon.

## Technical Support

The Ministry of Agriculture and provincial departments of agriculture
also provide technical support to fruit farmers. Support includes
training and guidance on fertilization and pest/disease control, as well
as drafting and implementing food and agriculture standards such as
those for organic products, "green food," and "wholesome food." In some
cases, the government is helping build demonstration farms to promote
good farming practices. A central government fund focused on subsidizing
apple bagging in key producing areas was established in 2005 with the
aim of encouraging farmers to bag apples on the tree to improve quality
(See [CH6078](http://www.fas.usda.gov/gainfiles/200609/146249029.pdf)).

## Law on Farm Product Quality and Safety

In an effort to streamline farming practices, the Ministry of
Agriculture published the Law on Farm Product Quality and Safety in
April 2006. The regulation came into force on November 1, 2006. The
legislation stipulates that producers who market farm products must
comply with basic food safety and quality criteria. While the law
relates to already existing standards and technical regulations, the
focus is on clarifying inspection and enforcement responsibilities at
each level of government (refer to
[CH6095](http://www.fas.usda.gov/gainfiles/200611/146249460.pdf) for
details).

## New Farmer Cooperative Regulation

As China's economy continues growing, working to increase farmer incomes
has become a top priority in the central government's agriculture
policies. In addition to eliminating taxes for farmers in 2006,
government initiatives support the formation and operation of farmer
cooperatives. A new law on farmer cooperatives took effect on July 1,
2007. The regulation allows government at different levels to give
financial support to farmer cooperatives in order to provide market
information, training, and the application of standardized farming
practices to individual farmers. The central government is still working
on the financing details, but cooperative groups certainly offer some
hope for small farmers who are often left vulnerable during production
crisis periods (see
[CH6113](http://www.fas.usda.gov/gainfiles/200612/146259726.pdf)).

## AQSIQ Mandates Orchard and Packing House Registration

Following a spate of food safety scares related to Chinese food exports,
the Chinese inspection and quarantine agency, AQSIQ, recently issued an
urgent directive to its local branches (CIQ), requiring that all
exported fruit be sourced only from AQSIQ-registered orchards and
packing houses beginning November 1, 2007. Currently, fruit exports to
the United States, Canada, Australia, New Zealand, Japan, and South
Korea originate from orchards and packing houses registered at AQSIQ, at
the request of the importing country. Russia and Southeast Asian
countries did not previously have this requirement for imported fruit,
but AQSIQ has begun implementing it for exports to these countries. The
new policy may impact export volume in the short run, because smaller
packing houses may not be able to source enough fruit from registered
orchards to fill export contracts to Russia and Southeast Asia, two
major export markets for Chinese fruit.

Fresh fruit exporters and fruit processors (juicing companies) continue
to receive tax rebates of 5 percent and 13 percent, respectively, from
the government after their products are exported.

# Marketing

## Competition

### U.S. Fruit Competes with Domestic Supply

Domestic supply remains dominant in China's deciduous fruit market,
while imported fruit - mostly apples and table grapes from Chile and the
United States - holds the high end niches in wealthy areas. The United
States is the second largest deciduous fruit exporter to China, after
Chile.

U.S. apples are available year-round in China's market, but face fierce
competition from both Chinese apples and those from the southern
hemisphere. Chinese apples, mostly Fuji, are also available throughout
the year and are sold at less than half the price of U.S. apples. From
March to September, U.S. apple prices are general competitive with
apples imported from Chile and New Zealand.

U.S. table grapes are available in China from September through
December, and compete mainly with Chinese-grown table grapes. Thanks to
improved handling, Chinese grapes can be found in the market as late as
February. The Chinese Mid-Autumn festival in September is one of the
best selling seasons for high-value fruit. Grapes are often given as
gifts in fruit baskets. However, U.S. sales face strong competition from
Chinese grapes that come into the market at lower prices. Table grapes
from the Southern Hemisphere are available in the market from January
until June, so do not directly compete with U.S. grapes.

## Price Constraints

Price is a big constraint for U.S. deciduous fruit expansion to China
since most consumers are very price-sensitive. Prices for domestic fruit
are cheaper compared to imported counterparts, and the quality of
domestic fruit continues to increase. Retail prices for imported
products can be twice as high as the price of domestic fruit.

## Regional Markets

The mainland market can be divided into South China, East China, and
North China markets. In the last two decades, South China has secured
its dominant position as the distribution hub and consumption area in
the country for imported fruit. Industry sources believe that this
region accounts for more than 80 percent of imported fruit transactions
and more than 60 percent of the consumption. East and North China have
experienced rapid growth in recent years. With sea port development in
these regions and increasing demand from international shipping lines,
the volume of fruit imports serving the region is growing in Shanghai
(East China), Dalian, and Tianjin (both in North China).

Imported deciduous fruits enjoy strong demand in primary markets across
the country considered 'first-tiered cities' for example, Guangzhou and
Shenzhen in South China, Shanghai in East China, and Beijing in North
China. In addition, there are a number of emerging markets that have
definite potential for imported deciduous fruit demand, though market
development is needed. These emerging cities include:

-   South China: Dongguan, Foshan, Xiamen, Fuzhou, and Nanning

-   East China: Ningbo, Hangzhou, Wuxi, Nanjing, and Wenzhou

-   North China: Harbin, Dalian, Shenyang, and Changchun

## Weak Cold Chain 

The development of the fruit distribution system in China, especially
the cold chain system, has not yet kept pace with the ever-growing fruit
import. Most cold storage facilities in the country are small and in
poor condition. It is common to see perishable high-priced fruit placed
outside of temperature-controlled areas because of lack of awareness or
lack of cold storage all along the supply chain - from importers to
wholesalers and retailers. The limits in the cold chain system have
resulted in significant losses to both domestic and imported produce. It
also can affect the quality of imported U.S. fruit before it is
delivered to consumers. In a country as large as China, the shortage of
cold storage facilities and management expertise will restrict the
further expansion of U.S. fruits from the current principle city markets
to the smaller cities.

## IPR Protection 

Many Chinese consumers are not able to tell the difference between U.S.
fruit and others' fruit -- both domestic and imported. This prohibits
the further success of U.S. fruit, especially in emerging city markets
where consumers have limited experience with imported products. In
addition, imported fruit that closely resembles domestic products, for
example California Red Globe table grapes vs. Chinese Red Globe, makes
it easy for Chinese-grown fruits to assume an American identity through
counterfeit labeling. U.S. exporters are strongly encouraged to take
steps to protect their logos, brand names, and other intellectual
property rights (IPR) from counterfeit and infringement. For more
information on IPR protection in China, please refer to
[CH7023](http://www.fas.usda.gov/gainfiles/200703/146280569.pdf) and
[CH7035](http://www.fas.usda.gov/gainfiles/200703/146280569.pdf).

## Marketing Tips

Visits with Chinese clients are essential for the successful marketing
of U.S. fresh deciduous fruit. These contacts will not only help
exporters understand the regional and city markets, which vary from one
to another, but also will create opportunities to establish and maintain
reliable business relationships.

Additional tips when marketing U.S. fruit in China:

1.  Target high income earners in affluent cities where high quality
    fruit is in great demand;

2.  Work with reliable Chinese partners including: importers, logistics
    providers, and retailers in each region, as they understand the
    respective regional markets better than those outside of the region;

3.  Assist and educate Chinese partners on proper product handling;

4.  Provide ideas for promotional activities related to the high
    quality, health benefits, and safety of U.S. fruits;

5.  Understand consumer preferences, which vary from region to region;

6.  Take advantage of high fruit consumption seasons during major
    holidays and festivals;

7.  Enhance the image of U.S. fruit to differentiate from other fruit;
    and,

8.  Protect the IPR of U.S. fruit.

# 

# Other Relevant Reports

## FAS Beijing Reports

[CH3121 - China Fresh Deciduous Annual Report,
2003](http://www.fas.usda.gov/gainfiles/200309/145986081.pdf)

[CH6078 -- China Fresh Deciduous Annual Report,
2006](http://www.fas.usda.gov/gainfiles/200609/146249029.pdf)

[CH6113 -- Presidential Order 57 Supports Farmer Cooperatives in
China](http://www.fas.usda.gov/gainfiles/200612/146259726.pdf)

[CH7023- Going to China? Trademark your Intellectual Property
Now!](http://www.fas.usda.gov/gainfiles/200703/146280569.pdf)

[CH7035 -- Protect Your Trademark...Before Someone Else Trades Your
Mark](http://www.fas.usda.gov/gainfiles/200703/146280569.pdf)

# Tables

<table>
<colgroup>
<col style="width: 12%" />
<col style="width: 7%" />
<col style="width: 10%" />
<col style="width: 7%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 11%" />
<col style="width: 6%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><h2
id="china-apple-production-and-acreage-by-province-2002-2006">China
Apple Production and Acreage by Province 2002-2006</h2></td>
</tr>
<tr class="even">
<td>Province</td>
<td>2002</td>
<td></td>
<td>2003</td>
<td></td>
<td>2004</td>
<td></td>
<td>2005</td>
<td></td>
<td>2006</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
</tr>
<tr class="even">
<td>Shandong</td>
<td>369.00</td>
<td>5,000,017</td>
<td>357.30</td>
<td>6,118,563</td>
<td>340.5</td>
<td>6,690,553</td>
<td>342.5</td>
<td>6,716,634</td>
<td>311.1</td>
<td>6,930,492</td>
</tr>
<tr class="odd">
<td>Shaanxi</td>
<td>369.00</td>
<td>3,921,630</td>
<td>401.50</td>
<td>4,617,921</td>
<td>412.1</td>
<td>5,552,054</td>
<td>426.3</td>
<td>5,601,167</td>
<td>462.2</td>
<td>6,499,755</td>
</tr>
<tr class="even">
<td>Henan</td>
<td>168.30</td>
<td>2,603,588</td>
<td>164.50</td>
<td>2,509,614</td>
<td>164.7</td>
<td>2,869,272</td>
<td>165.8</td>
<td>3,006,245</td>
<td>167.7</td>
<td>3,227,885</td>
</tr>
<tr class="odd">
<td>Hebei</td>
<td>288.30</td>
<td>1,965,571</td>
<td>276.40</td>
<td>2,002,769</td>
<td>266.5</td>
<td>2,142,882</td>
<td>263.9</td>
<td>2,202,273</td>
<td>253.1</td>
<td>2,357,620</td>
</tr>
<tr class="even">
<td>Shanxi</td>
<td>158.40</td>
<td>1,724,180</td>
<td>154.10</td>
<td>1,801,786</td>
<td>152.7</td>
<td>2,021,372</td>
<td>151.4</td>
<td>1,648,413</td>
<td>146.0</td>
<td>1,867,049</td>
</tr>
<tr class="odd">
<td>Liaoning</td>
<td>131.90</td>
<td>1,005,142</td>
<td>115.10</td>
<td>1,089,937</td>
<td>111.8</td>
<td>1,222,119</td>
<td>110.3</td>
<td>1,299,595</td>
<td>109.1</td>
<td>1,301,399</td>
</tr>
<tr class="even">
<td>Gansu</td>
<td>163.50</td>
<td>776,004</td>
<td>167.50</td>
<td>829,959</td>
<td>173.2</td>
<td>799,650</td>
<td>183.8</td>
<td>1,012,568</td>
<td>207.4</td>
<td>1,254,141</td>
</tr>
<tr class="odd">
<td>Jiangsu</td>
<td>46.70</td>
<td>614,555</td>
<td>38.90</td>
<td>494,611</td>
<td>38.0</td>
<td>560,871</td>
<td>38.4</td>
<td>552,794</td>
<td>36.5</td>
<td>572,600</td>
</tr>
<tr class="even">
<td>Anhui</td>
<td>17.90</td>
<td>296,552</td>
<td>17.10</td>
<td>221,317</td>
<td>16.1</td>
<td>283,524</td>
<td>13.9</td>
<td>278,143</td>
<td>13.4</td>
<td>341,828</td>
</tr>
<tr class="odd">
<td>Xinjiang</td>
<td>30.40</td>
<td>250,396</td>
<td>27.80</td>
<td>263,418</td>
<td>28.9</td>
<td>293,850</td>
<td>28.6</td>
<td>330,206</td>
<td>31.1</td>
<td>327,886</td>
</tr>
<tr class="even">
<td>Jilin</td>
<td>26.10</td>
<td>168,372</td>
<td>25.30</td>
<td>190,133</td>
<td>20.4</td>
<td>241,491</td>
<td>18.6</td>
<td>252,298</td>
<td>17.7</td>
<td>268,055</td>
</tr>
<tr class="odd">
<td>Sichuan</td>
<td>25.70</td>
<td>206,909</td>
<td>26.80</td>
<td>225,384</td>
<td>26.4</td>
<td>240,481</td>
<td>26.6</td>
<td>242,923</td>
<td>26.2</td>
<td>248,022</td>
</tr>
<tr class="even">
<td>Yunnan</td>
<td>37.30</td>
<td>104,816</td>
<td>33.70</td>
<td>13,414</td>
<td>33.1</td>
<td>141,239</td>
<td>31.5</td>
<td>159,396</td>
<td>30.3</td>
<td>201,962</td>
</tr>
<tr class="odd">
<td>Ningxia</td>
<td>20.40</td>
<td>124,682</td>
<td>20.40</td>
<td>154,927</td>
<td>18.3</td>
<td>156,333</td>
<td>19.1</td>
<td>222,126</td>
<td>20.3</td>
<td>200,694</td>
</tr>
<tr class="even">
<td>Heilongjiang</td>
<td>28.80</td>
<td>183,067</td>
<td>18.40</td>
<td>169,115</td>
<td>16.1</td>
<td>160,003</td>
<td>15.5</td>
<td>177,432</td>
<td>13.3</td>
<td>159,759</td>
</tr>
<tr class="odd">
<td>Beijing</td>
<td>13.50</td>
<td>144,392</td>
<td>13.20</td>
<td>134,815</td>
<td>12.9</td>
<td>134,753</td>
<td>10.8</td>
<td>138,447</td>
<td>9.5</td>
<td>131,071</td>
</tr>
<tr class="even">
<td>Inner Mongolia</td>
<td>16.50</td>
<td>40,350</td>
<td>18.80</td>
<td>51,940</td>
<td>21.4</td>
<td>59,327</td>
<td>22.5</td>
<td>62,319</td>
<td>22.9</td>
<td>65,961</td>
</tr>
<tr class="odd">
<td>Tianjin</td>
<td>8.30</td>
<td>67,056</td>
<td>7.30</td>
<td>68,069</td>
<td>6.2</td>
<td>64,721</td>
<td>6.4</td>
<td>66,039</td>
<td>6.2</td>
<td>64,076</td>
</tr>
<tr class="even">
<td>Hubei</td>
<td>4.30</td>
<td>12,388</td>
<td>4.20</td>
<td>13,458</td>
<td>3.6</td>
<td>10,934</td>
<td>3.3</td>
<td>12,437</td>
<td>3.2</td>
<td>11,866</td>
</tr>
<tr class="odd">
<td>Guizhou</td>
<td>7.40</td>
<td>9,406</td>
<td>4.80</td>
<td>9,262</td>
<td>6.0</td>
<td>10,263</td>
<td>5.7</td>
<td>10,230</td>
<td>6.0</td>
<td>10,628</td>
</tr>
<tr class="even">
<td>Chongqing</td>
<td>1.80</td>
<td>6,225</td>
<td>2.70</td>
<td>6,441</td>
<td>1.8</td>
<td>6,854</td>
<td>1.9</td>
<td>6,094</td>
<td>1.7</td>
<td>6,326</td>
</tr>
<tr class="odd">
<td>Qinghai</td>
<td>3.90</td>
<td>9,078</td>
<td>3.90</td>
<td>8,246</td>
<td>5.3</td>
<td>7,198</td>
<td>2.8</td>
<td>7,316</td>
<td>2.9</td>
<td>5,939</td>
</tr>
<tr class="even">
<td>Tibet</td>
<td>0.50</td>
<td>5,072</td>
<td>0.60</td>
<td>5,577</td>
<td>0.6</td>
<td>5,327</td>
<td>0.7</td>
<td>5,674</td>
<td>1.0</td>
<td>3,934</td>
</tr>
<tr class="odd">
<td>Fujian</td>
<td>0.10</td>
<td>302</td>
<td>0.00</td>
<td>151</td>
<td>0.1</td>
<td>244</td>
<td>0.0</td>
<td>198</td>
<td>0.0</td>
<td>189</td>
</tr>
<tr class="even">
<td>Shanghai</td>
<td>0.10</td>
<td>135</td>
<td>0.00</td>
<td>139</td>
<td>0.0</td>
<td>158</td>
<td>0.0</td>
<td>114</td>
<td>0.0</td>
<td>158</td>
</tr>
<tr class="odd">
<td>Zhejiang</td>
<td>0.20</td>
<td>1,100</td>
<td>0.20</td>
<td>810</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Jiangxi</td>
<td>0.00</td>
<td>0</td>
<td>0.00</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Hunan</td>
<td>0.00</td>
<td>0</td>
<td>0.00</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Guangdong</td>
<td>0.00</td>
<td>0</td>
<td>0.00</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Guangxi</td>
<td>0.00</td>
<td>0</td>
<td>0.00</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Hainan</td>
<td>0.00</td>
<td>0</td>
<td>0.00</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>National Total</td>
<td>1938.30</td>
<td>19,240,985</td>
<td>1,900.50</td>
<td>21,001,776</td>
<td>1,876.7</td>
<td>23,675,473</td>
<td>1,890,300</td>
<td>24,011,081</td>
<td>1,898.8</td>
<td>26059298</td>
</tr>
<tr class="even">
<td colspan="11">Source: China Agriculture Statistical Report</td>
</tr>
</tbody>
</table>

##  

<table>
<colgroup>
<col style="width: 11%" />
<col style="width: 7%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 10%" />
<col style="width: 7%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><h2
id="pear-production-and-acreage-by-province-2002-2006">Pear Production
and Acreage by Province 2002-2006</h2></td>
</tr>
<tr class="even">
<td></td>
<td>2002</td>
<td></td>
<td>2003</td>
<td></td>
<td>2004</td>
<td></td>
<td>2005</td>
<td></td>
<td>2006</td>
<td></td>
</tr>
<tr class="odd">
<td>Province</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
</tr>
<tr class="even">
<td>Hebei</td>
<td>211.7</td>
<td>2,662,875</td>
<td>213.1</td>
<td>2,820,702</td>
<td>213.3</td>
<td>3,131,868</td>
<td>215.0</td>
<td>3,246,220</td>
<td>215.0</td>
<td>3,334,972</td>
</tr>
<tr class="odd">
<td>Shandong</td>
<td>64.1</td>
<td>829,821</td>
<td>74.1</td>
<td>982,562</td>
<td>70.6</td>
<td>1,000,938</td>
<td>69.9</td>
<td>1,061,389</td>
<td>59.6</td>
<td>1,103,481</td>
</tr>
<tr class="even">
<td>Anhui</td>
<td>36.7</td>
<td>767,482</td>
<td>36.5</td>
<td>583,091</td>
<td>38.4</td>
<td>601,134</td>
<td>38.6</td>
<td>638,058</td>
<td>37.4</td>
<td>803,652</td>
</tr>
<tr class="odd">
<td>Sichuan</td>
<td>61.9</td>
<td>469,702</td>
<td>71.2</td>
<td>547,714</td>
<td>78.9</td>
<td>620,276</td>
<td>83.0</td>
<td>684,593</td>
<td>80.5</td>
<td>746,048</td>
</tr>
<tr class="even">
<td>Liaoning</td>
<td>85.5</td>
<td>412,724</td>
<td>85.5</td>
<td>515,892</td>
<td>88.5</td>
<td>605,679</td>
<td>91.6</td>
<td>690,354</td>
<td>87.7</td>
<td>705,232</td>
</tr>
<tr class="odd">
<td>Henan</td>
<td>35.5</td>
<td>479,640</td>
<td>36.7</td>
<td>433,413</td>
<td>36.4</td>
<td>544,554</td>
<td>39.2</td>
<td>654,680</td>
<td>41.1</td>
<td>695,950</td>
</tr>
<tr class="even">
<td>Shaanxi</td>
<td>57.2</td>
<td>460,171</td>
<td>57.3</td>
<td>689,816</td>
<td>59.8</td>
<td>669,327</td>
<td>59.6</td>
<td>621,224</td>
<td>60.4</td>
<td>650,028</td>
</tr>
<tr class="odd">
<td>Jiangsu</td>
<td>43.7</td>
<td>519,451</td>
<td>44.2</td>
<td>502,033</td>
<td>44.7</td>
<td>542,455</td>
<td>47.3</td>
<td>556,158</td>
<td>40.2</td>
<td>614,252</td>
</tr>
<tr class="even">
<td>Hubei</td>
<td>50.8</td>
<td>677,021</td>
<td>40.9</td>
<td>563,895</td>
<td>39.7</td>
<td>548,759</td>
<td>35.9</td>
<td>501,856</td>
<td>38.1</td>
<td>518,020</td>
</tr>
<tr class="odd">
<td>Xinjiang</td>
<td>45.8</td>
<td>308,989</td>
<td>47.7</td>
<td>249,537</td>
<td>53.3</td>
<td>285,703</td>
<td>66.8</td>
<td>367,808</td>
<td>69.2</td>
<td>435,203</td>
</tr>
<tr class="even">
<td>Zhejiang</td>
<td>22.1</td>
<td>147,842</td>
<td>24.1</td>
<td>244,454</td>
<td>25.7</td>
<td>285,751</td>
<td>26.6</td>
<td>310,375</td>
<td>26.5</td>
<td>329,753</td>
</tr>
<tr class="odd">
<td>Gansu</td>
<td>50.6</td>
<td>266,254</td>
<td>51</td>
<td>286,128</td>
<td>50.0</td>
<td>251,516</td>
<td>49.5</td>
<td>283,345</td>
<td>48.4</td>
<td>314,798</td>
</tr>
<tr class="even">
<td>Yunnan</td>
<td>38.7</td>
<td>161,000</td>
<td>39.7</td>
<td>176,285</td>
<td>38.6</td>
<td>189,396</td>
<td>39.7</td>
<td>197,028</td>
<td>41.7</td>
<td>216,936</td>
</tr>
<tr class="odd">
<td>Shanxi</td>
<td>30.3</td>
<td>104,019</td>
<td>27.9</td>
<td>154,901</td>
<td>28.5</td>
<td>197,298</td>
<td>30.0</td>
<td>246,247</td>
<td>29.6</td>
<td>184,207</td>
</tr>
<tr class="even">
<td>Chongqing</td>
<td>21.2</td>
<td>100,777</td>
<td>24.4</td>
<td>142,901</td>
<td>26.3</td>
<td>161,200</td>
<td>28.0</td>
<td>180,049</td>
<td>29.0</td>
<td>171,962</td>
</tr>
<tr class="odd">
<td>Beijing</td>
<td>12.1</td>
<td>125,009</td>
<td>12.5</td>
<td>130,766</td>
<td>10.9</td>
<td>137,563</td>
<td>11.2</td>
<td>145,759</td>
<td>11.0</td>
<td>153,566</td>
</tr>
<tr class="even">
<td>Fujian</td>
<td>22.2</td>
<td>125,032</td>
<td>22.5</td>
<td>129,980</td>
<td>22.8</td>
<td>142,254</td>
<td>23.0</td>
<td>147,755</td>
<td>22.4</td>
<td>152,309</td>
</tr>
<tr class="odd">
<td>Guizhou</td>
<td>28.4</td>
<td>82,385</td>
<td>31</td>
<td>97,867</td>
<td>33.9</td>
<td>108,368</td>
<td>36.5</td>
<td>123,740</td>
<td>36.8</td>
<td>139,412</td>
</tr>
<tr class="even">
<td>Jilin</td>
<td>30.6</td>
<td>200,593</td>
<td>26.3</td>
<td>120,215</td>
<td>21.4</td>
<td>156,736</td>
<td>17.8</td>
<td>134,833</td>
<td>17.1</td>
<td>137,690</td>
</tr>
<tr class="odd">
<td>Guangxi</td>
<td>12</td>
<td>69,819</td>
<td>13.3</td>
<td>82,088</td>
<td>14.3</td>
<td>97,452</td>
<td>16.7</td>
<td>120,741</td>
<td>17.8</td>
<td>135,582</td>
</tr>
<tr class="even">
<td>Hunan</td>
<td>20.9</td>
<td>63,237</td>
<td>24.1</td>
<td>70,750</td>
<td>25.5</td>
<td>84,435</td>
<td>27.5</td>
<td>108,417</td>
<td>30.9</td>
<td>117,613</td>
</tr>
<tr class="odd">
<td>Jiangxi</td>
<td>21.3</td>
<td>48,795</td>
<td>21.8</td>
<td>45,181</td>
<td>24.0</td>
<td>65,685</td>
<td>26.2</td>
<td>74,538</td>
<td>26.7</td>
<td>80,651</td>
</tr>
<tr class="even">
<td>Inner Mongolia</td>
<td>15.1</td>
<td>93,676</td>
<td>13.6</td>
<td>93,020</td>
<td>11.4</td>
<td>68,425</td>
<td>10.8</td>
<td>77,602</td>
<td>8.9</td>
<td>79,391</td>
</tr>
<tr class="odd">
<td>Heilongjiang</td>
<td>6.8</td>
<td>44,863</td>
<td>5.7</td>
<td>35,379</td>
<td>5.4</td>
<td>47,149</td>
<td>5.4</td>
<td>48,422</td>
<td>4.9</td>
<td>49,124</td>
</tr>
<tr class="even">
<td>Guangdong</td>
<td>7.5</td>
<td>40,318</td>
<td>6.3</td>
<td>38,760</td>
<td>6.4</td>
<td>42,097</td>
<td>7.3</td>
<td>42,963</td>
<td>6.9</td>
<td>43,808</td>
</tr>
<tr class="odd">
<td>Shanghai</td>
<td>1.9</td>
<td>12,752</td>
<td>2.1</td>
<td>17,931</td>
<td>2.4</td>
<td>17,710</td>
<td>2.0</td>
<td>18,794</td>
<td>2.0</td>
<td>31,639</td>
</tr>
<tr class="even">
<td>Tianjin</td>
<td>4.2</td>
<td>22,863</td>
<td>4.1</td>
<td>25,851</td>
<td>3.5</td>
<td>25,182</td>
<td>3.5</td>
<td>22,553</td>
<td>3.5</td>
<td>25,719</td>
</tr>
<tr class="odd">
<td>Ningxia</td>
<td>2.4</td>
<td>6,707</td>
<td>2.6</td>
<td>12,430</td>
<td>2.4</td>
<td>7,502</td>
<td>2.3</td>
<td>12,081</td>
<td>2.7</td>
<td>9,242</td>
</tr>
<tr class="even">
<td>Qinghai</td>
<td>1.1</td>
<td>5,228</td>
<td>1.2</td>
<td>4,418</td>
<td>1.6</td>
<td>5,362</td>
<td>1.2</td>
<td>5,105</td>
<td>1.1</td>
<td>4,912</td>
</tr>
<tr class="odd">
<td>Tibet</td>
<td>0.1</td>
<td>387</td>
<td>0.1</td>
<td>464</td>
<td>0.1</td>
<td>513</td>
<td>0.1</td>
<td>836</td>
<td>0.1</td>
<td>931</td>
</tr>
<tr class="even">
<td>Hainan</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>National Total</td>
<td>1,042.4</td>
<td>9,309,432</td>
<td>1,061.5</td>
<td>9,798,424</td>
<td>1,078.7</td>
<td>10,642,287</td>
<td>1,112.0</td>
<td>11,323,514</td>
<td>1,087.1</td>
<td>11,986,083</td>
</tr>
<tr class="even">
<td colspan="11">Source: China Agricultural Yearbooks</td>
</tr>
</tbody>
</table>

##  

<table style="width:100%;">
<colgroup>
<col style="width: 13%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 5%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 11%" />
<col style="width: 6%" />
<col style="width: 11%" />
<col style="width: 6%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><h2
id="grape-production-and-acreage-by-province-2002-2006">Grape Production
and Acreage by Province 2002-2006</h2></td>
</tr>
<tr class="even">
<td></td>
<td>2002</td>
<td></td>
<td>2003</td>
<td></td>
<td>2004</td>
<td></td>
<td>2005</td>
<td></td>
<td>2006</td>
<td></td>
</tr>
<tr class="odd">
<td>Province</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
<td>1000 ha</td>
<td>MT</td>
</tr>
<tr class="even">
<td>Xinjiang</td>
<td>87.9</td>
<td>908,069</td>
<td>91.7</td>
<td>1,066,331</td>
<td>92.2</td>
<td>1,241,450</td>
<td>96.2</td>
<td>1,287,642</td>
<td>103.9</td>
<td>1,502,035</td>
</tr>
<tr class="odd">
<td>Hebei</td>
<td>51.5</td>
<td>758,280</td>
<td>52.1</td>
<td>803,418</td>
<td>53.3</td>
<td>840,916</td>
<td>54.2</td>
<td>863,938</td>
<td>58.1</td>
<td>878,417</td>
</tr>
<tr class="even">
<td>Shandong</td>
<td>54.6</td>
<td>640,723</td>
<td>65.9</td>
<td>761,031</td>
<td>50.9</td>
<td>849,718</td>
<td>46.5</td>
<td>831,401</td>
<td>42.3</td>
<td>845,487</td>
</tr>
<tr class="odd">
<td>Liaoning</td>
<td>35.6</td>
<td>522,061</td>
<td>37.4</td>
<td>586,124</td>
<td>36.8</td>
<td>613,683</td>
<td>28.1</td>
<td>581,711</td>
<td>26.8</td>
<td>587,191</td>
</tr>
<tr class="even">
<td>Henan</td>
<td>20.4</td>
<td>304,982</td>
<td>21.6</td>
<td>331,036</td>
<td>25.0</td>
<td>382,743</td>
<td>26.2</td>
<td>412,605</td>
<td>25.0</td>
<td>405,125</td>
</tr>
<tr class="odd">
<td>Zhejiang</td>
<td>7.1</td>
<td>145,171</td>
<td>8.2</td>
<td>172,714</td>
<td>9.3</td>
<td>203,076</td>
<td>9.8</td>
<td>219,942</td>
<td>10.4</td>
<td>238,389</td>
</tr>
<tr class="even">
<td>Jiangsu</td>
<td>9.9</td>
<td>133,564</td>
<td>10.8</td>
<td>140,777</td>
<td>10.9</td>
<td>164,829</td>
<td>11.4</td>
<td>153,021</td>
<td>13.0</td>
<td>208,275</td>
</tr>
<tr class="odd">
<td>Anhui</td>
<td>8</td>
<td>100,306</td>
<td>7.6</td>
<td>161,600</td>
<td>9.1</td>
<td>165,377</td>
<td>6.0</td>
<td>173,264</td>
<td>5.8</td>
<td>174,710</td>
</tr>
<tr class="even">
<td>Sichuan</td>
<td>9.8</td>
<td>133,709</td>
<td>11.1</td>
<td>144,409</td>
<td>11.7</td>
<td>142,587</td>
<td>12.1</td>
<td>160,827</td>
<td>12.9</td>
<td>170,534</td>
</tr>
<tr class="odd">
<td>Shaanxi</td>
<td>10.3</td>
<td>61,896</td>
<td>11.4</td>
<td>89,925</td>
<td>12.7</td>
<td>110,842</td>
<td>13.9</td>
<td>139,372</td>
<td>14.7</td>
<td>168,353</td>
</tr>
<tr class="even">
<td>Guangxi</td>
<td>8.6</td>
<td>79,197</td>
<td>8.6</td>
<td>94,210</td>
<td>8.9</td>
<td>106,512</td>
<td>10.0</td>
<td>119,135</td>
<td>11.5</td>
<td>137,047</td>
</tr>
<tr class="odd">
<td>Jilin</td>
<td>12.7</td>
<td>79,268</td>
<td>13.8</td>
<td>107,362</td>
<td>10.6</td>
<td>108,831</td>
<td>10.2</td>
<td>109,971</td>
<td>11.0</td>
<td>110,948</td>
</tr>
<tr class="even">
<td>Tianjin</td>
<td>5.7</td>
<td>137,909</td>
<td>5.9</td>
<td>140,060</td>
<td>5.6</td>
<td>132,084</td>
<td>5.1</td>
<td>93,229</td>
<td>5.2</td>
<td>104,103</td>
</tr>
<tr class="odd">
<td>Shanxi</td>
<td>14</td>
<td>90,686</td>
<td>13.7</td>
<td>111,885</td>
<td>14.2</td>
<td>116,572</td>
<td>13.2</td>
<td>119,187</td>
<td>10.2</td>
<td>91,699</td>
</tr>
<tr class="even">
<td>Gansu</td>
<td>8.8</td>
<td>52,442</td>
<td>9.4</td>
<td>63,343</td>
<td>9.2</td>
<td>70,002</td>
<td>8.9</td>
<td>77,506</td>
<td>8.9</td>
<td>90,443</td>
</tr>
<tr class="odd">
<td>Yunnan</td>
<td>4.9</td>
<td>34,539</td>
<td>5.3</td>
<td>42,606</td>
<td>5.3</td>
<td>50,862</td>
<td>5.6</td>
<td>69,734</td>
<td>6.3</td>
<td>90,117</td>
</tr>
<tr class="even">
<td>Fujian</td>
<td>3.9</td>
<td>48,775</td>
<td>4.5</td>
<td>55,801</td>
<td>4.8</td>
<td>67,449</td>
<td>5.0</td>
<td>59,066</td>
<td>5.5</td>
<td>85,010</td>
</tr>
<tr class="odd">
<td>Hubei</td>
<td>4.9</td>
<td>59,850</td>
<td>5.7</td>
<td>57,415</td>
<td>5.2</td>
<td>50,519</td>
<td>4.8</td>
<td>49,671</td>
<td>5.2</td>
<td>73,670</td>
</tr>
<tr class="even">
<td>Ningxia</td>
<td>7</td>
<td>22,639</td>
<td>7</td>
<td>41,407</td>
<td>6.9</td>
<td>37,688</td>
<td>7.8</td>
<td>48,154</td>
<td>8.8</td>
<td>64,796</td>
</tr>
<tr class="odd">
<td>Hunan</td>
<td>8.3</td>
<td>28,850</td>
<td>9.8</td>
<td>36,944</td>
<td>11.7</td>
<td>46,153</td>
<td>12.4</td>
<td>52,255</td>
<td>13.0</td>
<td>59,502</td>
</tr>
<tr class="even">
<td>Beijing</td>
<td>4.8</td>
<td>50,972</td>
<td>4.5</td>
<td>63,053</td>
<td>3.1</td>
<td>57,700</td>
<td>3.2</td>
<td>50,559</td>
<td>3.0</td>
<td>47,377</td>
</tr>
<tr class="odd">
<td>Inner Mongolia</td>
<td>3.6</td>
<td>14,408</td>
<td>3.5</td>
<td>20,789</td>
<td>4.9</td>
<td>23,339</td>
<td>5.3</td>
<td>29,119</td>
<td>4.5</td>
<td>35,386</td>
</tr>
<tr class="even">
<td>Shanghai</td>
<td>1.8</td>
<td>26,140</td>
<td>1.5</td>
<td>27,564</td>
<td>1.7</td>
<td>26,165</td>
<td>1.8</td>
<td>26,681</td>
<td>2.1</td>
<td>33,895</td>
</tr>
<tr class="odd">
<td>Guizhou</td>
<td>3.2</td>
<td>14,708</td>
<td>3.4</td>
<td>15,895</td>
<td>3.8</td>
<td>17,346</td>
<td>4.5</td>
<td>21,050</td>
<td>4.5</td>
<td>22,516</td>
</tr>
<tr class="even">
<td>Heilongjiang</td>
<td>1.6</td>
<td>14,506</td>
<td>2.1</td>
<td>19,122</td>
<td>1.6</td>
<td>27,404</td>
<td>1.7</td>
<td>20,720</td>
<td>1.6</td>
<td>22,728</td>
</tr>
<tr class="odd">
<td>Chongqing</td>
<td>1.7</td>
<td>12,137</td>
<td>2.6</td>
<td>17,413</td>
<td>2.1</td>
<td>17,183</td>
<td>2.3</td>
<td>20,727</td>
<td>2.6</td>
<td>18,919</td>
</tr>
<tr class="even">
<td>Jiangxi</td>
<td>1.8</td>
<td>3,560</td>
<td>1.8</td>
<td>3,631</td>
<td>1.9</td>
<td>3,868</td>
<td>1.9</td>
<td>3,741</td>
<td>1.9</td>
<td>3,856</td>
</tr>
<tr class="odd">
<td>Tibet</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0.0</td>
<td>318</td>
<td>0.0</td>
<td>103</td>
<td>0.0</td>
<td>114</td>
</tr>
<tr class="even">
<td>Qinghai</td>
<td>0</td>
<td>106</td>
<td>0.1</td>
<td>74</td>
<td>0.1</td>
<td>102</td>
<td>0.0</td>
<td>80</td>
<td>0.0</td>
<td>114</td>
</tr>
<tr class="odd">
<td>Guangdong</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Hainan</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0.0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>National Total</td>
<td>392.4</td>
<td>4,479,453</td>
<td>421</td>
<td>5,175,939</td>
<td>413.5</td>
<td>5,675,318</td>
<td>408,100</td>
<td>5,794,411</td>
<td>418.7</td>
<td>6,270,756</td>
</tr>
<tr class="even">
<td colspan="11">Source: China Agriculture Statistical Report</td>
</tr>
</tbody>
</table>

##  Fresh Apple Production, Supply and Supply (PS&D) Table

<table style="width:100%;">
<colgroup>
<col style="width: 14%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 10%" />
</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="9"><p><strong>Apples, Fresh</strong></p>
<p>(HA)(1000 TREES)(MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</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>07/2005</td>
<td>07/2005</td>
<td></td>
<td>07/2006</td>
<td>07/2006</td>
<td></td>
<td>07/2007</td>
<td>07/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>1890300</td>
<td>1890300</td>
<td>1890300</td>
<td>1899000</td>
<td>1899000</td>
<td>1899000</td>
<td>0</td>
<td>0</td>
<td>1950000</td>
</tr>
<tr class="even">
<td>Area Harvested</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>Bearing Trees</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>Non-Bearing Trees</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 Trees</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>Commercial Production</td>
<td>20400000</td>
<td>20400000</td>
<td>20400000</td>
<td>24480000</td>
<td>24480000</td>
<td>26059298</td>
<td>0</td>
<td>0</td>
<td>23000000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</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>Production</td>
<td>20400000</td>
<td>20400000</td>
<td>20400000</td>
<td>24480000</td>
<td>24480000</td>
<td>26059298</td>
<td>0</td>
<td>0</td>
<td>23000000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>30157</td>
<td>30157</td>
<td>30157</td>
<td>27500</td>
<td>27500</td>
<td>33671</td>
<td>0</td>
<td>0</td>
<td>50000</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>20430157</td>
<td>20430157</td>
<td>20430157</td>
<td>24507500</td>
<td>24507500</td>
<td>26092969</td>
<td>0</td>
<td>0</td>
<td>23050000</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>15882070</td>
<td>15882070</td>
<td>15882070</td>
<td>18677500</td>
<td>18677500</td>
<td>18329920</td>
<td>0</td>
<td>0</td>
<td>15170000</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>768087</td>
<td>768087</td>
<td>768087</td>
<td>860000</td>
<td>860000</td>
<td>970549</td>
<td>0</td>
<td>0</td>
<td>880000</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>3780000</td>
<td>3780000</td>
<td>3780000</td>
<td>4970000</td>
<td>4970000</td>
<td>6792500</td>
<td>0</td>
<td>0</td>
<td>7000000</td>
</tr>
<tr class="even">
<td>Withdrawal From Market</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>20430157</td>
<td>20430157</td>
<td>20430157</td>
<td>24507500</td>
<td>24507500</td>
<td>26092969</td>
<td>0</td>
<td>0</td>
<td>23050000</td>
</tr>
</tbody>
</table>

## Fresh Apple Trade Matrices

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

  **Country**          China, Peoples                      
                       Republic of                         

  **Commodity**        Apples, Fresh                       

  Time Period CY                      Units:               MT

  Imports from:        2005                                **2006**

  U.S.                 20599          U.S.                 11557

  Others                              Others               

  Chile                9691           Chile                14526

  New Zealand          2837           New Zealand          4796

  Japan                77             Japan                135

                       0              France               22

                                      South Korea          21

                                      Thailand             17

                                                           

  Total for Others     12605                               19517

  Others not Listed    0                                   0

  Grand Total          33204                               31074
  -------------------- -------------- -------------------- --------------

Source: WTA, China Customs Data

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

  **Country**          China, Peoples                      
                       Republic of                         

  **Commodity**        Apples, Fresh                       

  Time Period CY                      Units:               MT

  Exports for:         2005                                **2006**

  U.S.                 23             U.S.                 84

  Others                              Others               

  Russia               124733         Russia               141232

  Vietnam              97718          Indonesia            82204

  Indonesia            87818          Philippines          75478

  Philippines          60938          Vietnam              65029

  Kazakhstan           60183          Thailand             57591

  Thailand             58743          Kyrgyzstan           53152

  Malaysia             47963          Malaysia             43180

  Kyrgyzstan           36716          Kazakhstan           40627

  Bangladesh           27870          Bangladesh           26686

  Hong Kong            26754          Hong Kong            26180

  Total for Others     629436                              611359

  Others not Listed    194529                              192875

  Grand Total          823988                              804318
  -------------------- -------------- -------------------- --------------

Source: WTA, China Customs Data

## Apple Export Prices

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

  **Country**       China, Peoples Republic                     
                    of                                          

  **Commodity**     Apples, Fresh                               

  Prices in         US\$                     per uom            MT

                                                                

  **Year**          **2006**                 **2007**           **%
                                                                Change**

  Jan               450                      490                9%

  Feb               400                      480                20%

  Mar               460                      490                7%

  Apr               510                      510                0%

  May               530                      500                -6%

  Jun               570                      500                -12%

  Jul               620                      510                -18%

  Aug               450                      470                4%

  Sep               390                      460                18%

  Oct               450                       N/A               

  Nov               550                       N/A               

  Dec               460                       N/A               

                                                                

  Exchange Rate     7.5/1.00                 Local Currency/US  
                                             \$                 

  Date of Quote     10/31/2007               MM/DD/YYYY         
  ----------------- ------------------------ ------------------ ----------

## Concentrated Apple Juice (CAJ) Production, Supply and Demand (PS&D) Table

<table style="width:100%;">
<colgroup>
<col style="width: 20%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
</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="9"><p><strong>Apple Juice, Concentrated</strong></p>
<p>(MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</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>07/2005</td>
<td>07/2005</td>
<td></td>
<td>07/2006</td>
<td>07/2006</td>
<td></td>
<td>07/2007</td>
<td>07/2007</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>3780000</td>
<td>3780000</td>
<td>3780000</td>
<td>4970000</td>
<td>4970000</td>
<td>4970000</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>121047</td>
<td>121047</td>
<td>121047</td>
<td>1413</td>
<td>1413</td>
<td>1413</td>
<td>26513</td>
<td>26513</td>
<td>26513</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>540000</td>
<td>540000</td>
<td>540000</td>
<td>710000</td>
<td>710000</td>
<td>970357</td>
<td>0</td>
<td>0</td>
<td>1000000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>132</td>
<td>132</td>
<td>132</td>
<td>100</td>
<td>100</td>
<td>354</td>
<td>0</td>
<td>0</td>
<td>120</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>661179</td>
<td>661179</td>
<td>661179</td>
<td>711513</td>
<td>711513</td>
<td>972124</td>
<td>26513</td>
<td>26513</td>
<td>1026633</td>
</tr>
<tr class="even">
<td>Exports</td>
<td>613766</td>
<td>613766</td>
<td>613766</td>
<td>635000</td>
<td>635000</td>
<td>895611</td>
<td>0</td>
<td>0</td>
<td>930000</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>46000</td>
<td>46000</td>
<td>46000</td>
<td>50000</td>
<td>50000</td>
<td>50000</td>
<td>0</td>
<td>0</td>
<td>45000</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>1413</td>
<td>1413</td>
<td>1413</td>
<td>26513</td>
<td>26513</td>
<td>26513</td>
<td>0</td>
<td>0</td>
<td>51633</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>661179</td>
<td>661179</td>
<td>661179</td>
<td>711513</td>
<td>711513</td>
<td>972124</td>
<td>0</td>
<td>0</td>
<td>1026633</td>
</tr>
</tbody>
</table>

## CAJ Export Matrix and Prices

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

  **Country**          China, Peoples                      
                       Republic of                         

  **Commodity**        Apple Juice,                        
                       Concentrated                        

  Time Period                         Units:               MT

  Exports from:        2005                                **2006**

  U.S.                 227282         U.S.                 221960

  Others                              Others               

  Germany              91221          Russia               92721

  Netherlands          73430          Netherlands          82532

  Japan                67469          Japan                68282

  Russia               62031          Germany              63039

  Australia            29616          Canada               29721

  Canada               27164          Australia            28199

  South Africa         9669           Ukraine              17461

  U.K.                 6978           South Africa         10491

  Spain                6630           Spain                6128

  Israel               6370           U.K.                 5752

  Total for Others     380578                              404326

  Others not Listed    41889                               46341

  Grand Total          649749                              672627
  -------------------- -------------- -------------------- --------------

Source: WTA, China Customs Data

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

  **Country**              China, Peoples                   
                           Republic of                      

  **Commodity**            Apple Juice,                     
                           Concentrated                     

  Prices in                US\$             per uom         MT

                                                            

  **Year**                 **2006**         **2007**        **% Change**

  Jan                      790              980             24%

  Feb                      820              990             21%

  Mar                      820              990             21%

  Apr                      830              1000            20%

  May                      850              1010            19%

  Jun                      860              1040            21%

  Jul                      860              1040            21%

  Aug                      830              1010            22%

  Sep                      920              1220            33%

  Oct                      950              N/A             

  Nov                      970              N/A             

  Dec                      970              N/A             

                                                            

  Exchange Rate            7.5/1.00         Local           
                                            Currency/US \$  

  Date of Quote            10/31/2007       MM/DD/YYYY      
  ------------------------ ---------------- --------------- ---------------

## Fresh Pear Production, Supply and Demand (PS&D) Table

<table>
<colgroup>
<col style="width: 13%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 6%" />
<col style="width: 9%" />
<col style="width: 11%" />
</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="2"><strong>Pears, Fresh</strong></td>
<td colspan="7">(HA)(1000 TREES)(MT)</td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</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>07/2005</td>
<td>07/2005</td>
<td></td>
<td>07/2006</td>
<td>07/2006</td>
<td></td>
<td>07/2007</td>
<td>07/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>1112200</td>
<td>1112200</td>
<td>1112200</td>
<td>1123000</td>
<td>1123000</td>
<td>1087200</td>
<td>0</td>
<td>0</td>
<td>1067200</td>
</tr>
<tr class="even">
<td>Area Harvested</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>Bearing Trees</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>Non-Bearing Trees</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 Trees</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>Commercial Production</td>
<td>11323514</td>
<td>11323514</td>
<td>11323514</td>
<td>12450000</td>
<td>12450000</td>
<td>11986000</td>
<td>0</td>
<td>0</td>
<td>12580000</td>
</tr>
<tr class="odd">
<td>Non-Comm. Production</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>Production</td>
<td>11323514</td>
<td>11323514</td>
<td>11323514</td>
<td>12450000</td>
<td>12450000</td>
<td>11986000</td>
<td>0</td>
<td>0</td>
<td>12580000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>24</td>
<td>24</td>
<td>24</td>
<td>18</td>
<td>18</td>
<td>16</td>
<td>0</td>
<td>0</td>
<td>14</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>11323538</td>
<td>11323538</td>
<td>11323538</td>
<td>12450018</td>
<td>12450018</td>
<td>11986016</td>
<td>0</td>
<td>0</td>
<td>12580014</td>
</tr>
<tr class="odd">
<td>Fresh Dom. Consumption</td>
<td>10281273</td>
<td>10281273</td>
<td>10281273</td>
<td>11242818</td>
<td>11242818</td>
<td>10772126</td>
<td>0</td>
<td>0</td>
<td>11210014</td>
</tr>
<tr class="even">
<td>Exports, Fresh</td>
<td>362265</td>
<td>362265</td>
<td>362265</td>
<td>391200</td>
<td>391200</td>
<td>397890</td>
<td>0</td>
<td>0</td>
<td>420000</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>680000</td>
<td>680000</td>
<td>680000</td>
<td>816000</td>
<td>816000</td>
<td>816000</td>
<td>0</td>
<td>0</td>
<td>950000</td>
</tr>
<tr class="even">
<td>Withdrawal From Market</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>11323538</td>
<td>11323538</td>
<td>11323538</td>
<td>12450018</td>
<td>12450018</td>
<td>11986016</td>
<td>0</td>
<td>0</td>
<td>12580014</td>
</tr>
</tbody>
</table>

## Fresh Pear Export Matrix and Prices

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

  **Country**          China, Peoples                      
                       Republic of                         

  **Commodity**        Pears, Fresh                        

  Time Period                         Units:               MT

  Exports for:         2005                                **2006**

  U.S.                 0              U.S.                 9206

  Others                              Others               

  Indonesia            71988          Indonesia            71765

  Vietnam              51002          Russia               47432

  Malaysia             47997          Malaysia             43334

  Hong Kong            46171          Hong Kong            37627

  Russia               42866          Vietnam              36756

  Thailand             27985          Thailand             33009

  Singapore            12739          Singapore            15118

  Netherlands          11200          Netherlands          13531

  Canada               8509           Canada               13176

  Philippines          8248           Philippines          10247

  Total for Others     328705                              321995

  Others not Listed    39628                               44097

  Grand Total          368333                              375298
  -------------------- -------------- -------------------- --------------

Source: WTA, China Customs Data

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

  **Country**              China, Peoples                   
                           Republic of                      

  **Commodity**            Pears, Fresh                     

  Prices in                US\$             per uom         MT

                                                            

  **Year**                 **2006**         **2007**        **% Change**

  Jan                      380              440             16%

  Feb                      360              430             19%

  Mar                      370              420             14%

  Apr                      380              400             5%

  May                      450              350             -22%

  Jun                      480              340             -29%

  Jul                      430              310             -28%

  Aug                      400              360             -10%

  Sep                      370              360             -3%

  Oct                      400              N/A             

  Nov                      390              N/A             

  Dec                      400              N/A             

                                                            

  Exchange Rate            7.5/1.00         Local           
                                            Currency/US \$  

  Date of Quote            10/31/2007       MM/DD/YYYY      
  ------------------------ ---------------- --------------- ---------------

## Fresh Grape Production, Supply and Demand (PS&D) Table

<table>
<colgroup>
<col style="width: 16%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 7%" />
<col style="width: 10%" />
<col style="width: 11%" />
</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="9"><p><strong>Grapes, Table, Fresh</strong></p>
<p>(HA)(MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</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>06/2005</td>
<td>06/2005</td>
<td></td>
<td>06/2006</td>
<td>06/2006</td>
<td></td>
<td>06/2007</td>
<td>06/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>408100</td>
<td>408100</td>
<td>408100</td>
<td>404000</td>
<td>404000</td>
<td>418700</td>
<td>0</td>
<td>0</td>
<td>443000</td>
</tr>
<tr class="even">
<td>Area Harvested</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>Commercial Production</td>
<td>5794411</td>
<td>5794411</td>
<td>5794411</td>
<td>6020000</td>
<td>6020000</td>
<td>6270756</td>
<td>0</td>
<td>0</td>
<td>6900000</td>
</tr>
<tr class="even">
<td>Non-Comm. Production</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>5794411</td>
<td>5794411</td>
<td>5794411</td>
<td>6020000</td>
<td>6020000</td>
<td>6270756</td>
<td>0</td>
<td>0</td>
<td>6900000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>53050</td>
<td>53050</td>
<td>53177</td>
<td>48000</td>
<td>48000</td>
<td>43900</td>
<td>0</td>
<td>0</td>
<td>40000</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>5847461</td>
<td>5847461</td>
<td>5847588</td>
<td>6068000</td>
<td>6068000</td>
<td>6314656</td>
<td>0</td>
<td>0</td>
<td>6940000</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>4074461</td>
<td>4074461</td>
<td>4076476</td>
<td>4116000</td>
<td>4116000</td>
<td>4354094</td>
<td>0</td>
<td>0</td>
<td>4838000</td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>23000</td>
<td>23000</td>
<td>21112</td>
<td>27000</td>
<td>27000</td>
<td>35562</td>
<td>0</td>
<td>0</td>
<td>52000</td>
</tr>
<tr class="even">
<td>For Processing</td>
<td>1750000</td>
<td>1750000</td>
<td>1750000</td>
<td>1925000</td>
<td>1925000</td>
<td>1925000</td>
<td>0</td>
<td>0</td>
<td>2050000</td>
</tr>
<tr class="odd">
<td>Withdrawal From Market</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>Total Distribution</td>
<td>5847461</td>
<td>5847461</td>
<td>5847588</td>
<td>6068000</td>
<td>6068000</td>
<td>6314656</td>
<td>0</td>
<td>0</td>
<td>6940000</td>
</tr>
</tbody>
</table>

## Table Grape Trade Matrices

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

  **Country**          China, Peoples                      
                       Republic of                         

  **Commodity**        Grapes, Table,                      
                       Fresh                               

  Time Period                         Units:               MT

  Imports for:         2005                                **2006**

  U.S.                 21663          U.S.                 19184

  Others                              Others               

  Chile                34370          Chile                24638

  New Zealand          1442           Peru                 2123

  Japan                15             New Zealand          59

                                                           

                                                           

  Total for Others     35827                               26820

  Others not Listed    0                                   0

  Grand Total          57490                               46004
  -------------------- -------------- -------------------- --------------

Source: WTA, China Customs Data

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

  **Country**          China, Peoples                      
                       Republic of                         

  **Commodity**        Grapes, Table,                      
                       Fresh                               

  Time Period                         Units:               MT

  Exports for:         2005                                **2006**

  U.S.                 0              U.S.                 0

  Others                              Others               

  Russia               9317           Pakistan             7387

  Pakistan             3613           Russia               6881

  Vietnam              2531           Hong Kong            6121

  Hong Kong            1976           Vietnam              4439

  Malaysia             1591           Malaysia             3215

  Thailand             730            Indonesia            2666

  Indonesia            355            Thailand             1862

  Philippines          234            Philippines          315

  Sri Lanka            156            Bangladesh           302

  Singapore            136            Sri Lanka            297

  Total for Others     20639                               33485

  Others not Listed    618                                 808

  Grand Total          21257                               34293
  -------------------- -------------- -------------------- --------------

Source: WTA, China Customs Data

## Table Grape Export Prices

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

  **Country**              China, Peoples                   
                           Republic of                      

  **Commodity**            Grapes, Table,                   
                           Fresh                            

  Prices in                US\$             per uom         MT

                                                            

  **Year**                 **2006**         **2007**        **% Change**

  Jan                      400              640             60%

  Feb                      460              740             61%

  Mar                      320              600             88%

  Apr                      240              340             42%

  May                      430              590             37%

  Jun                      570              480             -16%

  Jul                      680              700             3%

  Aug                      600              690             15%

  Sep                      520              580             12%

  Oct                      550              N/A             

  Nov                      550              N/A             

  Dec                      630              N/A             

                                                            

  Exchange Rate            7.5/1.00         Local           
                                            Currency/US \$  

  Date of Quote            10/31/2007       MM/DD/YYYY      
  ------------------------ ---------------- --------------- ---------------