Required Report - Public distribution

**Date:** 12/1/2008

**GAIN Report Number:** CH8110

CH8110

**China, Peoples Republic of**

**Citrus**

**Annual**

**2008**

**Approved by:**

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

AGBEIJING

**Prepared by:**

Chanda Beckman, Wu Bugang, Wang Tong, and Seth Peavey

**Report Highlights:**

China's MY 2008 citrus production is forecast at 21 MMT, up 10 percent
from the revised MY 2007 figure, the result of favorable weather
conditions throughout the major citrus producing areas during the crop
development period. Orange production is forecast at six MMT in MY 2008,
up 10 percent from the previous year, as new plantings from a few years
earlier have gradually reached full production. Production costs
continue to rise in the wake of increased prices for inputs such as
fertilizer, pesticides, electricity, fuel, water, and labor.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Oranges 3](#oranges)

[Tangerines/Mandarins 4](#tangerinesmandarins)

[Pomelos and Lemons 4](#pomelos-and-lemons)

[Processed Citrus 4](#processed-citrus)

[Prices 5](#prices)

[Consumption 5](#consumption)

[Trade 6](#trade)

[Imports 6](#imports)

[Exports 7](#exports)

[Policy 7](#policy)

[Marketing 8](#marketing)

[Citrus Market Faces Uncertainty in Wake of Economic Crisis
8](#citrus-market-faces-uncertainty-in-wake-of-economic-crisis)

[Impact of Olympic Games 8](#impact-of-olympic-games)

[Oranges 8](#oranges-1)

[Lemons 9](#lemons)

[Grapefruit 9](#grapefruit)

[Juice 9](#juice)

[Citrus Distribution 10](#citrus-distribution)

[Inadequate Cold Chain Still a Challenge
10](#inadequate-cold-chain-still-a-challenge)

[International Competition in the Citrus Market
10](#international-competition-in-the-citrus-market)

[Brand Awareness 11](#brand-awareness)

[Tables 12](#tables)

[Citrus Historical Production Tables by Province
12](#citrus-historical-production-tables-by-province)

[Production, Supply, and Demand (PS&D) Tables
13](#production-supply-and-demand-psd-tables)

[Fresh Oranges 13](#fresh-oranges)

[Trade Matrices for Fresh Oranges 14](#trade-matrices-for-fresh-oranges)

[Orange Juice (FCOJ) 15](#orange-juice-fcoj)

[Note: Numbers have been converted to concentrated orange juice using a
ration of 6:1 between single strength and concentrate. Production under
HS Codes 20091200 and 20091900 are both treated as single strength
juice. Trade Matrices for Orange Juice (FCOJ)
15](#trade-matrices-for-orange-juice-fcoj)

[Trade Matrices for Orange Juice (FCOJ)
16](#trade-matrices-for-orange-juice-fcoj)

[Fresh Tangerines/Mandarins 17](#fresh-tangerinesmandarins)

[Note: Processing citrus covers mainly canned mandarins and producing
one MT of canned mandarins needs about 1.5 MT of fresh mandarins. Trade
Matrices for Fresh Tangerines/Mandarins
17](#trade-matrices-for-fresh-tangerinesmandarins)

[Trade Matrices for Fresh Tangerines/Mandarins
18](#trade-matrices-for-fresh-tangerinesmandarins)

[Fresh Grapefruit 19](#fresh-grapefruit)

[Trade Matrices for Fresh Grapefruit
20](#trade-matrices-for-fresh-grapefruit)

# Executive Summary

China's marketing year (MY) 2008 citrus production is forecast at 21
million metric tons (MMT), up 10 percent from the revised MY 2007
figure, the result of favorable weather conditions throughout the major
citrus producing areas during the crop development period. Orange
production is forecast at six MMT in MY 2008 (November-October), up 10
percent from the previous year, as new plantings from a few years
earlier have gradually reached full production. Production costs
continue to rise in the wake of increased prices for inputs such as
fertilizer, pesticides, electricity, fuel, water, and labor. Frozen
Concentrated Orange Juice (FCOJ) production is forecast at 14,000 MT in
MY 2008 (October-September), down 22 percent from the revised estimate
of 18,000 MT in MY 2007, because local juicing companies have grown
cautious about producing large quantities, out of general uncertainty
about the future of the market.

China's orange imports are forecast at 55 MT in MY 2008, a decrease of
11 percent from the previous year, due to increased domestic production
and higher prices of U.S. oranges.

Imports of mandarins are forecast at 18,000 MT in MY 2008, up 12 percent
from the previous year. Grapefruit imports are forecast at 3,300 MT in
MY 2008, consistent with the previous year. Lemon imports are forecast
at 5,000 MT in MY 2008, up seven percent from the previous year, mainly
attributed to lower priced U.S. lemons that are 30 percent lower in 2008
compared to the previous year. FCOJ imports are forecast at 43,000 MT in
MY 2008, a decrease of 15 percent from last season, as a result of
stagnant consumption growth in orange juice and uncertainties over
China's juice market.

Mandarin exports are forecast at 340,000 MT in MY 2008, down 40 percent
from the previous year, mainly due to a fruit fly outbreak in Sichuan
Province and food safety concerns about China-origin fruit following the
melamine contamination scares. The global economic recession may also
reduce demand for citrus. Similarly, orange and grapefruit exports are
forecast at 100,000 MT and 90,000 MT in MY 2008, down 19 percent and 11
percent, respectively, from the previous season. Lemon exports, however,
are forecast at about 12,000 MT in MY 2008, slightly higher than the
previous year as a result of increased production of price-competitive
Chinese lemons.

# Production

China's MY 2008 citrus production is forecast at 21 MMT, up 10 percent
from the revised MY 2007 figure of 18.9 MMT, the result of favorable
weather conditions throughout the major citrus producing areas during
the crop development period. Low temperatures and snow storms in
southern China in the beginning of 2008 affected 896,467 hectares,
nearly half of China's total citrus planted area, in the major citrus
producing provinces of Hunan, Jiangxi, Hubei, Guangxi, Zhejiang, and
Chongqing. The disaster damaged many infant trees and some of the
branches on mature trees, but did not kill the mature trees.

## Oranges

Orange production is forecast at six MMT in MY 2008 (November-October),
up 10 percent from the previous year as new plantings from a few years
earlier have gradually reached full production. Industry sources predict
orange production in Jiangxi Province will continue increasing at a
rapid pace over the next five years. The orange harvest started two
weeks later than usual this year due to cold winter temperatures that
delayed flowering and slowed the fruit maturation process. Fruit
quality, however, appears less desirable because of warmer than average
temperatures during the summer and fall. As a result, orange sizes in
Jiangxi are generally smaller than the previous year and some fruit have
surface stains.

Orange acreage is forecast at 680,000 hectares, an increase of three
percent from the previous year. The limited amount of land suitable for
orange production has slowed the rapid increases in orange planted area
seen over the past few years. Juicing oranges, primarily in Chongqing
special administrative region, and Sichuan and Hunan Provinces, are
developing at a faster pace than fresh-consumption oranges that are
mainly planted in Jiangxi, Sichuan, and Guangxi Provinces.

Production costs continue to rise in the wake of increased prices for
inputs such as fertilizer, pesticide, electricity, fuel, water, and
labor. In Jiangxi, the largest navel orange producing province,
fertilizer prices in 2008 increased by nearly 70 percent over 2007
prices and current labor costs have doubled since last year, reaching
USD 7.3-8.8 a day. It is estimated that total costs for producing one
kilogram of navel oranges in Ganzhou city of Jiangxi Province is USD
0.12.

## Tangerines/Mandarins

Tangerine production is forecast at 12.3 MMT in MY 2008
(October-September), up 12 percent from the previous year as a result of
increased planted area, primarily in Guangdong, Hunan, and Hubei
Provinces. Planting area in Zhejiang and Fujian, the other two major
tangerine producing provinces, remain relatively stable.
Tangerine/mandarin acreage is forecast at 798,000 hectares in MY 2008,
an increase of three percent over the previous year.

Fruit quality has generally improved from last year. Ironically, the
devastating snow storms of early 2008 killed many pests harmful to
citrus trees and fruit. Enhanced orchard management following the snow
storms also contributed to quality improvement. However, an outbreak of
fruit flies in Guangyuan county of Sichuan Province in September
resulted in 1,200 MT of tangerines being disinfected or buried and
destroyed. This is the only reported incident of disease or pest
outbreaks in citrus production areas in MY 2008.

## Pomelos and Lemons

Pomelo and lemon production in MY 2008 is forecast at 2.5 MMT and
230,000 MT in MY2008 (October-September), up 10 percent and 15 percent,
respectively, from the previous year as new plantings began bearing
fruit. Pomelo and lemon acreage appears to have stabilized, but
production is expected to continue increasing in the near future because
earlier plantings have not yet reached full production potential.
Pomelos are planted primarily in Fujian, Guangdong, and Guangxi
Provinces, while lemons are predominantly grown in Anyuan of Sichuan
Province. Anyuan accounts for more than 70 percent of China's total
lemon production.

## Processed Citrus 

Frozen Concentrated Orange Juice (FCOJ) production is forecast at 14,000
MT in MY 2008 (October-September), down 22 percent from the revised
estimate of 18,000 MT in MY 2007, because local juicing companies have
grown cautious about producing large quantities. Orange juice
consumption has shown stagnant growth in China due to lack of new
products. Moreover, world FCOJ prices are declining as a result of weak
world demand, further contributing to Chinese processor uncertainty
about future domestic production. Huiyuan Juice, China's top orange
juice producer is not focusing on juice production but waiting for
Ministry of Commerce clearance for acquisition by beverage giant Coca
Cola. On September 3, Coca Cola offered USD 2.4 billion dollars to
acquire Huiyuan. The case is being reviewed by the central government on
whether the acquisition violates China's antitrust law. All these
factors create uncertainties over juice production during this crushing
season. Despite these uncertainties, local juicing companies continue to
expand juicing capacity. Industry sources report another multi-national
company is also eyeing China's juice market and has decided to invest
more in non-carbonated soft drink production in China.

China's canned mandarin production is forecast at 360,000 MT in MY 2008,
down 14 percent from the previous year, in the wake of anti-dumping
duties imposed by the European Union (EU) and expected weaker demand
from the United States and other major buyers following the global
economic recession. At the request of Spain's canned citrus industry,
the EU announced on July 6, 2008 that anti-dumping duties would be
levied against China-origin canned citrus for a period of six months.
Chinese canneries have to pay additional duties of 330-482 euro for each
MT of canned citrus entering EU countries within the stated period.
Although the final decision has not yet been announced, many believe the
EU is unlikely to change its position. China exports 50,000-60,000 MT of
canned citrus, on average, to EU countries each year. Other major
importers of China's canned citrus such as the United States and Japan
are also likely to reduce their purchases from China, as the economic
recession will probably reduce their demand for the product. The United
States and Japan were the top two buyers of China-origin canned citrus
in MY 2007, importing 180,000 MT and 52,200 MT, respectively.

China produces 70 percent of the world's total canned citrus and most of
its production is exported. Domestic consumption is stable, between
50,000 MT and 100,000 MT each year. Previously, Zhejiang Province was
the top producer and exporter of canned citrus, but increasing labor
costs and fruit prices are forcing the industry to move to more
economically-feasible provinces like Hunan. The number of Zhejiang
citrus canneries is projected at 25 in 2008, down from 33 in 2007, but
canning companies in Hunan are expected to increase to 20 this year with
canning capacity each exceeding 5,000 MT per year. Zhejiang supplies
60-70 percent (on average) of China's canned citrus exports.

## 

# Prices

Early mature mandarins in MY 2008 were purchased at USD 0.18-0.20 (RMB
1.2-1.4) per kg, down more than 10 percent from the previous year.
Prices further declined to as low as USD 0.06 per kg following the
outbreak of a fruit fly infestation in Sichuan Province in September
2008. After the central government clarified through the media that
there was no risk to human health, market prices of mandarins have begun
to rebound. Farm gate prices for navel oranges in Jiangxi Province are
quoted at USD 0.30-0.35 per kg, down 20 percent from last year's USD
0.38-0.44 per kg. Pomelo prices were quoted at USD 0.18 per kg in
Meizhou city of Guangdong Province, down 25 percent over the same period
the previous year.

![](media/image2.wmf){width="6.497222222222222in"
height="2.7368055555555557in"}

Source: Ministry of Agriculture (Exchange rate USD 1 = 6.8 RMB)

## 

# Consumption

At present, per capita consumption of citrus in China is reported at
10.5 kg, 35 times the rate of consumption 30 years ago. The number
continues to grow in tandem with increasing incomes. In 2008, however,
consumption of mandarins was hindered by an outbreak of fruit flies in
Sichuan Province. The news caused panic among consumers across the
nation, as consumers warned friends and family not to buy mandarins via
cell phone text message. Many consumers, especially those in northern
China, stopped buying mandarins even if the fruit did not originate in
Sichuan. After the central and provincial governments joined with
academia to ensure consumers that the pest is of no threat to human
health, consumption of mandarins is gradually returning to normal
levels. The incident will probably not affect the consumption of oranges
as harvest of the fruit has just begun.

As consumers have the financial ability to pay more attention to their
health and food safety, they tend to choose better quality fruit.
Consumers buy citrus most frequently at supermarkets, where fruit
quality and safety is considered more reliable compared with traditional
wet markets. Top grade citrus, including imported citrus, is selling
well in large cities like Beijing and Shanghai. Second tier cities in
the Yangtze and Pearl River deltas also show strong buying power for
this type of fruit.

Although juice and juice drink consumption have both been growing
quickly in recent years in urban areas, consumption of orange juice is
likely to decline this season as consumers, mainly young urban
residents, are growing tired of the limited orange juice products
available in the marketplace. Most orange juice products feature low
content drinks (less than 25 percent orange juice) and 100 percent juice
has yet to be accepted by the majority of consumers.

# Trade

## Imports 

China's orange imports are forecast at 55 MT in MY 2008, a decrease of
11 percent from the previous year, due to increased domestic production
and higher prices of U.S. oranges. The bumper harvest of locally
produced navel oranges is likely to further squeeze the U.S. market
share, currently priced higher than in 2007 due to a reported smaller
crop. In 2007, U.S. orange exports to China dropped 26 percent from USD
32.17 million to USD 23.70 million partially because of the poor growing
season. Imports of U.S. Valencia oranges, which become available in
China's market during the local off-season, are expected to remain
stable or decrease slightly. Importers are taking a cautious approach
about making offers in the wake of the economic slowdown. The United
States remained the top supplier of oranges to China in MY 2007, with
the volume accounting for more than 80 percent of China's total orange
imports. Oranges account for more than 90 percent of all U.S. citrus
fruit exports to China.

China's imports of mandarins are forecast at 18,000 MT in MY 2008, up 12
percent from the previous year. Safety concerns of Chinese consumers
about locally produced mandarins after the outbreak of quarantine pests
in Sichuan may possibly encourage some high-end consumers to switch to
imported mandarins, rather than domestically produced. Uruguay and
Thailand were the top two exporters of fresh mandarins to China in MY
2007.

Grapefruit imports are forecast at 3,300 MT in MY 2008, consistent with
imports the previous year. Imported grapefruit is consumed by hotels
that use the fruit for juicing and the quantities remain quite stable.
Lemon imports are forecast at 5,000 MT in MY 2008, up seven percent from
the previous year, mainly attributed to lower priced U.S. lemons that
are 30 percent lower in 2008 compared to 2007. The United States
exported 1,250 MT of lemons to China in MY 2007, down 40 percent from MY
2006, due to historic high prices. Imported lemons are consumed by
hotels and restaurants.

FCOJ imports are forecast at 43,000 MT in MY 2008, a decrease of 15
percent from last season, as a result of stagnant consumption growth in
orange juice and overall uncertainties over China's juice market.
China's imports of FCOJ declined to 50,600 MT in MY 2007, down 11
percent from 56,670 MT in MY 2006. Brazil dominates orange juice
supplies to China, followed by Israel.

## Exports 

Mandarin exports are forecast at 340,000 MT in MY 2008, down 40 percent
from the previous year, mainly due to the fruit fly outbreak in Sichuan
Province and food safety concerns about China-origin fruit following the
melamine contamination scares. The global economic recession may also
reduce demand for citrus. Similarly, orange and grapefruit exports are
forecast at 100,000 MT and 90,000 MT in MY 2008, down 19 percent and 11
percent, respectively, from the previous season. Lemon exports, however,
are forecast at about 12,000 MT in MY 2008, slightly higher than the
previous year as a result of increased production of price-competitive
Chinese lemons. China exported 11,680 MT of lemons during MY 2007, a 20
fold increase over the previous season. Chinese citrus is mainly
exported to neighboring Asian countries and Russia.

Canned mandarin exports are forecast at 300,000 MT in MY 2008, down 17
percent from the previous year following the EU's ruling on anti-dumping
duties for China-origin canned citrus for six months beginning in July
2008. The United States and Japan, the top two buyers, are likely to
reduce purchases of Chinese canned mandarins as well given the current
economic slowdown. Their buying activities may also be contained by an
estimated 10-20 percent price increase as a result of escalating
production costs in China, which will in turn push export prices higher.

# Policy

In September 2008, the Ministry of Agriculture (MOA) released a new
"Layout Plan for China's Advantageous Agricultural Products
(2008-2015)," which provides guidelines for the development of 16
agricultural products, including citrus, that are believed to have
competitive advantages in the world market. The plan envisions
consolidation of citrus production in five areas, mostly in the
mid-upper reaches of the Yangtze River that encompasses the three gorges
area within Chongqing, Hubei, and Sichuan. Development in this area will
feature development of oranges for both fresh consumption and juicing as
well as early and late mature citrus varieties. The south Jiangxi and
northern Hunan/Guanxi Provincial area will focus on development of
fresh-consumption navel oranges, while Zhejiang, Fujian, and Guangdong
Provinces will develop mandarins, pomelos, and hybrid tangerines.
Western Hubei and Hunan Provinces will focus on early and "extreme
early" mature tangerines, and certain areas will be dedicated to
specialty citrus like lemons.

The plan sets development goals for China's citrus industry. It is
anticipated that within eight years at least three to five world-renown
citrus production areas will be firmly established and that 8-10 brands
with world competitive advantages will be launched. Citrus acreage and
production within these designated areas are expected to reach 1.4
million hectares and 24.3 MMT, accounting for 70 percent and 80 percent,
respectively, of China's total citrus area and production. The average
yield is expected at 15 MT per hectare and processing citrus yield at 30
MT per hectare. Annual exports of fresh citrus and canned mandarins are
to exceed 1.4 MMT and 700,000 MT, respectively.

This is the second time that the central government has released such
layout plan. MOA published the first "Layout Plan for China's
Advantageous Agricultural Products (2003-2007)" in 2003 and by the end
of 2007 citrus planted area and production within the designated areas
accounted for 54 percent and 58 percent, respectively, of the total
citrus area and production. The central government has not provided
substantial support to citrus production except for outlining guidance
as specified in the layout plan. Provincial and local level governments
within the selected areas have been providing tangible support for
citrus production within their jurisdiction. In Jiangxi Province, for
example, the government of Ganzhou is allocating one million dollars a
year to support citrus production and beginning in 2008 the city
government will provide an additional two million dollars annually to
help build juicing orange orchards from 2008-2010.

The central and provincial governments did provide emergent assistance
during crises such as the snow storms in early 2008 and citrus pest
outbreak in Sichuan. MOA and local governments sent expert teams to help
farmers rescue the affected orchards. Because of this timely rescue work
and improved orchard management, actual damage to affected citrus plants
were limited. Local governments also subsidized fruit traders and
processors in buying citrus from farmers during and after the snow
storm. After the outbreak of citrus fruit flies in September, the
government has made great efforts in helping ease the panic among the
public by working closely with media.

# Marketing

## Citrus Market Faces Uncertainty in Wake of Economic Crisis

In recent years, citrus has been one of the fastest growing segments of
China's fresh fruit market. As consumer incomes and preferences for high
quality foods have increased, the demand for both domestic and imported
citrus has grown considerably. However, this trend may be slowing down
as Chinese consumers react to the global economic recession. As a
result, many importers are more hesitant to sign long-term contracts
with U.S. suppliers and to order large volumes of fruit while the market
remains uncertain. Despite this, China's sustained economic growth has
kept the imported citrus market in China relatively insulated,
preventing an absolute decline in consumption. The majority of imported
citrus is sold by major retailers to middle or upper income consumers.
Hotels and restaurants also purchase a significant amount of imported
fruit.

Chinese consumers place a strong emphasis on the taste, appearance, and
shape of citrus fruit. According to local importers and retailers,
Chinese consumers usually buy fruit based solely on its appearance, even
if less expensive fruit of similar taste and quality is available. This
makes presentation and color essential to maintaining high retail price
levels. The most popular fruit tends to have a bright, consistent peel
and a high Brix content. Chinese consumers are also attracted by
innovative products, as evidenced by the willingness of consumers to try
new fruit drinks and citrus varieties. Another important factor is
convenience, with customers preferring juice and fruit that is easy to
peel. There are some regional differences, with consumers in northern
China focusing more on size and appearance. According to importers,
these consumers are more likely to purchase larger fruit with smooth,
shiny peels. Consumers in southern China on the other hand, tend to
place less emphasis on appearance and more on taste.

## Impact of Olympic Games

Despite high expectations for China's citrus market in the run-up to the
Olympic Games, traders were hindered from taking full advantage of this
opportunity because of increased costs and difficult logistics. The
Chinese government enacted many temporary regulations that restricted
domestic and international travel, which decreased tourism. Transporting
the imported fruit to Beijing during the Games also proved problematic.
Because Beijing is an inland city, all imported products must first go
through ports in other cities. Because of the extra regulations and
precautions, it was more difficult than usual for importers to transport
their products into Beijing. This, combined with tightened quality and
security inspections meant that some containers of citrus were left
stranded at the ports during the Games.

## Oranges

Oranges account for more than 90 percent of all U.S. citrus fruit
exports to China. The two top varieties in the market are navel and
Valencia oranges. Imports of navel oranges have declined because of
increased domestic production. Currently, most U.S. navel oranges are
consumed by the HRI sector instead of the retail sector, which has
become saturated by cheaper domestic oranges. In comparison, Valencia
oranges, which have a later growing season, sell much better because of
a lack of domestic competition. U.S. Valencia oranges are generally
perceived to be better tasting than the South African equivalent, which
is the other major international exporter. Fresh oranges are available
in the Chinese market year-round with U.S. oranges normally in the
market from December to July. Southern hemisphere suppliers such as
South Africa and Australia are the dominant suppliers of oranges during
the summer and fall.

## Lemons

An increase in the quantity and quality of domestic production has
reduced the demand for imported lemons, which often cost twice as much.
Prices of U.S. lemons peaked in 2007. Lemons continue to evolve as an
ingredient in cooking, particularly in the food service sector, because
of their colorful appearance and versatility. Lemons are used as a
flavor enhancer and a source of vitamin C. The market for imported
lemons is mostly limited to major cities such as Shanghai, Beijing, and
Guangzhou. A local distributor in Shenyang said that there is still very
little demand in that city for imported lemons, because consumers there
tend to be very price-sensitive*.* Fortunately, U.S. suppliers predict
prices to drop 30 to 40 percent in 2008. Some local importers have
expressed an intention to import more lemons, depending on the price.
American lemons can be found in China's market throughout the year, with
Sunkist being the largest supplier. Major international competitors in
the lemon market include New Zealand and Uruguay.

## Grapefruit

Grapefruit is still relatively unknown to China's consumers, and they
often confuse the fruit with pomelos. Grapefruit are traditionally not
sweet enough to appeal to the Chinese palate. Thailand and Taiwan were
the top two exporters of grapefruit to China in 2007. The United States,
however, has increased its share in this market, with exports to China
increasing from USD 0.32 to USD 0.44 million in 2007. There remains
considerable growth potential for U.S. grapefruit in China if suppliers
highlight the nutritional benefits and target mid-high income consumers
with market development efforts.

+---------------+--------+-------+-------------+---------------------+
| **Sales of    |        |       |             |                     |
| U.S. Citrus   |        |       |             |                     |
| Fruit in      |        |       |             |                     |
| China in      |        |       |             |                     |
| 2006-07**     |        |       |             |                     |
|               |        |       |             |                     |
| (in million   |        |       |             |                     |
| USD)          |        |       |             |                     |
+---------------+--------+-------+-------------+---------------------+
|               | 2006   | 2007  | Change      | Percent Change      |
+---------------+--------+-------+-------------+---------------------+
| Oranges       | 32.17  | 23.7  | -8.47       | -26.33%             |
+---------------+--------+-------+-------------+---------------------+
| Lemons        | 2.87   | 2.67  | -0.2        | -6.97%              |
+---------------+--------+-------+-------------+---------------------+
| Grapefruit    | 0.32   | 0.44  | 0.22        | 37.50%              |
+---------------+--------+-------+-------------+---------------------+

*Source: World Trade Atlas*

## Juice

New varieties of juice products surfaced in the China market in 2008.
Some of these are traditional products with new packaging while others
are newly formulated products. Prices have increased sharply because of
the increased costs of raw material, labor and transportation. Despite
the rising prices, however, some of these new products have attracted a
lot of attention from consumers. For example, the Nong Fu Juice Company
has launched a new lemon beverage called "Dissolved Vitamin C 100%." The
packaging claims that each bottle contains an amount of Vitamin C
equivalent to five and a half fresh-squeezed lemons. The 445 ml product
sells for USD 0.75 (RMB 5) per bottle, which is more expensive than
similar products in the market. The company stated that its products are
targeted at customers who value high quality and a healthy lifestyle.
According to market feedback, the product has been selling well among
young people and white-collar workers.

Competition in the imported juice market has become fierce. More juice
products from Mexico and Europe have appeared on the shelves of upscale
supermarkets in Beijing and Qingdao during the last year. These products
have attractive packaging and are often cheaper than their U.S.
counterparts. For example, the price of a liter of citrus juice from
Mexico is less than USD 4.39 (RMB 30), while an equivalent liter from
the U.S. is sold for more than USD 5.86 (RMB 40). Although the quality
of U.S. products is higher, most consumers are still price-sensitive and
prefer less expensive products. While some upper-middle class consumers
buy imported products in order to show their social status, these
consumers often do not seem to care where the products come from, as
long as it is from overseas. In addition, most of the citrus juice from
the United States is fresh squeezed, which means that these products
usually have a shorter shelf life of about three months. It is tougher
for importers to sell these products in the supermarkets, because most
supermarkets require a shelf life of at least three months.    

## Citrus Distribution

Traditionally, domestic citrus growers sold their products through
state-owned trading companies. These days, growers tend to sign
long-term contracts with the trading companies and wholesalers directly.
As incomes increase, more consumers are shopping in supermarkets instead
of visiting wet markets. Supermarkets usually have stable suppliers of
fresh fruit, enabling them to deliver higher quality and safer products
in a timely and price-competitive manner.  

The top distribution market for imported fruit in China is Jiangnan
market in Guangzhou, which also distributes most of the imported citrus.
Some other citrus products are imported to the ports in Tianjin and
Dalian. Local importers then sell the products directly to wholesalers
or retailers. These wholesalers have signed contracts with local
supermarkets and also supply the products to HRI sector. According to
local retailers, the prices of most imported fruits in the retail sector
have been relatively stable during the past two years, though others
have increased sharply. For this reason, some importers have complained
about shrinking profits in recent years.

## Inadequate Cold Chain Still a Challenge

China's cold chain system has improved, but it is still under
development. Most imported fruit is stored at cold storage and
containers with air-conditioning. Unfortunately, 99 percent of the
storage systems in China can not maintain a seamless connection in the
cold chain. For example, most products are exposed to normal
temperatures while being transferred between refrigerated trucks and
cold storage. Domestic shipping is also an issue. According to local
distributors, refrigerated trucks are not normally used when
transporting products within one province -- trips that can take several
hours. Instead, they only use refrigeration when shipping the products
to another province. In the retail sector, most of the supermarkets
display the imported fruits in refrigerated areas because the imported
fruits are more expensive and profitable than local products.

## International Competition in the Citrus Market

As one of the world's major citrus producers and exporters, domestic
citrus dominates China's market and is the primary competition for
citrus suppliers in the market. FAS/Beijing estimates local citrus
production will influence the future of imported citrus growth as well
as citrus market prices. However, domestic fresh citrus is virtually
absent in the market from April to August. The main competitors for U.S.
citrus during this off-season are New Zealand, Uruguay, South Africa,
and Australia. Additionally, citrus products from ASEAN countries such
as Thailand have a price advantage over U.S. exports because of lower
production costs. The following graph shows the breakdown of China's
citrus imports from the United States and other competitors in terms of
value.

![](media/image3.wmf){width="3.498611111111111in"
height="2.7895833333333333in"}

*Source: World Trade Atlas*

## 

## Brand Awareness

Compared with customers in Hong Kong, mainland China's customers are
relatively less aware of brand names, although that is gradually
changing. Some traders have said that customers in Shanghai are now
paying more attention to branding when they purchase imported fruits.
According to feedback from the retail market, oranges and lemons with
the Sunkist label sell much better that the others because many
customers believe the products to be fresher and healthier than the
competition. The IPR situation in the citrus market has also improved in
recent years. It is becoming harder to find non-Sunkist fruit falsely
labeled as Sunkist in most distribution centers. Some sellers, however,
continue to use Sunkist labels on products that came from other sources.

# Tables

## Citrus Historical Production Tables by Province 

  ------------- --------- -------- --------- -------- --------- -------- --------- --------
  Orchard Area                                                                     
  and                                                                              
  Production by                                                                    
  Province                                                                         

                2004               2005               2006               2007      

                1000 Ha   1000 MT  1000 Ha   1000 MT  1000 Ha   1000 MT  1000 Ha   1000 MT

  Hunan         276.4     1,879    296.2     2,120    313.8     2,508    325.9     2,779

  Guangdong     175.7     1,591    195.5     1,827    224.5     2,244    243.6     2,568

  Fujian        165.6     2,068    170.3     2,153    170.2     2,267    170.4     2,386

  Guangxi       134.3     1,719    141.3     1,877    151.5     2,055    165.3     2,347

  Sichuan       201.5     1,988    206.9     2,137    215.6     2,058    223.3     2,325

  Hubei         124.7     1,308    143.2     1,463    159.0     1,811    189.0     2,116

  Zhejiang      124.1     2,010    123.0     1,481    120.2     1,805    122.5     1,987

  Jiangxi       217.3     844      215.1     1,098    229.3     1,394    262.5     1,957

  Chongqing     98.1      799      108.9     909      109.9     847      113.9     1,044

  Yunnan        25.9      166      27.9      211      29.1      244      32.1      281

  Shanghai      11.4      185      8.7       180      10.6      197      10.9      240

  Shaanxi       18.1      117      19.7      168      21.5      163      23.3      224

  Guizhou       35.5      158      38.7      172      37.0      177      37.9      191

  Jiangsu       3.6       48       3.9       52       5.4       48       3.7       47

  Henan         9.5       35       10.1      36       9.7       37       10.0      38

  Hainan        3.1       23       3.7       20       3.6       27       3.7       30

  Anhui         2.3       13       4.0       12       3.4       13       3.2       19

  Gansu         0.2       3        0.2       3        0.2       3        0.3       3

  Total         1,627.3   14,958   1,717.3   15,919   1,814.5   17,898   1,941.4   20,582

  Source:                                                                          
  Ministry of                                                                      
  Agriculture                                                                      
  Abstracts                                                                        
  ------------- --------- -------- --------- -------- --------- -------- --------- --------

## Production, Supply, and Demand (PS&D) Tables

### Fresh Oranges

<table style="width:100%;">
<colgroup>
<col style="width: 14%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="9"><p><strong>Oranges, Fresh</strong></p>
<p>(HECTARES)(1000 TREES)(1000 MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>11/2006</td>
<td>11/2006</td>
<td></td>
<td>11/2007</td>
<td>11/2007</td>
<td></td>
<td>11/2008</td>
<td>11/2008</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>628000</td>
<td>628000</td>
<td>628000</td>
<td>660000</td>
<td></td>
<td>660000</td>
<td>0</td>
<td>0</td>
<td>680000</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></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></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></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total No. Of Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Production</td>
<td>4800</td>
<td>4800</td>
<td>4800</td>
<td>5450</td>
<td></td>
<td>5450</td>
<td>0</td>
<td>0</td>
<td>6000</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>68</td>
<td>68</td>
<td>36</td>
<td>60</td>
<td></td>
<td>62</td>
<td>0</td>
<td>0</td>
<td>55</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>4868</td>
<td>4868</td>
<td>4836</td>
<td>5510</td>
<td></td>
<td>5512</td>
<td>0</td>
<td>0</td>
<td>6055</td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>62</td>
<td>62</td>
<td>79</td>
<td>85</td>
<td></td>
<td>123</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>4661</td>
<td>4661</td>
<td>4612</td>
<td>5155</td>
<td></td>
<td>5144</td>
<td>0</td>
<td>0</td>
<td>5773</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>145</td>
<td>145</td>
<td>145</td>
<td>270</td>
<td></td>
<td>245</td>
<td>0</td>
<td>0</td>
<td>182</td>
</tr>
<tr class="even">
<td>Total Distribution</td>
<td>4868</td>
<td>4868</td>
<td>4836</td>
<td>5510</td>
<td></td>
<td>5512</td>
<td>0</td>
<td>0</td>
<td>6055</td>
</tr>
</tbody>
</table>

####  Trade Matrices for Fresh Oranges 

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

  **Country**          China, Peoples                       
                       Republic of                          

  **Commodity**        Oranges, Fresh                       

  Time Period          Oct-Sept          Units:             MT

  Imports for:         2006                                 **2007**

  U.S.                 28164             U.S.               45854

  Others                                 Others             

  South Africa         5014              South Africa       4184

  Taiwan               1317              Uruguay            3843

  Argentina            1080              Argentina          1177

  New Zealand          1038              Taiwan             428

  Uruguay              999               Australia          302

  Thailand             834               Egypt              291

  Egypt                220               Spain              46

  Australia            167               Brazil             4

  Brazil               21                                   

  Israel               19                                   

  Total for Others     10709                                10275

  Others not Listed    0                                    0

  Grand Total          38873                                56129
  -------------------- ----------------- ------------------ --------------

Source: China Customs Data

[]{dir="rtl"}

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

  **Country**          China, Peoples                       
                       Republic of                          

  **Commodity**        Oranges, Fresh                       

  Time Period          Oct-Sept          Units:             MT

  Exports for:         2006                                 **2007**

  U.S.                 0                 U.S.               0

  Others                                 Others             

  Hong Kong            33855             Vietnam            46577

  Vietnam              14420             Hong Kong          30442

  Malysia              14257             Malaysia           16684

  Russia               8009              Russia             7785

  Canada               3480              Iran               7684

  Singapore            1822              Singapore          4981

  Macau                1700              Indonesia          2762

  Indonesia            627               Thailand           1740

  UAE                  300               Macau              1589

  Kyrgyzstan           142               Philippines        1486

  Total for Others     78612             Kazakhstan         121730

  Others not Listed    210                                  1930

  Grand Total          78822                                123660
  -------------------- ----------------- ------------------ --------------

Source: China Customs Data

### Orange Juice (FCOJ)

<table>
<colgroup>
<col style="width: 13%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 10%" />
<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"><p><strong>China, Peoples Republic of</strong></p>
<p>Degrees Brix</p></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="9"><p><strong>Orange Juice</strong></p>
<p>(MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>10/2006</td>
<td>10/2006</td>
<td></td>
<td>10/2007</td>
<td>10/2007</td>
<td></td>
<td>10/2008</td>
<td>10/2008</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>145000</td>
<td>145000</td>
<td>145000</td>
<td>270000</td>
<td></td>
<td>245000</td>
<td>0</td>
<td>0</td>
<td>182000</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>12000</td>
<td>12000</td>
<td>8000</td>
<td>10000</td>
<td></td>
<td>10000</td>
<td>0</td>
<td>0</td>
<td>8000</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>10000</td>
<td>10000</td>
<td>11000</td>
<td>20000</td>
<td></td>
<td>18000</td>
<td>0</td>
<td>0</td>
<td>14000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>38000</td>
<td>38000</td>
<td>56991</td>
<td>50000</td>
<td></td>
<td>50624</td>
<td>0</td>
<td>0</td>
<td>43000</td>
</tr>
<tr class="odd">
<td>Total Supply</td>
<td>60000</td>
<td>60000</td>
<td>75991</td>
<td>80000</td>
<td></td>
<td>78624</td>
<td>0</td>
<td>0</td>
<td>65000</td>
</tr>
<tr class="even">
<td>Exports</td>
<td>2000</td>
<td>2000</td>
<td>3302</td>
<td>3600</td>
<td></td>
<td>3770</td>
<td>0</td>
<td>0</td>
<td>3000</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>58000</td>
<td>58000</td>
<td>62689</td>
<td>69000</td>
<td></td>
<td>66854</td>
<td>0</td>
<td>0</td>
<td>62000</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>10000</td>
<td>7400</td>
<td></td>
<td>8000</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>60000</td>
<td>60000</td>
<td>75991</td>
<td>80000</td>
<td></td>
<td>78624</td>
<td>0</td>
<td>0</td>
<td>65000</td>
</tr>
</tbody>
</table>

#### Note: Numbers have been converted to concentrated orange juice using a ration of 6:1 between single strength and concentrate. Production under HS Codes 20091200 and 20091900 are both treated as single strength juice. 

#### Trade Matrices for Orange Juice (FCOJ)

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

  **Country**          China, Peoples                       
                       Republic of                          

  **Commodity**        Orange Juice                         

  Time Period          Oct-Sept          Units:             MT

  Imports for:         2006                                 **2007**

  U.S.                 84                U.S.               1514

  Others                                 Others             

  Brazil               35737             Brazil             41829

  Israel               18093             Israel             6603

  Netherlands          1235              Italy              393

  Italy                940               Netherlands        263

  Greece               382               Hong Kong          50

  Spain                154               Australia          20

  Australia            124               France             14

  Singapore            95                Spain              14

  Hong Kong            35                Thailand           12

  Thailand             18                Austria            11

  Total for Others     56813                                49209

  Others not Listed    95                                   45

  Grand Total          56992                                50768
  -------------------- ----------------- ------------------ --------------

Source: China Customs Data

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

  **Country**           China, Peoples                      
                        Republic of                         

  **Commodity**         Orange Juice                        

  Time Period           Oct-Sept          Units:            MT

  Exports for:          2006                                **2007**

  U.S.                  0                 U.S.              0

  Others                                  Others            

  Thailand              1002              Hong Kong         1279

  Hong Kong             950               Thailand          696

  India                 421               Pakistan          650

  Taiwan                301               Kazakhstan        590

  Kazakhstan            112               Taiwan            176

  Mongolia              106               Indonesia         146

  Indonesia             91                India             100

  Algeria               76                Japan             73

  Kuwait                73                Singapore         33

  Tunisia               56                Russia            11

  Total for Others      3188                                3754

  Others not Listed     115                                 16

  Grand Total           3303                                3770
  --------------------- ----------------- ----------------- ---------------

Source: China Customs Data

### Fresh Tangerines/Mandarins

<table style="width:100%;">
<colgroup>
<col style="width: 15%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>PSD Table</strong></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="9"><strong>China, Peoples Republic of</strong></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="9"><p><strong>Tangerines/Mandarins, Fresh</strong></p>
<p>(HECTARES)(1000 TREES)(1000 MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>10/2006</td>
<td>10/2006</td>
<td></td>
<td>10/2007</td>
<td>10/2007</td>
<td></td>
<td>10/2008</td>
<td>10/2008</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>756000</td>
<td>756000</td>
<td>767000</td>
<td>775000</td>
<td></td>
<td>775000</td>
<td>0</td>
<td>0</td>
<td>798000</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></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></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></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total No. Of Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Production</td>
<td>9000</td>
<td>9000</td>
<td>9000</td>
<td>9720</td>
<td></td>
<td>11000</td>
<td>0</td>
<td>0</td>
<td>12300</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>5</td>
<td>5</td>
<td>27</td>
<td>20</td>
<td></td>
<td>16</td>
<td>0</td>
<td>0</td>
<td>18</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>9005</td>
<td>9005</td>
<td>9027</td>
<td>9740</td>
<td></td>
<td>11016</td>
<td>0</td>
<td>0</td>
<td>12318</td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>407</td>
<td>407</td>
<td>371</td>
<td>390</td>
<td></td>
<td>486</td>
<td>0</td>
<td>0</td>
<td>340</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>7948</td>
<td>7948</td>
<td>8006</td>
<td>8700</td>
<td></td>
<td>9850</td>
<td>0</td>
<td>0</td>
<td>11428</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>650</td>
<td>650</td>
<td>650</td>
<td>650</td>
<td></td>
<td>680</td>
<td>0</td>
<td>0</td>
<td>550</td>
</tr>
<tr class="even">
<td>Total Distribution</td>
<td>9005</td>
<td>9005</td>
<td>9027</td>
<td>9740</td>
<td></td>
<td>11016</td>
<td>0</td>
<td>0</td>
<td>12318</td>
</tr>
</tbody>
</table>

#### Note: Processing citrus covers mainly canned mandarins and producing one MT of canned mandarins needs about 1.5 MT of fresh mandarins. 

#### Trade Matrices for Fresh Tangerines/Mandarins

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

  **Country**          China, Peoples Republic                    
                       of                                         

  **Commodity**        Tangerines/Mandarins,                      
                       Fresh                                      

  Time Period          Oct-Sept                Units:             MT

  Imports for:         2006                                       **2007**

  U.S.                 3                       U.S.               126

  Others                                       Others             

  New Zealand          16185                   Uruguay            9465

  Uruguay              3974                    Thailand           4727

  Thailand             3964                    Australia          614

  Australia            1850                    New Zealand        398

  Myanmar              505                     South Africa       85

  Argentina            359                     Israel             57

  Chile                358                     Argentina          52

  South Africa         103                     Pakistan           26

  Taiwan               14                      Taiwan             14

                                                                  

  Total for Others     27312                                      15438

  Others not Listed    1                                          1

  Grand Total          27316                                      15565
  -------------------- ----------------------- ------------------ ----------------

Source: China Customs Data

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

  **Country**          China, Peoples Republic                    
                       of                                         

  **Commodity**        Tangerines/Mandarins,                      
                       Fresh                                      

  Time Period          Oct-Sept                Units:             MT

  Exports for:         2006                                       **2007**

  U.S.                 0                       U.S.               0

  Others                                       Others             

  Vietnam              74232                   Vietnam            132277

  Malaysia             72652                   Indonesia          96772

  Indonesia            59300                   Malaysia           83388

  Russia               50637                   Russia             55273

  Philippines          35616                   Philippines        45290

  Hong Kong            31902                   Canada             25917

  Canada               21774                   Hong Kong          15566

  Singapore            12189                   Singapore          13953

  Kyrgyzstan           3672                    Thailand           5758

  Mongolia             1749                    Kyrgyzstan         3163

  Total for Others     363723                                     477357

  Others not Listed    6855                                       8833

  Grand Total          370578                                     486190
  -------------------- ----------------------- ------------------ ---------------

Source: China Customs Data

### Fresh Grapefruit

<table style="width:100%;">
<colgroup>
<col style="width: 15%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 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>Grapefruit, Fresh</strong></p>
<p>(HECTARES)(1000 TREES)(1000 MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>10/2006</td>
<td>10/2006</td>
<td></td>
<td>10/2007</td>
<td>10/2007</td>
<td></td>
<td>10/2008</td>
<td>10/2008</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
</tr>
<tr class="odd">
<td>Bearing Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
</tr>
<tr class="even">
<td>Non-Bearing Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
</tr>
<tr class="odd">
<td>Total No. Of Trees</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
</tr>
<tr class="even">
<td>Production</td>
<td>2020</td>
<td>2020</td>
<td>2025</td>
<td>2230</td>
<td></td>
<td>2230</td>
<td>0</td>
<td>0</td>
<td>2500</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>5</td>
<td>5</td>
<td>3</td>
<td>3</td>
<td></td>
<td>3</td>
<td>0</td>
<td>0</td>
<td>3</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>2025</td>
<td>2025</td>
<td>2028</td>
<td>2233</td>
<td></td>
<td>2233</td>
<td>0</td>
<td>0</td>
<td>2503</td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>60</td>
<td>60</td>
<td>51</td>
<td>110</td>
<td></td>
<td>101</td>
<td>0</td>
<td>0</td>
<td>90</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>1965</td>
<td>1965</td>
<td>1977</td>
<td>2123</td>
<td></td>
<td>2132</td>
<td>0</td>
<td>0</td>
<td>2413</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Distribution</td>
<td>2025</td>
<td>2025</td>
<td>2028</td>
<td>2233</td>
<td></td>
<td>2233</td>
<td>0</td>
<td>0</td>
<td>2503</td>
</tr>
</tbody>
</table>

####  Trade Matrices for Fresh Grapefruit

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

  **Country**          China, Peoples                       
                       Republic of                          

  **Commodity**        Grapefruit, Fresh                    

  Time Period          Oct-Sept          Units:             MT

  Imports for:         2006                                 **2007**

  U.S.                 408               U.S.               565

  Others                                 Others             

  Thailand             1607              Thailand           1798

  Taiwan               773               Taiwan             735

  South Africa         184               Israel             131

  Argentina            110               Uruguay            93

  Japan                100               South Africa       77

  Spain                45                Argentina          22

  Israel               3                                    

                                                            

  Total for Others     2822                                 2856

  Others not Listed    0                                    1

  Grand Total          3230                                 3422
  -------------------- ----------------- ------------------ --------------

Source: China Customs Data

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

  **Country**          China, Peoples                       
                       Republic of                          

  **Commodity**        Grapefruit, Fresh                    

  Time Period          Oct-Sept          Units:             MT

  Exports for:         2006                                 **2007**

  U.S.                 0                 U.S.               0

  Others                                 Others             

  Netherlands          17161             Netherlands        43108

  Russia               15282             Russia             24526

  Hong Kong            4481              Belgium            10119

  Belgium              2852              Romania            4720

  Canada               2671              Germany            3766

  Malaysia             1271              Hong Kong          3466

  Romania              1144              Canada             2864

  Philippines          1046              Ukraine            2015

  Germany              1013              Lithuania          1257

  Singapore            725               Philippines        717

  Total for Others     47646                                96558

  Others not Listed    2905                                 4094

  Grand Total          50551                                100652
  -------------------- ----------------- ------------------ --------------

Source: China Customs Data