United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

July 2012

Analysis in Support of Certification that the 

Rule will not have a Significant Economic 

Impact on a Substantial Number of Small 

Entities

Final Rule

APHIS 2009-0084

RIN 0579-AD56

Importation of Litchi from Australia

Policy & Program Development

Policy Analysis & Development
i

Summary

This final rule will allow importation of commercial shipments of fresh litchi fruit from 

Australia into the continental United States, except Florida. Distribution into Florida will not be 

allowed due to the risk associated with the litchi rust mite. Litchi is grown in Florida, Hawaii, 

and California, and U.S. production is estimated to be about 500 metric tons (MT) per year. 

Most if not all litchi farms are small entities.

The United States imports litchi from countries such as Taiwan, China, Israel, and 

Mexico. Australia expects to export about 400 MT of litchis to the United States annually. This 

amount is equivalent to less than 3 percent of the quantity of litchis that was imported by the 

United States in 2004, the latest year for which we have data. Most likely, the quantity of litchis 

expected to be imported from Australia is of even lesser significance when compared to current 

litchi imports by the United States, given the expanding demand for this fruit.

Domestic litchi producers are unlikely to be affected by this rule. Any litchi price 

declines that might result from this rule would be insignificant, all the more so since at least 

some litchi imports from Australia are likely to displace imports from other countries. 

Moreover, given that agricultural seasons in the Southern Hemisphere are generally the opposite 

of those in the Northern Hemisphere, the imports from Australia will not directly compete with 

U.S. litchi production. Based on this information, the APHIS Administrator certifies that the 

final rule will not have a significant economic impact on a substantial number of small entities.
ii

Table of Contents

Summary.............................................................................................................................. i

Introduction......................................................................................................................... 1

Potential Impact on Small Entities...................................................................................... 1

References........................................................................................................................... 5
1

Introduction 

This final rule will allow the importation of commercial shipments of fresh litchi fruit 

from Australia into the continental United States, except Florida. As a condition of entry, the 

litchi fruit will have to be treated with irradiation. Litchi from Australia will not be allowed into 

Florida due to the risk associated with the litchi rust mite. 

World production of litchi is estimated to be 2.2 million metric tons (MT), with China 

accounting for over 50 percent (1.2 million MT), and one-third produced by India (0.7 million 

MT) (Didier n.d.). The United States produces approximately 500 MT per year, which 

represents less than 0.03 percent of world production. U.S. litchi production is concentrated in 

the States of Florida, Hawaii, and California. Florida has the largest area under production 

(1,200 acres), followed by Hawaii (300 acres) and California (60 acres) (Evans et al. 2004). 

Currently, Australia produces 3,500 MT of litchis (Menzel n.d.). Australia expects to export 

approximately 20 forty-foot containers of litchis per year to the United States, which is 

equivalent to about 400 MT. 

In 2004, the United States imported a total of 14,854 MT of litchis, mainly from China, 

Taiwan, and Mexico. Australia’s proposed export quantity represents about 2.7 percent of U.S. 

imports in 2004. 

Potential Impact on Small Entities

For the purpose of this analysis and following the Small Business Administration (SBA) 

guidelines, the entities potentially affected by the rule are classified within the following 

industries: Other Non Citrus Fruit Farming (NAICS 111339), Postharvest Crop Activities 

(except cotton ginning) (NAICS 115114), and Fresh Fruit and Vegetable Merchant Wholesalers 

(NAICS 424480). Establishments classified within Other Non Citrus Fruit Farming are 
2

considered small by SBA standards if annual sales are not more than $750,000. APHIS does not 

have the size distribution of litchi producers, but according to the Census of Agriculture there 

were 23,641 farms classified within Other Non Citrus Fruit Farming in 2007.1 The market value 

of crops sold by these farms that year was about $111,000, well below the small-entity standard. 

We infer that most if not all U.S. litchi farms are small. Establishments classified within 

Postharvest Crop Activities (except cotton ginning) are considered small by SBA standards if 

annual sales are not more than $7 million. The percentage of establishments that meet this 

standard is not known; neither the Census of Agriculture nor the Economic Census reports 

revenue for these establishments. Establishments classified within Fresh Fruit and Vegetable 

Merchant Wholesalers are considered small by SBA standards if they employ not more than 100 

persons. According to the 2002 Survey of Business Owners, 97 percent of the establishments in 

this category employed fewer than 100 people.

From 1998 to 2004, the most recent information available, U.S. imports of litchi 

increased from about 1,000 MT to approximately 15,000 MT. During the same time frame, the 

price of litchis declined from $5.07/lb to $1.05/lb. This increase in imports can be attributed to 

improvements of post harvest activities that increased the shelf life of the fruit, facilitating trade 

regulations, and expanding demand as a result of growing Asian and Hispanic populations in the 

United States (Evans et al. 2004). 

Australia expects to export 20 forty-foot containers (400 MT) of litchis per year to the 

United States. This quantity represents less than 3 percent of U.S. litchi imports in 2004. Most 

 

1 USDA NASS. 2007 Census of Agriculture, Table 46. Selected Characteristics of Farms by North American 

Industry Classification System: 2007,

http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/st99_1_046_046.pdf
3

likely, this quantity of litchis is of even lesser significance when compared to current litchi 

imports by the United States, given the expanding demand for this fruit.

Agricultural seasons in the Southern Hemisphere are generally the opposite of those in 

the Northern Hemisphere, and litchi imports from Australia likely will not directly compete with 

U.S. litchi production. The litchis that are grown in Florida, California, and Hawaii are produced 

primarily for local markets. It is unlikely that an additional 400 MT of imports will have a 

significant impact on prices received by domestic producers. Any litchi price declines that may

result from this rule would be insignificant, all the more so since at least some litchi imports 

from Australia can reasonably be expected to displace imports from other countries.

Two concerns were raised by the public in regard to the analysis supporting certification

that the proposed rule would not have a significant economic impact on a substantial number of 

small entities. The first comment stated that the data used in the analysis was outdated. While 

the information that was used is not current, both that analysis and this one are based on the most 

recent data available. It is likely that the quantity of litchi imported by the United States is now

larger than was reported in 2004, and the economic impact of allowing litchi imports from 

Australia will be therefore even smaller than described. The second concern raised was that

while the quantity of litchi expected to be imported from Australia is small, it will contribute to 

the declining price trend for domestic growers when combined with imports from other 

countries, such as Thailand, Vietnam, and South Africa. APHIS considers import requests on a 

case-by-case basis. We have evaluated the expected impact of litchi imports from Australia, 

given the best available information on production and trade of litchi by the United States. 

Based on this information, the Administrator of the Animal and Plant Health Inspection Service 
4

has determined that this action will not have a significant economic impact on a substantial 

number of small entities.
5

References

Census of Agriculture, 2007, 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp

Didier, Christian. (n.d.) The Lychee. U.N. Economic Commission for Europe,

http://www.unece.org/fileadmin/DAM/trade/agr/meetings/capacitybuilding/2006_mojmirovce-SK/TheLychee.pdf

Evans, E.A., Degner, R.L., Crane, J.H., Rafie, A.R., & Balerdi, C.F. (2004). Is It Still Profitable 

to Grow Lychee in Florida? Electronic data information source of Food and Resource 

Economics Department, Florida Cooperative Extension Service, Institute of Food and 

Agricultural Sciences, University of Florida. Retrieved (2010, June 15) from 

http://edis.ifas.ufl.edu/fe496

Evans, E.A., & Degner, R.L. (2005). Recent Developments in World Production and Trade of 

Lychee (litchi chinensis): Implications for Florida Growers. Proceedings of the Florida 

State Horticultural Society, 118. Retrieved from 

http://www.fshs.org/Proceedings/Password%20Protected/2005%20v.%20118/118/247-

249.pdf

Menzel, Christopher. (n.d.) Lychee Production in Australia. FAO Corporate Document 

Repository, http://www.fao.org/docrep/005/ac684e/ac684e05.htm#fn4

U.S. Small Business Administration. Table of Small Business Size Standards Match to North 

American Industry Classification System 

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf