### United States

Department of Agriculture Anim al and Plant Health Inspection Service June 2011 Regulatory Impact Analysis &

Analysis in Support of Certification that the Rule will not have a Significant Economic Impact on a Substantia l Number of Small Entities Proposed Rule APHIS - 2011 - 0040 RIN 0579 - [XXXX] Importation of Fresh Mangoes from Australia

Policy & Program Development Policy Analysis & Developmenti



### Summary This proposed rule is in response to a request from Australia to be allowed to export fresh mangoes to the United States. The annual quantity that Australia expects to export to the United States, 1,200 metric tons, represents only about 0.5 percent of U.S. mango imports (250,000 metric tons in 2008, primarily from Me xico, Haiti, and Brazil). While mangoes are grown in Florida and Hawaii, and in smaller quantities in California and Texas, U.S. annual production totals only

about 3,000 metric tons. Most if not all U.S. mango farms and wholesalers are small entities. H owever, given the small quantity

expected to be imported from Australia relative to current imports, it is very unlikely that there would be a significant impact on the mango market. Moreover, the Australian mango season, mid

- September to mid

- April, is the opposite of that in the United States; the fresh mangoes imported from Australia would not compete directl y with those produced domestically. Benefits and costs of the proposed rule are examined in accordance with Executive Order 12866. U.S. consumers an d importers would benefit from increased access to another variety and
source of fresh mangoes. APHI S has not identified any additional costs associated with the proposed rule. Based on this information, the APHI S Administrator certifies that the proposed rule, if promulgated, will not have a significant economic impact on a substantial number of small entities.ii



### Table of Contents Summary

................................ ................................ ................................ .............................. i Overview of the Action and affected Entities

................................ ................................ .... 3 Potential Impact on Small Entities

................................ ................................ ...................... 3 References

................................ ................................ ................................ ........................... 5iii



### Overview of the Action and affected Entities This analy sis provides the basis, as required by the Regulatory

Flexibility

Act, for certification by

the APHIS Administrator that the proposed rule, if promulgated, will not have a significant economic impac t on a substantial number of small entities. In response to a request from Australia, APHIS is proposing to allow the importation of fresh mangoes from that country into the United States provided certain pest mitigation measures are taken. World product ion of mangoes is estimated to be about 2 8.5 million metric tons. In dia produces approximately 39 percent of the world ’s total, followed by China and Thailand at 13 and 6 percent, respectively

. Other major mango producers are Mexico, Indonesia, Pakistan, Brazil, the Philippines, Nigeria, and Egy pt. The United States produces approximately 3,000 metric tons per ye ar , about one

hundredth of one percent of world production

. U.S. mango production is concentrated in the States of Florida , Hawaii, California, and Texas. While U.S. mango production is limited, the United States is the world’s leading importer of fresh mangoes, receiving 33 percent of imports worldwide. 1 From 1997 to 2006, U.S. importation of mangoes increased from 187,193 metric tons to 298,088 metric tons, an increase of nearl y 59 percent
. U.S. mango prices vary widel y b y cultivar and by season. In general, mango prices have been steadily declining over the past decade. According to the National Mango Board, the average retail price per fruit i n 2008 was $0.91. The

1 Edward A. Evans, 2009.2

increase in imports can be attributed to greater ye ar - round availability , lower prices, broadening consumer preferences, and higher disposable income. 2 Currently , Australia produces 60,000 metric tons of mangoes during the mid

- Septe mber to mid

- April season. The major mango production areas are in Queensland , northern New South Wales, the Northern Territory , and Western Australia. 3 Australia is proposing to export approximately

1,200 metric tons of mangoes per year to the United State s. In 2008, the United States imported a total of 250,000 tons of mangoes from Mexico, Haiti, and Brazil. 4 Australia’s proposed export quantity represents about 0.5 percent of current U.S. imports. U.S. Consumers will benefit from increased access to an other variet y of fresh mangoes. In addition, because the Australian mango season is opposite that of the United States, fresh mango imports would not compete with domestic production and U.S. consumers can have access the entire ye ar . U.S. Importers would also benefit from having access another source and variet y of fresh mangoes for imports APHI S has not identified any additional costs associated with the proposed rule. Because the quantity

of mango imports is relatively small, we do not anticipate signifi cant impacts on the mango market

.

2 Edward A. Evans , 2009. 3 Australia Fresh: http://www.australiafresh.com.au/fruit_and_nuts/fruit/mangoes.asp 4 Edward A. Evans, 2009.3



### Potential Impact on Small Entities This analy sis provides the basis, as required b y the Regulatory Flexibility

Act, for certification by

the APHIS Administrator that the proposed rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. For the purpose of this analy sis and following the Small Business Administration (SBA) guidelines, the entities potentially affected by

the proposed rule are classified within the followin g industries: Other Non Citrus Farming (NAI CS 111339) and Fresh Fruit and Vegetable Merchant Wholesalers (NAI CS 424480). Establishments classified within Other Non Citrus Farming (NAICS 111339) are considered small by SBA standards if annual sales are not more than $750,000. APHI S does not have information on the size distribution of mango producers but according to the 2007 Census of Agriculture there were 23,641 farms in the Other Non Citrus Farming classification, and the market value of their crop sale s averaged about $111,000, well below the small

- entity

standard. 5 We infer that most if not all U.S. mango farms are also small entities. Establishments classified with in Fresh Fruit and Vegetable Merchant Wholesalers (NAICS 424480) are considered small by SBA standards if they

employ not more than 100 persons . According to the 200 7 Survey of Business Owners, 97 percent of the establishments in this category

employ ed fewer than 100 people. Mango imports from Australia are expected to total about 1,200 m etric tons per year. This represents approximately 0.5 percent of our total mango imports. The mangoes that are grown in Florida, California, Texas, and Hawaii are produced primaril y for local markets. The imports from Australia would likely help meet gr owing demand in all States. It is very unlikel y

5 2007 Census of Agriculture, Volume 1, Chapter 1, Table 46. http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1, _Chapter_1_US/st99_1_046_046.pdf4

that additional mango imports of 1,200 metric tons would cause a significant decrease in mango prices or otherwise substantially affect the market. Moreover, the Australian mango sea son, mid

- September to mid

- April is the opposite of that in the United States; the fresh mangoes imported from Australia would not compete directly with those produced domestically

. Under these circumstances, the Administrator of the Animal and Plant Health In spection Service has determined that this proposed rule, if promulgated, 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 Economic Census, 2007, http://www.census.gov/econ/census07/ Edward A. Evans. “Recent Trends in World an d U.S. Mango Production, Trade, and Consumption.” University of Florida, IFAS Extension FE718. U.S. Small Business Administration. U.S. Small Business Administration: Table of Small Business Size Standard s Match to North American Industry Classification Sy stem http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf The Market for Organic and Fair

- Trade Mangoes and Pineapples, Study prepared in the framework of FAO project and GCP/RAF/404/GER “Increasing incomes and food securit y of small farmers in West and Central Africa through organic and fair

- trade tropical products.” September 2009.