United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

November 

2013

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-2012-0014

RIN 0579- AD68

Importation of Papaya (Carica papaya L.) 

cultivar Solo from Peru into the Continental 

United States (7 CFR 319.56-25)

Policy & Program Development

Policy Analysis & Development
i

Summary

This final rule will allow the importation of fresh papaya fruit from Peru into the 

continental United States. Papaya is a relatively minor crop in the United States that is primarily

grown in Hawaii, and to a lesser extent, in Florida. Very small acreages of papaya are found in 

Texas and California.

Peru is expected to ship up to 36 metric tons of fresh papaya to the United States per 

year. This amount will be equivalent to less than 0.03 percent of net imports of fresh papaya by

the United States in 2012. With U.S. net imports estimated to be at least eight times as large as 

U.S. fresh papaya production, any market effects of such a relatively negligible change in papaya 

imports are as likely to impact foreign suppliers as they are U.S. producers. In addition, effects 

for the majority of U.S. papaya producers, who are located in Hawaii, will be further muted by

the prohibition on entry of fresh papaya from Peru into that State.

While most if not all U.S. papaya farms are small entities, we expect this final rule to 

have a very minor impact regardless of the size of operation. The APHIS Administrator has 

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

of small entities.
ii

Table of Contents

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

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

U.S. Papaya Production and Trade ..................................................................................... 1

Potential Impact on Small Entities...................................................................................... 4

References........................................................................................................................... 8
1

Introduction 

This analysis provides the basis, as required by the Regulatory Flexibility Act, for 

certification by the APHIS Administrator that the final rule, if promulgated, will not have a 

significant economic impact on a substantial number of small entities.

APHIS received a request from the Government of Peru to allow the importation of fresh 

papaya from Peru into the United States. The final rule will allow importation of commercial 

shipments of fresh papaya into the continental United States that is produced under a systems 

approach to mitigate the risks posed by certain plant pests. 

Papaya is native to tropical areas of South America, such as in Brazil and Peru. In the 

United States, papaya is primarily cultivated in Hawaii, which has a similar tropical climate, and 

to a lesser extent in Florida. Nominal areas of cultivation are also found in Texas and California. 

The popularity of papaya has been steadily increasing, with the United States a leading importer 

of the fruit. Papaya’s health benefits include vitamins B and C, and it is a source of dietary fiber

(California Rare Fruit Growers, Inc., 1997).

U.S. Papaya Production and Trade

Quantities of papaya produced in Hawaii in recent years are shown in table 1. There has 

been a significant decline in production, from about 23,608 metric tons (MT) in 2001, to about 

12,595 MT in 2011. In 2011, papaya was grown in Hawaii on 172 farms.

1

 Florida, with 68 

papaya farms in 2007, is estimated to produce about 2,800 MT of papaya annually.

2 As in 

Hawaii, there has been a decline in production, with the area planted in papaya estimated to have 

 

1

2007 Census of Agriculture, Table 32. 2007 State Data: Fruit and Nuts 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/usv1.pdf and USDA, NASS, Hawaii Field Office, 

2011 Hawaii Papaya Utilization, Hawaii Farm Facts,July 2012

2 Based on yield, pack-out percentage, and acreage estimates in Mossler, M., & Crane, J. (1999). Florida crop/pest 

management profile: Papaya.; http://edis.ifas.ufl.edu/pi053
2

fallen from about 400 acres to about 300 acres, due largely to urban encroachment and 

destruction by hurricanes.3 The 2007 Census of Agriculture reported that there were two papaya 

farms in Texas and one papaya farm in California that year.

4

Table 1. Hawaii’s fresh papaya production, 2001-2011, metric tons

Year Number of farms Production Value of Sales

2001 221 23,608 $14,598,000

2002 164 19,386 $11,924,000

2003 163 18,523 $13,069,000

2004 207 15,481 $12,361,000

2005 207 13,938 $11,241,000

2006 170 12,076 $11,049,000

2007 178 14,165 $13,094,000

2008 177 14,301 $14,393,000

2009 177 13,756 $14,186,000

2010 173 13,256 $11,123,000

2011 172 12,595 $ 9,722,000

Source: USDA, NASS, Noncitrus Fruits and Nuts Summary, various issues, as reported by the Economic 

Research Service, http://www.ers.usda.gov/Publications/FTS/Yearbook0713/FTS2009.pdf. And, USDA, 

NASS, Hawaii, “Hawaii Farm Facts, July 2013.

Table 2 shows the total quantity of fresh papaya imported by the United States, 2008-

2012, and the quantities imported from the six principal supplying countries. Over the five-year 

span, the average amount of papaya imported was about 143,320 MT. Mexico is the major 

source, and provided 76 percent of imports in 2012. 

Table 2. U.S. fresh papaya imports, 2008-2012, metric tons

 

3

Ibid.

4

2007 Census of Agriculture, Table 32. 2007 State Data: Fruit and Nuts 

http://www.agcensus.usda.gov/Publications/2007/Full_Report/usv1.pdf

Source

Quantity Percent 

Share 

2012

2008 2009 2010 2011 2012

World 124,355 156,394 153,891 139,766 142,199 100.0

Mexico 84,901 12,4741 115,214 100,875 107,342 76

Belize 28,170 23,747 28,568 26,372 18,517 13

Guatemala 3,721 2,11 3,882 6,183 11,221 4

Brazil 3,793 2,923 2,984 3,582 2,339 < 8

Dominican Republic 2,142 1,791 2,228 2,165 1,995 1

Jamaica 1,096 785 755 547 776 < 1
3

Source: U.S. Census Bureau, as reported in the Global Trade Atlas.

Table 3 shows the value of U.S. papaya imports, 2008-2012. The average value of 

papaya imports over the five years was approximately $80 million, with the major share earned 

on fruit imported from Mexico.

Table 3. Value of U.S. fresh papaya imports, 2008-2012, million dollars 

Source: U.S. Census Bureau, as reported in the Global Trade Atlas.

Table 4 shows the quantity of U.S. fresh papaya exported, 2008-2012. Over the five-year 

span, the average amount of papaya exported was about 3,726 MT. The United States exports

most of this fruit to Canada – 75 percent of exports in 2011. In 2011, U.S. imports of fresh 

papaya exceeded U.S. exports by approximately 137,743 MT. 

Table 4. Quantity of U.S. fresh papaya exports, 2008-2012, metric tons

Source: U.S. Census Bureau, as reported in the Global Trade Atlas.

Source

Value

2008 2009 2010 2011 2012

Percent 

Share

2012

World 72.33 87.22 87.03 68.36 85.79 100.00

Mexico 50.20 69.13 65.95 44.83 62.63 73

Belize 11.66 10.68 11.98 11.72 9.28 11

Brazil 4.99 3.82 4.33 4.53 3.23 4

Guatemala 1.18 0.68 1.94 3.93 7.20 8

Dominican Republic 1.00 0.90 1.13 1.71 1.23 1

Jamaica 2.18 1.58 1.43 1.62 2.22 3

Source

Quantity Percent 

Share 

2011

2008 2009 2010 2011 2012

World 3,474 3,399 3,282 4,019 4,456 100.0

Canada 2,428 2,609 2,327 2,958 3,344 75

Japan 773 438 395 386 380 9

Hong Kong 4 85 178 288 333 7

China 139 181 89 238 285 6

Mexico - 19 255 92 55 1

Germany 69 53 23 26 17 < 1
4

Table 5 shows the value of U.S. papaya exports, 2008-2012. The average value of 

papaya exports over the five years was approximately $9.2 million, with the majority of this 

amount from fruit exported to Canada.

Table 5. Value of U.S. fresh papaya exports, 2008-2012, million dollars 

Source: U.S. Census Bureau, as reported in the Global Trade Atlas.

Potential Impact on Small Entities

Farms producing papaya are classified within the North American Industry Classification 

System under Other Noncitrus Fruit Farming (NAICS 111339). For this industry classification, 

a business is considered to be a small entity if its annual receipts are not more than $750,000.5 

The average 2007 market value of crops sold by farms classified within Fruit and Tree Nut 

Farming (which includes Other Noncitrus Fruit Farming) was less than $188,000.6 We infer that 

the majority of farms producing fresh papaya are small entities. 

The 2007 Census of Agriculture also contains data on certain sub-categories of fruit and 

tree nut farming operations, namely, small family farms and farms having operators who belong 

 

5 U.S. Small Business Administration, Table of Small Business Size Standards. 

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

6

2007 Census of Agriculture, Table 62. Selected Characteristics of Farms by North American Industry 

Classification System: 2007, http://www.agcensus.usda.gov/Publications/2007/Full_Report/usv1.pdf

Source

Value

2008 2009 2010 2011 2012

Percent 

Share

2011

World 8.85 7.87 7.20 10.39 11.78 100.00

Canada 5.58 5.31 4.56 7.06 8.23 70

Japan 2.11 1.19 1.07 1.24 1.23 11

Hong Kong 0.03 0.30 0.63 0.94 1.07 9

China 0.67 0.75 0.42 0.79 0.94 8

Germany 0.30 0.26 0.14 0.15 0.11 1

Mexico 0.00 0.02 0.34 0.14 0.10 1
5

to socially disadvantaged groups.7 Small family farms have gross farm cash income of less than 

$250,000. Categories of socially disadvantaged groups are women, persons of Hispanic origin,

American Indian or Alaska Native, Asian, African American, and Native Hawaiian or other

Pacific. 

Table 6 shows the number of small family farms categorized under fruit and tree nut 

farming in 2007. We note that residential/lifestyle farms comprised nearly half of small family 

fruit and tree nut farms. For about 30 percent of the small family fruit and tree nut farms, the 

operators reported that they were retired. 

 

Table 6. Number and percentage of small family farms consisting of fruit and tree nut farming, 

2007

Limited 

Resource 

Farms

Retirement 

Farms

Residential/

Lifestyle 

Farms

Farming 

Occupation/ 

Lower Sales

Farming 

Occupation/ 

Higher Sales

Total

Number of 

fruit and 

tree nut 

farming 

farms

10,705 24,019 33,212 11,034 3,527 82,497

Percentage 13 29 40 13 4 100

Source: USDA NASS, 2007 Census of Agriculture.

Note: A limited resource farm is a small family farm that has gross sales of less than $100,000 (indexed after 2003), 

and a household income less than the poverty level for a family of four with two children or less than half the county 

median income. A retirement farm is a small family farm whose operators report they are retired (excludes limited

resource farms operated by retired farmers). A residential/lifestyle farm is a small family farm whose operators 

report a major occupation other than farming (excludes limited resource farms whose operators report a major

occupation other than farming). A farming occupation/lower-sales farm is a small family farm with sales less than 

$100,000 whose operators report farming as their major occupation (excludes limited resource farms whose 

operators report farming as their major occupation). A farming occupation/higher-sales farm is a small family farm

with sales between $100,000 and $249,000 whose operators report farming as their major occupation. 

Table 7 shows the number and percentage of fruit and tree nut farms that had operators 

belonging to socially disadvantaged groups in 2007. Nearly 90 percent of fruit and tree nut 

 

7

For definitions and information, see: USDA ERS. Structure and Finances of U.S. Farms: Family Farm Report, 

2010 edition, EIB-66, July 2010. http://www.ers.usda.gov/Publications/EIB66/EIB66.pdf
6

farms had a woman as the principal operator. Significant numbers of these farms also had 

operators who belong to socially disadvantaged racial or ethnic groups. On approximately 60 

percent of the farms, the operator was of Spanish, Hispanic, or Latin origin.

Table 7. Number and percentage of farms consisting of fruit and tree nut farming for which one 

or more operators belong to a socially disadvantaged group, 2007

Farms 

where the 

principal 

operator is 

female

Farms 

where an 

operator is 

of 

Spanish, 

Hispanic, 

or Latino 

origin

Farms where 

an operator 

reports race as 

American 

Indian or 

Alaska Native

Farms 

where an 

operator 

reports race 

as Asian

Farms 

where an 

operator 

reports 

race as 

Black or 

African 

American

Farms 

where an 

operator 

reports race 

as Native 

Hawaiian 

or Other 

Pacific 

Islander

All 

Farms

Number of 

farms with 

fruit and 

tree nut 

farming

13,876 8,871 1,304 4,163 836 335 15,509

Percentage 89 57 8 27 5 2 100

Source: USDA NASS, 2007 Census of Agriculture.

Based on numbers of papaya farms and production levels in the United States, it is 

evident that papaya is a relatively minor crop in the United States, and it is likely that most if not 

all U.S. papaya farms are small entities. But effects of the final rule for these producers will be 

minor.

Peru is expected to annually ship one to two 40-foot shipping containers of fresh papaya 

to the United States. Each container can contain approximately 18 MT (about 40,000 pounds), 

which means that a maximum amount of approximately 36 MT (about 80,000 pounds) of papaya 

will be imported into the continental United States from Peru. This amount will be equivalent to

less than 0.03 percent of net imports of fresh papaya by the United States in 2011. With U.S. net 

imports estimated to be at least eight times as large as U.S. fresh papaya production, any markets 

effects of such a relatively negligible change in papaya imports are as likely to impact foreign 
7

suppliers as they are U.S. producers. In addition, effects for the majority of U.S. papaya 

producers, who are located in Hawaii, will be further muted by the final prohibition on entry of 

fresh papaya from Peru into that State.

We expect the final rule to have a very minor impact on U.S. papaya growers regardless 

of the size of operation or an operator’s classification with respect to socially disadvantaged 

groups. The Administrator of the Animal and Plant Health Inspection Service has determined 

that this action will not have a significant economic impact on a substantial number of small 

entities.
8

References

California Rare Fruit Growers, Inc. (1997). Papaya. Retrieved from 

http://www.crfg.org/pubs/ff/papaya.html

Census of Agriculture, 2007, 

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

Global Trade Atlas. Retrieved (2011, April), http://www.gtis.com/gta/default.cfm

Mossler, M., & Crane, J. (1999). Florida crop/pest management profile: Papaya. Informally 

published manuscript, IFAS Extension, University of Florida, Gainesville, Florida. , 

Available from Electronic Data Information Source (EDIS). (Publication #CIR 1402) 

http://edis.ifas.ufl.edu/pi053

U.S. Small Business Administration. 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