### United States

Department of Agriculture Animal and Plant Health Inspection Service July 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**  **2011 -**  **0132 RIN 0579**  **- AD62**  **Importation of Apricots from Continental Spain** 

Policy & Program Development Policy Analysis & Developmenti



### Summary This analysis examines impacts for U.S. small entities of a rule that will allow fresh apricot imports from continental Spain

. Spain is expected to export at most 10 standard shipping containers of fresh apricot per year to the United States. Each container can hold approximately 18 metric tons (MT ) , thus , fresh apricot imports from Spain may total as much as 180 MT annually . This amount is equivalent to about 1 percent of current U.S. consumption. With U.S. fresh apricot exports four times the quantity imported, and the amount expected to be imported from Spain very s mall in comparison to current U.S. consumption, any market effects of such a relatively small change in supply will be minor. However, given the very small expected overall market impacts a ssociated with this rule, the APHI S 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. Apricot Production and Trade

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

................................ ................................ ...................... 21



### Introduction The anal ys is examines impacts of a rule that will allow fresh apricot imports from continental Spain. The rule will amend 7 CFR 319.56, and is part of a continuing program to allow the importation of foreign agricultural products that APHI S has determined are without significant risk of introducing exotic plant pest s into the United States. This anal ys is provides the basis, as required b y the Regulatory Flexibility Act, for certification by the APHI S Administrator that the rule will not have a significant economic impact on a substantial number of small entities. As background, we provide a brief overview of apricot production and trade b y the United States before describing the expected impact on small entities. 

### U.S. Apricot Production and Trade
Annual a pricot production in the United States averaged about 6 2 , 8 00 metric tons (MT ) in 20 09
- 2011 (table 1). About 35 percent of utilized production, that is, approximately 2 2 , 2 00 MT , was consumed as fresh fruit, and the remainder was used in processed form (canned, dried, or frozen)

. Table 1. U.S. apricot production, 20 09 and 2011 , metric tons

Total Production Utilized Production Utilized as Fresh Fruit Fresh as a Percentage of Utilized Production 2009 62,342 62,315 22,834 36.6% 20 10 59,312 59,285 21,328 36.0% 201 1 66,650 66,620 22,390 33.6% Three

- ye ar average 62,768 62,740 22,184 35.4 % Source: USDA NASS, Agricultural Statistics 2011, converted from short tons. Data for 2012 not yet available. http://quickstats.nass.usda.gov/results/0DF08566

- 6DAD
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N et exports (exports minus imports) of fresh apricot by the United States over the three ye ars, 2010
- 2012 , averaged about 4 , 8 00 MT (table 2). The United States exports apricot primarily to Canada ( approximately 80 percent of U.S. exports ) and on a l esser scale to Mexico ( 15 percent) . The United States imports apricot mainly from Chile ( 53 percent of U.S. imports ) and also from Canada and New Zealand (nearl y 36 and 7 percent, respectively , in 2012 ). Annual net earnings from trade in fresh apricot b y the United States averaged about $ 9 million for the three

- ye ar period. Based on the quantities of fresh apricot produced and traded by the United States, the quantity

consumed dome stically

in recent years is estimated to be about 1 7, 3 00 MT. Table 2. Quantity (metric tons) and value (dollars) of U.S. exports and imports of fresh apricot, 20 10
- 2012 2010 2011 2012 3
- Year Average Quantity Exports 5,563.6 5,605.2 7,453.7 6 , 207.5

Imports 1,558.3 1,421.8 1,111.8 1 , 363.9 Net exports 4,005.3 4,183.4 6 , 341.9 4,843.5 Value Exports $11,080,055 $11,180,380 15,205,972 $ 12,488,802

Imports 4,330,747 2,836,005 3,206,270 3,457,674 Net exports 6,749,308 8,344,375 11 , 999 , 702 9,031,128 Source: U.S. Census Bureau, as reported by Global Trade Information Services, Inc. 

### Potential Impact on Small Entities Apricot production is included in the North American Industry Classification System within other noncitrus fruit farming (NAICS 111339), for which the Small Business Administration’s small

- entity standard is annual receipts of not more than $750,000. In2007, there were 23,641 operations classified within this NAICS category , and the average value of the3

agricultural products sold by these farms was less than $112,000, well below the small

- entity standard. 1 We can assume that most if not all apricot farms in the United States are small. Spain is expected to export at most 10 standard shipping c ontainers of fresh apricot per ye ar to the United States. Each container can hold approximately 18 MT, thus fresh apricot imports from Spain may

total as much as 180 MT annually , an amount equivalent to about 1 percent of current U.S. consumption. With U. S. fresh apricot exports four times the total quantity imported from all sources , and the amount expected to be imported from Spain very s mall in comparison to current U.S. consumption, any

market effects of such a relatively small change in supply will be minor. M ost i f not all apricot farms are small . However , given the very small expected overall market impacts associated with this rule , the APHI S Administrator has determined that this action will not have a significant economic impact on a substantial number of small entities.

1 USDA NASS, 2007 Census of Agriculture , Volume 1, Chapter 1, Table 46 . Selected Characteristics of Farms by North American Industry Classification System. http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/st99_1_046_046.pdf