### United States

Department of Agriculture Animal and Plant Health Inspection Service March 2012 **Analysis in Support of Certification that the** 

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Entities Proposed**  **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 would 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 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 slight in comparison to current U.S. consumption, any market effects of such a relatively small change in supply

would be minor. Although most if not all apricot farms are small, given these circumstances the APHIS Administrator has determined that this action , if promulgated, 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 This analysis 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. The anal ys is examines impacts of a rul e that would allow fresh apricot imports from continental Spain. The rule would 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. 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 Apricot producti on in the United States averaged over 60, 8 00 metric tons (MT) in 2009 and 2010 (table 1). About 36 percent of utilized production, that is, approximately 22,100 MT , was consumed as fresh fruit, and the remainder was used in processed form (canned, dried, or frozen). Table 1. U.S. apricot production, 2009 and 2010, metric tons

Total Production Utilized Production Utilized as Fresh Fruit Fresh as a Percentage of Utilized Production 2009 62,342.4 62,315.2 22,834.1 36.6% 2010 59,312.3 59,285.1 21,328.1 36.0% Two

- year average 60,827.4 60,800.1 22,081.1 36. 3 % Source: USDA NASS, Agricultural Statistics 2011, Table 5

- 12, converted from short tons. http://www.nass.usda.gov/Publications/Ag_Statistics/2011/Chapter05.pdf2

N et exports (exports minus imports) of fresh apricot by the United States over the three ye ars, 2009

- 2011, averaged about 4,000 MT (table 2). The United States exports apricot to a number of countries, but primarily to Canada (85 to 90 percent of U.S. expo rts ) and on a l esser scale to Mexico (10 percent) . The United States imports apricot mainly from Chile (75 to 85 percent of U.S. imports ) and also from Turkey and New Zealand (nearl y 12 and 9 percent, respectivel y, in 2011). Annual net earnings from trade in fresh apricot by the United States averaged about $7.4 million for the three

- ye ar period. Based on the quantities of fresh apricot produced and traded b y the United States, the quantity consumed domestically

in recent years is estimated to be about 18,100 MT.

Table 2. Quantity (metric tons) and value (dollars) of U.S. exports and imports of fresh apricot, 2009

- 2011 2009 2010 2011 3

- Year Average Quantity Exports 4 , 908 .7 5 , 563 .6 5 , 605 .2 5 , 359 .2

Imports 1 , 105 .5 1 , 558 .3 1 , 421 .8 1 , 361 .9 Net exports 3 , 803 .2 4 , 005 .3 4 , 183 .4 3 , 997 .3 Value Exports $ 9 , 616 , 594 $ 11 , 080 , 055 $ 11 , 180 , 380 $ 10 , 625 , 676

Imports 2 , 615 , 323 4 , 330 , 747 2 , 836 , 005 3 , 260 , 692 Net exports 7 , 001 , 271 6 , 749 , 308 8 , 344 , 375 7 , 364 , 984 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 quantity imported, and the amount expected to be imported from Spain very slight in comparison to current U.S. consumption, any market effects of such a relatively small change in supply

would be minor. Although most i f not all apricot farms are small, given these circumstances the APHIS Administrator has determined that this action , if promulgated, 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