### United States

Department of Agriculture Animal and Plant Health Inspection Service Novem ber 2014 **Analysis in Support of Certification that the** 

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Entities Proposed**  **Rule APHIS**  **- 2014** **- 0085**  **RIN 0579 -** **AE04 Importation of**  **F resh Andean**  **B lackberry and**  **R aspberry from Ecuador into the Continental**  **United States**

Policy & Program Development Policy Analysis & Developmenti



### Summary The proposed rule is in response to a market access request from the Ecuadorian Government for APHI S’s authorization to allow the importation into the continental United States of fresh Andean raspberries (Rubus idaeus ) and blackberries (Rubus occidentalis ) under a systems approach
. Generally, APHI S allows the importation of fresh fruits and vegetables when requested b y a foreign government, and when sound science and an analys is of the risks show that it is appropriate to do so. U.S. entities that may

be impacted by the proposed rule are U
. S
. producers of fresh raspberries , blackberries , and loganberries, the majority of which are produced in Oregon (98 percent of U
. S
. blackberries and almost all of loganberries), Washington (95 percent of U
. S
. red raspberries) and C alifornia (84 percent of all color raspberries). As a species, Andean raspberries and blackberries are very similar to loganberries. Impacts of the proposed rule on U
. S
. entities would be dependent upon the quantity of fresh Andean raspberries and blackberries from Ecuador. In 2005, Ecuador had approximately 10,564 acres of Andean blackberry and raspberry crops with a potential production output of 6,840 metric tons ( about 15 million pounds) of fruit
. Between 2000 and 2006, Ecuador exported an average of 13 metric tons ( about 28,660 pounds) of Andean blackberries and raspberries
. In 2007, exports of fresh Andean raspberries and Andean blackberries from Ecuador reached 90 metric tons ( about 198,416 pounds)
. According to an Ecuadorian government estimate, the maximum quantity

of fresh Andean raspberries and blackberries that could be exported to the United States is less than 182 metric tons per ye ar or 401.24 thousand p ounds
. On average between 2008 and 2012, the United States imported 37.22 million pounds of fresh raspberries and between 2011 and 2013 imported 63 million pounds of fresh blackberries.ii

Comparing the volume level of these imports with the proposed maximum level of imports from Ecuador, the Ecuadorian import share would be less than 0.5 percent of the U
. S
. import share for these fruits.iii



### Table of Contents Summary
................................ ................................ ................................ .............................. i Introduction
................................ ................................ ................................ ......................... 1 Potential Impact on Small Entities
................................ ................................ ...................... 41



### Introduction This analysis 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 impact on a substantial number of small entities. **Table 1. U.S. Crop Harvested (Area, Volume,**  **Value) by Crop**  **Category in 2012** 

Source: USDA, NASS, AMS Report, Noncitrus fruit production by State 2013 and the North American Raspberry and Blackberry Association at http://www.raspberryblackberry.com/ Table 1 presents the U
. S
. raspberry, blackberry, loganberry, and bo ys enberry production in 2012 by

crop category
. The majority of red raspberry

production occurs in California and Washington
. California produced 97.2 million pounds of raspberries valued at $240 million and Washington 62.7 million pounds of raspberries valued at $ 37.9 million (tables 2 and 3)
. Oregon produced 2.2 million pounds of black raspberries valued at $5.7 million and 2.3 million pounds of loganberries and bo ys enberries valued at over 2 million dollars (table 1). **Table 2. Volume of**  **U .**  **S .**  **Raspberry Production, 2008 -**  **2012**

California Oregon Washington Sum of all raspberries In the 3 States Year Red

Raspberries ( 1,000 pounds )

Red Raspberries ( 1,000 pounds ) Black

Raspberries ( 1,000 pounds ) Red

Raspberries ( 1,000 pounds ) Total Volume

( 1,000 pounds) 2008 86,400 5,050 3,120 55,000 149,570 2009 123,200 5,400 3,130 65,700 197,430 2010 81,000 5,120 1,740 61,010 148,870 2011 108,000 6,000 2,230 72,300 188,530 2012 97,200 6,600 2,150 62,700 168,650 **5 year Average**  **99,160 5,634**  **2,474 63,342**  **170,610** Source: USDA, National Agricultural Statistics Service , Noncitrus Fruits and Nuts Summary, Tables: D
- 4, D
- 5, D
- 6

Crop Category Commercial Acres Production

( in 1,000 pounds) Value ( in 1,000 dollars) **Blackberries** Marion 3,500 25,500 $13 , 7 00 Evergreen 500 4,100 $2 ,400 Other 2,800 23 , 9 00 $5 ,800 **Sum of All Blackberries 6,800**  **53,500 $21,900** 

**Raspberries** Red 11,000 69 ,300 $44 ,500 Black 900 2 ,200 $5 ,700 Other 5,400 97 ,200 $239 ,800 **Sum of All Raspberries 17,300**  **168,700 $290,000**  **Boysenberries & Loganberries 500**  **2,300 $2,044** 2

**Table 3. Value of**  **U .**  **S .**  **Raspberry Production ,**  **( 2008**  **- 2012**  **)** In 1,000 US dollars Sum of all raspberries in these 3 States California Oregon Washington Year Red

Raspberries Red

Raspberries Black

Raspberries Red Raspberries 2008 $259,200 $8,084 $5,815 $92,093 $365,192 2009 $357,055 $6,956 $1,181 $57,154 $422,346 2010 $200,288 $6,172 $2,185 $50,254 $787,538 2011 $223,200 $6,400 $5,510 $44,336 $279,446 2012 $239,820 $6,644 $5,689 $37,871 $290,024 **5 -** **Year Average**  **$255,913 $6,400**  **$5,510 $44,336**  **$491,341** Source : USDA, National Agricultural Statistics Service , Noncitrus Fruits and Nuts Summary, Tables: D
- 4,
- 5,
- 6 U.S. fresh raspberry

consumption ranks as the third most popular berry after strawberries and blueberries. Nearly 90 percent of U.S. blackberries are consumed in the frozen product form
. Even though the United States is a net exporter of fresh raspberries, U
. S
. consumers demand different varieties of fresh berries to satisfy domestic demand and Andean blackberries and raspberries are distinct species , more closel y resembling the loganberry than U.S. raspberries and blackberries , and are not likely to be substitutes for U.S. commerciall y produced raspberries and b lackberries
. In addition, most U.S. blackberries are destined for U.S. processed market products. **Table 4**  **. US**  **Fresh Raspberries: Supply and Utilization (** **in 1,000 pounds )**  **, 2008 -**  **2012** Year SUPPLY UTILIZATION Imports as a share of Domestic fresh consumption Production 1/ Im

ports Total Supply Exports 2/ Domestic Per Capita Use 2008 83,700 25,900 109,600 62,400 47,200 0.15 54.9% 2009 118,800 27,400 146,300 64,300 82,000 0.27 33.4% 2010 78,700 32,100 110,800 47,700 63,100 0.20 50.8% 2011 104,000 42,400 146,400 48,300 98,100 0.31 43.2% 2012 93,600 58,300 15,200 51,500 100,500 0.32 58.0% **Average 95,760**  **37,220 105,660**  **54,840 54,840**  **78,181 37,220**  **105,660 54,840**  **78,181 0.25**  **48.1 %** 1/ Based on production in Oregon, Washington, and California, using the assumption that 95 percent of California’s raspberry crop is for fresh use. 2/ Exports also, include blackberries, mulberries, and loganberries. Raspberries, Fresh (HSC
- 0810.20.1020 ) , Import Statistics US Department of Commerce, Bureau of Census
. Source : USDA, Economic Research Service calculations Oregon also produces more than 98 percent of U
. S
. blackberries, making this State the predominant geographic source for U
. S
. blackberries (table 5 ). In 2013, 51 million pounds of blackberries were produced on 7,300 acres, of which 4 million pounds were sold as fresh berries3

and the remaining 47 million p ounds sold as processed product. The 2008
- 12 average U.S. production of fresh blackberries was value d at 37 million dollars (table 5). During 2008 and 2013, Mexico was the United States’ major supplier of fresh blackberries and raspberries , holding a 93 percent share of imports , followed b y Guatemala with 4 percent, Canada with 2 percent, and Chile with 1 percent. **Table 5**  **. US**  **Fresh Blackberry Production ,**  **2008 -** **2013**

U.S. Producing State: Oregon US Imports Year Volume

( 1,000 pounds ) Volume

(metric tons ) Value

( 1,000 US $) Value

( 1,000 US $) Volume

(me tric tons ) 2008 45,100 20,457 $27,773 0 0 2009 54,900 24,902 $30,842 0 0 2010 43,660 19,804 $33,291 0 0 2011 52,680 23,895 $42,783 $45,522 15,343 2012 53,520 24,276 $44,520 $80,288 26,713 2013 51,020 23,142 $42,268 $133,800 43,763 Average 50,147 22,746 $36,913 $43,268 14,303 Source: USDA, National Agricultural Statistics Service , Noncitrus Fruits and Nuts Summary, Tables: D
- 4, D
- 5, D
- 6; HTC: 0810209030 Commerce Department, Bureau of the Census

. **Overview of the Ecuadorian Raspberry and Blackberry Market** In 2005, Ecuador had approximately 4,275 hectares of Andean blackberry and raspberry crops with a potential production of 6,840 metric tons of fruit 1 . Between 2000 and 2006, Ecuador exported an average of 13 metric tons of Andean blackberries and raspberries. The reason for Ecuador’s relative ly small amount of exports is due to the high domestic demand for thes e fruits (0.82 pounds/capita/ year). In 2007, exports of fresh raspberries and blackberries from Ecuador reached 90 metric tons. The sea shipping containers that are ty picall y used for estimating the volume of fresh fruit shipments are 40 feet long and e ach holds approximately 40 thousand pounds or 18.18 metric tons of fruit. According to an estimate given to APHI S by Ecuador’s Government (PROFIAGRO) , the maximum quantity that Ecuador can export annually

1 1 Source of the data are the Ecuadorian Phytosanitary and Sanitary Services (SESA) and the PROFIAGRO Program which work in cooperation with APHIS, International Development Bank and International Monetary Fund, in co mp liance of the Andean Trade Preferential Agreement (ATPDEA).4

of fresh Andean raspberries and blackberries will be less than 10 shipping containers per year or less than 181.8 metric tons. On average between 20 08 and 201 2 , the United States imported 37.22 million pounds of fresh raspberries (table 4) and between 2011 and 2013 U.S. imported 63 million pounds of fre sh blackberries (table 5). In comparison with the total U
. S
. volume of imports of fresh raspberries and blackberries the last five years of available data, the potential maximum amount of a given Ecuadorian import share would be less than 0.5 percent. The majority

of fresh raspberry, blackberry, and loganberry producers are small entities. APHI S welcomes informed public comment in order to better determine the extent to which U
. S
. small entities may

be affected b y this proposed rule. 

### Potential Impact on Sm **all Entities** Generally, APHI S allows the importation of fresh fruits and vegetables when requested by a foreign government, and when sound science and an analysis of the risks show that it is appropriate to do so. Although raspberries and blackberries are grown in at least 37 states, only three states
-- Oregon, Washington, and California
-- account for most of the U
. S
. production for both fresh and processing markets of raspberries , blackberries , and loganberries
. B lackberry, raspberry, and loganberry species derive from the genus Rubus . In general, U
. S
. berry growers in cooler climates concentrate on raising raspberries, while blackberries and loganberries are mostl y grown in the Pacific Northwest and the South. About 90 percent of all blackberries are consumed in frozen product form, given the delicate nature and limited shelf life of this fruit. Farms producing raspberries and blackberries are classified within the North American Industry

Classification System under Berry ( except Strawberry) Farming (NAICS 111334). For this industry classification, a business is considered to be a small entity if its5

annual receipts are not more than $750,000. The average 2012 market value of crops sold by farms classified under this category was less than $135,0 00. We infer that the majority of farms producing fresh raspberries and blackberries are small entities. The APHI S Administrator has determined that this action , if promulgated, will not have a significant economic impact on a substantial number of small entities.