United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

June 2010

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 – 2010 - 0018

Importation of fresh baby kiwi fruit from 

Chile to the continental United States under 

a systems approach. 7 CFR 319.56

Policy & Program Development

Policy Analysis & Development
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Summary

The regulations in 7 CFR part 319 prohibit or restrict the importation into the United 

States of certain plants and plant products to prevent the introduction of plant pests and noxious 

weeds. The current regulations prohibit the importation of fresh baby kiwi fruit- Actinidia 

arguta - to the United States. The proposed rule would amend the regulations to allow the 

importation of fresh baby kiwi fruit from Chile into the continental United States under the 

conditions of a systems approach. 

This proposed rule is in response to a request from the Chilean NPPO to import fresh 

baby kiwi fruit from Chile to the continental United States subject to a systems approach. The 

use of a systems approach would give Chile an alternative to methyl bromide fumigation 

treatment of baby kiwi intended for exportation to the United States. 

APHIS does not expect the proposed rule to have a significant economic impact on a 

substantial number of small entities. The impact of fresh baby kiwi fruit imports from Chile is 

expected to be minimal for domestic producers due to timing differences in the U.S. production 

and importation period and the small quantity anticipated for importation. Although most U.S. 

growers of baby kiwi fruit are likely to be small entities under the SBA’s standards, economic 

effects of the rule for these farms are not expected to differ from the effects for baby kiwi fruit 

growers generally. Therefore, we do not expect the proposed rule to have any significant impact 

on U.S. baby kiwi fruit growers regardless of the size of operation. 
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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, would not have 

a significant economic impact on a substantial number of small entities. 

The regulations in 7 CFR part 319 prohibit or restrict the importation into the United 

States of certain plants and plant products to prevent the introduction of plant pests and noxious 

weeds. The current regulations prohibit the importation of fresh baby kiwi fruit - Actinidia 

arguta – to the United States. 

On April 16, 2007, APHIS received a request from the National Plant Protection 

Organization (NPPO) of Chile, Servicio Agricola y Ganadero (SAG) to allow the importation of 

fresh baby kiwi fruit to the continental United States subject to a systems approach. APHIS 

completed a pest risk analysis (PRA) to identify pests of quarantine significance that could 

follow the pathway of importation of fresh baby kiwi fruit into the continental United States. 

One quarantine significant pest identified in the PRA was Chilean false red mite (Brevipalpus 

chilensis), which could be introduced with consignments of fresh baby kiwi fruit into the 

continental United States. Based on the PRA, APHIS completed a risk management document to 

identify phytosanitary measures that could be applied to mitigate the pest risk under a systems 

approach. 

The proposed risk mitigation measures for fresh baby kiwi fruit consists of NPPO 

registered places of production with the fruit marked for traceback to the production site, pest 

management and certification by SAG for the low prevalence of Brevipalpus chilensis, 

SAG/APHIS joint inspection of the lots coming from certified sites of production, and 

phytosanitary certification with an Additional Declaration that “the fruit in the consignment was 
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inspected and found free of Brevipalpus chilensis based on field and packinghouse inspections.” 

In addition, the commodity is subject to phytosanitary inspection at the port of entry. 

Potential Impact on Small Entities

For the purpose of this analysis and following the Small Business Administration (SBA) 

guidelines, the entities potentially affected by the proposed rule are baby kiwi fruit growers

classified within the following industry: Other Non-citrus Fruit Farming (NAICS 111339). 

Establishments classified within other non-citrus fruit farming (NAICS 111339) are considered 

small by SBA standards if annual sales are not more than $750,000. 

Currently available information indicates that almost all U.S. growers of baby kiwi fruit 

are small in size, by the standards of the SBA. This assumption is based on composite data for 

providers of the same or similar services in the United States. In 2007, there were 23,641 farms 

in the “Other Non-citrus Fruit Farming” category producing a total market value of about $2.6 

billion. On average, each farm received $111,663 in annual receipts, well below the SBA’s 

small-entity threshold for those farms, i.e. $750,000.

Table 1. Number of other non-citrus fruit farms and per farm gross receipts, United States 2002, 2007

Number of 

Farms

Total Market value of agricultural 

products sold ($ in billions) Per Farm average gross receipts 

2002 20,079 2.1 103,632

2007 23,641 2.6 111,663

Source: Census of Agriculture, National Agricultural Statistics Service, USDA, Washington D.C.

The proposed rule would amend the current regulations to allow the importation of fresh 

baby kiwi fruit from Chile under a systems approach. The importation of baby kiwi fruit from 

Chile will benefit U.S. consumers and could potentially benefit U.S. producers as well. 

According to the PRA, Chile harvests baby kiwi fruit between the months of January and 

May. In the United States baby kiwi fruit is harvested during September and October. After 
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harvest baby kiwi fruit can only be stored for a maximum of two months. Since the Chilean 

baby kiwi fruit imports are expected to be during U.S. off season, the impact on U.S. producers 

will be minimal, if any. In addition, since U.S. and imported Chilean baby kiwi fruit will be on 

the market at different times of the year, there should be no direct competition between the two. 

In fact, imports of baby kiwi fruit from Chile during the off season months of domestic 

production could essentially benefit U.S. producers in the long run. As consumers further 

develop the taste for fresh baby kiwi fruit due to availability through most of the year, U.S. 

producers are likely to benefit due to an increased demand and a more stable market. 

The exact number of U.S. growers who currently produce baby kiwi fruit is unknown but 

it is expected to be relatively small.

1 Most producers are located in Oregon, Washington, and 

Pennsylvania. As of 2001, a total of 127 acres were estimated to be devoted to baby kiwi fruit 

production in the United States. Oregon is the largest producer in the U.S. with about 79 percent 

of the acreage followed by Washington (12 percent) and Pennsylvania (9 percent). 

Since actual per acre yield amounts for the United States were unavailable, the yield 

projections were developed using results based on a cultivar planting at the North Willamette 

Research and Extension Center, Oregon State University, Corvallis, OR. Using the baby kiwi 

fruit yields of 6 to 14 tons per acre observed at the center, total U.S. production is estimated to be 

between 762 to 1,778 tons per year (Table 2).

 

1 The estimated total acreage of baby kiwi fruit (Actinidia arguta) is 127 acres. In comparison, as reported 

by the 2007 Census of Agriculture fuzzy kiwi fruit (Actinidia deliciosa) was significantly larger, at 4,509 acres. 
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Table 2. Estimated production of baby kiwi fruit in the U.S. 

State

Estimated 

Acres Estimated yield per acre (tons) Estimated total production (tons)

Low High Midpoint Low High Midpoint

Oregon 100 6 14 10 600 1,400 1,000 

Pennsylvania 12 6 14 10 72 168 120 

Washington 15 6 14 10 90 210 150 

United States 127 6 14 10 762 1,778 1,270 

Strik, B., and K. E. Hummer. 2006. 'Anananasnaya' hardy kiwifruit. Journal of American Pomological 

Society, 60(3):106-112.

Under the proposed rule and according to the PRA, the quantity of fresh baby kiwi fruit 

that would be imported is estimated to be between 150 to 300 tons per year. Using the midpoint 

production estimate, this would amount to around 12 percent to 24 percent of total U.S. 

production. Since small entities comprise a substantial number of the farms producing baby 

kiwi, they could potentially be affected. However, since Chilean baby kiwi will be imported 

during the off season months of U.S. production, the impact on the market and market prices is 

expected to be minimal. In addition, because most domestic growers of baby kiwi fruit are 

diversified and also produce other berry varieties, any impact of imports on domestic producers 

would be mitigated since baby kiwi fruit account for only a portion of their overall income. 

The alternative would be to not allow the import of the commodity under the proposed 

systems approach, but this would not be consistent with APHIS’ obligation to consider 

alternative requests where less restrictive measures may be used to safely mitigate against 

quarantine pests of concern. 

Under the proposed rule the public will benefit from increased availability of fresh baby 

kiwi fruit for most part of the year. We expect any negative impact on domestic producers to be 

minimal due to timing differences in the U.S. production and importation period and the small 

quantity anticipated for importation.
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Under these circumstances, the Administrator of the Animal and Plant Health Inspection 

Service has determined that this action would not have a significant economic impact on a 

substantial number of small entities.