### United States

Department of Agriculture Anim al and Plant Health Inspection Service March 2013 **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**  **- 2013**  **- 0018**  **RIN 0579 -** **AD80 Mango**  **e s from Jamaica into**  **the Continental**  **United States**

Policy & Program Development Policy Analysis & Developmenti



### Summary This proposed rule is in response to a request from Jamaica to be allowed to export fresh mangoes to the continental United States. The annual quantity that Jamaica expects to export to the United States, 261 metric tons, represents less than 0.0 8 p ercent of U.S. mango imports (349 , 692 metric tons in 2012, primarily from Mexico, Peru, Ecuador, Brazil , and Guatemala). While mangoes are grown in Florida and Hawaii, and in smaller quantities in California and Texas, U.S. annual production totals only about 3 ,000 metric tons. Most if not all U.S. mango farms and wholesalers are small entities. However, given the small quantity

expected to be imported from Jamaica relative to current imports, the proposed rule would not have a significant impact on U.S. mango producers . Moreover, the Jamaican mango season, March to July , onl y partiall y overlap s with that of the United States (Florida’s season is May

to September)
. U.S. importers may benefit marginall y in having Jamaica as another source of fresh mangoes. There would be no recordkeeping or other compliance costs associated with the proposed rule for U.S. entities, other than the import documentation normally required
. T he APHI S Administrator certifies that the proposed rule, if promulgated, will not have a sign ificant economic impact on a substantial number of small entities.ii



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



### Introduction This analy sis provides the basis, as required by the Regulatory

Flexibility

Act, for certification by

the APHIS Administrator that the propose rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. World production of mangoes is estimated to have been about 37.12 million metric tons in 2010 . India produces approximately 40 percent of the world’s total, foll owed b y China and Thailand at 12 and 7 percent, respectively . Other major mango producers are Mexico, Indonesia, Pakistan, Brazil, the Philippines, Nigeria, and Bangladesh
. 1 The Uni ted States produces approximately 3,000 metric tons per year, about one

hundredth of one percent of world production. U.S. mango production is concentrated in the States of Florida, Hawaii, California, and Texas. 2 While U.S. mango production is limited, th e United States is the world’s leading importer of fresh mangoes, receiving 43 percent of imports worldwide. 3 From 1997 to 2006, U.S. importation of mangoes increased from 187,193 metric tons to 298,088 metric tons, an increase of nearl y 59 percent. Over the five

- ye ar period, 2008 to 2012, U.S. mango imports averaged 324, 551 metric tons. 4 U.S. mango prices vary widel y b y cultivar and by season. In general, mango prices have been steadily declining over the past decade. According to the National Mango Board, the average retail price per fruit in 20 12 averaged

1 FAO Statistics: http://faostat.fao.org/s ite/339/default.aspx 2 Edward A. Evans. “Recent Trends in World and U.S. Mango Production, Trade, and Consumption.” University of Florida, IFAS Extension FE718. 3 FAO Statistics: http://faostat.fao.org/site/339/default.aspx 4 Economic Research Service: http://www.ers.usda. gov/data

- products/fruit

- and

- tree - nut - data/data

- by

- commodity

- imports

- and exports.aspx?programArea=fruit&stat_year=2007&top=5&HardCopy=True&RowsPerPage=25&groupName=Non Citrus&commodityName=Mangoes2

around $0.9 0
. 5 The import demand for mangoes in recent ye ars can be attributed to year - round availability , lower prices, and broadening consumer preferences. In 20 08 , Jamaica produce d 2 , 770 me tric tons of mangoes. Under Jamaica’s export initiative and to guard against the introduction of pests, all growers must be registered with the
n ational p lant p rotection o rganization of Jamaica and the exported mangoes must be treated with one of the APHI S
- approved treatments : hot water or irradiation. Jamaica expects to export approximately 261 metric tons of mangoes per year to the continental United States. In 20 12 , the Uni ted States imported a total of 3 49 , 692 metric tons of mangoes , mostly from Mexico, Peru , and Ecuador
. Jamaica’s expected export s represent less than 0.0 8 percent of current U.S
. mango imports
. The impact for U.S. producers of this insignificant quantity of additional imports would be negligible. Moreover, the Jamaican mango season only partiall y overlap s with that of the United States. 

### Potential Impact on Small Entities Following the Small Business Administration (SBA) guidelines, the entities potentially affected b y the proposed rule are classified within the following industries : Other Non Citrus Farming (NAICS 111339) and Fresh Fruit and Vegetable Merchant Wholesalers (NAI CS 424480). Establishments classified within Other Non Citrus Farming are considered small by SBA standards if annual sales are not more than $750,000. APHI S does not have information on the size distribution of mango producers but according to the 2007 Census of Agriculture there were 23,641 farms in the Other Non Citrus Farming classification, and the market value of their crop sales averaged about $111,000, well below the small

- entity standard. We infer that most if not all U.S. mango farms are also small entities. Establishments classified within Fresh Fruit and

5 National Mango Board: http: www.mango.org3

Vegetable Merchant Wholesalers are considered small by SBA standards if they

employ not more than 100 persons. According to the 2007 Survey of Business Owners, 97 percent of the establishments in this category employed fewer than 100 people. Mango imports from Jamaica are expected to total about 261 metric tons per year. While U.S. mango producti on is minor , about 3,000 metric tons per ye ar, the United States imported nearl y 350,0 00 metric tons in 2012. Expected imports from Jamaica would represent less than 0.08 percent of total U.S. mango imports. M angoes grown in the United States are produced in Florida, California, Texas, and Hawaii primaril y for local markets. The imports from Jamaica could help meet growing demand in all States. The additional mango imports of 261 metric tons would not cause a significant decrease in mango prices or otherw ise substantially affect the market. U.S. importers may benefit marginall y in having Jamaica as another source of fresh mangoes. T he APHI S Administrator has determined that this action , if promulgated, will not have a significant eco nomic impact on a substantial number of small entities.4



### References Census of Agriculture, 2007, http:// www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp Economic Census, 2007, http://www.census.gov/econ/census07/ U.S. Small Business Administration. U.S. Small Business Administration: Table of Small Business Size Standards Match to North American Industry Classification Sy stem http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf