### United States

Department of Agriculture Anim al and Plant Health Inspection Service May 2012 **Analysis in Support of Certification that the** 

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Entities**
**Final Rule**  **APHIS -**  **2011 -**  **0040 RIN 0579**  **- AD52**  **Importation of Fresh Mangoes from Australia**

Policy & Program Development Policy Analysis & Developmenti



### Summary This final rule is in response to a request from Australia to be allowed to export fresh mangoes to the United States. The annual quantity that Australia expects to export to the United States, 1,200 metric tons, represents only about 0.5 percent of U.S. mango imports (250,000 metric tons in 2008, primarily from Mexico, Haiti , and Brazil). 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, giv en the small quantity

expected to be imported from Australia relative to current imports, it is very unlikely that there will be a significant impact on the mango market. Moreover, the Australian mango season, mid

- September to mid

- April, is the opposite of that in the United States; the fresh mangoes imported from Australia will not compete directl y with those produced domesticall y. Based on this information, the APHI S Administrator certifies that the final rule, if promulgated, will not have a significa nt economic impact on a substantial number of small entities.iiiii



### 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 rule will not have a significant economic impact on a substantial number of small entities. In response to a request from Australia, APHIS will allow the importation of fresh mangoes from that country into the United States provided certain pest mitigation measures are taken. World production of mangoes is estimated to be about 2 8.5 million metric tons. In dia produces approximately 39 percent of the world ’s total, followed by China and Thailand at 13 and 6 percent, respectively

. Other major mango producer s are Mexico, Indonesia, Pakistan, Brazil, the Philippines, Nigeria, and Egy pt. The United States produces approximately 3,000 metric tons per ye ar , about one

hundredth of one percent of world production

. U.S. mango production is concentrated in the Stat es of Florida , Hawaii, California, and Texas. While U.S. mango production is limited, the United States is the world’s leading importer of fresh mangoes, receiving 33 percent of imports worldwide. 1 From 1997 to 2006, U.S. importation of mangoes increased f rom 187,193 metric tons to 298,088 metric tons, an increase of nearl y 59 percent
. 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 2008 was $0.91. The increase in imports can be attributed to greater year - round availability , lower prices, broadening consumer preferences, and higher disposable income. 2

1 Edward A. Evans, 2009. 2 Ibid.2

Currently , Australia produces 60,000 metric tons of mangoes during the mid

- September to mid

- April season. The major mango production areas are in Queensland , northern New South Wales, the Northern Territory , and Western Australia. 3 Australia is expected to export approximately

1,200 metric tons of mangoes per year to the United States. In 2008, the United States imported a total of 250,000 tons of mangoes from Mexico, Haiti, and Brazil. 4 Australia’s expected export quantity represents about 0.5 percent of current U.S. imports. 

### Potential Impact on **Small Entities** This section of the 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

. For the purpose of this analy sis and following Small Business Administration guidelines, the entities potentially

affected b y the final rule are classified within the following industries: Other Noncitrus Fruit Farming (NAICS 111339) and Fresh Fruit and Vegetable Merchant Wholesalers (NAICS 424480). Establishments classified within Other Noncitrus Fruit Farming are considered small b y SBA standards if annual sales are not more than $750,000. APHI S does not have information on the size distribution of man go producers but according to the 2007 Census of Agriculture there were 23,641 farms in the Other Noncitrus Fruit Farming classification, and the market value of their crop sales averaged about $111,000, well below the small

- entity

standard. 5 We infer that most if not all U.S. mango farms are small entities.

3 Australia Fresh: http://www.australiafre sh.com.au/fruit_and_nuts/fruit/mangoes.asp 4 Edward A. Evans, 2009. 5 2007 Census of Agriculture, Volume 1, Chapter 1, Table 46. http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/st99_1_046_046.pdf3

Establishments classified with in Fresh Fruit and Vegetable Merchant Wholesalers are considered small by SBA standards if they

employ not more than 100 persons

. According to the 200 7 Economic Census, 95 percent of the establishments in this category employed fewer than 100 people. Mango imports from Australia are expected to total about 1,200 metric tons per year. This represents approximately 0.5 percent of our total mango imports. The mangoes that are grown in Florida, California, Texas, and Hawaii are produced primaril y for local markets. The imports from Australia will likely help meet growing demand in all States. While most if not all U.S. mango farms and mango importers are small entities, it is unlikely that additional mango imports of 1,200 metric tons will cause a noteworthy decrease in mango prices or otherwise substantially

affect the market, especiall y given the expanding U.S. demand for this fruit. Moreover, the Australian mango season , mid

- September to mid

- April, is the opposite of that in the United States; the fresh mangoes imported from Australia will not compete directl y with those produced domestically

. T he APHI S Administrator has dete rmined that this action will not have a significant economic 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/ Edward A. Evans. “Recent Trends in World and U.S. Mango Production, Trade, and Consumption.” University of Florida, IFAS Extension FE718. U.S. Small Business Administration. U.S. Small Business Administration: Table of Small Business Size Standard s Match to North American Industry Classification Sy stem http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf The Market for Organic and Fair

- Trade Mangoes and Pineapples, Study prepared in the framework of FAO p roject and GCP/RAF/404/GER “Increasing incomes and food securit y of small farmers in West and Central Africa through organic and fair

- trade tropical products.” September 2009.