Fresh Peaches and Cherries: World Markets and Trade

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United States Department of Agriculture Foreign Agricultural Service Fresh Peaches and Cherries: World Markets and Trade Fresh Peach/Nectarine: 2014/15 Highlights Global production in 2014/15 of peaches/nectarines is forecast at a record 19.9 million metric tons, with China accounting for almost all the growth. Consumption is expected to keep pace with production, while processing is forecast to continue its upward trend. Exports are forecast lower at 555,000 tons. Production in China, the world s largest producer, is forecast at a record 13.0 million tons, 18 percent higher than last year on continued area expansion, use of greenhouse production, and favorable growing conditions. Consumption is expected to keep pace with production, with more peaches/nectarines going to processing. Exports are projected to climb 35 percent to 50,000 tons on expanded shipments to Kazakhstan and Vietnam. U.S. production is forecast down for the fourth year to 910,000 tons on declining area and yield in California, which accounts for nearly 75 percent of total production. The drought situation there remains a concern for growers, but they have reportedly utilized wells to offset the impact on their crops. Although overall output is down, freestone variety which is mainly consumed fresh is up while clingstone (for processing) declined. As a result, fresh consumption is slightly higher, while processing is lower. Exports are forecast down 15 percent to 85,000 tons on reduced demand in Canada, Mexico, and Taiwan. Imports, mostly supplied by Chile during the off-cycle months, are expected to decline. EU production is forecast to climb about 10 percent reaching 4.0 million tons on continued area expansion in Spain and the onset of new, higher yielding varieties. Exports are forecast down nearly 19 percent to 250,000 largely on reduced shipments to Russia. Russia, its major market, announced on August 6 a one-year ban on the imports of some agricultural products, including EU Peach/Nectarines Exports Expected to Fall Thousand Metric Tons 400 350 300 250 200 150 100 50 0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Russia Ukraine Switzerland Others Forecast Approved by the World Agricultural Outlook Board/USDA

Page 2 peaches and nectarines, from the EU and four other countries. Prior to the ban, total exports were up more than 50 percent. Consumption and processing are expected to rise on larger available supplies. Russia s imports are forecast to decrease 7 percent to 200,000 tons. Prior to the ban, imports were up 25 percent. Turkey s exports are forecast 32 percent higher at 45,000 tons on increased shipments to Russia, Iraq, and Saudi Arabia. Domestic consumption is slightly lowered, while processing is unchanged. Chile s output is expected to rebound to 140,000 tons following last year s frost. Many farmers are replacing older orchards with new, higher yielding varieties, although area is expected to continue its decade-long downward trend due to low profitability. With a larger crop, exports are expected to expand to 80,000 tons, a majority will be shipped to China. Production in Taiwan is forecast 13 percent higher at 31,000 tons on greater yields despite continued decline in area. With greater available output, imports (mostly from the United States) are slightly lower at 20,000 tons. Australia s production is forecast to remain unchanged at 100,000 tons. Imports, all from the United States, are expected higher. However, in the future, the United States may face competition from other suppliers who now have new trade agreements.

Page 3 Fresh Cherry: 2014/15 Highlights World cherry production in 2014/15 is forecast to increase 2 percent to 2.4 million tons, as gains in China and Chile offset reductions in the EU and the United States. Consumption is up, driven largely by China, while processing is lower due to reduced supply in the EU and United States. Meanwhile, exports are forecast at a record 304,000 tons. Production in the EU, the world s leading producer, is expected down 3 percent to 675,000 tons as frost and severe hailstorm during harvests in Italy and Poland reduced output. Consumption is flat as fewer cherries are diverted to processing. Exports are forecast to fall 30 percent to 30,000 tons largely on lower Russian demand prior to the ban. China s production is forecast at a record 220,000 tons on expanded area in the key provinces of Shandong and Liaoning. Consumption is expected to outpace production for the 6th year in a row. Consequently, imports are expected to rise to a record 50,000 tons. While current imports are mostly from California, other states are beginning to ship to China. Chinese consumers prefer U.S. cherries. U.S. production is forecast down again, falling slightly to 395,000 tons on reduced production of sweet cherries in California and tart cherries in Michigan. With less product going into processing, fresh exports are forecast 33 percent higher to 89,000 tons on expanding demand in Canada, China, and other Asian countries. Imports are unchanged at 10,000 tons. Production in Chile is forecast 28 percent higher at 110,000 tons as new trees start bearing fruit. Exports are expected to expand 34 percent to a record 90,000 tons largely on increased shipments to China. Turkey s exports are forecast slightly lower at 50,000 tons on reduced demand in the EU, its major market destination. Turkey competes with Serbia in the EU market. Thousand Metric Tons 100 Chile s Cherry Exports Forecast to Surge 90 80 70 60 50 40 30 20 10 0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 China U.S. EU Others Forecast

Page 4 Japan s production is projected slightly higher at 20,000 tons mainly on good growing conditions. Imports are expected to decrease to 5,000 tons. Taiwan s imports are forecast up significantly from last year to 15,000 tons. The United States remains the major source, supplying more than half of total imports. The United States competes with Canada. Russia s imports are expected to remain flat at 80,000 tons as most of the product was shipped prior to the ban. Russia remains the world s largest importer. For additional information, please contact Meyra Mendoza-Reeder at (202) 720-2083 or Meyra.Mendoza-Reeder@fas.usda.gov For email subscription, click here to register: http://www.fas.usda.gov/data/stone-fruit-worldmarkets-and-trade For FAS Reports and Databases: Current World Market and Trade Reports: http://apps.fas.usda.gov/psdonline/psddatapublications.aspx For archives World Market and Trade Reports: http://usda.mannlib.cornell.edu/mannusda/viewtaxonomy.do?taxonomyid=7 For Production, Supply and Distribution Database (PSD Online): http://apps.fas.usda.gov/psdonline/psdhome.aspx For the Global Agricultural Information Network (Agricultural Attaché Reports): http://gain.fas.usda.gov/pages/default.aspx For Global Agricultural Trade System (U.S. Exports and Imports): http://apps.fas.usda.gov/gats/default.aspx

Fresh Peaches/Nectarines Production, Supply and Distribution for Select Countries (1,000 Metric Ton) 2009/10 2010/11 2011/12 2012/13 2013/14 Sep 2014/15 Production China 10,040 10,475 11,500 11,430 11,000 13,000 European Union 4,116 3,994 4,250 3,832 3,613 4,000 United States 1,182 1,237 1,150 1,046 951 910 Turkey 547 540 546 580 580 580 Argentina 291 318 320 285 290 290 Brazil 216 220 222 240 240 240 South Africa 159 152 170 176 180 180 Mexico 200 205 167 163 163 163 Chile 151 161 153 149 91 140 Japan 151 137 140 135 125 137 Other 287 316 333 328 296 295 Total 17,340 17,755 18,952 18,364 17,530 19,935 Fresh Dom. Consumption China 8,650 9,147 9,861 9,733 9,283 10,950 European Union 3,045 2,986 3,258 2,704 2,761 2,952 United States 615 665 633 558 442 455 Turkey 395 379 393 417 426 415 Brazil 238 248 249 264 267 265 Russia 188 252 282 295 245 225 Mexico 224 234 202 194 195 192 South Africa 150 141 157 162 165 166 Japan 131 119 122 117 109 121 Australia 45 81 85 85 76 75 Other 473 484 488 480 439 465 Total 14,153 14,735 15,729 15,009 14,408 16,281 For Processing China 1,350 1,300 1,600 1,650 1,680 2,000 European Union 882 738 689 774 557 795 United States 526 511 464 431 446 395 Argentina 192 210 211 211 211 211 Turkey 120 120 120 120 120 120 Australia 48 35 37 37 20 20 Japan 19 18 18 18 15 15 Other 4 3 3 3 3 5 Total 3,140 2,935 3,142 3,244 3,052 3,561 Imports Russia 156 224 250 265 215 200 Canada 49 53 51 46 48 45 Switzerland 33 32 31 33 32 35 Ukraine 33 38 40 69 36 35 European Union 36 27 30 32 32 30 Mexico 25 31 35 32 33 30 Brazil 22 28 27 24 27 25 Other 112 109 111 104 92 95 Total 466 542 575 604 516 495 Exports European Union 208 279 315 366 308 250 United States 91 111 101 97 100 85 Chile 90 100 96 91 45 80 China 40 28 39 47 37 50 Turkey 32 41 33 44 34 45 South Africa 10 11 14 14 16 15 Uzbekistan 6 18 28 20 15 15 Australia 6 4 6 8 7 8 Argentina 9 13 6 7 2 5 Mexico 1 2 0 1 1 1 Other 1 1 1 1 1 1 Total 495 608 637 694 565 555 Note: Peaches and Nectarines marketing year begins in January of the first yearfor Northern Hemisphere countries and November for Southern Hemisphere countries.

Fresh Cherries Summary (1,000 Metric Ton) 2009/10 2010/11 2011/12 2012/13 2013/14 Sep 2014/15 Production European Union 725 706 834 622 699 675 Turkey 610 613 400 500 500 500 United States 495 362 404 418 401 395 China 185 190 210 170 180 220 Ukraine 169 228 220 220 220 220 Chile 57 77 86 65 86 110 Russia 76 67 76 70 70 70 Syria 57 58 60 60 60 60 Uzbekistan 67 75 80 50 50 50 Serbia 29 22 30 30 30 30 Other 101 68 73 76 80 82 Total 2,571 2,466 2,472 2,281 2,376 2,412 Fresh Dom. Consumption European Union 482 462 529 377 429 430 Turkey 379 368 209 289 291 295 China 190 200 224 209 214 265 Russia 148 140 156 146 150 150 United States 218 184 184 214 142 138 Ukraine 52 70 68 67 66 67 Hong Kong 18 21 32 46 32 55 Other 279 241 262 252 237 257 Total 1,766 1,686 1,665 1,601 1,561 1,657 For Processing European Union 256 266 314 262 277 260 United States 226 140 169 116 202 178 Turkey 180 180 144 155 155 155 Ukraine 116 155 150 150 150 150 Canada 7 6 4 6 6 5 Other 11 11 15 7 10 12 Total 795 757 796 697 799 760 Imports Russia 72 74 80 76 80 80 Hong Kong 18 21 32 46 32 55 China 6 11 24 42 38 50 European Union 44 42 40 47 50 45 Canada 30 27 33 38 25 30 Korea, South 4 4 5 9 14 15 Taiwan 12 9 12 15 9 15 United States 13 20 20 13 10 10 Japan 10 11 10 10 7 5 Australia 3 4 5 2 3 3 Other 1 1 2 1 0 1 Total 213 223 262 301 268 309 Exports Chile 33 58 71 51 67 90 United States 65 59 71 101 67 89 Turkey 51 65 47 57 54 50 European Union 31 20 31 30 43 30 Serbia 10 7 11 11 19 10 Canada 6 5 7 8 6 5 Australia 3 4 5 2 3 5 Other 26 29 32 25 25 24 Total 224 247 274 285 283 304 Note: Cherry marketing year begins in January of the first year for Northern Hemisphere countries and November for Southern Hemisphere countries.