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China Delivers Markets

his issue of the World TApple Report has special emphasis on global Volume 19 Number 5 May 2012 trade. It may seem repetitive to lead off with an article featuring China’s growth as greater than exports for computers and a market. However, a report just issued electronics, chemicals, and transportation Features by the U.S.-China Business Council equipment, including airplanes. China has enormous potential demand for food China Delivers Markets in Washington D.C. , “U.S. Exports to China by State, 2000-11”, documents products. See page one how important the China market has Leading U.S. States in become in the last decade to the total Retail Chains’ Home Field Advantage U.S. economy and to many U.S. states, Exports to China Two fruit producing states, See page 3 including those that are major producers California and Washington, were the top of , pears or sweet cherries. two exporters to China in 2011. Rankings Wealth Shift from West to East Later in this article, we will look at for other major producing states See page 4 how important China has become to many were New York (5), Pennsylvania (7), other major exporting countries around Oregon (9) and Michigan (12). Together, Outlook for World Fresh Apple Trade the world. In 2011, the United States these six states provided almost 38 percent still lagged the European Union, Japan, See page 5 of total U.S. exports to China. South Korea and Taiwan as a supplier to The rate of growth of exports to China Internal Tiff Threatens Indonesian Trade China. Its share of total Chinese imports have dwarfed the growth to the rest of had actually fallen from 10 to 7 percent See page 9 the world. Forty-eight of the 50 states between 2000 and 2011. registered triple-digit growth to China Departments Fivefold Increase for U.S. Exports since 2000, while twenty states had Between 2000 and 2011, total U.S. quadruple digit growth. Market Demand 2 exports to China rose 542 percent, from $16.2 billion to $103.9 billion, placing Can Growth Continue? The U.S.-China Business Council the value of exports to China in 2011 Business News 3 believes that the Chinese market will behind only those to neighboring Mexico continue to grow rapidly. The recent and Canada. When U.S. exports to Hong Country News 4 rate of growth has far outstripped that of Kong are included, that figure jumps other major markets. In addition, China to $140.4 billion. Total U.S. exports to is developing a rapidly growing middle Trade News 9 the rest of the world increased only 80 class that will increasingly demand percent during the period. imported goods. International Market Trends 10 In 2011, the leading U.S. exports to However, the Council argues that the China were crop products. They were Special Statistics 11,12 U.S. needs to further boost its exports

Continued on page 6 May 2012 The World Apple Report

Market Demand Demand Uncertain vidence on consumer demand and fiscal policies, although many of , , McIntosh, Econtinues to vary by region. A analysts worry about how those policies and Rome apples were offset by subdued recovery is under way in North can be unwound without damaging lower holdings of , and America, much of Europe is slipping the recovery. Widespread austerity . back into recession, while Asian powers, policies in Europe appear to be delaying China and India, are starting to show recovery there, but governments are not Southern Hemisphere Strategies cracks in their upward surge. yet willing to reverse course. However, Southern Hemisphere suppliers of The United States continues to benefit the European Monetary authorities have fresh apples will face particularly tricky in the short run from loose monetary loosed a barrage of liquidity into the decisions about how to allocate different economy, which may offset some of the varieties to different markets in 2012. fiscal austerity. They will have to weigh general economic The authorities in Asia appear to have conditions against their own inventories had more leeway to try different policies and the availability of domestic stocks that might sustain growth because their of each variety, while being mindful of economies have not been in crisis like erratic swings in exchange rates. Getting those of Europe. the balance right will be difficult. Stock Differentials Arctic™ Apples Tell Story March 1 stocks of fresh apples in Okanagan Specialty Fruits are not Europe were up 16 percent from the sitting on their hands while they await previous year. However, when the 62 USDA approval for their Arctic™ Gran- percent increase in Poland is excluded, nies and Arctic™ ap- stocks in the other European countries ples. They have been asking consumers were up by less than 7 percent. Stocks what attributes they consider most im- were also much higher in the key import portant in buying apples (The top three market, Germany, and its neighbors, the are flavor, freshness and overall look), Netherlands and Denmark. European The World Apple Report and showing that Arctic™ apples benefit stocks were also substantially higher for is designed for decision makers in the each of the top attributes. key varieties such as and Jona- apple industry worldwide. It covers Consumer likelihood of buying Arc- gored, and . significant events in production, Holdings of fresh apples in the United tic™ apples increased after they were packing, processing, markets, trade States on April 1 were almost identical informed about how biotechnology was and government actions. It provides to those of two years ago, but up about applied in their development. On a five- the rounded, global coverage firms 3 percent from last year. The biggest point scale from 1=not likely, to 5=ex- need to survive and prosper in a absolute increase in fresh holdings was tremely likely to buy Arctic™ apples, fast moving industry. in Michigan, where most of the short 59 percent reported a 4 or 5 on the It is published monthly by crop of the 2010-11 season had been sold “likelihood to buy” scale. Even in Eu- Belrose, Inc. by April 1. However, holdings were still rope, where biotechnology has suffered 1045 N.E. Lane below those of the 2009-10 season. intense and prolonged attack, evidence Pullman WA 99163-3806 U.S.A. The variety mix on April 1 was heav- suggests that consumers are becoming Phone: 509-332-1754 ily influenced by the regional swings much more moderate in their views of Fax: 509-334-5209 between seasons. Higher U.S. holdings biotech foods.. 2