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Canned Pineapple Fruit from Thailand. Pub. 3911, March 2007 Canned Pineapple Fruit From Thailand Investigation No. 731-TA-706 (Second Review) Publication 3911 March 2007 Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Daniel R. Pearson, Chairman Shara L. Aranoff, Vice Chairman Deanna Tanner Okun Charlotte R. Lane Irving A. Williamson Dean A. Pinkert Robert A. Rogowsky Director of Operations Staff assigned Dana Lofgren, Investigator Craig Thomsen, Economist Joseph Kowalski, Industry Analyst David Boyland, Accountant Gracemary Roth-Roffy, Attorney Diane J. Mazur, Supervisory Investigator Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov Canned Pineapple Fruit From Thailand Investigation No. 731-TA-706 (Second Review) Publication 3911 March 2007 CONTENTS Page Determination....................................................................... 1 Views of the Commission ............................................................. 3 Part I: Introduction and overview ................................................. I-1 Background ..................................................................... I-1 Statutory criteria and organization of the report...................................... I-1 Summary data................................................................ I-3 The original investigation and Commerce’s results of the first and second five-year reviews ..... I-7 Commerce’s changed circumstances review ........................................... I-8 Commerce’s administrative reviews.................................................. I-9 Distribution of Continued Dumping and Subsidy Offset Act funds to affected domestic producers ........................................................... I-11 The subject product ............................................................ I-12 Domestic like product and domestic industry ........................................ I-12 Description and uses .......................................................... I-13 Production process ............................................................ I-14 U.S. market participants........................................................ I-16 U.S. producer.............................................................. I-16 U.S. importers............................................................. I-16 U.S. purchasers ............................................................ I-17 Apparent U.S. consumption, market shares, and ratio of imports to U.S. production ......... I-17 U.S. per capita consumption of all pineapple.......................................... I-22 Part II: Conditions of competition in the U.S. market ................................ II-1 U.S. market segments, channels of distribution, and market structure..................... II-1 U.S. supply .................................................................. II-2 Domestic supply ........................................................... II-2 Foreign supply to the U.S. market .............................................. II-4 Subject supply ............................................................... II-4 Nonsubject imports......................................................... II-8 U.S. demand................................................................. II-12 Demand characteristics ....................................................... II-12 Seasonality ................................................................. II-13 Cost share ................................................................. II-13 Substitute products .......................................................... II-14 Substitutability issues .......................................................... II-14 Government procurement/buy American ......................................... II-14 Availability ................................................................ II-15 Factors affecting purchasing decisions ........................................... II-15 Interchangeability and non-price differences ...................................... II-18 Elasticities .................................................................... II-20 U.S. supply elasticity ......................................................... II-20 U.S. demand elasticity........................................................ II-20 Substitution elasticity ........................................................ II-21 i CONTENTS Page Part III: Condition of the U.S. industry ............................................ III-1 U.S. producer capacity, production, and capacity utilization ............................ III-1 Changes in operations....................................................... III-3 U.S. producer’s domestic shipments, company transfers, and export shipments ............. III-4 The USDA commodity (CPF) purchase program ....................................III-5 U.S. producer’s inventories ..................................................... III-7 U.S. producer’s purchases ...................................................... III-7 U.S. producer’s employment, wages, and productivity ................................ III-7 Financial experience of the U.S. producer.......................................... III-8 Background ............................................................... III-8 Operations on canned pineapple fruit ........................................... III-9 Capital expenditures, research and development expenses, assets, and return on investment........................................................... III-12 Part IV: U.S. imports and the foreign industry ...................................... IV-1 U.S. imports ................................................................. IV-1 Imports from Thailand in non-metal packaging .....................................IV-6 Changes in importers’ operations ................................................IV-7 U.S. importers’ shipments ...................................................... IV-7 U.S. importers’ orders for importation............................................. IV-9 U.S. importers’ inventories.......................................................IV-10 The industry in Thailand ........................................................ IV-12 Subject country capacity, production, capacity utilization, domestic shipments, export shipments, and inventories..................................................IV-12 Export markets ..............................................................IV-22 Global market.................................................................IV-27 Part V: Pricing and related information ............................................ V-1 Factors affecting pricing........................................................ V-1 Raw materials and labor ..................................................... V-1 Transportation costs to the United States .......................................... V-1 U.S. inland transportation ...................................................... V-1 Exchange rates............................................................... V-2 Pricing practices.............................................................. V-3 Price data ................................................................... V-4 Buy America pricing.......................................................... V-6 Appendixes A. Federal Register notices and adequacy statement ................................... A-1 B. List of hearing witnesses ...................................................... B-1 C. Summary data............................................................... C-1 D. Comments by U.S. producer, importers, purchasers, and foreign producers regarding the effects of the order and the likely effects of revocation............................ D-1 E. Data on U.S. imports of assorted pineapple products, by sources, 1995-2005 ............... E-1 F. Additional foreign producer data ...................................................F-1 ii COMPANY GLOSSARY Great Oriental Food Products Co., Ltd. ................................................ GOF Kuiburi Fruit Canning Co. Ltd....................................................... KFC Malee Sampran Public Company Ltd................................................. Malee Maui Land and Pineapple Company, Inc............................................... MLP Maui Pineapple Co., Ltd............................................................ Maui Pranburi Hotei Co., Ltd. ............................................................ PHC The Siam Agro Industry Pineapple and Others Public Company Limited ................... SAICO Siam Food Products Public Company Ltd. .............................................. SFP Siam Fruit Canning Co., Ltd........................................................ SIAM Thai Food Producers’ Association-Pineapple Processors’ Group ........................... TFPA Thai Pineapple Canning Industry Co., Ltd. ..............................................TPC Thai Pineapple Products and Other Fruits Co., Ltd. ................................... THAICO The Prachuab Fruit Canning Company, Ltd........................................... PRAFT The Thai Pineapple Public Company, Ltd. .............................................TPPC The TIPCO Foods (Thailand) Pcl ...................................................TIPCO Tropical Foods Industries Co., Ltd. ............................................... TROFCO Note.–Information that would reveal confidential
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