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Marketing of Florida Grapefruit in Japan

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Marketing of Florida Grapefruit in Japan Proc. Fla. State Hort. Soc. 92:241-245. 1979. MA,RKETING OF FLORIDA GRAPEFRUIT IN JAPAN! H. KITAGAWA Florida in the last season, 1978-79. Grapefruit is imported Kagawa University, Faculty of Agriculture, into Japan from California, Arizona, Texas, Israel, Mexico, Miki-cho, Kagawa-ken~761-07 JAPAN South Africa, Swaziland, Cuba, etc., as well as from Florida which is the major exporter. During 1976, 1977 and 1978, K. KAWADA University of Florida, IFAS, AREC, imports from Florida to Japan represented 67%, 65% and P.O. Box 1088, Lake Alfred, FL 33850 54% of total fresh grapefruit imports, respectively (Table 1). California has the second biggest share which, when combined with Arizona, was 23%, 26e:to and 35~o. in 1976, Additional index words. Citrus paradisi, export, statistics. 77, and 78, respectively. Imports from California and Ari­ zona tend to increase. Israel, who exports 6 to 12 thousand Abstract. The present situation on grapefruit trade and MT p'er year, Texas and the others do not s·eem to marketing in Japan are described. Competition, problems materially increase their grapefruit exports to Japan. for Florida grapefruit exports into Japan, as well as ways to increase exports to Japan are discussed. The Japanese Table 1. Japanese imports of fresh grapefruit from various countries, consume as much as 700,000 metric tons (36.3 million 4/5 1976-79.z bu. Fla. cartons) of fresh citrus fruits in December alone, which is the peak o·f the Unshu-mikan (Satsuma) season. The Calendar year Jan-July delicate taste of Florida grapefruit suits the Japanese. Ac­ Country 1976 1977 1978 1979 cordingly, if high quality grapefruit can be supplied constantly, exports of Florida grapefruit can be greatly in­ ................ .. 1,000 cartons . creased. The total quality control would be one of the key­ U.S.A. 8,292 9,273 7,850 7,583 points for the successful future of grapefruit trade to Japan. Florida 6,072 6,580 4,626 5,791 California 1,700 2,449 2,420 1,583 Arizona 404 216 598 178 Current Grapefruit Imports into Japan Texas 116 28 206 30 ~a~fruit Israel 352 513 367 323 Seasonal (August through July) changes in Swaziland & imports into Japan for this decade are ~hown I~ FIg. 1. S. Africa 286 352 265 262 After the trade liberalization in July 1971, Imports Incr~a~ed Mexico 115 30 81 rapidly, exceeding 150,000 metric tons (MT) (7.8 mIllIon Cuba 3 Total 9,045 10,168 8,566 8,168 cartons) in the 1973-74 season after only 3 seasons. Importa­ tion from Florida was suspended from June 1974 to March zSource: Japan Fresh Fruits and Vegetables Imports Managerial Associa­ tion, Tokyo, Japan. ~ Monthly imports from Florida, California plus Arizona, en 15 ....l 8 :z o and the others are shown in Fig. 2. Because these data are t­ o o:: based on reports from importers, some of the actual im- t- ~., i~"s·~:··:>\·'········"",,,,,"// c::t o ; ,", \ I ~6 0 I I " \ I a:: I u. :i " ,, " \\ II - FLORIDA I- 10 1 0 w ..,/ 2: .... I" FLORIDA \/ en 15 ----- CA a AZ .... I ~ .............. OTHERS :.' I 4 o i I :J Cf') : I .-J 2 o : I o o 5 : I ~ t­ o .: I er ! I 2 ~IO IBERALIZATION FRUIT JAN /77 L FLY FREEZE 1 ol-.Jl~~==f:--:"-+---+---1~~-+---r----t--+---'O! 1 ! 68 70 72 74 76 78 -69 -71 -73 -75 -77 -79 Fig. 1. Seasonal changes in Japanese imports of fresh grapefruit from Florida, all U.S.A. and total. Season: August thro?qh JUly. Im­ ports from Florida before the 1974-75 season are unoffICIal .estImates by Dr. L. H. Myers, Economic Research Dept., Fla. Dept. of CItrus. 1975 due to the. Caribbean fruit fly. Freeze-damaged grape­ fruit imported from Florida in 1977 weakened the ~arket. Due to this "frozen fruit shock," imports from FlorIda de­ creased by 48,700 MT, 2.5 million cartons in the next Fig. 2. Monthly import notification of fresh grapefruit arrivals in Japan from Florida, California plus Arizona, and other sources, 1976-79. season, 1977-78. Nevertheless tiley again increased to a record 168,000 MT in total and 7,06 million cartons from portation might have been a month later. A significant amount of Florida grapefruit was imported in November l.The authol:s al:e indebted to Dr. W. Grierson, University of Florida, but the most was imported between February and l\;fay. for his advice editing the manuscript, and to the Japan Fresh Fruits and Vegetables Imports Managerial Association for their cooperation Thereafter, California and Arizona grapefruit was imported providing useful information. with a peak in July. Proc. Fla. State Hart. Soc. 92: 1979. 241 Distribution System of Grapefruit in Japan There are 3 types of grapefruit importers: I-Produce de­ partments of trading enterprises; 2-Trading companies specializing in fresh fruits and vegetables; 3-Trading de­ partments of Seika-Co (wholesalers in the central produce markets). Unloading ports for grapefruit are Tokyo, Yoko­ hama, Osaka, and Kobe, thence fruit are shipped to the whole country by truck. Grapefruit unloads are highest in Tokyo which has taken about llalf of the total imports Zo OL......-L...--....L._---L.._--J-_....1-_..L.-_L...--...1_-..L._----1..-_---L--_~ during these 3 years. ..... JAN F M A M JUNE/78 A SON DEC The distribution system for imported grapefruit is very 0:: ~ 1\• complicated, but is summarized in Fig. 3. Some fruit are I\ °4 WHOLESALE PRICE , \ sold directly from importers to chain-stores and super­ ....... z " \ markets, most of all is sold through the wholesale markets fll'fII'---4IIlt " \\ ~3 ,,-fII' 4IIlt .... , in the main cities. Significant amounts of grapefruit are o ------------- ~ \, sold through Nakagai (middlemen or jobbers in the produce g,2 " , IMPORTER FRUIT DEPT of TRADING CO Fig. 4. Monthly imports, wholesale sales, wholesale and ClF prices FRUIT TRADING COIo--_....l.- of grapefruit in Japan, 1978. B ~200 z AMANATSU A w >- WS PRICE '/' " - , " w o (r Q.. 150 LL o ,,-fII", /., GRAPEFRUIT ..... \ I I CIF PRICE . d5 ',-~, ,/ ,..-----."!'!'!.,. W " /',,, / " ' " -J Fig. 3. Main distribution system of imported citrus fruits within " ' " , ". = ~'OO •... '/ " " ,' \ Japan. (Seika-Co wholesalers in the central produce markets. Naka­ lIJ ...• ',,-fII' . gai = middlemen or jobbers.) ..J .....•. '."---- UNSHU o .......... WS PRICE %: -,...... markets) in the Tokyo market to Seika-Co in other cities, ~ ............ then resold through Nakagai there. Wholesale markets are 1 I I I established under local public entities, which include Seika­ o '70 71 72 73 74 75 76 77 78. Co and Nakagai (Fig. 3). Seika-Co sell domestic produce to Fig. 5. Yearly average wholesale (WS) and elF prices in the To.kyo Nakagai by auction. Seika-Co charge shippers a sales com­ market, 1970-78. mission of 7.0% for fruits and 8.5% for vegetables. Nakagai sell produce to retailers by negotiation. Imported fruits are price of grapefruit is much higher tIlan Unshiu-mikan, the not sold at auction, their prices being negotiated between most popular citrus fruit in Japan, but recently has been Seika-Co and Nakagai. There are no data, but it is certain a. little ch~aper than Ama-natsu, the second most popular that a major portion of imported fruits are sold through CItrus. As we mention below, Ama-natsu looks similar to 'wholesale markets as is customary for domestic produce, grapefruit and having the same marketing season they com­ 90% of which is sold through wholesale markets. Fig. 4 pete with each other. Unshiu-mikan has serious over­ contains monthly total imports, total sales through all whole­ production problems and has been unprofitable for the sale markets in Japan, together with average wholesale and farmers, but the price is rising again. CIF prices. There is a time lag between importation and Fig. 6 shows monthly ClF, wholesale and retail prices in sales, and grapefruit are sold throughout the year with a the Tokyo market since January, 1976. A reason for the peak in May due to the biggest shipment from Florida. stable CIF price from 1976 to 1978 is the rapid change in Total sales in Fig. 4, however, might be more than the exchange rate between Japanese yen and U.S. dollar. The actual amounts, for the same fruit could be sold through wholesale price was even lower than the CIF price during more than one wholesale market as shown in Fig. 3, such July to September, 1977, mainly due to much freeze-damaged fruit would then be reported more than once. grapefruit imported from Florida. The fluctuations around October, 1978 were also caused by poor fruit quality. Sig­ Price nificant amounts of poor quality grapefruit were imported in November after a shortage in September and October. Fig. 5 shows yearly changes in average CIF and whole­ These facts indicate that grapefruit price in Japan is very sale prices of grapefruit, Unshiu-mikan (Satsuma, Citrus sensitive, not only to the demand-supply relationship, but unshiu) and Ama-natsll (low-acid Natsudaidai, C. natsudai­ also to fruit quality. Wholesale prices in the Tokyo market dai) in the Tokyo market. Both CIF and wllolesale prices were rather stable compared to domestic citrus fruits, the decreased after the trade liberalization in 1971 but have prices of which vary greatly depending on the demand­ tended to increase recently. Imported grapefruit are supply situation. subjected to an ad valorem custom duty of 20% in June to Because the Japanese consider fresh fruit a luxury, high­ November and 40% in December to May. TIle wholesale quality fruits are sold at extraordinarily high prices.
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