Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, September 24, 2008

Chinese apples - how soon?

This blog post from 2007 referenced an article concerning worries about Chinese apples coming to the U.S. The issue may be cropping up again, as U.S.-Chinese trade talks in Southern California referenced barriers to Chinese "fruit exports" to the U.S.

Visiting with Nancy Foster of US Apple this morning, she pointed out that China's apple growers deal with more than 50 plant pests and diseases that U.S. growers don't currently have. All of those pests require assessment and a mitigation plan before Chinese apples should be considered for U.S. access. Foster said there should be no political shortcuts to the scientific process; currently, she said China has much work to do in its pest risk assessment document.

Check out this ERS report from 2006 for the big picture view of China's dominant role in world apple production.

For more background, Here is a statement from 2005 by Foster before the U.S.-China Economic and Security Review Commission. Note that Foster refers to the fear of growers that apples will be a mere bargaining chip to exchange for market access for other items.


The U.S. apple industry is deeply concerned about the potential negative impact of fresh apple imports from China. China has requested access to the U.S. market for Chinese fresh apples. Chinese government officials are now working directly with the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service to secure permission to export Chinese fresh apples to the United States. The U.S. apple industry’s future economic well-being may be challenged by Chinese fresh apple imports. Unlike processed agricultural imports, USDA fresh produce imports must be cleared through a scientific technical process to ensure that imports do not inadvertently introduce an exotic insect or plant disease into U.S. growing regions. Introduction of damaging pests could wreak havoc on the U.S. apple industry, as evidenced by several quarantine pests that have invaded U.S. agriculture from China. For example, USDA has spent millions of dollars in attempts to control and eradicate the emerald ash border and the Asian longhorn beetle. The U.S.–China bilateral trade relationship must conform to the scientific standards and principles set forth in the Sanitary and Phytosanitary Measures (SPS) in the WTO. The U.S. apple industry believes that this process should not be politicized, nor should negotiators accelerate or exchange market access for certain U.S. goods into China for access to the U.S. market for Chinese apples.
A substantial difference in labor cost between the U.S. and China may well translate into a substantial price difference between U.S. apples and Chinese apples in the U.S. market. Apple production is extremely labor-intensive because thinning, pruning, tree training and harvesting are performed by hand almost year-round. According to a recent study on global apple production competitiveness, China’s labor rate is approximately $472 per acre as compared to $2,052 per acre in the United States. (In China the labor rate is only $0.28/hour, or about $2.00/day.) At a minimum, the U.S. apple industry expects Chinese fresh apple imports to add significant downward pressure on fresh apple prices. Should Chinese producers gain access to the U.S. market, major segments of the apple industry could be forced out of business by low apple prices.

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