China asparagus: USDA FAS

China - Peoples Republic of Post: Beijing Asparagus Annual 2009

Highlights: Marketing year (MY) 2010 fresh asparagus production is forecast at 200,000 metric tons (MT), a 20 percent drop from last year on significant acreage decline. Farmers are expected to shift production to other crops because of continued low prices. However, MY 2010


Executive Summary: Marking year (MY) 2010 fresh asparagus production is forecast at 200,000 metric tons (MT), a 20 percent drop from last year based on significant acreage decline. Farmers are expected to shift production to other crops on expectations of continued low prices. MY 2008 and MY 2009 production estimates were also reduced because of weaker export demand (due to the effects of the global economic recession), which caused planted acreage to drop more dramatically than what was earlier projected. However, MY 2010 canned/jarred and frozen asparagus exports are projected to rise to 84,000 MT and 33,000 MT due to strong demand from Europe, Japan, and South Korea. Domestic consumption is believed to be relatively stable, and has been revised in the PSD table (for the last 3 years). canned/jarred and frozen asparagus exports are projected to rise to 84,000 MT and 33,000 MT due to strong demand from Europe, Japan, and South Korea.

Production: For MY 2010, China’s fresh asparagus production is forecast at 200,000 metric tons (MT), a 20 percent drop from last year based on significant acreage decline. Domestic processing plants purchase the majority of China’s fresh asparagus crop for export; however, in the last few years, processor purchases of fresh domestic asparagus have decreased. In MY 2009, more than 50 percent of canned/jarred asparagus processors and 60 percent of frozen asparagus processors suspended production, which caused farm gate prices to drop to extremely low levels (the lowest in 10 years) and significantly cut farm profit margins. Because of extremely low prices, for MY 2010 farmers are expected to shift acreage to other crops in lieu of asparagus, such as corn. MY 2008 and MY 2009 production estimates were also reduced on weaker export demand (due to the effects of the global economic recession), which caused planted acreage to drop more dramatically than what was earlier projected. Seed quality continues to be a major constraint for China’s asparagus production. F1 seeds generate higher yields and a better quality product, but are significantly more expensive than their F2 counterpart, which produces a lower yield and is prone to disease. F1 seeds cost about USD $510 per lb (RMB $8,000 per kg), while F2 seeds are USD $26 per lb (RMB $400 per kg). Industry sources indicate that F2 seeds are planted on 70 to 80 percent of China’s total asparagus acreage. Such a high percentage is not just because of its lower price, but also due to swindling. Middle men have been known to sell F2 seeds that are labeled as the F1 variety. As a result, because it is difficult to visually differentiate between the seeds, a farmer does not know if he purchased the higher quality seed until harvest, or 2 to 3 years after planting. Such misrepresentation can be very expensive (and financially ruin some farmers) since green and white asparagus production requires a certain amount of seeds to be used per hectare. For example, one hectare of green asparagus requires 1,050 to 1,200 grams; while one hectare of white asparagus requires only 750 to 900 grams. The harvest season for fresh asparagus is from April to August, but off-season greenhouse production allows asparagus to be available year round. Shanxi, Shandong, Hebei, Henan, and Fujian provinces are the largest asparagus producers, accounting for 80 percent of total production. Because of lower returns in the last few years, some farmers have used fewer inputs, such as fertilizers and pesticides. This asparagus has been marketed as “organic,” although it should not necessarily be labeled as such since true organic products utilize only natural inputs. Consumption: Many Chinese generally do not purchase asparagus as it is not a traditional food . However, because many Chinese consumers are health-conscious, the vegetable has a lot of marketing potential. Unfortunately, there is a general lack of knowledge about its health benefits. Asparagus is rich in amino acids, protein, and vitamins that are believed to help prevent cancer, heart disease, and hypertension.