Executive Summary

China's citrus production for the crop year 2001/2002 is expected to increase by 14 percent due to good weather conditions and the alternating big/small production year cycle phenomena. Post's estimate of total citrus production is 10.013 million tons. Tangerine variety production should equal 59 percent of total citrus production, 5.9 million tons. Sweet orange variety production should account for 29.2 percent of total citrus production, 2.9 million tons. Pomelo and related citrus production should reach 1,031 thousand tons. China's citrus production during crop year 2000/2001 (last year) was 8.78 million tons, an 18.6 percent decrease in comparison with crop year 1999/2000.

China can produce good quality citrus, but after harvesting the quality quickly declines due to excessive handling during distribution and sales. Post-harvest practices of washing, waxing, and packing tend to be rare. Approximately 80 percent of China's citrus is harvested during the months of November and December.

China's processing industry uses between five to ten percent of the citrus crop each year. The amount of citrus used for canning this year should increase compared to last year, because of the larger crop. Canned fruit is the main processed citrus product and Mandarin oranges are the variety of choice for most canners.

China's citrus exports exceed its imports, but exports mostly comprise of fresh tangerines and canned citrus. When these two products are not considered, China's imports are greater. The United States still is China's main source of imported oranges.

U.S. citrus is now legally importable into China, but the citrus must originate from select counties in certain U.S. states. During the year 2001, most tariffs on imported fresh citrus and processed citrus products decreased, but most cuts were small. By the year 2004, fresh citrus tariffs are expected to fall to 12 percent.

The Chinese exchange rate used for this report is 8.26 Yuan RMB equal one U.S. Dollar. Ten Jiao equal one Yuan RMB. In addition, the Hong Kong Dollar exchange rate used for this report is H.K.$7.79 equal one U.S. Dollar.

Production: General

Post estimates that China's total citrus fruit production for the crop year 2001/2002 will be 10,012,767 tons, a 14 percent increase over last crop year. Tangerines will make up an estimated 59 percent of total production, 5,907,533 tons, and sweet oranges an estimated 29.2 percent, 2,923,728 tons. Pomelo production, including grapefruit, should reach 1,031,315 tons, 10.3 percent of total citrus production. Local lemon production will be an estimated 12,000 tons, a decrease in comparison with last crop year.

Weather conditions for citrus in the growing regions were generally good this crop year. No severe frosts or prolonged periods of freezing temperatures occurred in any of the major growing provinces. The only weather anomaly to have any effect was a drought in Chongqing and Sichuan during the Spring and Summer seasons. Due to the drought, a decrease in citrus production in those provinces should occur this year. Lemon production was particularly hurt by the weather conditions. In late 1999, severe frost and prolonged freezing temperatures in many of China's southeastern growing areas lead to huge citrus production decreases for crop year 2000/2001 (last year). While the frost and low temperatures at that time did not kill the affected region's trees, it did affect many trees' ability to flower in the spring.

Another influence on this crop year's production size was the often-cited big/small production year cycle phenomena. Many local industry participants claim that this crop year was a big production year, while last crop year was a small production year. According to industry participants, under this phenomena, yields will be large one year and then small the next one, afterwards the cycle will start again. Some domestic citrus experts claim that the cause is climate and growing management techniques, while others believe that alternating year cultivars are the primary cause. This phenomena appears to occur throughout China's citrus growing regions, but is most noticeable in the country's southeast region where tangerines dominate citrus production.

During the 2000/2001 crop year, adverse weather conditions and the occurrence of the small production year in the small/big production year cycle caused China's citrus production to fall 18.6 percent to 8,783,129 tons. Production decreases that crop year occurred in 11 of China's 18 citrus growing provinces. Large decreases occurred in the major growing provinces of Zhejiang (down 54 percent), Jiangxi (down 48 percent), Hunan (down 16 percent), Guangxi (down 17 percent), and Fujian (down 18 percent). However, not all of China's major growing provinces were affected and a few even showed production increases. For example, during the same crop year, Sichuan's citrus production rose 14 percent and Chongqing's 11 percent. Sichuan became the leading producing province during the 2000/2001 crop year.

CHINESE PROVINCIAL CITRUS PRODUCTION
PROVINCE 1998 1999 2000
Hectares Metric Tons Hectares Metric Tons Hectares Metric Tons
Shanghai 5,400 98,651 4,500 133,860 N.A. 101,765
Jiangsu 3,200 31,306 3,200 62,081 N.A. 42,747
Zhejiang 133,900 1,496,872 132,900 2,120,078 N.A. 971,896
Anhui 1,700 2,806 1,960 6,859 N.A. 5,282
Fujian 152,600 1,464,206 148,600 1,589,142 N.A. 1,306,027
Jiangxi 178,150 295,719 177,800 539,222 N.A. 282,976
Henan 4,920 10,899 4,570 14,084 N.A. 21,201
Hubei 103,250 730,900 102,400 993,502 N.A. 946,236
Hunan 241,400 899,125 245,800 1,496,568 N.A. 1,259,154
Guangdong 84,550 756,912 79,410 836,091 N.A. 810,595
Guangxi 107,100 869,857 105,100 1,061,790 N.A. 879,914
Hainan 800 10,921 600 11,219 N.A. 13,741
Chongqing 60,200 546,494 60,000 526,695 N.A. 583,944
Sichuan 143,000 1,178,350 152,500 1,162,243 N.A. 1,327,534
Guizhou 25,000 86,624 34,200 112,731 N.A. 101,340
Yunnan 16,400 81,524 17,600 89,435 19,544 91,640
Shaanxi 8,070 27,672 11,030 29,588 N.A. 35,155
Gansu 700 1,522 700 1,871 N.A. 1,982

TOTAL 1,270,340 8,590,360 1,282,870 10,787,059 1,275,000 8,783,129
Sources: China Agricultural Yearbooks 1997 and 1998, China 1999 Statistical Yearbook,various provincial agriculture bureau estimates

China: Citrus Production Estimate by Variety, Crop Year 2001?2002(Metric Tons)
Variety Amount Percentageof TotalProduction Main ProductionProvinces Notes
Mandarin Oranges 3,837,000 38.3% Zhejiang, Fujian, Hubei, 1, 3
Guangxi, Hunan 1
Peng/Lo Tangerines 1,020,000 10.2% Zhejiang, Fujian 1
Red Oranges 604,000 6.0% Sichuan, Chongqing 1
Jiao Tangerines 354,000 3.5% Guangdong, Guangxi 1
Other Tangerine Varieties 105,000 1.0% 1
Navel Oranges 765,000 7.6% Sichuan, Hubei, Jiangxi 2
Jin Oranges 724,000 7.2% Sichuan, Chongqing 2
Snow Oranges / Xue Gan 643,000 6.4% Zhejiang, Fujian, Guangdong 2
Red River Oranges 169,000 1.7% Guangdong 2
Other Sweet Orange Varieties 630,000 6.3% 2
Shatin Pomelos 495,000 4.9% Guangdong, Guangxi,
Sichuan, Chongqing
All other Pomelo varieties 539,000 5.4% Guangdong, Guangxi,
Sichuan, Chongqing
Lemons (all varieties) 12,000 0.1% Chongqing, Sichuan
Kumquats (all varieties) 20,000 0.2% Hunan, Jiangxi, Zhejiang
Unknown/Not Specified/Other 95,767 1.0%

TOTAL 10,012,767 100.0%
Notes1) Tangerine Variety2) Sweet Orange Variety3) includes ordinary Honey TangerinesSource: Estimates based on interviews with local citrus industry and government officials,and published sources.

Climate and Soil Characteristics of Selected Chinese Citrus Growing Provinces
Average YearlyRainfall (mm) (a) Days withoutFrost each Year Soil pH LevelRange Average YearlySunshine (hours)
Sichuan 1,000 (b) 280 ? 300 5 ? 7 1,200 ? 1,600
Chongqing 1,000 280 ?350 5 ? 8 1,100 ? 1,450
Hunan 1,200 ? 1,700 N.A. N.A. 1,000 ? 1,300
Hubei 750 ? 1,500 220 ? 300 5 ? 7.5 1,800 ? 2,000
Guangdong 1,500+ 300+ 5.5 ? 6.5 1,800 ? 2,400
Guangxi 1,200 ? 1,800 (b) 300+ 4 ? 7 1,400 ? 1,900
Zhejiang 1,200 ? 1,800 235 ? 250 6 ? 7.5 1,800 ? 2,100
Jiangxi 1,500?1,700 N.A. N.A. 1,700 ? 2,100
Fujian 1,032 ? 2,100 300+ N.A. 1,400 ? 2,000
Shanghai 1,000 ? 1,100 225 ? 235 8 ? 8.5 2,000 ? 2,200
Notes:a) Average for whole province unless otherwise notedb) Average in the province's main citrus growing areasSources: various citrus production reference books and interviews with localcitrus industry officials

Over the near future, China's citrus production might be relatively stable with only slight variations in crop size from year to year. According to one expert from China's National Citrus Institute, continued low prices and limited export markets will most likely prevent huge citrus production increases anytime soon. However, another expert from the same institute feels that further development of the local citrus processing industry might change this situation.

China's main tangerine varieties include the Mandarin orange and the Peng/Lu tangerine. These two varieties usually account for a large portion of China's annual citrus production. The Mandarin is the preferred variety of most of the country's citrus canners. Mandarin oranges were once the overwhelmingly dominant citrus variety grown in China. Although its percentage of the annual crop continues to be substantial, this percentage has decreased over the last 15 years. Mandarin oranges are currently grown in nearly every citrus growing province in China.

In regards to sweet oranges, Jin and Navel oranges are the most widely grown. Most Navel orange production in China occurs in Sichuan, Chongqing, Hubei, and Jiangxi. In comparison with all of the citrus varieties grown in China, naval orange production has grown the most over the last ten years. They are now grown in 256 counties, representing 10 different provinces.

China's lemon production is generally small and concentrated in Sichuan and Chongqing. The main lemon growing county within Sichuan province is Anyue county and within Chongqing Wan county. The main lemon varieties grown in China are the Eureka and the Beijing. The Beijing lemon variety in comparison with Eurekas tends to have a smoother peel and a slight orange color. Locally grown Eurekas tend to have low levels of acidity and vitamin C.

Pomelos also are grown in China. Although this fruit usually accounts for only a small percentage of China's total citrus crop each year, only tangerines and sweet oranges are more widely grown. A large amount of pomelo production occurs in the southern provinces of Fujian, Guangdong, and Guangxi. Several different varieties are produced, but the Shatin Pomelo is the most prominent. Accounting for the fruit's popularity in China is the fruit's thick skin, making the fruit more durable during handling, transportation, and storage. Some grapefruit production also occurs in China and its production usually is classified along with pomelos, but production and acreage are much lower than that of pomelos.

Kumquat production in China, like lemon production, is limited. In the late 1990s, one Chinese published source claimed that local kumquat production was 17,000 tons on an acreage of 7,054 hectares. No specific year was cited. The main growing provinces include: Fujian, Guangxi, Hunan, Jiangxi, and Zhejiang. Although several varieties are grown in China, the main one is "Jindan", better know as F. Crassifolia Swingle. Like all other citrus fruit in China, kumquats mostly are harvested during November and December.

China generally produces only a small amount of high quality citrus every year. According to a member of China's National Citrus Institute in Chongqing, only approximately 30 percent of the country's citrus production every year can be classified as superior quality, while 20 percent is usually poor quality. Another expert from the same institution claims that citrus variety quality also varies across regions of the country due to climatic differences. For example, he says that the climate in Hunan province makes its Peng tangerines better quality than those grown in Sichuan or Chongqing, but the reverse is true with Mandarin Oranges for the same reason. As with China's other fruit processing industries, the local citrus processing industry often uses the poorer quality fruit for their purposes.

Aside from variety, China also classifies its citrus fruit according to when it is ready for harvest. The classifications are early harvest, middle harvest, and late harvest. Early harvest refers to citrus that can be harvested before November, middle harvest during November and December, and late harvest after December. An estimated 80 percentage of China's citrus fruit is harvested during November and December of each crop year and in some provinces the percentage is 90 percent or greater. In 1997, the National Ministry of Agriculture initiated a program to promote the growing of more early and late harvest citrus varieties in order to extend the citrus harvest and processing seasons. Six provinces are participating in the program, including Hunan, Sichuan, and Zhejiang. Some local citrus experts predict that in the near future the production of early and late harvest varieties will equal 25 percent of total output. At present, approximately 15 percent of China's citrus production is early harvest and only five percent late harvest.

Harvest Periods for Selected Citrus Varieties in China by Province
Province Variety Harvest Period
Guangdong Peng Tangerines Early December
Jiao Tangerines Late December to Early January
Sichuan Sweet Oranges Mid to Late November until Early to Mid December
Red Oranges Early to Mid November
Lemons November
Zhejiang Bendizao Tangerines Early to Mid November
Early Harvest MandarinOranges Mid October
Jiangxi Nanfeng MandarinOranges Early November
Peng Tangerines Mid to Late November
Naval Oranges Mid to Late November

Production: Crop Area

China's citrus growing belt lies between 16 and 37 degrees latitude above the equator, but the majority is grown between 20 and 33 degrees latitude above the equator and at a height of 700 to 1,000 meters above sea level. Altogether 19 of China's 30 provinces and city districts grow citrus fruit. Within these 19 provinces and city districts, 985 counties report citrus production. Although some counties in Tibet produce citrus fruit, acreage and output is so insignificant that related statistics often are not reported.

Overall citrus acreage in China has been stable since the 1995-1996 crop year, hovering between 1.2 and 1.3 million hectares. However, at the provincial level, a few trends have developed.
From crop year 1996-1997 to 1999-2000, a few major citrus producing provinces have been showing steady declines in acreage. These provinces are Zhejiang, Fujian, and Guangdong. While during the same time period, the only major citrus producing province that showed a steady increase in acreage was Hunan province.

A substantial amount of China's citrus fruit is grown on hilly, uneven land, because much of the country's flatter lands are reserved for grain production. In places where citrus is grown on flatter land, grove sizes tend to be larger. Tree planting patterns also tend to differ between even and uneven land. Scattered planting tends to prevail on uneven lands, while rows often dominate even land. On hill and mountain sides, citrus trees usually are planted on terraces that follow the contours of the hill or mountain. Planting styles also differ from location to location. In Zhejiang province, for example, some citrus trees planted in rows are usually on rows of raised mounds which are flanked by shallow trenches. The trenches are used to facilitate irrigation and the application of fertilizers. However, in Sichuan, citrus trees planted in rows tend to be even with the ground and not on raised mounds. Trenches are absent too. In addition, throughout China's citrus growing regions, when citrus trees are planted in rows, the spacing between the rows and trees tends to fall into a range of three to five meters.

Much of China's citrus crop is grown on alkaline soil. The pH level in many of the growing areas is high, ranging from seven to eight. In most of the Chongqing and Sichuan growing areas, for example, pH levels tend towards seven and above. One citrus growing area with a low pH level is southern Guangxi, near the city of Beihai. Its level is about five. Beihai is where Seagrams' Tropicana years ago set up overseas invested citrus farm, but sold the project to the New Asia Group in 1999. This year the Fujian's Chaoda Modern Agriculture Group bought 50 percent of the farm for H.K.$ 1.5 billion (U.S.$ 192,554,557). The farm's total citrus acreage was 3,134 hectares.

Production: Inputs

The use of fertilizers and pesticides is quite common among China's citrus growers, while the use of machinery is extremely rare. Fertilizers, pesticides, and various other agricultural chemicals often are growers' largest expenses, ranging from 30 to 60 percent of their total growing costs per year. In regards to pesticides, China has established standards on residue tolerances that cover a wide variety of chemicals. However, enforcement of these regulations is uneven.

Citrus growers usually apply pesticides and disease prevention chemicals several times a year during the growing season. The average number of applications each growing season by growers is approximately three, but in some regions the number is higher. For example, according to one grower in Jiangxi, he applies pesticides and disease prevention chemicals about four to five times each year. In addition, some growers restrict the usage of these chemicals to only certain times of the growing season. In Chongqing and Sichuan, nearly all of the growers interviewed by Post only apply these chemicals between the months of March and July. According to these growers, application mainly is performed during these months, because insect infestation and disease occurrence often is at their height during that period.

The specific costs of pesticides and disease prevention chemicals varies among growers, depending mostly on a grower's grove size, the specific chemicals used, and the amounts believed to be necessary per tree. One grower in Sichuan claimed that when he uses a great amount of these chemicals the cost will range from 200 to 300 Yuan RMB (U.S.$ 24.22 to 36.32) for the season. However, when he uses a smaller amount during a season, the cost drops to less than 100 Yuan RMB (U.S.$ 12.11). In their usage of these chemicals, growers also rarely seem to exhibit brand or product loyalty. Based on an informal survey of various groves and the empty agricultural chemical packages littering them, Post noticed that it is common to see empty bottles and packets representing a wide variety of chemicals and brands in any particular grove.

Fertilizer usage is common in China's citrus groves and the usage of chemical fertilizers seems to be more common in the larger groves. Growers with small holdings, the majority of China's citrus growers, often rely on natural fertilizers for their trees, applying one and a half to two and a half kilograms of vegetative or other natural waste per tree. Of those growers who regularly use chemical fertilizers, they often have claimed that their fertilizer costs per kilogram is only around one Yuan RMB (U.S.$ 0.12). In addition, users of chemical fertilizers usually try to limit application due to a general belief that using too much will cause the taste of the trees' fruit to turn sour.

Most citrus growers in China do not use any machinery in the growing or harvesting process, because of their groves' topography and size. The hilly, uneven land on which most of China's citrus fruit is grown is unsuitable for the use of machinery. In addition, the small sizes of most groves prevent growers from gaining cost savings through economies of scale with labor saving machinery. Labor costs remain very low in China, especially in the rural areas, and most growers only have less than two mu of land dedicated to citrus growing. One mu equals one-fifteenth of a hectare. Of those growers with sizable groves, during harvest time, they sometimes will hire outside workers to assist with picking the fruit. According to one grower in Sichuan, finding outside labor usually is not difficult and payment for an individual's work is less than 20 Yuan RMB (U.S.$ 2.42) per day plus meals.

The use of growth regulators is rare, except among some navel orange growers. These few growers tend to use these regulators to control the timing of the bloom period. The two most popularly used regulators are known as BA and GA4.

Irrigation is not a big concern of many growers. Mechanized irrigation systems in citrus groves or even simple rubber/plastic pipes that connect groves to water sources are extremely rare. These growers tend to rely on nature to supply their trees with enough water, but will irrigate by hand if necessary. Many growers do not even create trenches in their groves or plant their trees on mounds which would facilitate hand irrigation. The main reasons for not using mechanized irrigation systems are that these systems are expensive for most growers and equipment theft problems are common in the countryside. The period when citrus growers pay most attention to irrigation of their trees is the bloom period, approximately March to May, for nearly all of the country's citrus varieties.

Production: Yields

The widespread use of Trifoliate Orange as rootstock by Chinese citrus growers has probably been one of the major influences on domestic citrus yields. Its popularity stems mainly from trees using it as rootstock tend to grow to a moderate size, allowing for greater density in groves. In addition, Trifoliate Orange is not as susceptible to diseases such as tristeza. Trifoliate Orange rootstock is used in almost every one of China's citrus growing provinces, except for Guangdong and Guangxi. In these provinces, the preferred rootstock varieties are Sour Orange and Red Limeng. As for other rootstock varieties, Red Orange is popular in Chongqing, Sichuan, and Hubei provinces. In Sichuan, some growers are using pomelo rootstock to grow lemons.

Another major factor influencing citrus yields in China is tree planting density. China's citrus groves tend to contain more trees per hectare than in other citrus growing countries such as the United States. Citrus tree planting density in the U.S. averages around 360 trees per hectare, while in China densities range between 675 and 1,200 trees per hectare. Specific densities in China usually depend on citrus variety and grove location, i.e. on relatively even land or the side of a hill. While planting more trees per hectare will yield more fruit in the short term, as the trees grow larger yields will fall due to thicketing. As groves grow into thickets, the amount of sunlight reaching as much of the trees as possible falls and causes tree fruit production to decline. The widespread use of Trifoliate Orange rootstock limits, but does not completely eliminate the thicketing effect.

Based on recent interviews with citrus growers in Chongqing and Sichuan, average annual yields per citrus tree tended to range between 20 and 90 kilograms. However, most fell into the range of 40 to 50 kilograms. Specific yields per tree depended greatly on variety grown, tree age, and the level of grove management. For example, in the Chongqing and Sichuan growing areas, Naval orange trees often produce more fruit than other varieties.

Citrus trees throughout China on average lead productive lives of 20 years or more, providing they receive proper care and management. According to local officials in various growing regions throughout the country, good grove management tends to be the norm. However, in Guangdong, the situation is different. According to officials connected with the citrus industry, poor grove management is more prevalent and has decreased the average productive life span to 10 to 12 years.

Bloom periods for China's citrus trees vary, depending on specific variety and geographic location. For example, ordinary Sweet Orange, Jin Orange, and Snow Orange trees all bloom sometime during the months of March and April. However, the Peng/Lu Tangerine trees usually do not bloom until early May. In addition, the fruit/flower ratio for most citrus varieties in China is low. The ratio for Sweet Oranges and Peng/Lu Tangerines ratio ranges between 0.5 and three percent, while for Naval Oranges it is often under one percent. For most other citrus varieties in China, the range is between two and seven percent.

Some citrus growing areas in China are susceptible to weather anomalies. Typhoons have been known to cause damage in the south coastal provinces of Fujian, Guangdong, and Guangxi, but crop destruction is usually limited to those places close to the coastline. Severe frosts are known to sometimes affect Jiangxi, Hunan, Hubei, Sichuan (areas above 500 meters sea level), and Zhejiang provinces. Since the early 1950's, citrus crop damaging frosts have occurred in Jiangxi province eight times and in Hunan province four times. The most recent damaging frost occurred in December 1999 and affected most of the citrus producing provinces in southeast China. This frost and low temperatures affected some of the hillside citrus groves in a peculiar manner. In southern Jiangxi province, for example, only citrus trees on the bottom terraces of hillside growing areas were affected, while those on the upper terraces escaped with little to no damage.

Production: Crop Quality

China's citrus groves can produce good quality fruit, but the quality of much of the crop every year is quickly degraded by poor post-harvest handling techniques. It is common for a piece of citrus fruit to be handled by a half dozen or more pairs of hands before it is finally touched by the end consumer. Washing, waxing, or even packaging the fruit before final sale often is not done by growers or distributors. However, some wholesalers will wash their citrus fruit at the local markets before offering the fruit for sale. In addition, many domestic distributors and wholesalers will loosely store their fruit in the back of trucks with limited to no protection from the elements and dump the fruit on the ground at the market. A majority of China's citrus fruit is distributed by individual growers, private distributors, and wholesalers instead of government-owned companies. In Sichuan, for example, many individual growers and groups of growers often handle their own distribution to and sales at wholesale markets. The main reason is that private distributors often will not travel to the province's more hilly and mountainous regions where much of the citrus is grown. Poor roads and few large scale growers in these regions makes citrus distribution much more costly than for other agricultural products in different places in China.

Nationally-mandated citrus fruit grading standards exist in China and cover both fruit quality and size. However, after the harvest, size seems to be the only factor that matters among domestic distribution participants. Some local distributors and processors generally ignore the published standards and practice their own simplistic grading systems based solely on fruit size. Under these systems, often only two grades exist: big and small. The definitions of big and small size can differ between distributors and processors throughout the country. To measure sizes, simple tools are used. Two known examples include a wooden card with two holes indicating the appropriate big and small sizes and a couple of metal rings welded together, one the big size and the other the small size.

Diameter Length Standards for Domestically Produced Citrus Fruit (Millimeters) in China
Grade 1 A Grade Grade 2 B Grade Grade 3 C Grade
Sweet Orange Varieties
Navel Oranges 65?85 70?85 >60 70?80 >50 65?75
Huazhou Oranges 65?90 70?85 >60 70?80 >50 65?75
Ordinary Sweet Oranges 65?90 70?85 >60 70?80 >50 65?75
Snow Oranges >60 70?85 >55 70?80 >50 65?75
Jin Oranges >60 65?80 >55 65?80 >45 >60
Xia Oranges >60 65?80 >55 65?80 >45 >60
Blood Oranges >60 65?80 >55 65?80 >45 >60
Liu Oranges >55 >65 >50 >60 >45 >55
Taoye Oranges >55 >65 >50 >60 >45 >55
Tangerines Varieties
Jiao Tangerines >55 >65 >50 >60 >45 >55
Fujian Jiao Tangerines >65 >70 >55 >65 >50 >65
Mandarin Oranges 60?80 65?80 >55 65?80 >50 60?80
Peng Tangerines >65 >75 >60 >70 >55 >65
Lu Tangerines >70 >75 >65 >75 >55 >70
Red Oranges >60 >65 >55 >65 >45 >60
Zao Tangerines >55 >65 >50 >60 >45 >55
Bendizao >50 >60 >45 >55 >40 >50
Nanfeng Mandarins >35 >40 >30 >40 >35
Lemon Varieties
Eurekas 55?80 60?75 >50 60?75 >40 55?60
Lisbons 55?80 60?75 >50 60?75 >40 55?60
Note: A, B, and C Grades refer to exported fruit.

Disease and insect damage to China's citrus crop every year usually is extremely limited in most of the country's growing areas, less than 10 percent of the crop, due mostly to improved tree management techniques and liberal usage of pesticides. The main diseases that concern China's citrus growers are: Liepi Disease (Citrus exocortis viroid), Tattered Leaf Disease, Citrus Canker (Xanthomonas campestris pv. Citri (Hasse) Dowson), and Yellow Dragon Disease. As for insects, mites tend to present the biggest problems, including Red Spider Mites and other types.

Yellow Dragon disease continues to be a problem in parts of Guangdong, Guangxi, Fujian, and Yunnan provinces. However, local Guangdong officials believe that it is now under control, but not yet completely eradicated in their province. This disease has yet to spread to any other provinces' citrus groves, but growers in a few of the neighboring provinces monitor the situation and show some concern that this disease might appear in their groves someday. Yellow Dragon disease is difficult to detect and in its early stages gives the impression that the infected tree is only suffering from a nutrient deficiency. The disease is a plant virus, but psyllid, aphid like insects, are its vector. In the U.S., a similar disease is commonly referred to as "greening". One citrus expert in China claims that this disease and canker is endemic to the country's far southern growing areas and probably will never be completely eradicated due to climatic conditions.

China's citrus industry also has started to encounter post-harvest disease problems, particularly in regards to fruit storage. Although many growers and distributors have started to lessen their reliance on the use of simple holes in the ground to store their fruit, using more advanced storage facilities still is not popular. Exposure to prevailing temperatures and humidity conditions has allowed various molds and bacteria to damage stored fruit. Some of the more prevalent types which have been appearing in China include: Penicillium italicum Wehner, Penicillium digitatum Saco, Alternaria citri Elliset Pierce, Phomopsis citri Faw, Diplodia natalensis Evans, Phytophthora citri Phthora, Oospora citri-aurantii (Ferr.), and Colletotrichum gloeosporioides Penz. To limit such damage, many growers have started to wrap individual pieces of fruit in plastic wrapping paper before placing in storage.

Production: Production Policy

China's national government continues to provide passive support for citrus production, but does not pursue policies of active assistance. However, at some provincial and county levels, the government is more actively involved. Specific assistance activities and policies differ between locales.

The most widely offered form of local government assistance available to China's citrus growers probably is low interest loans. These loans allow growers to purchase fertilizers, pesticides, pruning services, and other necessities during the growing season. Repayment of these loans usually starts after two to four years when the trees start to produce fruit. Subsidized inputs are rarely available to the citrus growers, except in special cases. Aside from low interest loans, information and technical assistance are the two most common forms of help given to China's citrus growers.

An example of subsidized assistance now occurring in China is Sichuan province's Anyue county paying growers to start raising lemons. According to local lemon growers in that county, the local government now pays growers 100 Yuan RMB(U.S.$ 12.11) per mu to start growing lemons. The payment only occurs once and the money is supposed to be used by the growers to buy seedlings and other inputs.

Years ago, government agencies used to give away citrus seedlings for free to potential growers, but such give-aways are rare today. Now growers must buy their seedlings, but costs are relatively inexpensive, approximately two Yuan RMB (U.S.$ 0.24) per seedling. Government agencies in some provinces will sell seedlings at subsidized rates, but the seedlings for sale usually are new varieties which the local government wants to promote, i.e. early and late harvesting ones.

Farmgate prices for citrus growers remain low. In Chongqing and Sichuan, growers on average receive less than two Yuan RMB (U.S.$ 0.24) per kilogram of fruit. Prices for good quality Sweet Oranges and Peng Tangerines were usually less then 1.8 Yuan RMB (U.S.$ 0.22) per kilogram, while poor quality fruit of these varieties and others were around 0.5 Yuan RMB (U.S.$ 0.06) per kilogram or less. At the local wholesale level, prices were no different. Sweet Oranges, mostly Naval varieties, averaged between 0.8 and 1.2 Yuan RMB (U.S.$ 0.10 to 0.15) per kilogram during November 2001 at Sichuan's Neijiang City fruit wholesale market. While in Chengdu city, wholesale prices during the same month ranged between one and 1.6 Yuan RMB (U.S.$ 0.12 to 0.19) per kilogram for Naval Oranges, 0.8 and one Yuan RMB (U.S.$ 0.10 to 0.12) for Red Oranges, and less than two Yuan RMB (U.S.$ 0.24) for Peng Tangerines. Lemons at wholesale markets in Chongqing and Sichuan tended to command the highest prices. The price range for Eureka lemons was three to four Yuan RMB (U.S.$ 0.36 to 0.48) per kilogram and for Beijing lemons 1.4 to two Yuan RMB (U.S.$ 0.17 to 0.24). Growers continue to be dissatisfied with the continued low prices, but see little alternative to growing anything else.

As with growers of other fruits, China's citrus growers are required to pay a Specialty Product Agricultural Tax. However, in some citrus growing regions, growers claim to be exempt from paying this tax. Many growers who use hilly/mountainous land and were interviewed by Post claim that they do not pay any agricultural tax, because they took land that was previously classified as unproductive and found an agricultural use for it. However, many also stated that a small tax on their holding's size is often assessed. Quoted annual tax payments ranged from 30 to 80 Yuan RMB (U.S.$ 3.63 - 9.69) per mu. Not everyone is exempt from the specialty tax. Growers using flatter land to grow citrus still must pay. According to various sources, the tax rate ranges between six to seven percent. How the tax is administered is determined by the local counties. Some counties charge according to income, others based on acreage, and others use other assessment methods. In addition, citrus growers are assessed commercial taxes.

Another recent development is the rise in grower marketing cooperatives. As has been occurring in northern China with some deciduous fruit growers, citrus growers in some locations have been banding together and jointly marketing their production in order to achieve a better return for their produce. According to one local government official, this activity started about five to six years ago.

Consumption: Fresh Consumption

Over 90 percent of China's citrus crop is consumed fresh every year. Fresh fruit in China, including citrus fruit, remains a popular snack, gift, and concluding dish at the end of restaurant meals. Fresh fruit purchases at least by urban households remain sizable and are expected to increase as the country's standard of living rises. Households with higher incomes still buy much more fresh fruit than those with lower incomes.

Chinese households mostly purchase domestically produced fruit due to its lower price. For example, in Guangzhou supermarkets, half a kilogram of imported oranges will cost an individual 8.5 Yuan RMB (U.S.$ 1.03), but domestic oranges for sale on the street will only cost 0.8 Yuan RMB (U.S.$ 0.10) or less per half kilogram. However, unlike most domestic fruits, imported varieties usually are available to local consumers during the whole year. In addition, the good outward appearance makes imported fruit better gifts during holiday periods.

China: Urban Households' Per Capita Annual Purchasesof Fresh Fruits and Melons (kilograms)
1995 1996 1997 1998 1999 2000
National Average 36.56 40.72 45.48 47.86 46.07 49.13
Highest 10% (1) 51.32 56.15 61.73 63.37 62.64 67.18
Lowest 10% (1) 22.21 26.46 29.03 31.20 29.82 31.55
(1) In terms of household incomeSource: China Statistical Yearbooks 1996 ? 2001

Guangdong Province: Urban Households' Average Per Capita Annual Purchases of Selected Fresh Fruits (kilograms)
1995 1996 1997 1998 1999 2000
Apples 5.70 6.20 6.33 6.22 6.3 6.85
Citrus 3.15 2.79 3.23 3.61 3.3 3.23
Oranges 1.00 0.91 1.41 1.04 1.3 1.01
Bananas 3.01 1.83 3.66 3.41 2.8 2.49
Grapes 0.62 0.76 0.82 0.81 0.8 0.9
Source: Guangdong Province Statistical Yearbooks 1996 ? 2001

Consumption: Processing

Every year approximately five to ten percent of China's citrus production is processed into other products, mostly canned citrus and some juice concentrate. The amounts of citrus used for processed product most likely will be higher this year than last year, due to the larger harvest. Local experts claim that processed citrus product production in China last year was lower than during previous years. Although local sources have not published any recent processed citrus product production statistics, industry sources report that China in 1997 produced 300,000 to 400,000 tons of canned citrus, approximately 100,000 tons of citrus juice concentrate, and 10,000 to 20,000 tons of citrus jam/other products.

Last year, due to the severe frost and freezing temperatures in the country's southeast growing regions, many citrus canners and concentrate producers either ceased production or switched to other products, complaining that the smaller crop size has caused production costs to rise and erase profit margins. Some canners even ceased production due to the lack of raw materials. One Jiangxi province processor recently told Post that last year they could not find any citrus to can, but this year Mandarin oranges are much more plentiful and they pay about 0.6 to 0.8 Yuan RMB (U.S.$ 0.07 to 0.10) per kilogram. Processors traditionally pay low prices for their citrus, sometimes as low as a few Jiao RMB per kilogram. In addition, processors only tend to use poor quality fruit for their products.

In general, provincial processing rate vary throughout the country. Zhejiang, usually China's leading provincial citrus producer, often processes 10 percent or more of its harvest every year, while Guangdong, a big provincial producer, processes very little of its harvest every year. Zhejiang province's canned citrus output in 1998 was 140,000 tons and in 1999 reached 180,000 tons. Zhejiang's canned citrus output for this marketing year has been predicted to be 160,000 tons. Other provincial citrus processing rates include: Hubei, approximately seven percent, and Jiangxi, three to five percent. Both Chongqing and Sichuan once had thriving citrus canning industries whose products were exported abroad, but now no longer exists due to the lack of overseas customers.

The citrus processing season only lasts a few months every year, starting in October and ending in March. However, a majority of the production usually occurs from November to January. One orange juice concentrate manufacturer in Jiangxi province, for example, says that, although his factory facilities have the capacity to produce five tons of concentrate each hour, his factory only produces concentrate during the months of November and December. The main reason for the processing industry's short season is the lack of proper and large-scale storage facilities for domestic citrus. Neither local distributors nor processors in general have been interested or willing to invest in such facilities.

In regards to canned citrus, the main variety used is Mandarin oranges. Except for a few factories that can kumquats, nearly all canned citrus in China is canned Mandarins. Citrus canning factories in China, even those producing for export, tend to be labor intense operations. These factories employ hundreds of people to peel, segment, sort, and fill cans, while using machinery to only attach lids and move the cans to the packaging area.

Unlike canning, citrus juice concentrate processors in China do not rely on one particular variety. In the eastern part of the country, processors mainly use Mandarin oranges, ordinary Sweet Oranges, and Peng/Lo tangerines. While in the western part, processors prefer sweet orange varieties such as the Jin and Hamelin oranges, both of which are good for juicing. Citrus concentrate produced in China often lacks pulp, because low labor costs allow processors to hire many workers to peel the fruit before processing.

China's citrus concentrate producers generally require 14 to 15 tons of fruit in order to produce a ton of 65 percent brix strength concentrate. An estimated 20 to 30 citrus juice concentrate production lines currently are in operation in China. Although orange juice consumption in China has risen over the last several years, China's average yearly individual consumption rate of orange juice remains at less than one liter. Despite current low demand, the United Nations Food and Agriculture Organization predicts that China's domestic demand for processed citrus product will reach 1.82 million tons by the year 2005 and much of this demand will be for juice products. Of this predicted demand, 1.3 millions tons will be for orange juice and 450 thousand tons for grapefruit juice. On the production side, a published Chinese source recently claimed that within ten years local citrus juice concentrate production will rise to over 500,000 tons.

Overseas investment in citrus processing to date has been limited, but a few big projects exist. The most high profile one is Seagram's U.S.$55 million investment in citrus groves and a processing plant near the Three Gourges area in the eastern part of Chongqing District. Started in 1999, the project covers both citrus growing and processing the citrus into juice concentrate. Although the processing plant will not be producing citrus juice concentrate for another few years, it is uncertain whether the investors have started or will be developing a marketing plan for their production. According to a source, one of the problems with the Seagram's failed Guangxi Beihai citrus groves project was that the investors and the management team did not develop a marketing plan for their produce. They focused exclusively on production to the neglect of what to do with the output after harvest. As for other places in China, German investors have established a citrus processing plant in southern Hunan to produce citrus juice concentrate for export to Europe.

Stocks

By the end of every crop year, China's fresh citrus stocks usually are depleted. Most of each citrus crop is sold immediately after it is harvested, while the remainder is kept by growers until prices improve during the Chinese New Year period. In Guangdong, for example, growers on average store one third of their crop for later sale. Usually by May of each year, growers have sold all of their remaining stocks.

Unlike in most of China's apple growing regions, no major effort has been made to construct advanced cold storage facilities dedicated to harvested citrus. Such facilities exist in many of China's citrus growing regions, but are mainly used for vegetables and other agricultural products. In Chongqing and Sichuan, for example, since most of participants in citrus distribution are small scale, they have little incentive to use advanced storage facilities due to relatively high costs.

Despite non-use of more technically advanced storage facilities, growers and distributors have started to improve their citrus storage capabilities. Burying citrus under ground as a storage solution is starting to become a rarity. The use of above ground buildings has become more prevalent. Many of these buildings which were originally used for other purposes are filled with shelves and cabinets for the fruit. Underground storage has not totally disappeared, but the method has been upgraded. Instead of dirt, these facilities are now starting to be made of concrete and the lips of the entrance covers are lined with mud or straw. In Sichuan province's Nanchong district, over 70 percent of the citrus harvest still is stored underground. In some places, for example Fujian province's Mingqing county, the use of caves for citrus storage still occurs.

Even growers are using this above ground method. In Chongqing and Sichuan citrus growing areas, many growers visited by Post used sheds and rooms in their own homes to store their harvested citrus. These growers often laid plastic sheets or straw on the ground in these rooms before using them for citrus storage. In addition, as a part of the storing process, growers often will wrap individual pieces of fruit in paper or plastic in order to assist with preservation.

The citrus varieties in China that are stored the most often are usually varieties with thicker peels. According to various local experts, Naval, Mandarin, and Jiao oranges can last up to three months in storage, while pomelos four to five months.

Despite the incremental improvements in storage techniques, the crop spoilage rate remains high. In a published source, one local expert last year claimed that China's citrus crop loss rate ranges between 25 and 30 percent each year.

Trade

China's citrus and citrus products exports in general are greater than its imports, but when focusing on specific commodities and products a few exceptions exist. These exceptions where imports exceed exports include: oranges, lemons/limes, frozen orange juice, and orange juice not frozen. China's main citrus exports are tangerines and canned citrus which is primarily canned mandarin oranges.

The United States continues to be China's main source for imports of fresh and dried citrus. For marketing year 2000/2001, China's imports of U.S. oranges, tangerines, lemons, and grapefruits were higher than the year before. Oranges comprise a major part of China's fresh and dried citrus imports. While for processed citrus products last marketing year, China's main import source differed from product to product. Brazil was the main source for frozen orange juice, Australia for orange juice not frozen, and the United States for grapefruit juice.

Despite the poor citrus crop last season, China's citrus exports were relatively unchanged. Fresh and dried tangerine exports declined a little, but canned citrus exports were approximately the same as the previous marketing year's totals. For marketing year 2000/2001, fresh and dried tangerine exports were 155,058 tons at a value of U.S.$39.2 million, while canned citrus exports were 169,374 tons with a value of U.S.$119,753. While most of China's fresh and dried citrus exports go to Hong Kong, Russia, and the countries of Southeast Asia; processed citrus products, particularly canned products, are mainly exported to the more economically developed nations of Japan, Germany, and the United States.

China's imports and exports also display seasonality trends. Based on monthly trade date covering the last several years, orange imports tend to be greatest during the summer months, while orange exports are usually high from November to May. As for tangerine exports, volume is often at its highest from November to March.

Imports of Citrus to China, China Customs Data(Value: $'000, Volume: Metric Tons)
Imports: ORANGES, FRESH OR DRIED (HS 0805.1000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
U.S.A. 12,083 26,642 18,125 36,822
Australia 62 148 0 0
South Africa 297 659 181 330
Canada 27 67 0 0
New Zealand 8,783 19,458 8,524 19,909
Chile 65 136 7 17
Brazil 0 0 0 0
Japan 0 0 0 0
Philippines 8 20 0 0
Malaysia 0 0 0 0
Thailand 27 68 0 0
Taiwan 114 271 4 5
Spain 0 0 0 0
Indonesia 22 51 0 0
Uruguay 0 0 0 0
Argentina 0 0 0 0
Israel 0 0 0 0
Turkey 0 0 0 0
Morocco 0 0 0 0
Other 81 190 1 0

TOTAL 21,569 47,710 26,842 57,082
Source: China's Customs Statistics

Imports: TANGERINES, FRESH OR DRIED (HS 0805.2010, 0805.2090)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
U.S.A. 0 0 784 2,268
Canada 0 0 0 0
Australia 0 0 0 0
Argentina 20 41 0 0
New Zealand 1,716 3,694 1,015 3,070
Indonesia 0 0 0 0
Malaysia 23 45 0 0
Nepal 7 19 0 0
Japan 0 0 43 124
Vietnam 0 0 0 0
Taiwan 8 16 112 218
Thailand 12 25 0 0
Other 1 0 2 0

TOTAL 1,787 3,841 1,956 5,680
Source: China's Customs Statistics

Imports: LEMONS AND LIMES, FRESH OR DRIED (HS 0805.3000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
U.S.A 868 1,741 1,711 3,543
Canada 0 0 0 0
Japan 1 0 0 0
Taiwan 0 0 0 0
Vietnam 0 0 0 4
Philippines 0 0 0 0
Thailand 54 122 105 168
Nepal 1 4 0 0
Argentina 0 0 0 0
Chile 0 0 0 0
New Zealand 700 1,701 975 1,998
South Africa 0 0 13 24
Other 0 0 0 0

TOTAL 1,624 3,569 2,804 5,736
Source: China's Customs Statistics

Imports: GRAPEFRUIT, FRESH OR DRIED (HS 0805.4000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
U.S.A. 373 517 950 1,798
Canada 0 0 0 0
South Africa 0 0 0 0
Japan 26 49 0 0
Australia 0 0 0 0
Egypt 0 0 4 16
Malaysia 22 37 0 0
New Zealand 98 163 9 15
Thailand 681 2,100 424 1,284
Taiwan 12 24 50 155
Other 0 0 0 0

TOTAL 1,211 2,890 1,437 3,269
Source: China's Customs Statistics

Imports: Other Citrus Fruit, Fresh and Dried (HS 0805.9000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Malaysia 34 56 0 0
Thailand 11 19 0 0
Other 1 0 0 0

TOTAL 46 75 0 0
Source: China's Customs Statistics

Imports: CITRUS JAMS, FRUIT JELLIES, ETC. (HS 2007.9100)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
United States 40 19 8 12
Thailand 217 483 0 0
Brazil 315 206 0 0
Denmark 18 15 18 14
South Korea 7 7 0 0
Taiwan 3 4 7 18
Indonesia 0 0 0 0
Switzerland 6 1 6 2
France 7 2 14 6
Greece 1 1 0 0
Other 2 0 0 1

TOTAL 616 738 53 53
Source: China's Customs Statistics

Imports: FROZEN ORANGE JUICE (HS 2009.1100)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
U.S.A. 1,408 1,452 1,551 1,904
Brazil 5,265 3,753 8,427 8,472
Australia 21 39 0 0
Netherlands 27 19 32 18
Taiwan 1 1 0 0
South Korea 0 0 7 21
Hong Kong 0 0 0 0
Israel 1,224 1,136 2,190 2,197
France 0 0 0 1
Spain 0 0 17 34
Switzerland 0 0 0 0
Belgium 23 14 0 0
Italy 275 191 272 199
Other 0 0 1 0

TOTAL 8,244 6,605 12,497 12,848
Source: China's Customs Statistics

Imports: ORANGE JUICE, NOT FROZEN (HS 2009.1900)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
U.S.A. 75 86 105 103
Australia 490 902 922 1,543
New Zealand 0 0 0 0
Canada 5 10 3 2
Brazil 193 315 265 355
South Africa 0 0 0 0
Hong Kong 88 163 117 266
Japan 4 3 3 3
Oman 0 0 3 5
Philippines 11 32 5 9
Singapore 0 0 0 0
South Korea 65 222 31 126
Thailand 0 0 1 1
Taiwan 27 40 9 13
Israel 29 28 132 130
Denmark 78 60 653 524
Germany 62 33 4 2
Netherlands 0 1 0 0
France 9 11 8 10
Great Britain 1 0 0 0
Spain 62 130 60 139
Austria 0 0 9 17
Hungary 2 7 15 31
Other 2 1 0 0

TOTAL 1,203 2,047 2,344 3,277
Source: China's Customs Statistics

Imports: GRAPEFRUIT JUICE (HS 2009.2000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
U.S.A. 329 297 493 390
Australia 6 10 23 43
Canada 14 13 0 0
Taiwan 0 0 9 51
South Korea 0 0 1 2
Israel 100 68 73 68
Austria 0 0 1 2
Netherlands 0 0 18 9
Germany 29 11 4 2
Spain 4 9 0 0
Italy 11 8 45 24
Other 0 1 1 0

TOTAL 491 416 668 592
Source: China's Customs Statistics

Imports: OTHER SINGLE CITRUS JUICE, NOT MIXED (HS 2009.3000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
United States 54 20 17 4
Canada 22 20 0 0
Spain 10 17 0 0
Vietnam 8 17 0 0
South Korea 8 25 8 26
Japan 1 0 35 4
Australia 19 29 1 2
Taiwan 10 12 2 2
Great Britain 9 3 16 7
Germany 2 0 4 1
Italy 1 0 3 2
Denmark 14 11 265 216
Switzerland 3 1 2 1
Other 0 0 2 1

TOTAL 161 156 355 265
Source: China's Customs Statistics

Exports of Citrus from China, China Customs Data(Value: $'000, Volume: Metric Tons)Exports: ORANGES, FRESH OR DRIED (HS 0805.1000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Hong Kong 235 1,571 222 1,734
Japan 0 0 2 2
Macau 16 84 11 51
North Korea 1 2 0 0
Mongolia 3 18 0 0
Philippines 14 48 43 215
Singapore 58 300 0 0
Indonesia 19 40 0 0
Malaysia 8 42 5 79
Myanmar 2 14 4 11
Vietnam 45 208 21 147
Nepal 4 5 0 0
Kazakhstan 0 0 0 0
Kirghizia 0 0 0 0
Russia 16 60 24 102
Other 0 2 0 0

TOTAL 420 2,393 332 2,341
Source: China's Customs Statistics

Exports: TANGERINES, FRESH OR DRIEDMANDARINS/ JIAO ORANGES/ OTHER (HS 0805.2010, 0805.2090)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Hong Kong 3,078 23,291 1,505 10,721
Indonesia 5,225 22,059 5,147 19,682
Brunei 204 562 174 555
North Korea 149 960 76 596
Macau 56 318 88 549
Malaysia 7,004 26,105 10,401 45,167
Philippines 9,599 35,645 8,013 29,991
Singapore 3,279 22,277 1,401 5,717
Thailand 4 24 0 0
Vietnam 2,430 13,589 1,845 9,292
Taiwan 19 57 0 0
Cambodia 5 23 0 0
Myanmar 0 0 2 14
Japan 31 4 28 70
South Korea 0 0 16 209
Nepal 2 5 0 0
India 18 90 0 0
Saudi Arabia 34 146 0 0
Hungary 88 656 0 0
Mongolia 7 59 7 40
Kazakhstan 44 153 20 64
Kirghizia 31 146 12 58
Russia 4,661 18,779 3,104 14,700
United States 23 71 53 186
Canada 5,418 14,886 7,301 17,446
Other 5 0 0 0

TOTAL 41,414 179,904 39,193 155,058
Source: China's Customs Statistics

Exports: LEMONS AND LIMES, FRESH OR DRIED (HS 0805.3000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Hong Kong 0 0 2 2
Russia 2 2 29 76
Myanmar 0 0 1 3
Singapore 0 0 8 4
Other 1 0 1 1

TOTAL 3 2 41 86
Source: China's Customs Statistics

Exports: GRAPEFRUIT, FRESH OR DRIED (HS 0805.4000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Hong Kong 345 2,605 411 3,183
Indonesia 8 15 14 49
Macau 27 210 92 919
Philippines 11 31 43 204
Singapore 29 139 17 95
Vietnam 28 164 0 0
Cambodia 2 6 0 0
Malaysia 2 5 2 24
Great Britain 8 19 7 36
Netherlands 0 4 1 11
Italy 0 0 0 0
Canada 125 471 192 721
U.S.A. 0 0 0 0
Other 0 1 2 0

TOTAL 585 3,670 781 5,244
Source: China's Customs Statistics

Exports: OTHER CITRUS FRUIT, FRESH AND DRIED (HS 0805.9000)(Value: $'000, Volume: Metric Tons)
Destination ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Canada 1,090 2,360 540 1,067
Singapore 30 244 31 352
Hong Kong 278 2,038 1,189 9,216
Russia 11 47 0 0
Belgium 0 0 0 1
Australia 1 0 0 0
Vietnam 1 22 0 0
Malaysia 60 192 23 89
Philippines 6 18 33 144
Indonesia 51 216 90 237
Mongolia 0 0 0 0
Japan 85 99 20 18
Myanmar 16 84 32 210
Macau 9 73 0 0
North Korea 0 0 8 55
Other 0 1 1 0

TOTAL 1,638 5,393 1,967 11,390
Source: China's Customs Statistics

Exports: CITRUS JAMS, FRUIT JELLIES, ETC. (HS 2007.9100)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
United States 3 3 0 0
Saudi Arabia 101 126 0 0
Hong Kong 24 32 57 90
Japan 0 8 91 68
U.A.E. 16 18 0 0
Oman 0 0 1 1
Australia 0 0 7 5
Philippines 3 11 0 0
Thailand 2 2 0 0
Taiwan 27 36 18 36
Other 1 0 1 1

TOTAL 177 235 175 201
Source: China's Customs Statistics

Exports: FROZEN ORANGE JUICE (HS 2009.1100)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Israel 0 0 0 0
U.A.E. 0 0 6 6
Hong Kong 1,590 1,292 2,055 1,631
Singapore 0 0 49 40
Malaysia 19 25 0 0
Taiwan 10 6 0 0
Other 0 0 0 0

TOTAL 1,619 1,323 2,110 1,677
Source: China's Customs Statistics

Exports: ORANGE JUICE, NOT FROZEN (HS 2009.1900)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
Hong Kong 737 819 769 853
North Korea 0 0 1 1
Japan 0 0 27 32
Portugal 2 1 0 0
Spain 4 3 0 0
Philippines 8 19 0 0
Singapore 16 37 18 28
Italy 0 0 1 1
United States 0 0 2 8
Canada 0 0 0 0
Other 1 0 0 0

TOTAL 768 880 818 923
Source: China's Customs Statistics

Exports: CITRUS FRUIT, PRESERVED & PREPARED, IN AIRTIGHTCONTAINERS (HS 2008.3010)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1999/00??? ???MY 2000/01 ???
Value Volume Value Volume
North Korea 15 24 0 0
Hong Kong 412 507 55 87
Japan 57,589 78,335 48,139 62,990
Malaysia 121 243 124 268
Philippines 623 896 558 752
Indonesia 18 36 57 95
Saudi Arabia 110 269 180 387
Singapore 63 121 89 144
South Korea 1,123 1,688 925 1,369
Thailand 373 694 5,338 7,723
Myanmar 80 171 58 126
U.A.E. 0 0 10 16
Yemen 210 450 267 540
Taiwan 104 180 198 361
Great Britain 336 633 460 811
France 0 0 23 35
Germany 10,689 19,372 15,487 25,343
Poland 58 72 72 117
Italy 17 31 8 9
Netherlands 936 1,582 2,496 4,039
Norway 77 108 75 106
Sweden 129 196 99 136
Denmark 43 68 22 32
Austria 19 34 10 16
Greece 15 24 0 0
Portugal 0 0 5 7
Hungary 18 32 28 49
Romania 8 16 0 0
Belgium 1 1 34 51
Russia 12 29 21 33
Czech Republic 670 1,227 901 1,595
South Africa 32 56 15 25
Argentina 15 31 0 0
Costa Rica 19 31 0 0
Uruguay 0 0 22 31
Canada 2,243 3,620 2,978 4,486
U.S.A. 40,195 57,476 40,676 57,101
Puerto Rico 27 52 45 71
Australia 263 387 259 384
New Zealand 48 69 23 38
Other 0 0 0 0

TOTAL 116,705 168,762 119,753 169,374
Source: China's Customs Statistics

Exports: CITRUS FRUIT, PRESERVED & PREPARED, NESCONTAINERS (HS 2008.3090)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1998/99??? ???MY 2000/01 ???
Value Volume Value Volume
United States 0 0 0 1
Thailand 62 137 0 0
Hong Kong 90 144 22 35
Malaysia 20 54 0 0
Saudi Arabia 51 74 0 0
Singapore 2 11 0 0
Taiwan 0 0 0 0
Germany 0 0 0 0
Netherlands 0 0 18 48
Italy 0 0 14 18
Japan 0 0 16 12
Other 2 1 2 0

TOTAL 227 420 72 114
Source: China's Customs Statistics

Exports: OTHER SINGLE CITRUS JUICE, NOT MIXED (HS 2009.3000)(Value: $'000, Volume: Metric Tons)
Origin ???MY 1998/99??? ???MY 2000/01 ???
Value Volume Value Volume
Malaysia 153 234 153 234
Singapore 25 36 35 54
Saudi Arabia 22 36 237 378
North Korea 0 0 2 3
Taiwan 0 0 10 18
Hong Kong 59 30 42 22
Canada 12 18 0 0
Japan 13 17 12 18
Germany 0 0 0 0
Other 0 0 0 0

TOTAL 282 371 491 726
Source: China's Customs Statistics

Monthly Imports of Oranges,China Customs Data (Metric Tons)(Marketing Year 1997/98?2000/2001)
Month 1997/98 1998/99 1999/2000 2000/01
October 774 302 2,548 4,707
November 114 361 2,772 1,948
December 605 902 891 1,282
January 117 84 912 4,897
February 88 440 3,125 2,201
March 139 1,271 4,339 3,682
April 263 1,104 3,721 6,319
May 257 363 3,455 4,597
June 357 1,782 6,203 5,401
July 430 3,522 5,931 6,335
August 323 2,858 7,705 6,726
September 214 6,005 6,107 8,988

TOTAL MY 3,681 18,994 47,709 57,083

Monthly Exports of Oranges,China Customs Data (Metric Tons)(Marketing Year 1997/98?2000/2001)
Month 1997/98 1998/99 1999/2000 2000/01
October 13 23 0 44
November 53 607 121 285
December 1,030 2,453 239 166
January 599 547 317 519
February 541 1,740 522 338
March 427 556 81 136
April 596 156 396 134
May 129 700 238 227
June 25 428 106 80
July 8 160 210 0
August 23 135 105 413
September 0 0 86 0

TOTAL MY 3,444 7,505 2,421 2,342

Monthly Exports of Tangerines,China Customs Data (Metric Tons)(Marketing Year 1997/98?2000/2001)
Month 1997/98 1998/99 1999/2000 2000/01
October 12,112 4,967 4,638 5,407
November 21,819 16,517 22,506 19,960
December 56,605 34,293 42,292 52,995
January 39,746 43,828 55,705 40,080
February 29,455 29,587 19,604 18,338
March 17,370 15,106 23,805 10,769
April 7,280 1,966 9,970 3,240
May 1,175 1,424 923 226
June 224 5 185 63
July 213 3 20 2,646
August 12 0 0 94
September 104 310 255 1,241

TOTAL MY 186,115 148,006 179,903 155,059

Trade Policy

China during the year 2001 cut the import tariffs of all varieties citrus fruit and most processed citrus products. The import tariffs on fresh citrus last year were 40 percent on all varieties, but are now 35 percent for oranges, tangerines, lemons, limes, pomelos, and grapefruit. All other varieties had their tariff cut to only 38 percent. Most processed citrus products also had their tariffs cut. The only exception was frozen orange juice whose tariff remained the same at 35 percent. Under the U.S.-China WTO accession agreement, China's tariffs on fresh citrus should drop to 12 percent by the year 2004.

China's Value Added Tax on all imports remains and the rates are unchanged. The current rates are 13 percent on the total value of fresh citrus products and 17 percent for processed citrus products. This tax's rates are not expected to change anytime in the near future.

China in the year 2001 became an official member of the World Trade Organization (WTO), but implemented the U.S. agricultural trade accord which eliminated phytosanitary restrictions on U.S. citrus imports two years before in 1999. At the present time, China not only allows the importation of citrus from U.S. states of Arizona and Texas, but also select counties of the U.S. states of California and Florida. The California counties include: Butte, Fresno, Glenn, Imperial, Kern, Kings, Madera, Merced, Monterey, Orange, Placer, Riverside, San Bernadino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara, Stanislaus, Tulare, and Venture. As for Florida, the counties include: Brevard, Collier, Desoto, Glades, Hardee, Hendry, Highland, Indian River, Lake, Lee, Manatee, Martin, Okeechobee, Osceola, Palm Beach, Sarasota, St. Lucie, and Volusia. However, under this agreement, imported U.S. citrus can enter China only through certain ports. These ports include: Dalian, Guangzhou, Haikou, Nanjing, Qingdao, Shanghai, and Tianjin. Despite the earlier phytosanitary restrictions, U.S. fresh citrus had been entering China through unofficial trade channels for over a decade.

Concern of some local Chinese agricultural officials about the effects of WTO membership has lessened over the last year. For example, a couple of years ago, Guangdong Agricultural Bureau officials indicated concern that WTO membership could harm their province's citrus industry due to increased imports, but now do not expect such a large negative impact. Other provinces' agricultural bureau officials have recently expressed similar views.

China Citrus Import Tariffs and Value Added Tax Rates
COMMODITIES Import Duty Rate Value?AddedTax Rate Eff. Min.Duty Rate
Min. 1/ Gen. 2/
FRESH:
Oranges, Fresh/Dried 35 100 13 / 17 53 / 58
Tangerines, Fresh/Dried 35 100 13 / 17 53 / 58
Lemons & Limes, Fresh/Dried 35 100 13 / 17 53 / 58
Grapefruit/Pomelos, Fresh/Dried 35 100 13 / 17 53 / 58
Other citrus, Fresh / Dried 38 100 13 / 17 53 / 58
CANNED:
Citrus 28 90 17 50
Other Citrus Preps 28 80 17 50
FRUIT JUICE:
Orange Juice (frozen) 35 90 17 58
Orange Juice (unfrozen) 34 90 17 57
Grapefruit/Pomelo Juice 31 90 17 53
Other citrus juice 32 90 17 54
Notes:1/ Minimum rate is applied to imports from countries enjoying most favored nation (MFN) trading status with China, including the U.S.A. Once China becomes a member of the World Trade Organization, the minimum rate will apply to all other membersand possibly non?member countries with special trade treaties with China.2/ General rate is applied to imports from non?MFN trading partners. Once China becomes a member of the World Trade Organization, the general rate will apply to all of China'snon?member trading partners unless a special trade treaty exits between China and the non?member country.3/ Effective Minimum Duty Rate = Duty Rate + (1+Duty Rate) * Value Added Tax RateAll duties and taxes are applied on a CIF ad valorem basis.Import Tax = (CIF Value)* Duty RateVAT Tax = (CIF Value + Import Tax) * VAT RateSource: PRC Customs Tariffs Handbook 2001

Marketing

The best tactics for U.S. exporters to enter the Chinese citrus market are to establish and build ties with citrus importers in both China and Hong Kong, plus imported fruit distributors in China's major cities. Establishing and building ties with the Hong Kong fruit importers is important in doing business, because many of China's fruit importers already have ties with these participants and some importers allow them to make specific choices in regards to overseas suppliers.

For establishing and building ties among Chinese companies, conducting seminars, distributing Point of Sales materials, and participating in major trade exhibitions are all methods proven to be beneficial. Users of such methods during the 1990s have been the California Table Grapes Commission, the Washington Apple Commission, and Zespri Kiwifruit of New Zealand.

Marketing activities should also cover consumer education. Methods to consider include: retail promotion and consumer trade show participation. Regarding retail promotion participation, the focus probably should be on the hypermarkets, because practically all carry fresh fruit and their sales volumes tend to be higher than regular local supermarkets.

The most difficult marketing period for imported fresh citrus fruit is from November to April. Although Chinese New Years often inspire sales for gift purposes, the contemporaneously harvested domestic crop is also available at that time and at prices much lower than imported varieties. Price still is a major factor in Chinese consumers' purchasing decisions.

PSD Table
Country China, Peoples Republic of
Commodity Fresh Citrus,Other (HECTARES)(1000 TREES)(1000 MT)
Revised 2000 Preliminary 2001 Forecast 2002
Old New Old New Old New
Market Year Begin 01/2000 01/2000 01/2000
Area Planted 1140149 1282870 983466 1275000 0 1286000
Area Harvested 1050600 1182112 872109 1132392 0 1170260
Bearing Trees 1090650 1090650 920500 920500 0 1070800
Non?Bearing Trees 177270 177270 402007 402007 0 189000
TOTAL No. Of Trees 1267920 1267920 1322507 1322507 0 1259800
Production 10787059 10787059 8783129 8783129 0 10012767
Imports 19 19 50 72 0 85
TOTAL SUPPLY 10787078 10787078 8783179 8783201 0 10012852
Exports 156 156 181 174 0 210
Fresh Dom. Consumption 10786318 10786318 8782768 8782781 0 10012302
Processing 604 604 230 246 0 340
TOTAL DISTRIBUTION 10787078 10787078 8783179 8783201 0 10012852

Export Trade Matrix
Country China, Peoples Republic of
Commodity Fresh Citrus,Other
Time period Units:
Exports for: 1999 2000
U.S. 23635 U.S. 233554
Others Others
Philippines 34070529 Malaysia 38347184
Singapore 29743932 Philippines 36876009
Malaysia 24294783 Hong Kong 29983940
Hong Kong 22984175 Indonesia 24267348
Canada 17813285 Singapore 20305098
Vietnam 17245038 Canada 17588742
Russia 15147319 Russia 16632088
Indonesia 12022948 Vietnam 11825448
North Korea 932944 Macau 981850
Brunei 701445 North Korea 858539
Total for Others 174956398 197666246
Others not Listed 1310802 2375106
Grand Total 176290835 200274906

Import Trade Matrix
Country China, Peoples Republic of
Commodity Fresh Citrus,Other
Time period Units:
Imports for: 1999 2000
U.S. 938513 U.S. 34744798
Others Others
New Zealand 15489211 New Zealand 23565303
South Africa 4072421 Thailand 2396496
Taiwan 2606367 South Africa 505543
Thailand 1651495 Australia 148191
Philippines 924036 Chile 136268
Australia 775344 Taiwan 121649
Indonesia 466772 Malaysia 93124
Egypt 451011 Japan 48690
Canada 407839 Canada 44135
Spain 400285 Philippines 20160
Total for Others 27244781 27079559
Others not Listed 1505624 36459
Grand Total 29688918 61860816