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China's
Lemon Production and Trade 2002
Introduction
China, like the United States, produces lemons, but production is
small in comparison with the United States. The vast majority of
China's production is located in the country's southwestern region,
specifically in Sichuan and Chongqing provinces. Import demand for
lemons in China is growing and the U.S. has been the main source.
U.S. lemons have a good reputation among importers and consumers,
but additional actions can be taken to enhance this reputation.
The exchange rate used for this report is one U.S. Dollar equals
8.26 Chinese RMB.
Production
China's lemon production for crop year 2001/2002 is estimated to
be 14,650 tons. This figure is a revision of the estimate published
in the 2001 Citrus Annual. Production this crop year is smaller
than in previous crop years due to inclement weather during the
early part of the growing season. According to growers and wholesalers
in the main growing regions, a drought occurred from January to
July 2001 and caused the lemon trees to produce less fruit than
normal. China rarely publishes lemon production or acreage statistics
and the only official production and acreage figures are for 1994.
According to those figures, during that year, national lemon production
and acreage was 8,000 tons and acreage 4,000 hectares.
China's main lemon growing areas are Sichuan and Chongqing. Within
these areas, Sichuan's Anyue and Zhong counties and Chongqing's
Wan county grow most of the lemons. Anyue county is the production
leader, accounting for an estimated 70 percent of production every
year. According to one source with connections to the county, Anyue
has 16 separate lemon production base villages, over 6,700 hectares
of land dedicated to lemon growing, seven and a half million lemon
trees, and under excellent conditions can produce an average of
25,000 tons of lemons each year. Provincial officials have claimed
that Anyue county contributes much more to the nation's lemon output,
claiming that the actual percentage is 80. Sichuan's Anyue county,
located between the cities of Chengdu and Chongqing, takes pride
in its lemon production and designates itself as China's lemon growing
capital. Road signs visible to people entering the county inform
travelers of that distinction. In late October/early November 2001,
the 7th National Pomelo varieties scientific research and production
Co-ordinative Working Group Meeting was held in conjunction with
the first Anyue county Lemon Festival.
Lemon growers in Anyue county claim that within the county only
two villages have significant production levels. These villages
are Longtai Township's Longxi Village and Youyang Township's Chengnan
village. In other villages throughout the county, lemon production
occurs, but amounts are much smaller. A vast majority of the country's
lemons are grown by individual growers or grower cooperative groups.
Lemon production in China could show a significant increase in the
coming years as growing is initiated in other provinces and expanded
in existing growing areas. In Yunnan, a couple of lemon growing
projects have been started in an area near the Myanmar border. One
project expects to set aside over 3,300 hectares of land for the
sole purpose of growing lemons, but at present has only dedicated
691 hectares for this purpose. No lemons have been produced by the
project so far, currently still at the nursery stage. The main variety
to be grown at the project is the Eureka. In Anyue county, Sichuan
province, growers in Longxi village claim that lemon acreage has
been increased by 2,000 hectares. These relatively new trees have
not started producing fruit yet, but are expected to come into production
within four years.
At the present time, the Anyue county local government is trying
to encourage greater lemon growing. According to growers, the county
now gives growers a one time payment of 100 RMB (U.S.$ 12.11) per
mu of land converted into lemon growing. The money is supposed to
be used by the grower to purchase seedlings, agricultural chemicals,
fertilizers, and/or other items which would contribute to production.
However, growers still are subject to the National Specialty Crop
Agricultural Tax, unless otherwise decided by the local government.
A lemon grower in Longxi Village claimed that he pays 70 to 80 RMB
(U.S.$ 8.47 to 9.69) per mu of land each year, while another lemon
grower in a different location said that he pays nothing.
According to local agricultural officials, China's lemon production
during the 1960s was larger. At that time, most of the harvest was
exported to the Soviet Union. However, as relations between China
and the Soviet Union withered, lemon exports also suffered and production
eventually declined.
The main lemon varieties grown in China include Eureka and Beijing.
China's Eureka lemons compared to those from other parts of the
world tend to have lower acidity and vitamin C levels. However,
a Chinese language internet source claims that lemon oil made from
Anyue county's Eureka lemons can have a higher geranial-dehyde percentage
and oxidate composition percentage than lemon oil made from either
California or Sicily (Italy) lemons. The Beijing lemon is actually
closer to an orange than a lemon, but for measuring purposes is
often included in lemon production estimates by local officials.
Some Lisbon variety lemons also are grown in China.
As for fruit quality, lemons grown in China can be as good as those
from other places in the world. However, the lack of post-harvest
preparations such as waxing and excessive handling degrade the fruit's
quality quickly.
The rootstocks of choice among lemon growers in Anyue county at
least appears to be sour pomelo and sour orange. According to one
grower, Red Orange rootstock is not popular in the area, because
the trees using it tend to become too tall.
November is when most of the lemon harvesting takes place. Growers
will often pick the fruit from their trees while it still is green
and store the fruit in sheds or other above ground structures. Sometimes
growers will even cover individual pieces of fruit in plastic wrap
before final storage. Once the fruit starts to turn yellow, it goes
to the market. One grower interviewed by Post claimed that he harvests
his lemons in three phases. The first phase usually occurs in October
and tends to be the best fruit every year, the second phase in November,
and the third phase in January.
Lemon growers' yields vary. One grower interviewed by Post claimed
that his big producing trees on average yielded about 50 kilograms,
while smaller producing ones' yields ranged from 10 to 30 kilograms.
Another grower said that his per tree yields ranged from 50 to 150
kilograms. Factors such as weather, tree age, and tree management
played a big role in yields every year.
Lemon growers in Anyue county claimed that the following diseases
are the ones that seem to affect their lemon trees the most: Sphaceloma
fawcettii Jenk., Capnodium citri Berk et Desm., and Colletotrichum
gloeosporioides Penz. As for insect problems, the main pests are
Phyllocoptruta oleivira Ashme, Eriophyes sheldoni Ewing, Unaspis
yanonenis (Kuwana), Chrysomphalus aonidum (L.), Icerya purchasi
Maskell, Ceroplastes rubens Maskell, Parlatoria pergandii (Comstock),
and Nadezhdiella Cantori (Hope). However, these diseases and insect
pests often are not major problems for growers applying good orchard
management techniques. Most growers applying good management spray
their trees with pesticides and tree chemicals at least three times
a year. The main spraying season is from March until July.
Consumption
Unlike other citrus varieties, lemons are not as readily available
to local consumers. The big consumers of lemons are mostly bars
and restaurants, using lemon slices to garnish dishes and to add
flavor to drinks. In the growing regions, in addition to flavoring
drinks, wholesalers say that lemon are sometimes used as an ingredient
for a few tradition medicine recipes. According to local importers,
the lemons buyers are mainly bars and restaurants.
Over the last couple of years, the growing region wholesale price
of local lemons has remained steady. In Sichuan province, during
the 1999/2000 harvest season, this price has been three yuan (U.S.$
0.36) per kilogram. By the 2001/2002 harvest season, the price was
four RMB (U.S.$ 0.48) for Eureka variety lemons and two RMB (U.S.$
0.24) for Beijing variety lemons. Growers who do not market their
lemons themselves usually receive less than two RMB (U.S.$ 0.24)
per kilogram for their lemons.
Processed lemon products are rare in China. A Sichuan Anyue county
lemon related internet site claims that lemon juice concentrate
and bottled lemon slices are available from local processors. However,
local growers have indicated that lemon processing is very limited
in the area and nearly all of their produce are sold to outside
cities. Only one juice product company in the country offers a lemon
juice beverage. However, many local beverage companies are offering
lemon flavored tea products which contain processed lemon by-products
as an ingredient.
During mid-September of 1999, before the annual harvest period,
lemons were selling at four to eight RMB ($0.48 to 0.97) per kilogram
in Shanghai fruit wholesale markets. The price report gave no indication
on whether the fruit was domestic or imported.
Trade
China's official imports of lemons in terms of both value and volume
over the last three marketing years have been steadily increasing,
while its exports have been fluctuating. Import volume during marketing
year 1998/1999 was 2,476 tons, but was over double that amount by
marketing year 2000/2001. Export volume was 179 tons in 1998/1999,
down to 2 tons in 1999/2000, and up to 86 tons in 2000/2001 (see
Tables 1 and 2).
The U.S. is China's major source for imported lemons, contributing
to over half of marketing year 2000/2001 total import value and
volume. New Zealand and Thailand also have been significant sources
for China. In terms of exports, Russia has been China's major export
destination, accounting for a vast majority of exports each marketing
year at least since 1998/1999.
At the Lishui Fresh Fruit Market, one of the biggest imported fruit
wholesale markets in China, the number of imported lemon overseas
shipping containers that entered the market from January 2000 to
September 2001 was 333 with a total value of nearly 64 million RMB
(U.S.$ 7.723 million) (see Table 3). Approximately 44 percent of
these containers contained U.S.-origin lemons. Less than a third
during the year 2000 contained U.S.-origin lemons, while for most
of year 2001 over half had U.S.-origin lemons. During the year and
a half, prices for a box of lemons have ranged from 130 RMB to 180
RMB (U.S.$ 15.74 to 21.79). According to Lishui market officials,
aside from the U.S., South Africa and Argentina have been major
sources of lemons. During July 2001, the Hong Kong - Guangdong freight
and tariff charges for a 20 foot container of lemons is 32,000 RMB
(U.S.$ 3,874.09) and for a 40 foot container 59,000 RMB (U.S.$ 7,142.86).
The Lishui Imported Fruit Wholesale Market is the largest wholesale
market for imported fruit in all of China, the first distribution
stop for much of the country's imported fruit.
In comparison with many other fruits, lemon importation is relatively
small. During the period from January 2000 to September 2001, 23,016
containers of imported fresh fruit passed through the Lishui market,
but 333 of these containers contained lemons. According to one Guangdong
fruit importer at the Lishui market, lemons only comprised about
one percent of his total imported fruit volume for all of 1999,
approximately eight to ten containers out of 820. Similar comments
have been made by other fruit importers over the last couple of
years. Wholesale prices for imported lemons have remained under
200 RMB (U.S.$ 24.21) per box over the last couple of years.
In early 2000, just after the Chinese New Year holiday, lemon prices
at the Lishui Imported Fruit Wholesale Market were ranging between
120 to 180 RMB (U.S.$ 14.53 to 21.79) per box. Californian and Arizonan
lemons tended towards to higher end of the price range, while those
from Cyprus and other locations towards the lower end. One trader
claimed that Sunkist branded lemons accounted for about 80 percent
of the market. During late February 2000, available brands at the
market include: Encore (Sunkist/U.S.), Sea Cured (Sunkist/U.S.),
Serape (Sunkist/U.S.), Smile (Sunkist/U.S.), Superba (Dole/U.S.),
Parade (Blue Goose/U.S.), and Cyprina (Cyprus). During October 2000,
prices were depressed in comparison to earlier in the year. For
example, at Huadu, 15 kilogram boxes of South African origin lemons
sold for approximately 130 RMB (U.S.$ 15.74) and 18 kilogram boxes
of Uruguay lemons for approximately 110 RMB (U.S.$ 13.32).
Trade Regulations
U.S. citrus fruit, including lemons, from selected U.S. counties
are legally importable into China. Before the U.S.-China agricultural
agreement in 1999, lemons along with other U.S. citrus varieties
were technically illegal to import.
China's lemon import tariffs remain high, despite a decrease this
year. At the present time, the tariff rate is 35 percent, plus the
value added tax is 13 percent for fresh lemons or 17 percent for
dried lemons. The current effective tariff is 52.55 percent for
fresh lemons and 57.95 percent for dried lemons. Last year, 2000,
the tariff rate was 40 percent, while the value added tax rates
were the same.
Marketing
Californian and Arizonian lemons currently maintain a good image
among local traders and consumers. One of the main reasons is consistency
in size and color. Traders at the Huadu Fresh Fruit Market, one
of two major imported fruit wholesale markets in Guangdong province,
say that their customers prefer buying lemons which are bright yellow
in color and long lengthwise. In addition, some local importers
that handle non-American lemons have complained that local buyers
generally do not like to buy their product due to a mix of fruit
sizes in their boxes. According to them, imported American lemons
tend to be more consistent in size and shape per box.
One trader suggested that Sunkist should ink stamp their logo or
name on all of their lemons. He feels that such an action would
help sales, because local buyers would more likely trust the origin
and the product. Sunkist has high brand awareness among importers
and other American suppliers (i.e. Blue Goose, Dole) benefit from
this situation.
Another action which U.S. lemon and other fruit exporters should
consider is to bundle the fruit boxes together and attachment them
to pallets. Many fruit importers have complained that one of their
biggest problems with U.S. fruit is that loose packing of boxes
into containers often has lead to product losses. Although the amount
of loss has been relatively low, the importers prefer to lessen
their shipping damage even further. An idea which should be considered
and is used by some competitor nations' shippers and exporters is
to bundle the fruit boxes into stacks and attach each stack onto
the shipping pallet. To help maintain this shipping method's integrity,
the stacks often are bound together by metal/plastic strips and
cardboard strips wrap around the corners of each shipping stack.
Many importers, despite the extra packing material required, like
this packaging style and claim that it has reduced their losses.
However, U.S. exporters must keep in mind that during any transshipment
via Hong Kong the Hong Kong traders may remove the stack packaging
due to a need to break up a container's contents in order to supply
different customers.
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