China

USDA Takes 'Bold Action' to Crack Down on Foreign-Owned Farmland, Targets China

Tue, 08 Jul 2025 19:04:07 GMT

The Trump administration is focusing on national security in agriculture, which includes action to help eliminate foreign-owned farmland. USDA unveiled the National Farm Security Action Plan this week, a strategy that is aimed at protecting and securing American farmland from foreign influence, as well as defending innovation.

The plan is the next pillar of Agriculture Secretary Brooke Rollins’ Make Agriculture Great Again initiative. USDA calls it a “historic plan” that “elevates American agriculture as a key element of our nation’s national security, addressing urgent threats from foreign adversaries and strengthening the resilience of our nation’s food and agricultural systems.”

The Trump administration has been facing increased pressure to crack down on the amount of foreign-owned farmland in the U.S., especially surrounding U.S. military bases.

“We feed the world. We lead the world. And we’ll never let foreign adversaries control our land, our labs, or our livelihoods,” said Rollins. “This Action Plan puts America’s farmers, families, and future first — exactly where they belong. Under President Trump’s leadership, American agriculture will be strong, secure, and resilient. He will never stop fighting for our farmers and our ranchers.

“Too much American land is owned by nationals of adversarial countries, and more than 265,000 acres in the United States are owned by Chinese nationals, much of which is located near critical U.S. military bases ,” Rollins also told reporters Monday.

USDA's National Farm Security Action Plan, announced today under @SecRollins' Make Agriculture Great Again initiative, safeguards our food supply, strengthens infrastructure, & defends U.S. ag innovation from foreign adversaries.

🔗https://t.co/8wl5YfIzju pic.twitter.com/cqRv4PU6Th
— Dept. of Agriculture (@USDA) July 8, 2025

In what USDA calls “aggressive action,” the agency says it is addressing seven critical areas, which include:

Secure and protect American farmland — Address U.S. foreign farmland ownership from adversaries head on. Total transparency. Tougher penalties.
Enhance agricultural supply chain resilience — Refocus domestic investment into key manufacturing sectors and identify non-adversarial partners to work with when domestic production is not available. Plan for contingencies.
Protect U.S. nutrition safety net from fraud and foreign exploitation — Billions have been stolen by foreign crime rings. That ends now.
Defend agricultural research and innovation — No more sweetheart deals or secret pacts with hostile nations. American ideas stay in America.
Put America first in every USDA program — From farm loans to food safety, every program will reflect the America First agenda.
Safeguard plant and animal health — Crack down on bio-threats before they ever reach American soil.
Protect critical infrastructure — Farms, food and supply chains are national security assets — and will be treated as such.

Rollins wasn’t alone in unveiling the new plan. Along with Secretary of Defense Pete Hegseth, Attorney General Pam Bondi and Secretary of Homeland Security Kristi Noem and several state governors, Rollins says the Trump administration is creating a united front to address foreign threats.

FARM SECURITY IS NATIONAL SECURITY: Today, the Trump Administration launched the National Farm Security Action plan to protect our farmland and food supply from foreign threats. 🧵 pic.twitter.com/hUwxknmGYK
— Rapid Response 47 (@RapidResponse47) July 8, 2025

“Getting an understanding of why foreign entities, companies and individuals buy up land around those bases. That’s something I should be paying attention to,” said Defense Secretary Pete Hegseth during the press conference this week.

Agriculture Secretary Brooke Rollins conducts a news conference to announce the National Farm Security Action Plan and “discuss actions being taken to protect American agriculture from foreign threats,” outside the USDA Whitten Building on Tuesday, July 8, 2025. Attorney General Pam Bondi, left, Defense Secretary Pete Hegseth, and Homeland Security Secretary Kristi Noem, also appear.

((Tom Williams/CQ Roll Call/Sipa USA))

USDA says it’s launching a new online portal for farmers, ranchers, and others to report possible false or failed reporting and compliance with respect to Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA).

“Further, the portal will receive and review claims of adversarial foreign influence on federal, state, and local policymakers with respect to purchases of U.S. farmland and business dealings in other facets of U.S. agricultural supply chains. Submissions may be accepted anonymously or contact information may be provided for appropriate follow up by USDA.”

As background, USDA explained AFIDA requires foreign investors who acquire, transfer, or hold an interest in U.S. agricultural land to report such holdings and transactions to the Secretary of Agriculture. USDA says In January 2024, the Government Accountability Office published a report on foreign investments in U.S. agricultural land, which provided recommendations for enhancing efforts to collect, track, and share key information to identify national security risks.

Increasing Biosecurity Threats

Rollins specifically mentioned increasing biosecurity threats from China.

As AgWeb reported in June , another Chinese national is accused of smuggling biological materials related to roundworms into the U.S. for work at a University of Michigan laboratory. According to the U.S. attorney’s office, Chengxuan Han is charged with smuggling goods into the U.S. and making false statements.

That followed two Chinese nationals charged with trying to smuggle a fungus , Fusarium graminearum, into the U.S. just a week prior.

USDA says those recent events highlight the critical need for this action.

“Last month, the U.S. Department of Justice charged foreign nationals, including a Chinese Communist Party member, with smuggling a noxious fungus into the United States — a potential agroterrorism weapon responsible for billions in global crop losses. The scheme involved a U.S. research lab and highlighted a disturbing trend: America’s enemies are playing the long game — infiltrating our research, buying up our farmland, stealing our technology, and launching cyberattacks on our food systems. These actions expose strategic vulnerabilities in America’s food and agriculture supply chain,” USDA said in a release.

Foreign-Owned Farmland By the Numbers

The foreign-owned farmland piece drew this biggest coverage out of USDA’s announcement this week . As AgWeb reported last year , when you look at the numbers, China doesn’t own the most farmland in the U.S.. According to a USDA report, it’s actually Canada, which accounts for 32%, or 14.2 million acres. But as USDA said on Tuesday, the concern is the amount of farmland owned by China is growing.

Foreign-Owned Land by County

(USDA)

Rounding out the top five are the Netherlands at 12%, Italy at 6%, the United Kingdom at 6% and Germany at 5%. Together, citizens in those countries hold 13 million acres, or 29%, of the foreign-held acres in the U.S. China owns less than 1%, or 349,442 acres.

All told, 43.4 million acres of forest and farmland in the U.S., or 3.4% of all ag land, is foreign owned as of Dec. 31, 2022. Roughly 30 million of those acres are reported as foreign owned, with the remainder primarily under a 10-year-or-longer lease. Of the 30 million, 66% is owner-operated, 14% has a tenant or sharecropper as the producer and 12% report a manager other than the owner or a tenant/sharecropper as producer. The remaining 7% are “NA.”

USDA says the two biggest Chinese-owned companies with land holdings in the U.S. are Brazos Highland and Murphy Brown LLC, which owns Smithfield Foods. Brazos Highland reported owning 102,345 acres, and Smithfield owns 97,975 acres.

The top five states with the largest Chinese holdings are:

Texas at 162,167 acres
North Carolina at 44,776 acres
Missouri at 43,071 acres
Utah at 32,447 acres
Virginia at 14,382 acres

USDA reports those five states combined account for 85% of China’s farmland ownership. In Texas, USDA reports China has long-term leases associated with wind energy, and in North Carolina and Missouri, ownership is tied to Smithfield and producers who contract for pork production.

Unintended Consequences?

Foreign-held farmland has become a hot-button topic on Capitol Hill, but some warn unintended consequences could impact agriculture, especially for those industries who have companies that are Chinese owned. Just take Smithfield as an example. If Smithfield is targeted, some fear that could create more consolidation in the hog industry.

“It’s an emotional issue, and it’s not a simple issue either,” Jim Wiesemeyer, a long-time Washington analyst, told AgWeb. “I was recently in Missouri, and some commodity leaders worry about the negative consequences of going too far. No one’s saying China should not be watched relative to buying farmland near airports, national security is involved in that case, but more than a few farmers are looking at the potential downsides for pork producers who contract with Smithfield and the number of acres they own.”

While there isn’t a single, comprehensive ban on China owning farmland across all states, many states have introduced or enacted laws restricting or prohibiting foreign ownership of agricultural land, with a focus on China. That includes Texas, Florida and several Midwestern states that have enacted laws restricting or banning purchases by specific countries, including China.

One of those unintended consequences played out in Arkansas when Gov. Sarah Huckabee Sanders

In 2023, Arkansas became the first state to enforce a law banning certain foreign entities from owning agricultural land, specifically targeting those deemed “prohibited foreign parties.” This action was taken against a subsidiary of Syngenta Seeds , a Chinese-owned company, ordering them to divest their farmland.

“I’m announcing Syngenta, a Chinese state-owned agrichemical company, must give up its landing holdings in Arkansas,” said Sanders, referencing a 160-acre research site owned by Northrup King Seed, a Syngenta subsidiary.

Sanders was present as USDA rolled out the new plan this week.

“Arkansas led the nation in kicking Communist China off our farmland and out of our state because we understand that farm security is national security,” said Sanders. “I applaud President Trump and Secretary Rollins for putting America first with this bold USDA Action Plan to protect our food supply, our economy, and our freedom.”

It’s an issue that’s not going away. More states are considering addressing foreign-owned farmland with legislation, as well.

🇨🇳There’s a troubling correlation between Chinese-owned farmland in America and the location of our military bases.

🌾Assembly Bill 4781 by Asm. Alex Sauickie, Asw. Dawn Fantasia, and me would stop this in its tracks in New Jersey.

🚨With today’s announcement by the U.S.… pic.twitter.com/1CGA7K9Iwj
— Mike Inganamort (@MikeInganamort) July 8, 2025

States Applaud USDA’s Aggressive Plan

Governors and state agriculture secretaries were on hand for the announcement this week, applauding USDA’s plan.

“Tennesseans know that our farmland is our national security, our economic future, and our children’s heritage. The National Farm Security Action Plan puts America First by defending our farmland from foreign adversaries and protecting our food supply, and I thank the Trump Administration for its bold leadership,” said Tennessee Gov. Bill Lee.

“Farm Security = Food Security = National Security. Thanks to these actions taken by President Trump and his team, we can further protect the backbone of Nebraska’s economy from foreign adversaries like China. Homeland security starts at home, and we will continue to do our part in Nebraska,” Nebraska Gov. Jim Pillen said in a news release.

“I am grateful for Secretary Brooke Rollins’ bold leadership in advancing USDA’s Ag Security Agenda, which prioritizes safeguarding American agriculture and farmland from those who seek to undermine our nation’s food and energy security. Iowa’s multi-generation family farms are the backbone of our state’s economy and way of life. For decades, Iowa has banned the foreign ownership of farmland, a law we strengthened in 2024, to preserve our agricultural integrity and security while balancing the need for foreign business investment in our state. I fully support Secretary Rollins’ and the Trump Administration’s efforts to bolster enforcement, increase reporting, and enhance transparency of land ownership laws at the national level to guarantee that our American farmland remains in the hands of Americans,” said Iowa Secretary of Agriculture Mike Naig.

92% of Ag Economists Say the U.S. is Already in the Middle of Another Trade War

Fri, 21 Mar 2025 14:47:55 GMT

President Donald Trump hasn’t been shy about using tariffs as a negotiating tool. As he cracks down on fentanyl and illegal border crossings, he’s also pushing to restore what he calls fairness in U.S. trade relationships and countering non-reciprocal trading arrangements.

The reality for agriculture is the U.S. agricultural trade deficit hit a record in 2024 as imports soared, and Trump says he wants to reverse the trend.

According to the Trump administration, when it comes to tariffs and the impact on the overall economy, long-term gain will be worth the short-term pain. However, when it comes to agriculture, ag economists survyed in the March Ag Economists’ Monthly Monitor don’t agree.

Ninety-two percent of economists think Trump’s strategy of using tariffs as a negotiating tool won’t benefit U.S. agriculture in the long run.

Here are some of those economists’ comments from the most recent Farm Journal Ag Economists’ Monthly Monitor survey.

“Food as a weapon doesn’t have a successful track record, see Jimmy Carter and the 1980s,” responded one economist in the anonymous survey. “It’s not a guarantee as it’s like playing Russian roulette; you might ‘win,’ but the risks are huge.”
“Farm Journal readers should learn about the long-term consequences of Smoot-Hawley. It wasn’t just about the economic costs — it was also about the relational damage between trading partners. I have a hard time believing we will rebuild these relationships any time in the foreseeable future,” another economist said.
“It depends on whether tariffs are used as a negotiating tool with the ultimate goal of reducing trade barriers, or whether they instead result in a world with higher barriers. The president’s emphasis on tariffs as a way to raise revenue suggests tariffs and their consequences may persist,” was another economist’s response in the Monthly Monitor.

However, one economist wasn’t as certain, saying, “For it to be beneficial depends on it being short lived and resulting in trade initiatives with market access or purchase commitments. And in the meantime, action is taken quickly related to Trump’s post to offset trade loss with increased domestic use such as removing dated rules that limit ethanol blends, renewing or creating biofuels production incentives, and adding SAF as a mandated fuel.”

Trade War or No Trade War?
What an overwhelming number of agricultural economists do agree on is that the U.S. is in the midst of another trade war. Ninety-two percent of economists say a trade war is already here, while only 8% responded no.

“I don’t think anyone is arguing with the notion that we are in another ‘trade war,’” one economist said. “This one is far bigger and far more consequential than the last one we were in.”

“It seems more like a trade cold war,” another economist responded. “The situation is ever-changing, and it is hard for buyers, markets and producers to anticipate reality and effect. The threat of tariffs is almost as effective as a tariff.”

As agriculture tries to navigate the turbulence and shocks of another trade war, the ultimate question is: Who wins in a trade war? According to Romel Mostafa, professor of business, economics and public policy for the Ivey Business School in London, Ontario, it’s neither the U.S. or Canada.

“If we think about U.S. and Canada, we both lose,” Mostafa says. “The way our markets are integrated, both from the input side as well as the product side, any tariff really increases cost of production for our farmers all the way to food on the table. What then happens, essentially, some of our products are going to be less competitive in major markets than where we compete. Who then benefits? Perhaps Brazil, Russia or other countries.”

Other agricultural economists agree: If you’re looking at the trade war between the U.S. and Canada or the U.S. and China, it’s not the U.S. who wins, it’s ultimately one of the United States’ biggest competitors: Brazil.

The Ag Economists’ Monthly Monitor asked, “In the next 10 years, which country ultimately benefits the most from the current trade turbulence?” Seventy-three percent of economists think it’s Brazil, and 18% said China.

This Trade War Could Be Worse Than the Last time
Of the agricultural economists surveyed, 69% say they don’t think a trade war today would have the same impact it did 2018 through 2020. Instead, most think it will be worse.

“The trade war in 2018/19 also had the African swine fever in China. Because of ASF, they did not need the soybeans anyway. It will be hard to figure out what impacted the U.S. markets/prices more, but the market reaction should not be as great this time,” said one economist in the monthly survey.

Ag Econoimsts’ Monthly Monitor

(Lindsey Pound)

“It would be a bigger impact,” another economist said. “The first round of trade wars in agriculture were largely used as a wedge for negotiation or renegotiation of agreements that provided improved access and growth opportunities for ag trade. This round seems to be championed based on reshaping the entire trading system, a system that U.S. agriculture largely benefited from over time.”

“There appears to be less willingness by the U.S. taxpayer to provide financial assistance to agricultural producers. That is not to say that financial assistance is absent this go around, but I do believe it increases the uncomfortable situation for producers who largely support less government spending,” one of the respondents shared.

However, other economists think it could have a similar impact, saying the same commodities will be impacted.

Even talk of tariffs is enough to move the markets, as some analysts argue the commodity markets have been ignoring fundamentals, instead trading headlines recently.

The Potential Economic Hit to Ag
The American Farm Bureau (AFBF) economists recently took a deeper dive into the possible impact of reciprocal tariffs. AFBF economists say of the top 20 U.S. agricultural products currently being targeted by Canada, for a total of $5.8 billion, commodities such as juice, coffee and chocolate are hardest hit, along with wine, fresh fruit, dairy products, poultry and rice.

Canada’s retaliatory tariffs

(AFBF)

China’s retaliatory tariffs

(AFBF )

When it comes to China, Beijing has specifically targeted 15 products including beef, cotton, grain sorghum, pork, corn and dairy along with fresh fruit. Economists say while it’s too early to measure the full impact of the tariffs on U.S. agriculture, they believe it will certainly decrease demand for U.S. products in Canada and China.

Market Facilitation Program 2.0?
If agriculture is caught in the middle of another trade war, the March Ag Economists’ Monthly Monitor wanted to know if economists think USDA will compensate farmers for their losses again, similar to what the previous Trump administration did with Market Facilitation Program (MFP) payments.

March Ag Economists’ Monthly Monitor

(Lindsey Pound)

Even though Secretary of Agriculture Brooke Rollins has promised to make farmers whole through another trade war, economists are concerned about available funding. Seventy-seven percent of economists think USDA will compensate farmers, but 23% don’t think so.

“Congress might be the limiting factor,” one economist said.

“They will want to do so, but their ability to do so may be limited. The failure to include replenishment of the Commodity Credit Corporation’s borrowing authority in the continuing resolution limits available CCC funds, and other options may also be limited in potential scope,” another respondent shared.

“The political dynamics appear to be similar,” said another economist. “Amounts are however likely to be less, maybe substantially less, due to the general policy initiative to reduce government spending.”

The Secretary of Agriculture has come out and said they will use these tools if it becomes necessary.

Trump vows March 4 tariffs for Mexico, Canada, extra 10% for China

Thu, 27 Feb 2025 19:07:44 GMT

U.S. President Donald Trump said on Thursday that his proposed 25% tariffs on Mexican and Canadian goods will go into effect on March 4 and threatened an extra 10% duty on Chinese imports because deadly drugs are still pouring into the U.S. from those countries.

Trump said in a post on his Truth Social site that he would impose the additional 10% tariff on Chinese goods on March 4. This would come on top of the 10% tariff that he levied on Feb. 4 on imports from China over the fentanyl opioid crisis.

Trump said drugs, namely fentanyl, were still coming into the U.S. at “very high and unacceptable levels,” with a large percentage of them the deadly opioid fentanyl.

“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump added. “China will likewise be charged an additional 10% Tariff on that date.”

Trump decided to add the extra tariffs on China and stick to the Tuesday deadline for Canada and Mexico given what his administration sees as insufficient progress reducing fentanyl deaths, a White House official told Reuters.

“There are ongoing discussions with the Chinese, Mexico and Canada. We’ve gotten a good handle on the migration issue, but there are still concerns on the other issue of fentanyl deaths,” the official said.

The official said White House officials including deputy chief of staff Stephen Miller and border czar Tom Homan were closely monitoring information on fentanyl deaths and field reports from law enforcement around the country.

According to the Centers for Disease Control, 72,776 people died from synthetic opioids in 2023 in the U.S., chiefly from fentanyl.

Deadline clarity

Trump’s statement cleared up some confusion that he sowed on Wednesday over deadlines for the punishing tariffs on Canadian and Mexican goods that the president has threatened over the fentanyl crisis and U.S. border security.

Trump’s comments on the matter during his first cabinet meeting on Wednesday seemed to suggest that he may push the deadline back for about one month until April 4.

But subsequent comments from Trump administration officials indicated that the April deadline was for Trump’s “reciprocal tariffs” matching import duty rates of other countries and offsetting their other restrictions. His trade advisers consider European countries’ value added taxes to be akin to a tariff.

Kevin Hassett, the top White House economic adviser, told CNBC television on Thursday that Trump would determine new tariffs after a study is completed by April 1.

“The schedule is that there’s a study coming out on April 1, and after that the president is going to decide what to do about tariff policies for all countries,” he said, but specifically mentioning Mexico and Canada.

Tariff, border talks

Meanwhile, Canadian and Mexican officials were due to meet with Trump administration counterparts in Washington on Thursday and Friday to try to forestall the tariffs, which could deal a serious blow to a highly integrated North American economy.

Mexican Economy Minister Marcelo Ebrard will meet with newly confirmed U.S. Trade Representative Jamieson Greer on Thursday and Commerce Secretary Howard Lutnick on Friday.

In Canada, Public Safety Minister David McGuinty said on Thursday that the progress Canada has made on tightening security along the border with the United States and combating drug smuggling should satisfy the Trump administration.

“The evidence is irrefutable — progress is being made,” McGuinty said in televised remarks to reporters in Washington ahead of two days of talks with U.S. officials.

“In my view, any test that was put on Canada in terms of showing progress and meeting standards for the border — I believe those have been met,” he said.

The Canada Border Services Agency said in a statement that it was launching a targeted, cross-country initiative to intercept illegal contraband arriving and leaving the country, with a focus on fentanyl and other synthetic narcotics.

China, in a letter to U.S. Trade Representative Jamieson Greer, said China and the United States should address concerns in economic and trade fields through equal dialogue and consultation.

(Reporting by Doina Chiacu and Andrea Shalal; additional reporting by David Lawder in Washington, Disha Mishra in Bengaluru and David Ljunggren in Ottawa; Writing by David Lawder and Joseph Ax; Editing by Chizu Nomiyama and Alistair Bell)

China fading for U.S. specialty crop exports

Thu, 11 Jul 2024 19:25:16 GMT

U.S. specialty crop exports to China have slid in the past six years, hurt by retaliatory tariffs, improved Chinese output and free trade agreements with other trading partners, according to a new USDA report .

Numerous U.S. specialty crops are still subject to retaliatory Section 232 tariffs on top of most-favored-nation (MFN) tariffs, the report said. “U.S. tree nuts and fresh fruit are still highly valued in China, but targeted marketing campaigns are necessary to preserve U.S. market share,” the report said.

During 2018 and 2019, the U.S. imposed tariffs on Chinese goods, citing unfair trade practices. China hit back with retaliatory tariffs on U.S. products, and multiple rounds of tariffs affect billions of dollars’ worth of goods. Many of the tariffs remain in place.

China is still the top market for U.S. farmers, with U.S. ag export sales at $29.1 billion to China in 2023.

The top U.S. agricultural product exports to China in 2023 were soybeans ($15.2 billion), corn ($1.7 billion), beef ($1.6 billion), cotton ($1.6 billion), pork and pork products ($1.2 billion), and coarse grains ($1.2 billion).

Top U.S. specialty crop exports to China in 2023 were tree nuts ($1.2 billion), fresh fruit ($86 million), processed fruit ($70 million), fresh vegetables ($1 million), processed vegetables ($35 million), and nursery products and cut flowers ($2 million).

Fresh fruit decline

The value of U.S. fresh fruit exports to China in 2017 totaled $226 million, but that value dropped to just $86 million in 2023.

In 2023, cherries ($43.7 million), oranges ($24.1 million), and apples ($8.8 million) comprised most of U.S. fruit exports to China, the report said.

U.S. grape exports to China have plummeted in six years, from $22.2 million in 2017 to just $321,000 in 2023.

“The downward trend for U.S. table grape exports started in the late 2000s as China’s domestic industry started to produce grapes of higher quality,” the report said.

Between 2017 and 2023, U.S. cherry exports dropped 63%, from $118.6 million in 2017 to $43.7 million in 2023.

While the United States remains the largest cherry supplier from the northern hemisphere, U.S. cherries face increasing competition from domestically produced cherries, the report said.

Between 2017 and 2023, U.S. orange exports to China dropped 43% to $27.4 million. “U.S. oranges face fierce competition from domestic oranges whose varieties and quality have improved significantly in recent years,” the report said. China imports oranges and other citrus fruit mostly from counter-seasonal producers, such as South Africa, Egypt, and Australia.

The U.S. gained market access for blueberries, avocados and nectarines through the Economic and Trade Agreement, but the report said those fruits have failed to take off mainly due to a lack of price competitiveness with domestic and counter cyclical production from South American countries with free trade agreements.

“Since 2017, China has significantly improved domestic fruit quality and cold chain logistics,” the report said. “Improved domestic production, retaliatory tariffs, and free trade deals with major counter cyclical producers in the Southern Hemisphere explain the significant drop in U.S. fresh fruit exports to China from 2017 to 2023.”

U.S. tree nut exports to China have grown despite the People’s Republic of China (PRC) imposed retaliatory tariffs and duty-free access for major competitors, the report said.

In 2017, the U.S. exported $243 million in tree nuts to China, rising 400% to $1.2 billion in 2023.

“The overall size of China’s tree nut import market grew exponentially from 2017 to 2023, and U.S. exports grew substantially during that time, but U.S. market share declined,” the report said. “Demand for consumer-oriented products, like U.S. branded mixed nuts, has experienced significant growth in recent years.”

The USDA said U.S. exports of fresh and processed vegetables to China have trending lower since the mid-2010s.

For example, the report said frozen French fry exports to China dropped from $78 million in 2017 to $18 million in 2023. Part of the reason for the decline is greater production of potatoes in China for frozen potato processing, the report said.

China to Treat More Animal Waste to Help Clear Rural Pollution

Thu, 19 Nov 2020 03:30:48 GMT

China plans to treat more waste from livestock breeding to improve its rural environment and reduce agriculture pollution in the world’s top pork producer.

Pollution from the country’s livestock breeding is becoming an “outstanding issue” after years of steady development of the sector to ensure meat, eggs and dairy supply, according to a summary of remarks by Vice Premier Wang Yang at a conference on Tuesday. China will increase treatment of animal wastes, encourage more use of bio-gas in the countryside and expand large-size scale farms which are able to treat the waste, he said.

China is tackling soil pollution as part of its nationwide agriculture reforms, with its top legislative body considering tougher penalties for those who pollute water and prohibiting the building of homes or schools in areas with contaminated soil. The country has dealt with problems including cases where crops have been grown in areas contaminated with cadmium. China has more than half of the world’s pigs, according to the U.S. Department of Agriculture.

Farmers favor using chemical fertilizers, which save time and costs, over organic fertilizer, Yu Kangzhen, vice agriculture minister, told a press conference on June 14. That’s seen about 40 percent of China’s 3.8 billion tons of annual animal waste left untreated and unutilized, he said. China is aiming to increase the use of animal waste as fertilizer for fruit, tea and vegetables by as much as 50 percent by 2020.

Some local governments are closing down more pig farms or banning breeding due to pollution concerns, which may threaten supply, said Yu. China’s central government will offer financial support to 500 counties and 200,000 large farms for waste treatment facilities, he said.

John Phipps: China's Zero-Covid Policy Isn't New, It Actually Has a Gruesome Precedent

Mon, 06 Jun 2022 11:53:35 GMT

The zero-Covid strategy by the Chinese government is slowing their economy. In a rare admission, officials have lowered their GDP growth estimate significantly, almost totally based on cities that aren’t working, especially ports.

This approach to contain the virus has been controversial with epidemiologists and doctors, and while seeming to be effective early in the pandemic, isolating cities has proven very hard and costly. Coupled with the lower effectiveness of Chinese vaccines and government refusal to use Western mNRA versions, zero-Covid shows little hope for improving their economic and pubic health future.

When it was first announced at the beginning of the pandemic, I was struck by how draconian and difficult to administer this policy was.

Recently I discovered such absolute isolation has a gruesome precedent. During the Great Leap Forward in 1958-62, China collectivized agriculture with truly disastrous results. Not only did production plummet as peasants were herded into collectives, but Mao Zedong insisted on continuing to export badly needed grain to keep up appearances of success. Of course, party officials were reporting grossly inflated harvest numbers to meet impossible goals demanded by the government.

Over that time historians have estimated 20-30 million Chinese starved, making it the largest man-made famine in history. Recent releases of local records have many historians raising that figure as high as 50 million unnecessary deaths. But medical experts have been puzzled why that famished population did not experience widespread plagues and diseases due to their weakened condition. The reason was what we are seeing now – immediate and total isolation of populations reporting such diseases.

This dictatorial approach is a tactic still in living memory for China, and as devastating as it was and is, may not be enough for Covid. Unlike in the 60’s however, China’s harsh treatment of its own people will have a substantial impact on the global economy as it will provide one-fifth, the largest share of global economic growth in the next 5 years.

With a million lives lost here in the U.S., we have our own sorry Covid history, but China’s on-going difficulty could soon spill into their politics. Watch the subtle and rare public debate between Premier Li Keqiang and Xi Jinping for clues.

U.S. Could Run Out of Money by Thursday if the Debt Limit Isn't Lifted

Tue, 17 Jan 2023 21:03:39 GMT

U.S. Treasury Secretary Janet Yellen sent up a warning Friday that the government could run out of cash as soon as mid-June if lawmakers don’t soon lift the roughly $31.4 trillion debt limit.

If the nation’s debt hits that marker — it’s on track to do so by this Thursday — the Treasury will need to take “extraordinary measures” to help pay for the government’s operations and ward off a historic default, including:

1. Redeeming existing, and suspending new, investments of the Civil Service Retirement and Disability Fund (CSRDF) and the Postal Service Retiree Health Benefits Fund (Postal Fund)

2. Suspending reinvestment of the Government Securities Investment Fund (G Fund) of the Federal Employees Retirement System Thrift Savings Plan.

According to Yellen, Congress has already provided Treasury the authority to implement the two steps. She says prior Treasury Secretaries have implemented the measures to reduce debt and make financing available.

However, she underscored how the measures are a bandaid for a bigger wound.

“While Treasury is not currently able to provide an estimate of how long extraordinary measures will enable us to continue to pay the government’s obligations, it is unlikely that cash and extraordinary measures will be exhausted before early June,” Yellen said in a letter to Speaker Kevin McCarthy (R-Ca.).

Failure to meet the government’s obligations would cause “irreparable harm” to the U.S. economy, the livelihoods of all Americans, and global financial stability, according to Yellen.

Read more: USDA is Making Additional CFAP 2 Payments

A House Divided

The obligations may go unmet, however, as some hardline House conservatives want to use “leverage” they think they have relative to the topic to garner reforms in the budget and spending process.

House Republicans face an internal fight on where to cut federal spending. The dispute pits GOP lawmakers who want to protect military spending against those who see such expenditures as fair game in any negotiations alongside cuts to domestic programs.

Republicans must also decide whether to pursue money-saving changes to Medicare and Social Security, which many would like to consider, despite being politically perilous.

Rep. James Comer (R-Ky.), who leads the House Oversight Committee, told CNN’s “State of the Union” that Republicans in the House “won’t budge” on their demands for spending cuts in exchange for raising the federal debt ceiling, noting that the GOP’s midterm campaign promises included getting “serious about spending cuts.”

Rep. Ro Khanna (D-Calif.), appearing separately on CNN, agreed that debates on future spending are “legitimate,” but “you don’t debate whether you pay your debts” and “you don’t debate the prestige of the United States.”

The Budget Plan

House Republicans are preparing a plan that would provide direction to the Treasury Department on how to prioritize the payment of U.S. debt should Congress and the White House fail to come to an agreement on raising the debt ceiling, according reports.

The early draft of the plan would instruct the Treasury to make only the most critical federal payments; Rep. Chip Roy (R-Texas) said House Republicans would pass the plan by the end of the first quarter of the year.

Read more: A Trade Panel Backed Mexico and Canada in a Dispute With the U.S.

Settling Differences Overseas

Meanwhile, U.S. Treasury Secretary Janet Yellen will meet with senior Chinese official Liu He this week to rekindle a relationship that accounts for much of the world’s economic activity but has grown tense over technology access, trade policy and Taiwan.

The pair will meet Wednesday in Zurich, where Yellen is stopping ahead of a multicountry tour through Africa that is aimed in part at countering China’s influence on the continent.

Liu, who is expected to step down from his post in March but is close to Chinese President Xi Jinping, is expected to attend the World Economic Forum in Davos, Switzerland.

The two sides arranged to meet in a third country while they are both abroad.

Bloom Fresh to license its protected plant varieties in China

Tue, 06 Feb 2024 21:46:36 GMT

Bloom Fresh International Ltd. says it will license its protected plant varieties to Chinese growers, having secured plant variety rights for 16 table grape varietals and registered trademarks for bestsellers like Cotton Candy, Sweet Sapphire and Sweet Globe.

The company also emphasized that is taking legal action against nurseries and growers who illegitimately use its proprietary varieties and trademarks.

Having successfully resolved enforcement cases in Yunnan, Jiangsu, Shaanxi, and Guangdong, Bloom Fresh highlighted in a news release the impact on both its rights and those of its Chinese licensees and consumers. Infringers create unfair competition for the company’s licensees, who pay for rights, while infringers illicitly gain advantages through stolen intellectual property, the release said.

Bloom Fresh said poor-quality infringing fruit negatively affects the market for high-quality, licensed fruit, as infringers do not receive authorized plant material or the benefit the company’s technical support and quality assurance systems. Infringing fruit also deceives consumers, as the quality does not align with Bloom Fresh’s specifications for licensed fruit, the release said.

Chinese Authorities, including the Local Agriculture and Rural Affairs Bureau and Administration for Market Regulation, support Bloom Fresh’s efforts in enforcing its intellectual property rights, according to the release. Bloom Fresh said it anticipates further cooperation with local authorities, communities and licensees to protect its intellectual property.

“Bloom Fresh aims to establish a win-win-win environment for itself, its licensees, and local communities,” Bloom Fresh CEO Kenneth Avery said in the release. “Creating such an environment relies on a healthy market that protects plant breeder rights and encourages the development of robust new varieties. Despite being a long and challenging process, Bloom Fresh is committed to supporting the industry in fostering a positive and healthy intellectual property environment.”

Zespri opens global hub in Singapore with fanfare

Wed, 25 Oct 2023 14:02:03 GMT

Zespri has recently officially opened its new Centre of Sales and Marketing Excellence in Singapore. First established in 2015, the facility is a vital hub for Zespri’s markets, as well as for connecting markets with growers in New Zealand and offshore, according to a news release.

The new office was completed in late 2020 but COVID-19 and associated travel restrictions in recent years delayed an official opening until now. Zespri CEO Dan Mathieson says the Singapore hub plays a critical role in Zespri’s ability to return value back to growers and communities.

“Our Centre of Sales and Marketing Excellence is the gateway to all of our major markets and the heartbeat of our sales and marketing strategy, supporting our 17 offices around the world, and it was brilliant we could have our growers join us for this important event after the extended COVID-enforced delay,” Mathieson said in the release.

New Zealand High Commissioner to Singapore Gabrielle Rush and New Zealand Trade Commissioner Maggie Christie attended the opening, along with around 60 growers from New Zealand as part of the first industry tour since COVID-19, which included visits orchards, packhouses and key markets in Europe, the release said.

Tauranga Moana Kaumatua Turi Ngatai blessed the office and bestowed a traditional Māori carving which symbolizes the connection to Zespri’s roots in the Bay of Plenty, where the majority of Zespri kiwifruit is grown. The office features several collaboration spaces and a base camp area where the New Zealand kiwifruit industry’s history is on display, with a mural demonstrating the connection between New Zealand and Singapore, where Zespri has been selling kiwifruit for more than 30 years, according to the release.

“The hub has been pivotal in the ongoing strengthening of our brand, including the global roll-out of our successful KiwiBrothers campaigns, which has helped us grow demand and attract new consumers, and we’re looking forward to this continuing in the years ahead,” Mathieson said.

Mathieson says Zespri had been able to recruit several sales and marketing experts from the fast-moving consumer goods sector as it continued to invest in strengthening the way it sells kiwifruit and the Zespri brand.

“The hub and the people we’ve been able to attract has been pivotal in accelerating our growth over the past eight years, including changing the way we partner with our distributors and retailers, which has enabled us to return more value back to our industry,” he said. “Our sales and marketing programs have been a key driver of value creation in the category which has seen Zespri’s total global kiwifruit sales increase from $1.9 billion in 2015-16 to $3.92 billion last year.”

Māori Kiwifruit Growers Inc. grower Geoff Rolleston attended the opening and said the event reinforced and celebrated the important cultural connections between Māori, New Zealand growers and the Zespri teams, which are truly multicultural.

“The sharing of culture strengthens the partnerships and connection and it’s these long-term relationships that underpin the success of the industry and the connection to people and communities,” Rolleston said in the release.

Bay of Plenty kiwifruit grower Ray Sharp said in the release that it’s important for growers to see the work that takes place across the markets to bring kiwifruit and the Zespri brand to life for consumers and customers. The Centre of Sales and Marketing Excellence now plays a leading role with some very talented people, he added.

IMF Anticipates Global Inflation Will Peak in Late 2022

Tue, 11 Oct 2022 18:10:47 GMT

The International Monetary Fund forecasts a slowdown in global growth from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.

The global slowdown in 2022 is as projected in the July 2022 World Economic Outlook (WEO) update, while the forecast for 2023 is lower than projected by 0.2 percentage point. In the revised forecasts , 93% of countries received downgrades to their growth outlook.

More to Come

Aside from the global financial crisis and the peak of the Covid-19 pandemic, this is “the weakest growth profile since 2001,” the IMF said in its WEO published Tuesday morning.

“The worst is yet to come, and for many people 2023 will feel like a recession,” the report said, echoing warnings from the United Nations, the World Bank and many global CEOs.

Cause for Shift

The IMF noted three major events currently hindering growth: Russia’s invasion of Ukraine, the cost-of-living crisis and China’s economic slowdown. Together, they create a “volatile” period economically, geopolitically and ecologically.

More than a third of the global economy will see two consecutive quarters of negative growth, while the three largest economies — the United States, the European Union and China — will continue to slow, the report said.

Inflation Timeline

The IMF anticipates global inflation will peak in late 2022, increasing from 4.7% in 2021 to 8.8%, and that it will “remain elevated for longer than previously expected.”

Global inflation will likely decrease to 6.5% in 2023 and to 4.1% by 2024, according to the IMF forecast. The agency noted the tightening of monetary policy across the world to combat inflation and the “powerful appreciation” of the U.S. dollar against other currencies.

Red Flags

The IMF also highlighted that the risk of monetary, fiscal, or financial policy “miscalibration” had “risen sharply,” while the world economy “remains historically fragile” and financial markets are “showing signs of stress.”

In an interview with the Financial Times , Pierre Olivier Gourinchas, the IMF’s chief economist, said there was as much as a 15% chance global growth could fall below 1% eventually. This level would likely meet the threshold of a recession and would be “very, very painful for a lot of people.”

“We are not in a crisis yet, but things are really not looking good,” he said, adding that 2023 would be the “darkest hour” for the global economy.

The energy crisis is also weighing heavily on the world’s economies, particularly in Europe, and it “is not a transitory shock,” according to IMF’s report. “The geopolitical re-alignment of energy supplies in the wake of Russia’s war against Ukraine is broad and permanent,” the report added. “Winter 2022 will be challenging for Europe, but winter 2023 will likely be worse,” the IMF said.

The U.S. economy is expected to stagnate over the four quarters of 2022 and then maintain a sluggish 1% growth rate in 2023.

More on inflation:

Could Food Prices Ease in 2023? USDA’s New Consumer Food Price Forecast Has a Bit of Good News
Is Out-of-Control Inflation on the Horizon? Watch These Two Indicators
John Phipps: The Inflation We Expect

Trump Cabinet nominees now up odds for expanding U.S. trade/economic war with China

Wed, 20 Nov 2024 16:08:23 GMT

President-elect Donald Trump’s selection of Howard Lutnick, the CEO of Cantor Fitzgerald, as commerce secretary highlights plans to leverage tariffs in trade negotiations, with Lutnick emphasizing their use as both a revenue source and bargaining tool.

Lutnick has called the tariffs a negotiating tool that could be used to convince other countries to bring down their own levies or to force companies to move production to the U.S. He has said Trump would avoid taxes on products U.S. companies don’t make.

Commerce oversees the International Trade Administration, an agency in charge of enforcing trade laws and investigating unfair trade practices.

The appointment raises questions about the role of Robert Lighthizer, a prominent China hawk and decoupling advocate, who might still secure a key position such as National Economic Council leader or ambassador to China. The nomination marks Lutnick’s transition from co-chair of Trump’s transition team to a pivotal role in shaping U.S. economic policy.

Of note: Trump said that the commerce secretary would have “additional direct responsibility for the office of the U.S. trade representative.” The phrase means that Trump may try to fold the latter position within the Commerce Department, a move that has been tried before to combine government trade work.

Trump’s trade agenda is heavily focused on imposing substantial tariffs, particularly targeting China. He has proposed a 60% tariff on Chinese goods and 10% to 20% tariffs on imports from other countries. Lutnick has been a vocal supporter of these tariffs, suggesting they could replace income tax revenue over time. He believes that by making U.S. businesses more competitive through tariffs, it could lead to lower overall tax rates.

Lutnick’s vision aligns with Trump’s historical approach to trade, which emphasizes protectionism to bolster U.S. manufacturing and reduce reliance on imports. During a recent rally, Lutnick remarked that U.S. economic prosperity in the early 1900s was due to tariffs rather than income taxes, indicating his belief in a return to such policies. Lutnick has said the incoming administration would use tariffs as a bargaining chip with other countries. “We’ll make a bunch of money on the tariffs, but mostly everybody else is going to negotiate with us,” he said on CNBC.

Lutnick’s appointment signals an aggressive stance on trade that could lead to increased tensions with trading partners. The Commerce Department plays a crucial role in enforcing tariffs and negotiating trade agreements, which may become contentious under Lutnick’s leadership. Economists have expressed concerns that such high tariffs could lead to retaliatory measures from other nations, potentially resulting in higher prices for consumers and disruptions in global supply chains.

On China, Lutnick has accused the country of being the source of fentanyl in the U.S., saying that “China is attacking America from its guts.” Kevin Chen, associate research fellow at the S. Rajaratnam School of International Studies, told the South China Morning Post, “There is little question that he will push forward with tariffs That being said, he has also suggested that the tariffs could be used to negotiate trade deals with other countries,” he said. Chen suggested that the choice of Lutnick — alongside other China hawks joining Trump’s team including Marco Rubio as secretary of state and Mike Waltz as national security adviser — could be “very dangerous for U.S./China relations” given the Commerce Department’s oversight of export controls.

“Lutnick is likely to focus tariffs on China’s manufacturing sector, especially for goods that the U.S. already produces. The likelihood of this leading to another U.S./China trade war is too high to ignore,” he said. “Lutnick fits in well with the trend of Trump’s cabinet picks … [as] he’s a China hawk who shares Trump’s strong views on the threat posed by China and how to address it.”

Asked about Lutnick’s nomination, Chinese foreign ministry spokesman Lin Jian said he would not comment on U.S. internal affairs but added that a trade war “will not produce any winner and is in no one’s interest.”

Treasury secretary possibilities

Trump is taking a closer look at Sen. Bill Hagerty, (R-Tenn., to potentially serve as treasury secretary, Axios reports. Hagerty, a former private-equity investor who was Trump’s ambassador to Japan, is one of three apparent finalists, along with former Fed governor Kevin Warsh and Apollo CEO Marc Rowan. The treasury position is key as the Cabinet member will play in a key role in major issues, including:

Rising federal debt.
Enacting Trump’s tax cut plan.
Helping implement Trump’s tariff plans.
Coming up with pay-for plans.
Keeping inflation low.
Implementing 45Z and other biofuel tax incentive programs (IRS).

U.S. businesses brace for potential Trump tariffs

U.S. companies are accelerating inventory orders ahead of Trump’s inauguration, fearing the implementation of his proposed tariffs on imports. Trump has suggested levies of 10% to 20% on all imports and up to 60% on Chinese goods. Firms are also strategizing for potential impacts, including price adjustments and diversifying away from Chinese manufacturers, the Wall Street Journal reports ( link ).

Tariffs and pricing impacts

Walmart acknowledged the retailer would probably raise prices on some goods if Trump moves forward with plans to enact sweeping tariffs. Walmart Chief Financial Officer John David Rainey stated that prices on some items may increase but it is uncertain which products might see price hikes due to the tariffs. A Walmart spokesperson indicated that any price changes are speculative, but future tariff-induced costs could burden sensitive shoppers.

Lowe’s words were more circumspect, with the home-improvement retailer’s executives noting tariffs would lift costs but also saying they were waiting to see what happens when the new administration takes office in January.

Walmart said shoppers are resilient but are still spending more on food than they have historically.

Lowe’s said homeowners are still waiting for lower interest rates to embark on big home-improvement projects.

Your Next Read: Could Trump actually be good for U.S. ag trade?

Legislation introduced to ban Chinese citrus imports

Fri, 23 Sep 2022 18:33:09 GMT

Legislation has been introduced in the U.S. House to prohibit imports of fresh citrus from China.

Rep. Greg Steube, R-Fla., has introduced the U.S. Citrus Protection Act . The legislation, according to a news release, would prohibit the importation of commercially produced fresh citrus fruit from China.

“As farmers and ranchers in Florida and across the country are struggling to cope with the decreased demand for their products as a result of the economic shutdowns, more than ever we need to put America first and cannot give foreign entities a competitive advantage,” Steube said in the release.

“Communist China is responsible for the COVID-19 outbreak and subsequent economic damages that have impacted our nation’s farmers, and now they are trying to profit off of our hardship.”

Despite consistent long-term opposition from some U.S. citrus leaders, the U.S. Department of Agriculture in mid-April approved U.S. imports of Chinese pummelo, nanfeng honey mandarin, ponkan, sweet orange, and satsuma mandarins.
USDA scientists said they believe the Chinese citrus varieties can be safely imported into the U.S. under a systems approach to protect against the introduction of plant pests.

The USDA’s decision sparked opposition from Florida officials.
In an April 21 letter to Agriculture Secretary Sonny Perdue, Florida Agriculture Commissioner Nikki Fried called the decision to allow Chinese imports a “misguided policy change,” during the COVID-19 pandemic, and that it poses a risk to Florida’s citrus industry and other crops.

Related articles

USDA approves imports of fresh citrus from China

Florida ag commisioner calls for USDA to deny Chinese citrus

UPDATED: USTR delays some tariffs on Chinese goods

Thu, 22 Sep 2022 02:13:59 GMT

(UPDATED, Aug. 14) Sparking a 400-point rally in the Dow Jones Industrial Average, the United States Trade Representative said Aug. 13 the U.S. will delay tariffs on some imports from China until Dec. 15.

The three-month delay from the previous effective date of Sept. 1 will apply to a 21-page list of Chinese products, including live mushroom spawn, nuts, selected vegetables, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing, according to a news release.

Tom Nassif, president and CEO of Western Growers, welcomed the Trump administration’s move to reduce trade tension with China.

“While news accounts have documented the impact of this conflict on our agricultural friends in the Midwest, make no mistake this trade conflict is having a significant and negative impact on the produce sector,” Nassif said in a statement. “In particular, the tree nut industry and the fruit orchards within our membership are seeing lower demand and hence lower prices. “

Nassif said Western Growers invites “any efforts by our government to work with the Chinese to resolve trade disputes.”

One mushroom industry contact said the delay in tariffs won’t mean much to U.S. growers.

“U.S. mushroom growers are facing increased production costs in the industry due to climate volatility, continued labor issues, changes in consumer preferences, and transportation expenses,” Lori Harrison, director of communications tor the American Mushroom Institute, said in an email. “The proposed 10% tariff increase on Chinese import logs will not have a substantial impact on U.S. mushroom growers.”

The USTR said certain products from China are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10%.

In an ongoing trade war with China, President Trump said Aug. 1 that the U.S. would impose an additional tariff of 10% on approximately $300 billion of Chinese imports.

In mid-May, the USTR published a list of products imported from China that would be potentially subject to an additional 10% tariff. The new tariff will still go into effect on Sept. 1 for a 122-page list of items published on the USTR website on the USTR website.

CNBC reported that U.S. and Chinese officials held phone conversations Aug. 13 and will talk again within two weeks to attempt to resolve the long-running trade dispute.

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Chilean cherry exports to China rising as U.S. imports drop

Thu, 22 Sep 2022 02:13:59 GMT

Led by fast-rising imports of cherries , China is claiming a greater share of Chilean stone fruit exports.

Chile’s cherry acreage has grown at a 10% annual rate over the past five years, and a new U.S. Department of Agriculture report said cherry production and exports also are headed higher fast — with most of that volume destined for China.

The USDA report on Chile’s stone fruit outlook said cherry acreage reached 91,500 acres in 2018-19, up from about 32,000 acres in 2010-11.

Chilean cherry growers sent 87% of their total 180,000 metric tons in exports to China in 2018-19, according to the report. The U.S. was the second biggest export destination, but only accounted for 2.7% of total Chilean cherry exports.

As more cherry trees mature, the USDA projects cherry exports in 2019-20 will increase 15%, rising to 207,000 metric tons.

The USDA report said Chilean exports to China will continue to increase in response to rising demand.

On the other hand, Chilean cherry exports to the U.S. dropped by 36% in 2018-19 compared with 2017-18, according to the USDA. Total Chilean exports to the U.S. in 2018-19 totaled 4,852 metric tons.

The third-ranked export market for Chilean cherries is South Korea, which imported 4,147 metric tons 2018-19, up 56% from the previous year.

Other fruit

Chilean fresh peach and nectarine acreage was estimated at 18,350 acres in 2018-19, according to the report.

Chilean nectarine exports have shifted rapidly from the U.S. to China after gaining market access in 2016. For 2019-20, the USDA said planted area of peaches and nectarines will remain steady, while exports will increase 1% to 98,300 metric tons.

The report said the top market for Chilean peach and nectarines is the U.S., but that may soon change. Chilean exports to the U.S. totaled 34,847 metric tons in 2018-19, but that was down 8% compared with the previous season.

On the other hand, Chilean peach and nectarine exports to China surged 30% in 2018-19, totaling 20,000 metric tons, according to the report.

T&G Global expands Orchard Rd brand in Asia

Tue, 15 Nov 2022 07:41:02 GMT

Hoping to bring the same excitement to the grape category as it did to apples with Jazz and Envy, T&G Global is moving into grapes with its Orchard Rd brand.

The New Zealand company is launching the brand in Southeast Asia, and has been working with growers in the U.S., Peru, Chile and Australia in preparation to providing a year-round grape program. The company has been trading under various brand names in several markets, T&G Global CEO Gareth Edgecombe said in a news release.

“We will leverage our global T&G sales network, utilize the relationships we have built up via our premium apple business, enhance our quality-control processes in farm and in-market, optimize the worldwide supply chain and invest in marketing, all to differentiate ourselves in the crowded grape marketplace,” Edgecombe said in the release.

The company is partnering with four California growers, along with others in South America and Australia to supply retailers in Singapore, Vietnam, Hong Kong, Taiwan, Indonesia, as well as Australia, New Zealand, Fiji, South Korea, Japan and soon, China, according to the release.

The company has an in-market sales team in China and has opened an office in Vietnam, with more Asian offices planned, according to the news release. Branded point-of-sale materials, packaging and sampling programs are features of the Orchard Rd marketing in different markets, according to the release.

The Orchard Rd brand started in 2018 for grapes, berries and kiwifruit in Australia.

T&G Global has plans to grow the premium branded grape sales substantially, according to Edgecombe in the release.

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Promising trade gains, U.S. signs phase one trade agreement with China

Fri, 13 Nov 2020 06:23:44 GMT

The phase one trade agreement signed by the U.S. and China Jan. 15 will deliver potential trade gains for U.S. growers of potatoes , blueberries , avocados , and other crops.

However, the deal does not immediately address existing punitive retaliatory tariffs imposed by China on U.S. fruits and vegetables.

Industry leaders welcomed the news but acknowledged more progress is needed to restore trade with China. U.S. Department of Agriculture trade statistics indicate U.S. fruit exports to China of $120 million in 2019 were nearly 50% less than 2017.

Ryan Talley, Western Growers board chairman and partner at Talley Farms, was at the White House for the signing of the phase one trade agreement.

“On the heels of other recent trade gains with Japan, Mexico, and Canada, the phase one agreement represents constructive progress in the effort to rebalance our nation’s trade relationship with China,” Talley said in the statement.

While American growers have suffered double-digit declines in exports to China because of retaliatory tariffs, Talley said Western Growers is optimistic the industry will eventually see expanded access to the Chinese market.

Jim Bair, U.S. Apple Association president and CEO, also attended the signing ceremony.

“We congratulate the administration for negotiating and concluding this important agreement and look forward with expectation that China’s retaliatory tariffs on our apples will be removed,” Bair said in a statement. “China doesn’t grow the new and exciting varieties we do, and we know their consumers want them, so we’re ready to roll.”

Randy Giumarra, California Fresh Fruit Association chairman and vice president of sales at Giumarra Vineyards, also attended the ceremony. While the new agreement doesn’t drop tariffs, it’s a step in regaining lost markets, Giumarra said in a statement.

“It is a promising first step which we are confident will result in lower tariffs and increased grape and stone fruit sales to this valuable market,” Giumarra said in the statement.

According to the California association, grape exports to China dropped 83% in 2019, compared to the previous year.

Details

As part of the agreement, China has agreed to purchase between $40 and $50 billion in American agricultural goods each year for two years.

According to the U.S. Trade Representative website , U.S growers will benefit from new opportunities to “export multiple products, such as fresh potatoes, California nectarines, blueberries, and California hass avocados” to China.

China has agreed to sign and implement phytosanitary protocols with the U.S. to allow imports of:

California nectarines;
Blueberries;
California hass avocados and
Fresh potatoes for processing.

The U.S. has agreed to complete plant health regulatory process to import fresh Chinese citrus, jujubes and fragrant pears, according to the U.S. Trade Representative. The U.S. and China have agreed that phytosanitary certificates are not required to import frozen fruits and vegetables.

Export opportunity

Kam Quarles, CEO of the National Potato Council , weighed in on the development and other trade news Jan. 15 at the 2020 Potato Expo in Las Vegas.

“When you look at just the last very few weeks, it looks like we’re going to get USMCA (passed by the Senate Jan. 16), we got the China signing today, and we have had the Japan trade agreement ratification,” he said. “There is little more optimism that the trade (issues) are going to start to settle down.”

John Toaspern, chief marketing officer of Potatoes USA , said the potato industry, including the efforts of the National Potato Council, state organizations and Potatoes USA, has been seeking China access for fresh potatoes for processing for about 20 years.

“We have gone through ups and downs and there were points where we thought we were getting close and then we would fall off.” he said. “We have been working on this for a long, long time.”

Matt Lantz, vice president of global access for Bryant Christie Inc., has worked for many years with the industry in negotiations to open the Chinese market. Lantz said the phase one agreement calls for plant health officials in the U.S. and China to sign and implement phytosanitary protocol for the importation of U.S. fresh potatoes for processing into China within seven working days of when the agreement goes into force. The phase one agreement will be implemented Feb. 14, and final details should be wrapped up by Feb. 25, Lantz said.

“We need a market access protocol, and it has to include provisions that we can meet,” he said, noting there are a handful of issues that need to be resolved from a draft agreement on potato access reached last February.

“We hopefully will finish all this up, and we’ll be able to make an announcement on February 25,” he said.

Toaspern said the China market represents big potential.

“The snack food industry in China has been growing exponentially, and they are in a level of economic development that lends itself to lots of increase in disposable income around snacking,” he said.

While China grows potatoes, it doesn’t have a year-round supply, closing plants for four or five months at the end of the season..

“What we’ll be able to do is meet the unmet demand there right when they start to run out,” he said.

Toaspern said it is not certain when China’s 10% retaliatory tariff on U.S. frozen potatoes and a 20% to 30% increase on U.S. dehydrated potatoes will end.

“The fact that the European Union had lower supplies this last year helped mitigate that a little bit, or I think we would have seen greater sales losses,” Toaspern said. “Unfortunately, this phase one agreement does not eliminate those tariffs.”

Quarles said the longer-term hope is that the phase one agreement is one step toward the removal of the retaliatory tariffs. “The assumption is that since hopefully cooler heads are prevailing, it allows both sides to save face and eventually back away from these tariffs.”

Broader deal

According to the White House, provisions in the broader 96-page agreement :

Address structural barriers that have unfairly limited U.S. food and agricultural exports;
Include significant commitments by China on accepting U.S. agricultural biotechnology products;
End China’s practice of forcing foreign companies to transfer technology to Chinese companies to gain market access;
Address numerous intellectual property concerns on trade secrets, trademarks, and pirated and counterfeit goods;
Include commitments on China’s currency practices on devaluations and exchange rates; and
Address trade and investment barriers to American financial services companies competing in China.

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China deal offers no immediate breakthrough

China to cut tariffs on U.S. fruit but virus worries escalate

Fri, 13 Nov 2020 06:27:19 GMT

China will allow its importers to apply for substantial tariff relief on U.S. fruit starting in early March.

Even so, worries about the effect of the expanding coronavirus are taking off some of the shine from that report.

“The latest that we have heard is that the import tariffs for all U.S. fruits will be reduced to 25%, starting from March 2,” said Rebecca Lyons, international marketing director for the Washington Apple Commission, Wenatchee, Wash. Chinese importers have to apply online for the tariff exclusion, she said.

That reduction of tariffs on U.S. fruit is less than half of Chinese retaliatory tariffs at their peak of 60%, but still higher than in early 2018 when the U.S.-China trade war began.

“It is certainly good news,” Lyons said, “We won’t be down to the original 10% but it is better to be at 25% than 60%.”

The U.S. Department of Agriculture has not yet confirmed China’s tariff reduction; news so far has come from the commission’s Chinese marketing representatives, she said.

Lyons said the spread of the coronavirus has caused some retailers in Taiwan to pull back from in-store promotions.

“As you can imagine, stores are saying (they) don’t want to do any sampling,” Lyons said.

In response, Lyons said the apple commission is increasing consumer advertising rather than face-to-face activities.

“We’re having to be very flexible and nimble when we look at our promotional program and how we how we react to the latest news out of out of China,” she said.

In general, U.S. export apple promotions in China are beginning to wind down as the Southern Hemisphere export season draws closer.

Apple exports to China so far this year, Lyons said, are down 21% compared with a year ago and off 50% from two years ago.

Orange sunshine

The same good news-bad news dynamic was at play for California orange exporters, said Casey Creamer, president and CEO of California Citrus Mutual , Exeter.

California Citrus Mutual reported on its website that China’s tariffs on U.S. oranges on Sept. 1 of last year totaled 70%, but after the pending March 2 tariff exclusion, those tariffs are expected to fall to 35%.

But Creamer said Feb. 25 that Chinese importers were still unclear on some aspects of the program, and citrus handlers were hoping that the March 2 exclusion would be followed by removal of the remaining retaliatory tariff.

Coronavirus concern

Creamer said there is a lot of uncertainty in China regarding the coronavirus, and that’s affected the supply chain.

“(Chinese officials) have instructed their people to stay indoors,” he said, adding that the lack of port workers and shipping containers has caused cargo disruptions.

The coronavirus comes at a bad time for California citrus exporters, he said.

“If we don’t get this thing straightened out in the next 30 days, we’re missing our major window for export,” he said. “We’re getting excited about regaining some market share, but the coronavirus is holding us back at this time.”

Creamer said the livelihood of growers depends on better days.

“Unfortunately, if it doesn’t correct itself here very soon, and you’re going to start seeing a lot more properties going up for sale and people getting out of the business.”

Potato chip breakthrough

As part of the U.S.-China Phase One Economic and Trade Agreement, the USDA said China will allow imports of U.S. fresh chipping potatoes from Washington, Oregon, and Idaho. It’s the first time fresh U.S. potatoes have been allowed into China, albeit for the processing market.

In a news release, National Potato Council vice president of trade affairs Jared Balcom thanked the USDA’s Animal and Plant Health Inspection Service, Foreign Agricultural Service and the U.S. Trade Representative’s office.

“Today’s announcement is 20 years in the making and will allow Chinese consumers for the first time to enjoy potato chips sourced from high-quality U.S. fresh potatoes.”

The NPC said China is top 10 export market for U.S. potatoes and could grow substantially with better market access.

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China running behind on promised imports of U.S. goods

Fri, 13 Nov 2020 06:35:58 GMT

China is running well behind on its promised purchases of U.S. goods and services in the first quarter of 2020, raising trade tensions between the two countries.

The news, plus continuing friction over the status of Hong Kong and China’s role in the spread of the coronavirus, comes at a time when some U.S. fruit exports are showing gains in the China market and fresh fruit industry leaders are expressing more optimism about trade growth.

According to an analysis by S&P Global Market Intelligence , China was $20 billion short of its promised purchases of U.S. goods and services in the first quarter.

China’s leaders in January agreed to more than double its imports of U.S. goods, promising to buy extra $200 billion-plus compared to 2017 levels throughout 2020 and 2021.

The analysis by S & P Global showed that China would need to buy nearly $12 billion in U.S. imports every month; its imports in March were just more than $5 billion.

Export rebound?

U.S. Department of Agriculture trade statistics show that U.S. orange and tangerine exports to China in March totaled $8.5 million, up from $5.5 million a year ago.

U.S. apple exports to China in March totaled $752,000, less than half the amount in March 2019.

Northwest U.S. fruit exporters are currently enjoying a positive trade relationship with China, said Mark Powers, president of the Yakima, Wash.-based Northwest Horticultural Council .

With China allowing importers to apply for tariff rate exclusions on U.S. agricultural commodities, Powers said U.S. fruit exporters were able to ship to China with a 25% tariff in May, compared with 60% at the same time a year ago.

“We, as an industry, are still selling apples to China and are looking forward to a positive and productive cherry season,” Powers said. “China is so important to our industry; we have an important customer base there.”
B.J. Thurlby, president of Northwest Cherries , said early reports show good demand from China for California cherries , which is a good sign for just-beginning Northwest cherry exports.

“We’ve been watching California export numbers, and they’ve been normal to up a little bit, at least in the key markets, which for us will be Korea, Taiwan, China, and Vietnam,” Thurlby said.

Other gains

The USDA also recently said that China has opened its market to U.S. blueberries grown in 11 states and California avocados.

The U.S Department of Agriculture reported that both counties have signed protocols to allow the U.S. to export blueberries and California hass avocados into China. U.S. blueberry exports to China could total $62 million annually, according to the release.

For California hass avocado producers, the USDA said access to the Chinese market will be worth an estimated $10 million per year.

The Packer’s China Updates

The Packer’s COVID-19 Updates

China demands COVID-19 declaration on U.S. exports

Fri, 23 Sep 2022 18:07:58 GMT

Chinese customs officials are demanding U.S. ag exporters sign a form guaranteeing their exports are free from COVID-19, trade and government reports say.

That demand has sparked pushback from trade industry leaders and the Trump administration.

“The recent move by Chinese authorities to require a statement of undertaking for food importers is not based on any legitimate food safety concern,” according to a statement from Western Growers president and CEO Dave Puglia.

Western Growers members and exporters of table grapes, apples, nectarines, almonds and pistachios are among those who have been asked to sign the form, said Cory Lunde, senior director of strategic initiatives and communications for Western Growers

“Our food system is the safest in the world, and the known science behind the transmission of COVID-19 is inconsistent with the Chinese government’s call for more restrictive food safety-related trade measures,” Puglia said in the statement.

“Indeed, the very food safety guidance referenced in the required statement — issued by the United Nations and World Health Organization — affirms that there is ‘no evidence to date’ of COVID-19 being transmitted through food or food packaging. This point is important for our domestic consumers to remember, as well.”

Efforts by some countries to restrict global food exports related to COVID-19 transmission are not consistent with the known science of transmission of COVID-19, Agriculture Secretary Sonny Perdue and Food and Drug Administration Commissioner Stephen Hahn said in a joint statement.

“There is no evidence that people can contract COVID-19 from food or from food packaging. The U.S. food safety system, overseen by our agencies, is the global leader in ensuring the safety of our food products, including product for export,” Perdue and Hahn said in the statement.

Puglia said the viability of many U.S. farms depends on international trade with key partners like China.

“At a time when American farmers are still trying to dig themselves out of a coronavirus-induced financial hole, it will be difficult for the industry to absorb further losses due to unfounded demands like this,” he said in the statement. “We are aware that the Trump administration has objected to

China’s actions and request that the administration continue to pressure the Chinese government until it reverses this ill-timed and scientifically indefensible trade barrier.”

The Washington D.C.-based Agriculture Transportation Coalition said in an e-mail to members that U.S. exporters are reluctant to sign the General Administration of Customs China form guaranteeing their exports are free from COVID-19.

“Instead, some (coalition) members report that they are sending their own ‘Commitment Statements’ along with the cargo,” according to the e-mail. “While China Customs has not confirmed that these statements are acceptable substitutes for the official form, we are hearing that exporters sending these statements have not encountered any issues so far with their customers clearing cargo in China,”

The Packer’s COVID-19 Updates

The Packer’s China Upates

U.S. blueberries, avocados gain access to China

Fri, 13 Nov 2020 06:35:14 GMT

U.S. blueberries grown in 11 states and California avocados now have access to the Chinese market as a result of the U.S.-China Phase One Economic and Trade Agreement.

The U.S Department of Agriculture reported that both counties have signed protocols to allow the U.S. to export blueberries and California hass avocados into China. Other commodities approved for export include barley for processing, almond meal pellets and alfalfa hay pellets and cubes, according to a news release.

New access

U.S. blueberry exports to China could total $62 million annually, according to the release.

USDA officials and Chinese plant health officials signed a work plan in May outlining the pest screening measures that blueberry producers must comply with to ship to China.
Fresh blueberries from Florida, Georgia, Indiana, Louisiana, Michigan, Mississippi, New Jersey and North Carolina may be exported to China after treatment, according to the release. Blueberries from California, Washington and Oregon can export to China if growers use a systems approach to control pests.

For California hass avocado producers, the USDA said access to the Chinese market will be worth an estimated $10 million per year.

Chinese and U.S. officials signed a work plan in April describing the measures California producers and shippers must comply with before they ship fruit to China. The release said China’s agriculture agency has published the import requirements and also posted an approved list of California shippers to their website. Those shippers can begin to export now, the USDA said.

The Packer’s Blueberry Coverage

The Packer’s Avocado Coverage

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Feel the chill: U.S. and China can’t get past trade tensions

Fri, 23 Sep 2022 18:08:38 GMT

Are the U.S. and China headed for a “cold war”?

That seems to be the tone of recent media coverage , as various pundits have pointed out that China is ill-positioned to satisfy its promises to buy $200 billion more in U.S. goods over the next two years than it bought in 2017.

The cynic may say it is in the political interests of President Trump to keep China cast as a bad actor as his presidential campaign picks up speed.

That wouldn’t be a great development for U.S. fruit growers, who would like to see recent trends of increased shipments to China continue. (see chart below)

On another note, the U.S. Department of Agriculture’s Economic Research Service has a new feature called “ Selected Weekly Fruit Movement and Price .”

The report describes the change in shipment volume, farm prices, and retail prices of select fruit for the week noted.

Comments are due June 22 for the docket on rules to implement the Coronavirus Food Assistance Program . So far, about 90 comments, most seeking some change to the program. The USDA rule establishes provisions for direct payments to producers of eligible commodities.

One example of the sometimes unlikely comments:

Please add bananas to the list of specialty crops covered. Here in Hawaii many farmers specialize in bananas and we grow many different banana varieties. As markets shut down, these farmers (including us) suffered a lot of loses and would really appreciate if the government heard our voices.

Notable links
India COVID-19 retail update

COVID 19 Thailand update

Japan COVID 19 Retail Report

Check out a few charts show U.S.-China trade through in various ways.

Rocky trade backdrop greets McKinney speech at U.S. Apple meeting

Fri, 13 Nov 2020 06:10:58 GMT

CHICAGO - With the apple industry racked by trade troubles with India and China, U.S. Agricultural Trade Under Secretary Ted McKinney had a tough audience when he spoke Aug. 23 at the U.S. Apple Association Marketing and Outlook Conference.

While acknowledging the Trump administration has a part in the trade war with China and India, McKinney said the ultimate White House objective is to have fair and free trade.

“We have a lot of trade disputes going on now, and I fess up, we’re part of that,” he said. “But I do profess that we’re just trying to straighten it out, set the bar straight, and set up a level playing field so it is free and fair trade around the world,” he said, stating several times that the U.S. believes in “win-win” trading relationships.

McKinney joked he was taken out to dinner the previous night by representatives of the Washington Apple Commission and the heavy makeup he was wearing was because of the “bruising” conversation with apple leaders.

The apple industry has lost out on millions in export sales to China because of that country’s retaliatory tariffs on U.S. apples. Export sales to China were $13.6 million in 2018, down from more than $24 million in 2015.

“We hope we can mitigate (trade losses)as quickly as possible,” McKinney said. “No one more than I, no one more than Secretary Perdue, and even no one more than our President wants to get to trade on a level and balanced field, and get rid of the tariffs,” he said. “But it takes two to tango.”

McKinney said that President Trump wanted to address the precarious position of the U.S. steel and aluminum industry when he came into office.

“You don’t want to have (other countries) single-handedly controlling something as basic as (the steel industry,” he said. “That’s what has led to those tariffs; we had to start bringing those industries back to life,” he said.

McKinney said he believes the Trump administration has “nearly” reached its objective and can soon bring tariffs down. In addition, he said President Trump has asked U.S. trade negotiators to seek out bilateral deals. McKinney said the U.S. may be close to announcing a bilateral trade deal with Japan.

As part of the agency’s trade mitigation program, the Trump administration also has provided several million dollars to apple groups to expand global marketing efforts.

McKinney said the Trump administration does not intend on buckling to China’s retaliatory tariffs.

“This is not the time we can retreat and see all of our efforts go waste,” he said.

India’s retaliatory tariff of 20% of U.S. apples, combined with its regular tariff of 50%, has crippled exports to that market. USDA statistics show that exports of U.S. apples to India from January through June this year totaled $50 million, off 67% from $151 million for the same period in 2018.

McKinney is bullish on trade with India over the “very long term” but said prospects were uncertain for immediate tariff relief for U.S. apple exporters.

Despite the trade troubles now, McKinney reminded the audience that meeting global food needs won’t be easy in the coming decades. With 7 billion people on the planet now about 10 billion expected by 2050, he said producers will have to double output in the next three decades. That will mean embracing technology and trade to help make it happen.

McKinney said the passage of the U.S. Mexico Canada Agreement by Congress is critical to yield further trade progress.

“I think (passage of USMCA) brings certainty to those of you who are struggling to get certainty in your lives, with all the trade disputes like a lot of plates spinning up on those rods,” he said. “For goodness sake, let’s bring one plate down, clean it up very nicely, put it on the shelf and say let’s go do business like normal,” he said.

Expanded U.S. trade with the United Kingdom is possible in the coming months, with the likelihood of a “hard” Brexit from the European Union by Oct. 31. Expanded trade with the “protectionist” European Union is unlikely, he said.

“We’re preparing to do everything we can to help lift up our friends in the United Kingdom,” he said,

McKinney praised the global nature of the U.S. Apple event. “You are coming together and covering issues as a team,” he said. “I hope you keep it up; I will be your biggest fan.”

Jim Bair, president of the U.S. Apple Association, praised McKinney for his willingness to speak to the apple industry, despite trade troubles.

“I just want to say in front of the apple industry that I want to congratulate you and compliment the administration for its transparency and willingness to meet... even if we don’t agree with the end of the conversation,” Bair said.

Judge rules Chinese company infringed on Zespri kiwifruit

Fri, 13 Nov 2020 06:26:20 GMT

A judge has ruled that New Zealand kiwifruit company Zespri’s claims that a Chinese company illegally propagated its fruit is valid.

The lawsuit, filed in 2018, said Haoyu Gao and Xia Xue, a husband and wife whose company is Smiling Face Ltd., propagated two varieties of kiwifruit belonging to Zespri, including SunGold.

The court also ruled the defendants allowed other growers to grow the kiwifruit, although they had no licensing rights, according to a news release from Zespri. The judge also fined Smiling Face $15 million.

“This is an important decision for New Zealand’s kiwifruit growers, as well as for other New Zealand horticultural businesses, giving them the confidence that if they continue to invest in research and development to create value for New Zealand they will have protections against those who seek to undermine that,” Dave Courtney, chief grower and alliances officer said in the release.

Zespri’s investigation has identified associates of Haoyu Gao and others who misled Chinese investors and growers, according to the release. The kiwifruit company said the ruling is a positive step in China’s efforts to stop intellectual property infringement.

“A critical aspect of the court’s decision was the recognition of the multi-lateral standards of protection that are afforded all International Union for the Protection of New Varieties of Plants (UPOV) members,” Courtney said in the release.

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U.S. Fruit and Nut Exports to China by month

Fri, 13 Nov 2020 06:26:24 GMT

Here are some charts that speak to the volume of U.S. fruit and nut exports to China over the past five years.

First, a look at nut and nut products...

Here is a look at U.S. exports of noncitrus fruit to China, and the dropoff from retaliatory tariffs is plainly evident...

Finally, citrus exports to China in the past five years...

Northwest cherry export forecast optimistic

Fri, 23 Sep 2022 18:09:37 GMT

Despite the global COVID-19 pandemic, Northwest cherry growers are optimistic about export opportunities this season.

About 35% of the Northwest cherry crop has gone to export markets in recent years, according to a news release from commodity group Northwest Cherry Growers , Yakima, Wash.

“Our key markets of China, Taiwan, Korea and Vietnam are handling the pandemic very well and businesses have started to reopen,” Keith Hu, vice president of international business development, said in a news release. “Due to lost revenues, retailers are very keen on the arrival of Northwest cherries, and we intend to run aggressive promotion campaigns in those markets this summer.”

While a stronger U.S. dollar will slow sales to markets including Australia, Brazil and the Philippines, B.J. Thurlby, president of Northwest Cherry Growers, is confident overall exports will perform better than expected as the pandemic continues in the U.S.

“However, we are lucky that our core volume markets of China, Korea, Taiwan and Vietnam seem to have handled the COVID-19 outbreak as well as can be hoped and are well on the way to recovery,” Thurlby said in the release.

Just how many boxes those countries take is the “million-dollar question,” he said. A realistic estimate is six million 20-pound boxes, Thurlby said in the release. That could end up being 30% of production, which is expected to be lower than in several years.

In 2017, Northwest cherry exporters shipped more than a combined 7 million boxes to Canada, China, Taiwan and the Republic of Korea, commonly known as South Korea.

Exporters of the crop ship 95% of the cherries by air, and although there are fewer flights available, low fuel costs will help them deliver fruit at competitive prices.

“Three out of four of our key markets are major airline transit hubs in Northeast Asia (Seoul, Taipei and Shanghai),” Hu said in the release. “Therefore, getting both direct commercial and cargo flights to China, Taiwan and Korea will not be an issue.”

By June, airports in Seattle, San Francisco and Los Angeles will have regular flights to northeast Asian cities from these airlines, according to the release:

Korean Air
Asiana Air
EVA Air
China Airlines (Taiwan)
Delta
United
ANA
UPS
FedEx
China Eastern Cargo
Air China Cargo
Korean Air Cargo
Asiana Air Cargo
China Airlines Cargo
Polar Cargo

For more coverage on how the global pandemic is affecting trade, see The Packer’s COVID-19 webpage .

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President Trump slaps Chinese imports with another tariff

Fri, 13 Nov 2020 06:09:00 GMT

Unhappy with the progress of trade talks with China, President Trump will slap a 10% tariff on $300 billion worth of goods from China starting Sept. 1.

In a series of tweets Aug. 1, Trump said China had reneged on previous commitments to buy more U.S. farm products.

“We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing,” Trump said in a tweet. “More recently, China agreed to buy agricultural products from the U.S. in large quantities, but did not do so.”

Trump said trade talks with China will continue while the U.S. will tag Chinese imports worth $300 billion with a 10% tariff starting Sept. 1. The new tariff is in addition to the $250 billion in Chinese imports already under a 25% tariff.

While some observers said Trump’s move seems to make trade tariffs and tension the “new normal” for the U.S. and China, Trump struck an optimistic note.

“We look forward to continuing our positive dialogue with China on a comprehensive trade deal, and feel that the future between our two countries will be a very bright one!” Trump said in another tweet.

Kate Tynan, senior vice president for the Yakima, Wash.-based Northwest Horticulturl Council, said Aug. 2 that the group was watching closely to see whether China would impose any further retaliatory tariffs on U.S. exports in response to the new U.S. tariffs on Chinese goods.

U.S. exports of farm goods to China have suffered since the two countries have exchanged tariff hikes since last spring.

On May 10 last year, President Trump increased duties on $200 billion worth of Chinese products from 10% to 25%, and China retaliated in July last year with 40% retaliatory tariffs put in place against apples, cherries, pears and other commodities in response to U.S. Section 232 steel and aluminum tariffs and Section 301 tariffs based on technology transfer concerns. That was in addition to an already existing 10% tariff for U.S. fruit imports.

For 2018, the USDA reported total U.S. agriculture exports to China were $13 billion, down sharply from nearly $24 billion in 2017.

U.S. fresh fruit exports to China and Hong Kong totaled $413 million in 2018, off from $517 million the year before.

China: no more purchases of U.S. agricultural products

Fri, 13 Nov 2020 06:09:09 GMT

China said Aug. 5 it would no longer buy U.S. farm commodities, signaling another escalation in a more than year-long trade battle with the U.S.

Reuters, citing the Chinese Commerce Ministry, reported China stopped purchases of U.S. agricultural products and won’t rule out levying import tariffs on U.S. ag imports purchased after Aug. 3.

President Trump’s recent decision to raise tariff rates on $300 billion worth of Chinese imports starting Sept. 1 sparked retaliation by China in the form of a currency devaluation and a pledge by China to stop buying U.S. agricultural commodities.

“China’s announcement that it will not buy any agricultural products from the United States is a body blow to thousands of farmers and ranchers who are already struggling to get by,” said American Farm Bureau Federation President Zippy Duvall in a statement.

Bad weather, falling commodity prices, and high tariffs have dogged U.S. farmers for more than a year, he said in the statement.

“Farm Bureau economists tell us exports to China were down by $1.3 billion during the first half of the year,” he said. “Now, we stand to lose all of what was a $9.1 billion market in 2018, which was down sharply from the $19.5 billion U.S. farmers exported to China in 2017.”

Duvall said that while farmers appreciate the USDA’s Market Facilitation Program payments to help compensate for trade disruptions, he said time is running out.

“We urge negotiators to redouble their efforts to arrive at an agreement, and quickly,” he said. “Exports ensure farmers will continue to supply safe, healthful and affordable food for families here and around the world.”
Casey Creamer, president of California Citrus Mutual, Exeter, said the Chinese tariffs have hurt the industry.

“It just makes it that much more difficult to move to move product when you’ve got the tariffs in place,” he said. While the Trump administration has put money in place to purchase citrus and other commodities to boost farmer income, the recent statement by China to stop all U.S. commodity purchases will hurt growers even more.

“We will be more impacted then what we’ve been estimating before (and) we are going to need to continue talks with the USDA administration on protecting the citrus industry because we’re an unintended consequence of the (trade war),” he said. “This may still linger for quite some time and one of the biggest fears we have is that these markets are not easy to open up and once they close it’ll be even harder to get back in there,” Creamer said.

Slipping sales

U.S. Department of Agriculture trade statistics show U.S. fresh fruit exports to China from July 2018 through June 2019 were $123 million, down by nearly half from $239 million from June 2017 through July 2018. Fresh vegetable exports to China slid from $1.21 million in 2017-18 to $516,000 in 2018-19.

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