3ADCDAE7d01 - Analysis of World Horticultural Markets The...

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Analysis of World Horticultural Markets: The Cases of Bananas and Citrus Thomas H. Spreen Professor Food and Resource Economics University of Florida The World Horticultural Market Horticultural crops include fruits, vegetables, and ornamental plants including cut flowers, trees, and turf grass. In this presentation, I will focus on fruits and in particular, bananas and citrus. According to FAO, world fruit production was 379 million MT in 2003 up from 285 million MT in 1990, an average growth rate of 3.15%. China is the largest producer of fruit, followed by the EU, India, Brazil, and the United States. Other large producers include Mexico, Chile, and South Africa.
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Among the major producing countries, China and India send most of their production to their domestic market, while Brazil is export oriented with its large processed orange industry. Despite large domestic markets, the United States and the EU are the two largest exports suppliers. Chile, Mexico, and South Africa are also important exporters of fresh fruit. Bananas are the most important fresh fruit in terms of world trade. Orange juice is the largest fruit juice product consumed in the world. Sao Paulo, Brazil and Florida are the two largest supply regions for orange juice accounting for over 80 percent of world supply. The Controversy over Bananas We could also say “going bananas over bananas.” In 2007, world banana production was nearly 86 million MT. India is, by far, the largest producer accounting for over 25 percent of world supply. The major developed countries, however, have little or no domestic production so that the large importers are the EU, United States, and Japan. The large export suppliers are Ecuador, Costa Rica, and the Philippines.
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Major Banana Producers, 2007 Country Quantity (1000MT) % India 21,766 25.3 China 8,038 9.4 Philippines 7,484 8.7 Brazil 7,098 8.3 Ecuador 6,002 7.0 Indonesia 5,454 6.3 Tanzania 3,500 4.1 Costa Rica 2,079 2.4 Thailand 2,000 2.3 Mexico 1,965 2.3 Others 20,468 23.8 Total 85,856 100.0 The EU Banana Trade Regime Before the EU (Common Market) was formed, European countries used a wide array trade regimes for bananas. Germany, the Netherlands, and Belgium imposed no tariffs or quotas on banana imports. The UK, France, Spain, and Italy, however, used a tariff-rate quota scheme to give preference to either overseas territories or ACP countries such as Jamaica, St. Lucia, the Cameroon, and Ethiopia. The tariff- rate quota substantially raised the domestic price of bananas compared to liberalized markets.
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Major Banana Importing Countries, 2007 Country Quantity Value Unit Value Tons % $1,000 $/Ton EU 5,575,911 40.4 4,630,023 830 United States 4,003,801 29.0 1,126,925 281 Russian Federation 978,504 7.1 584,486 597 Japan 970,594 7.0 581,196 599 Canada 471,330 3.4 236,856 503 China 331,948 2.4 111,282 335 Argentina 318,878 2.3 75,912 238 Korea, Republic of 308,252 2.2 170,659 554 Saudi Arabia
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This note was uploaded on 05/30/2010 for the course LA IMAQUA0200 taught by Professor Wimverbeke during the Spring '10 term at Ghent University.

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3ADCDAE7d01 - Analysis of World Horticultural Markets The...

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