WASHINGTON, D.C. — The USDA announced it has reached an agreement with Chinese officials to allow all U.S.-grown apples access to the Chinese market. The deal will in turn allow Chinese-grown apples access to the American market.
The agreement will allow a greater share of U.S. apple exports to China in the coming months and has the potential to increase exports of fresh U.S. apples by 10 percent. In 2013, apple exports were valued at more than $1 billion, according to industry estimates.
With this new agreement, apple exports to China could reach 5 million bushels annually, a value of nearly $100 million a year. The agreement was reached during bilateral discussions between USDA and China’s General Administration of Quality Supervision, Inspection and Quarantine in San Francisco.
"USDA values the relationship we are forging with China to bring mutually beneficial food and agricultural trade to Americans and Chinese alike," said USDA Secretary Tom Vilsack on Jan. 26. "The new access for American exports we’re announcing today is the culmination of decades of hard work by USDA staff. These efforts will result in high-quality, fresh U.S. apple varieties available for consumers in China and a significant boost in sales for American apple producers."
The past six years have been the strongest in history for agricultural trade, with U.S. agricultural product exports totaling $771.7 billion since 2009, Vilsack added.
China is by far the world’s largest producer of apples, producing about eight times more than the United States, U.S. Apple Assoc. (USAA) President Jim Bair said. In 2014, China grew nearly 2 million bushels of apples, while the United States grew 259,000 bushels. Most of China’s production is the Fuji variety.
"They don’t produce the wide range of new varieties with exciting taste profiles that the U.S. does, nor in the sizes and qualities that the U.S. does," Bair said.
"China has been eyeing the U.S. market for 20 years and would have likely prevailed in a WTO (World Trade Organization) suit if the U.S. did not open its market. But fair is fair and that’s why achieving equal access to their market at the exact same moment was a top priority for us."
The agreement will take effect 45 days from the date of the Jan. 26 announcement. It will allow direct shipment of all U.S. varieties from all states. A coalition of industry groups including USAA, Washington Apple Commission, Northwest Horticultural Council (NHC), Northwest Fruit Exporters and U.S. Apple Export Council, has been working to assure that U.S. grown apples would be allowed greater access to the Chinese market.
Red and Golden Delicious varieties from Washington state received import approval in October 2014, after having been closed out for two years. Since those varieties are declining in production, however, achieving full access for all varieties from all states was a critical achievement for U.S. growers, the USAA believes.
Only Washington Red and Golden Delicious apples were approved from 1994-2012 for export to China. The Chinese government stopped issuing import permits in 2012 due to concerns about three types of fungus rots. It was an across-the-board ban.
"The U.S. apple industry worked very hard to craft an inspection protocol that provided the necessary reassurance," Bair said.
American apple growers have concerns regarding imported apples as well, however, because new pests and diseases could be introduced into American orchards. Nearly 15 years ago, the USAA and NHC formed the Tree-Fruit Technical Advisory Council (TreeTAC).
TreeTAC is a coalition of scientists from the top-producing states charged with safeguarding the U.S. tree fruit industry from potential pest and disease threats.
Its scientists reviewed China’s import request at every step in the lengthy process to ensure American growers would be protected, according to the USAA.
The total wholesale value of the U.S. apple crop is more than $2.7 billion each year. Apples are grown commercially in 32 states. The top 10 producing states are Washington, New York, Michigan, Pennsylvania, California, Virginia, North Carolina, Oregon, Ohio and Idaho.
Sixty-seven percent of the crop is grown for fresh consumption, with the remainder going to processing, including juices and apple slices.
