16 February 2006 - Abstract: China has raised its profile in global fruit and vegetable markets, with the value of its exports during 2002-04 more than double the value from a decade earlier. Most of China's exports are processed fruits and vegetables that do not yet pose a serious challenge to U.S. exports. However, China's fresh vegetable sales to Japan and other Asian markets compete directly with U.S. products. In addition, the United States has been the largest market for China's apple juice exports. Over time, China's growing domestic market may absorb more of its production. Moreover, China faces stiff challenges in improving the quality and safety of its products, upgrading its marketing and distribution infrastructure, and reducing marketing costs.
Introduction
Since the 1990s, China has substantially raised its profile in the global market for fruits and vegetables. Total export value of China’s fruits and vegetables (here including fresh fruit, fresh vegetables, processed fruit and vegetables, fruit and vegetable juices, pulses, and tree nuts) more than doubled between 1992-94 and 2002-04, from $2.3 billion to $5.1 billion (see box, “Fruit and Vegetable Foreign Trade Data”). China has become a leading exporter in some markets where its presence was negligible 10 years earlier. China’s exports go mainly to Asian countries, which also are important markets for U.S. exporters. A sharp decline in U.S. market share has coincided with the surge in Chinese exports in a number of markets.