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Exports
Imports
Exports
Over the past several years, foreign sales have slowly
increased in importance within U.S. vegetable and melon
markets. Exports as a share of total U.S. vegetable supplies
averaged 9 percent during 2000-08, up from 7 percent during
1990-98. After a period of stagnation earlier this decade,
export share of supply began to creep higher, due in part
to the weaker U.S. dollar. The top vegetables in terms
of export value are potatoes, tomatoes, lettuce, onions,
and sweet corn. The share of supply exported varies substantially
among commodities, with a few of the most export-dependent
vegetables during 2000-08 being:
- Onions for dehydration, 57 percent of supply;
- Dry edible peas and lentils, 48 percent;
- Fresh-market cauliflower, 28 percent;
- Fresh-market broccoli, 17 percent;
- Sweet corn for canning, 17 percent.
U.S. vegetable and melon export growth earlier this decade
appears to have been hindered by the strong U.S. dollar,
increased competition from other countries (e.g. China,
European Union nations), slow economic growth in places
such as Japan (a major market), and market access issues
(high tariffs, quotas, and nonscience-based sanitary and
phytosanitary restrictions) in some countries.
Canada, Mexico, Japan, Taiwan, and South Korea are the
top five destinations for U.S. vegetable and melon exports.
Export demand has been growing, particularly Canada's,
the largest foreign buyer of U.S. vegetables and melons.
Increased overseas promotion for some U.S. vegetables
through efforts such as the Market
Access Program may have helped boost foreign sales.
Fresh Vegetables
Exports of fresh-market vegetables and melons account
for about 7 percent of available supplies. In value terms,
fresh-market vegetables and melons (excluding potatoes)
claimed the largest share of total vegetable exports,
averaging about $1.7 billion annually over the past 5
years. Fresh exports have a discernable seasonal pattern,
with volume peaking during May-July and reaching lows
during September and February. In addition to the weather,
this pattern is largely influenced by demand from Canada,
the leading foreign market for U.S. exports of fresh vegetables
and melons. Canada's vegetable imports are lowest during
their summer growing season and peak in the spring when
their supplies of storage-type vegetables are exhausted
and before their own growing season has begun.
Among fresh vegetables, lettuce (all types) is the largest
fresh export ($431 million in 2008), but lettuce also
enjoys relatively strong domestic demand. The same is
true for tomatoes, the second-largest fresh export ($208
million). Exports remove 9 percent of domestic supply
of all lettuce and 6 percent of fresh tomatoes. This percentage
has slowly drifted lower over the past three decades as
growth in domestic consumption has exceeded that of export
volume.
Frozen Vegetables
Export demand for U.S. frozen vegetables (including potatoes)
has increased during the past decade. Exports accounted
for 11 percent of U.S. frozen vegetable supplies during
2000-08, compared with 8 percent during 1990-98. In 2008,
U.S. frozen vegetable exports (including potatoes) totaled
4.5 billion pounds (fresh-weight basis), with a value
of $964 million. Potato products (primarily french fries)
account for nearly three-fourths of frozen vegetable export
volume. Until stabilizing in the early 2000s, frozen potato
exports had been rising strongly for many years, fueled
by the expansion of U.S. fast-food establishments overseas,
particularly in Asian countries. Strong demand and more
favorable exchange rates have allowed frozen exports to
resume their upward march toward the end of the first
decade of the 2000s. Excluding potatoes, frozen vegetable
exports (fresh-weight basis) averaged nearly 900 million
pounds annually during 2000-08, up 13 percent from 1990-98.
Japan is the largest export market for U.S. frozen vegetables,
accounting for 39 percent of the annual value during 2000-08.
Other important markets include Canada (15 percent), China/Hong
Kong (11 percent), Mexico (10 percent), and South Korea
(4 percent). After bottoming out in 2003, U.S. frozen
vegetable exports to Japan have trended upward due to
a combination of economic recovery in Japan, the weakening
U.S. dollar, and less competition from other exporting
nations. The value of U.S. frozen vegetable exports to
Japan is one-third greater than it was during 1990-97,
despite loss of market share to countries such as Canada,
China, Taiwan, and New Zealand. French fried potatoes
and sweet corn account for the majority of the U.S. frozen
vegetables exported to Japan.
Canned Vegetables
During 2000-08, exports of canned vegetables accounted
for about 8 percent of available supplies, up from 6 percent
during 1990-98. This increased export share partly reflects
the efforts of vegetable canners to expand markets overseas
to compensate for stagnant or declining domestic demand.
U.S. exports of all canned vegetables averaged $0.6 billion
annually during 2000-08. Tomato sauce, sweet corn, and
tomato paste are the top three canned vegetable exports,
accounting for about two-thirds of annual canned export
value.
Canada is the leading export market for U.S. canned vegetables,
accounting for 43 percent of the value of U.S. canned
vegetable exports during 2000-08, up from 35 percent during
1990-98. Japan is the second-largest U.S. market, with
12 percent of canned export value, down from 17 percent
a decade earlier. Mexico (9 percent), South Korea (5 percent),
and Taiwan (3 percent) round out the top five foreign
markets.
Imports
In terms of value, the U.S. received 45 percent of all
vegetable, melon, and pulse (dry bean, dry pea, and lentil)
imports from Mexico during 2000-08, with the majority
being fresh-market vegetables and frozen products. Canada
is the second-leading foreign supplier, with 24 percent
of the U.S. import market. Because of obvious transportation
advantages, Mexico and Canada have historically been the
top two suppliers. Rounding out the top five import sources
during the first 9 years of the 2000s are China (5 percent),
Peru (4 percent), and Spain (2 percent). China supplies
products such as mushrooms, dried vegetables (excluding
mushrooms, garlic, and pulses), water chestnuts, garlic,
and bamboo shoots. Imports from Spain have declined markedly
in the past few years, with Spain losing market share
to Peru in key prepared products, especially artichokes.
In terms of value, fresh vegetables and melons account
for 57 percent of annual vegetable imports. Fresh vegetable
imports have a definite seasonal pattern, with almost
two-thirds of import volume arriving between December
and May when U.S. production is low and largely limited
to the southern portions of the country. The majority
of these imports are tender warm-season vegetables like
tomatoes, cucumbers, peppers, squash, and snap beans.
Cool-season crops like leafy green vegetables and carrots
grow abundantly and cheaply in California, Arizona, and
Texas during the winter months. As a result, imports of
these items are very low compared with warm-season crops.
During 2000-08, imports accounted for 15 percent of total
U.S. vegetable and melon consumption, up from 8 percent
during 1990-08. With the exception of dry peas and lentils,
the average import share of consumption increased over
the past decade for all major categories (e.g. fresh,
freezing, canning, dry beans). Import share was four times
greater for processed potatoes (largely frozen), more
than double for dehydrated onions and dry beans, and 65
percent greater for fresh-market vegetables. Fresh market
vegetable imports have been under scrutiny ever since
the implementation of the North American Free Trade Agreement
(NAFTA) in 1994. During the first year of NAFTA, the import
share of consumption for fresh vegetables and melons remained
steady at about 10 percent. However, following the devaluation
of the Mexican peso in December 1994, U.S. imports of
Mexican vegetables rose sharply. Mexican growers increased
shipments to the United States partly because of poor
domestic demand and more attractive U.S. prices. Largely
as a result of increased volume from Mexico, fresh vegetable
import share rose to 12.5 percent during 1995 and 14 percent
in 1996 and 1997. After slowing briefly earlier this decade,
the import share of fresh vegetable and melon consumption
reached an estimated 20 percent in 2008.
In terms of processing vegetables, imports of most canned
vegetables are relatively low due to highly mechanized
and relatively low-cost domestic industries. Although
low, there has been an increase in the share of consumption
coming from imported products this decade. Imports of
canned vegetables as a percentage of domestic disappearance
were estimated to average nearly 13 percent during 2000-08,
up from 7 percent during 1990-98. Import share has increased
for most canned vegetables including chile peppers, asparagus,
and sweet corn. With processors moving factories to countries
such as Peru to take advantage of lower costs, 79 percent
of the canning asparagus consumed came from imports in
2008, up from just 7 percent in 2000. The United States
imports significant quantities of canned items not produced
domestically, such as bamboo shoots and water chestnuts.
Estimates suggest that 15-20 percent of canned vegetable
imports are noncompetitive, meaning there is little or
no domestic production of the crop.
Tomato products are the leading canned vegetable and
import volume of items such as tomato paste and canned
whole/pieces is generally less today than a decade ago
due to increasing efficiency (new plants, lower costs)
in the domestic industry. One exception is imports of
various tomato sauces that have risen strongly this decade
due to interest in various ethnic cuisines. Imports of
tomato products as a share of domestic disappearance averaged
6 percent during 2000-08, up from 4 percent during 1990-98
and little changed from the import share experienced during
1980-88.
Frozen vegetable imports (including potatoes) continue
to trend higher, with 2000-08 volume averaging nearly
three times that of the 1990-98 level. Imports of frozen
vegetables (excluding potatoes) accounted for about 27
percent of consumption in 2000-08, up from 16 percent
during 1990-98. Excluding potatoes, broccoli accounts
for about a third of the frozen vegetables imported. Most
frozen broccoli comes from Mexico (with lesser amounts
from Guatemala and Ecuador). Frozen broccoli has the highest
degree of import penetration among all vegetables that
also have commercial domestic output, with about 95 percent
of domestic disappearance coming from imports in 2008.
Cutting broccoli into florets is a labor-intensive task.
To cut costs, the industry basically moved from California
to Mexico in the late 1980s and early 1990s. Both the
frozen asparagus and cauliflower markets also feature
high degrees of import incursion.
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