Washington apple growers embrace varietal access to China
Washington apple growers embrace varietal access to China
The Washington apple industry will begin shipping fresh apples to China this season following the earlier announcement that full varietal access had been granted. Todd Fryhover, president of the Washington Apple Commission, provided The Produce News with his comments and insights about the effects the announcement will have upon the state's apple exports during the 2015-16 season.
With this being the first season during which the United States will have full varietal access in China, Fryhover estimates 5 million cartons of apples will be shipped from Washington.
This season, Washington apple growers are expected to export 5 million boxes of fruit to China. (Photo courtesy of the Washington Apple Commission) “It’s very difficult to predict since the market has been closed for two years, and the grey market channel is very difficult to assess,” he commented. “My best guess in the past has been 2.5 million. This would be 80 percent of Hong Kong shipments plus China.”
Although Red Delicious, Gala and Granny Smith are the three primary varieties for Chinese export, Fryhover said, “I do expect to see interest in many other varieties due to the purchasing power of the rising middle class.”
Chinese exports were expected to begin mid-August, coinciding with the Gala harvest. “I would expect Gala shipments to continue until Southern Hemisphere arrivals in late March/early April,” he commented. “Red Delicious could continue to arrive in China until August, like it is this year.”
He summarized the benefits of full varietal access this way. “The largest benefit is in duty. With direct legal access, the cost of business decreases since the grey market channel is taken out of the equation and fixed duties, at much lower rates, kick in,” Fryhover stated. “This should decrease the overall cost of Washington apples to China and increase consumption. Of course, providing Chinese consumers ‘all varieties’ will support prices in every other market.”
Because the agreement as negotiated provides for two-way access, the U.S. market will be open to Chinese apples. “We believe import protocols and requirements negotiated will be followed, supported and monitored by the proper U.S. authorities and expect no health or pest issues,” Fryhover said.
