Stone Fruit Annual Taipei Taiwan 8 25 2017
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Required Report - public distribution
Date: 8/25/2017
GAIN Report Number: TW17005
Taiwan
Stone Fruit Annual
2017 updates
Approved By:
Chris Frederick
Prepared By:
Cindy Chang
Report Highlights:
Peach and nectarine consumption is expected to remain stable in 2017 with imports expected to meet
nearly half of demand, though the United States holds an import market share of 75 percent. Taiwan
was the third largest export destination for U.S. peaches and nectarines in 2016. Cherry consumption
has been increasing in recent years and is forecast to reach 12,000 MT with all demand met by imports.
The United States is the leading supplier to Taiwan accounting for more than half of all imports.
Commodities:
Peaches & Nectarines
Cherries
Crop Area:
Taiwan's Council of Agriculture (COA) projects crop area for peaches and nectarines at 2,162 hectares
for 2017, a slight drop from 2016. Production acreage has declined since 2008 because of rising labor
costs and the lack of interest in young people to take up farming.
Area Planted in Taiwan – Peaches & Nectarines
Year
Hectare
2008
2772
2009
2542
2010
2404
2011
2375
2012
2373
2013
2314
2014
2307
2015
2278
2016
2185
2017 Estimate
2162
Production:
COA projects 2017 domestic production of peaches and nectarines will reach 22,860 metric tons, up
two percent from the precious year because of favorable growing conditions.
Most peaches and nectarines are grown in the northern and central part of Taiwan, especially in
Taoyuan area. The subtropical climate is suitable for growing peaches and nectarines. However, in
recent years, hot weather with limited rainfall negatively impacted the crops.
Consumption:
Total imports in 2016 represented approximately 47 percent of domestic consumption, up from 37
percent in 2015. Consumers commonly send fruit in gift packages to their friends and relatives during
three major lunar year festivals: Chinese New Year (usually in February), the Dragon Boat Festival
(usually in June), and the Moon Festival (usually in September). Imported peaches, cherries and apples
are among the most popular gift items included in these packages. Japanese peaches and nectarines are
perceived as premium fruits and are mainly sold in gift sets.
There are two types of peaches produced in Taiwan. Honey Peaches, so-called high chilling crops, are
grown in the mountains and are harvested in July to August. Due to their flavor and appearance, Honey
Peaches are considered a premium fruit and are often cost ten times more than regular peaches in retail
outlets. Plain and flat land grown peaches are known as low chilling crops and are less sweet and firmer.
These peaches are generally harvested between April and June.
Production, Supply, and Demand Data Statistics
Fresh
peaches/nectarine
Taiwan
(080930)
Area Planted
Area harvested
Bearing Trees
Non-Bearing Trees
Total Trees
Commercial
Production
Non-Commercial
Production
Production
Imports
Total Supply
Fresh Domestic
Consumption
Exports
For Processing
Withdrawal From
Market
Total Distribution
Trade:
2015
Marketing Year Begin:
Jan 2015
USDA
New
Official
Post
2,278
2,254
794
9
803
27,026
2016
Marketing Year Begin:
Jan 2016
USDA
New
Official
Post
2,185
2,165
762
7
769
22,430
2017
Marketing Year Begin:
Jan 2017
USDA
New
Official
Post
2,162
2,162
765
5
770
22,860
0
0
0
27,026
16,108
43,134
43,134
22,430
19,761
42,191
42,191
22,860
20,000
0
0
0
0
0
0
0
0
0
43,134
42,191
42,860
HA, 1000 Trees, MT
42,860
Taiwan was the third largest export market for U.S. peaches and nectarines in 2016. Stone fruits are
well received by consumers, who like peaches, nectarines, and cherries due to their attractive
appearance, sweetness, and fragrance. Wholesalers and retailers also prefer stone fruits because of their
profitability and variety. Many fruit importers purchase fruit not only for Taiwan but also for China and
other neighboring countries throughout Asia.
Taiwan: Total Imports of Fresh Peaches (including Nectarines)
Imports from the U.S. & U.S. Market Share
2014
2015
2016
Total Imports
M.T.
$US million
12,982
36.9
16,108
42.7
19,761
49.4
Imports from U.S.
M.T.
$US million
11,270
30.7
12,411
32.5
15,376
38.0
U.S. Market Share
Percentage
86
77
77
Taiwan imported 19,761 MT of peaches and nectarines in 2016, an increase of 23 percent. The United
States maintains the largest import market share at more than 75 percent. Chile, the second largest
supplier, is gradually gaining import market share due to price competiveness, and increasing familiarity
among importers on how to handle Chilean fruit imports. Post forecasts peach and nectarine imports at
20,000 MT in marketing year 2017/18.
Imports of peaches and nectarines from China are currently prohibited because of phytosanitary
concerns.
Marketing:
Fresh fruits, including peaches and nectarines, are purchased in the traditional wet market and modern
retail outlets, with hypermarkets being the most popular store format. These retail chains regularly
conduct U.S. fruit promotions, offering significantly lower prices than wet markets to draw in
consumers. Nevertheless, traditional wet markets continue to play a vital role in fresh fruit sales. Nonstore retailing, such as home shopping, eCommerce, and TV/internet sales, have gained popularity and
the vendors will invest heavily to gain market share in this new sales channel. Consumers have access to
imported fruit, and purchasing decisions are based on price, nutrition, appearance, flavor, and country of
origin.
Production/Crop Area:
Taiwan does not produce cherries because its subtropical climate and soil are not favorable for cherry
production. As a result, it relies on imports to meet local demand.
Fresh Cherries
Taiwan
(080929)
Area Planted
Area harvested
Bearing Trees
Non-Bearing Trees
Total Trees
Commercial
Production
Non-Commercial
Production
Production
Imports
2015
Marketing Year Begin:
Jan 2015
USDA
New
Official
Post
0
0
0
0
0
0
2016
Marketing Year Begin:
Jan 2016
USDA
New
Official
Post
2017
Marketing Year
Begin: Jan 2017
USDA
New
Official
Post
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9,252
0
10,908
0
12,000
Total Supply
Fresh Domestic
Consumption
Exports
For Processing
Withdrawal From
Market
Total Distribution
HA, 1000 Trees, MT
9,252
9,252
10,908
10,908
12,000
12,000
0
0
0
0
0
0
0
0
0
9,252
10,908
12,000
Consumption:
Taiwan was the fifth largest export market for U.S. cherries. This market is particularly important for
U.S. growers because Taiwan consumers will pay premium prices for the largest cherries, with 9-10 row
cherries preferred by local buyers. Cherries are perceived as a specialty imported fruit rather than an
item for regular consumption. Furthermore, cherries are popular because of their attractive appearance
and distinctive flavor. Only dark red cherries are imported as consumers feel dark cherries are sweeter
and more flavorful than light-colored Rainier types. The most common variety is Bing.
Trade:
Taiwan was the fifth largest export market for U.S. cherries in 2016. Wholesalers and retailers also
prefer stone fruits because of their profitability and variety. Many fruit importers purchase fruit not
only for Taiwan but also for China and other neighboring countries throughout Asia, and some have set
up offices in China.
Total imports of cherries increased by 18 percent in 2016 to 10,908 MT. The United States remains the
leading supplier with 57 percent of the import market, followed by Chile (19 percent), New Zealand (10
percent), Canada (8 percent) and Australia (5 percent).
Import demand for cherries varies depending on supplies of other fresh fruit. Consumers have a wide
variety of fresh fruit available to them, both locally produced and imported. Consumption of cherries is
expected to decrease because of competition from other locally grown fresh fruit, such as grapes,
banana, watermelons, grapefruit, and oranges. These fruits are available at lower prices than cherries.
Importers, therefore, tend to be more conservative in placing orders with U.S. suppliers when the prices
of U.S. cherries are perceived to be relatively high by Taiwan consumers.
Taiwan: Total Imports of Fresh Cherries
Imports from the U.S. & U.S. Market Share
Unit
2014
2015
2016
Total Imports
M.T.
$US million
11,744
92.3
9,252
75.4
10,908
87.4
Imports from U.S.
M.T.
$US million
6,581
48.2
4,657
30.7
6,309
43.8
U.S. Market Share
Percentage
52 %
40 %
50 %
Marketing:
Cherries are highly seasonal and are available mostly in summer. Consumers are receptive to imported
cherries and consider them as a special treat. With the improving trade relations between Taiwan and
countries in the Southern Hemisphere, such as New Zealand, Chile, and Australia, cherries are now
available for a longer period each year.
Cherries are delicate, highly perishable, and require cold-chain technology to preserve freshness. As a
result, most cherries are brought in by large importers that have the ability to handle the fruit properly.
The importers act as “gatekeepers” and are critical to maintaining a strong market presence.
Policy:
General Phytosanitary Requirements
Stone fruit imports are regulated by the Taiwan Food and Drug Administration (TFDA) under the
Ministry of Health and Welfare (MOHW). The main three regulations that govern stone fruit are the
Food Sanitation Act, the Food Safety Management Regulations, and the Maximum Residue Level
(MRL) standards. Taiwan currently bans imports of stone fruit from some countries due to pests of
quarantine concern.
Imports of stone fruit from the United States require a phytosanitary certificate issued by the office of
Plant Protection & Quarantine of the Animal and Plant Health Inspection Service within the United
States Department of Agriculture. The certificate must state that the fruit has been inspected and found
free from relevant pests.
Taiwan also closely monitors MRLs of chemical compounds. These standards subject to change by
Taiwan authorities with no prior public notification requirements. It is important for U.S. stone fruit
exporters to note that Taiwan’s MRLs are often not the same as those established in the United States or
by international standard-setting bodies. U.S. exporters need to work closely with Taiwan importers to
comply with local standards, or the shipments may be denied entry.
TFDA is the competent authority responsible for border food safety inspection, and shipment
inspections are conducted on a random basis. MOHW is in the process of reviewing a backlog of MRL
applications for agrochemicals that are internationally-approved and commonly used in the United
States and other countries. The American Institute in Taiwan and U.S. industry representatives have
been working with Taiwan authorities to develop a review process that will allow for the timely
establishment of MRLs for agrochemicals on the backlog lists as well as for new agrochemicals that
would replace older, less effective compounds. For an updated list of Pesticide Residue Regulation,
please visit: Pesticide Residue Regulation
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Required Report - public distribution
Date: 8/25/2017
GAIN Report Number: TW17005
Taiwan
Stone Fruit Annual
2017 updates
Approved By:
Chris Frederick
Prepared By:
Cindy Chang
Report Highlights:
Peach and nectarine consumption is expected to remain stable in 2017 with imports expected to meet
nearly half of demand, though the United States holds an import market share of 75 percent. Taiwan
was the third largest export destination for U.S. peaches and nectarines in 2016. Cherry consumption
has been increasing in recent years and is forecast to reach 12,000 MT with all demand met by imports.
The United States is the leading supplier to Taiwan accounting for more than half of all imports.
Commodities:
Peaches & Nectarines
Cherries
Crop Area:
Taiwan's Council of Agriculture (COA) projects crop area for peaches and nectarines at 2,162 hectares
for 2017, a slight drop from 2016. Production acreage has declined since 2008 because of rising labor
costs and the lack of interest in young people to take up farming.
Area Planted in Taiwan – Peaches & Nectarines
Year
Hectare
2008
2772
2009
2542
2010
2404
2011
2375
2012
2373
2013
2314
2014
2307
2015
2278
2016
2185
2017 Estimate
2162
Production:
COA projects 2017 domestic production of peaches and nectarines will reach 22,860 metric tons, up
two percent from the precious year because of favorable growing conditions.
Most peaches and nectarines are grown in the northern and central part of Taiwan, especially in
Taoyuan area. The subtropical climate is suitable for growing peaches and nectarines. However, in
recent years, hot weather with limited rainfall negatively impacted the crops.
Consumption:
Total imports in 2016 represented approximately 47 percent of domestic consumption, up from 37
percent in 2015. Consumers commonly send fruit in gift packages to their friends and relatives during
three major lunar year festivals: Chinese New Year (usually in February), the Dragon Boat Festival
(usually in June), and the Moon Festival (usually in September). Imported peaches, cherries and apples
are among the most popular gift items included in these packages. Japanese peaches and nectarines are
perceived as premium fruits and are mainly sold in gift sets.
There are two types of peaches produced in Taiwan. Honey Peaches, so-called high chilling crops, are
grown in the mountains and are harvested in July to August. Due to their flavor and appearance, Honey
Peaches are considered a premium fruit and are often cost ten times more than regular peaches in retail
outlets. Plain and flat land grown peaches are known as low chilling crops and are less sweet and firmer.
These peaches are generally harvested between April and June.
Production, Supply, and Demand Data Statistics
Fresh
peaches/nectarine
Taiwan
(080930)
Area Planted
Area harvested
Bearing Trees
Non-Bearing Trees
Total Trees
Commercial
Production
Non-Commercial
Production
Production
Imports
Total Supply
Fresh Domestic
Consumption
Exports
For Processing
Withdrawal From
Market
Total Distribution
Trade:
2015
Marketing Year Begin:
Jan 2015
USDA
New
Official
Post
2,278
2,254
794
9
803
27,026
2016
Marketing Year Begin:
Jan 2016
USDA
New
Official
Post
2,185
2,165
762
7
769
22,430
2017
Marketing Year Begin:
Jan 2017
USDA
New
Official
Post
2,162
2,162
765
5
770
22,860
0
0
0
27,026
16,108
43,134
43,134
22,430
19,761
42,191
42,191
22,860
20,000
0
0
0
0
0
0
0
0
0
43,134
42,191
42,860
HA, 1000 Trees, MT
42,860
Taiwan was the third largest export market for U.S. peaches and nectarines in 2016. Stone fruits are
well received by consumers, who like peaches, nectarines, and cherries due to their attractive
appearance, sweetness, and fragrance. Wholesalers and retailers also prefer stone fruits because of their
profitability and variety. Many fruit importers purchase fruit not only for Taiwan but also for China and
other neighboring countries throughout Asia.
Taiwan: Total Imports of Fresh Peaches (including Nectarines)
Imports from the U.S. & U.S. Market Share
2014
2015
2016
Total Imports
M.T.
$US million
12,982
36.9
16,108
42.7
19,761
49.4
Imports from U.S.
M.T.
$US million
11,270
30.7
12,411
32.5
15,376
38.0
U.S. Market Share
Percentage
86
77
77
Taiwan imported 19,761 MT of peaches and nectarines in 2016, an increase of 23 percent. The United
States maintains the largest import market share at more than 75 percent. Chile, the second largest
supplier, is gradually gaining import market share due to price competiveness, and increasing familiarity
among importers on how to handle Chilean fruit imports. Post forecasts peach and nectarine imports at
20,000 MT in marketing year 2017/18.
Imports of peaches and nectarines from China are currently prohibited because of phytosanitary
concerns.
Marketing:
Fresh fruits, including peaches and nectarines, are purchased in the traditional wet market and modern
retail outlets, with hypermarkets being the most popular store format. These retail chains regularly
conduct U.S. fruit promotions, offering significantly lower prices than wet markets to draw in
consumers. Nevertheless, traditional wet markets continue to play a vital role in fresh fruit sales. Nonstore retailing, such as home shopping, eCommerce, and TV/internet sales, have gained popularity and
the vendors will invest heavily to gain market share in this new sales channel. Consumers have access to
imported fruit, and purchasing decisions are based on price, nutrition, appearance, flavor, and country of
origin.
Production/Crop Area:
Taiwan does not produce cherries because its subtropical climate and soil are not favorable for cherry
production. As a result, it relies on imports to meet local demand.
Fresh Cherries
Taiwan
(080929)
Area Planted
Area harvested
Bearing Trees
Non-Bearing Trees
Total Trees
Commercial
Production
Non-Commercial
Production
Production
Imports
2015
Marketing Year Begin:
Jan 2015
USDA
New
Official
Post
0
0
0
0
0
0
2016
Marketing Year Begin:
Jan 2016
USDA
New
Official
Post
2017
Marketing Year
Begin: Jan 2017
USDA
New
Official
Post
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9,252
0
10,908
0
12,000
Total Supply
Fresh Domestic
Consumption
Exports
For Processing
Withdrawal From
Market
Total Distribution
HA, 1000 Trees, MT
9,252
9,252
10,908
10,908
12,000
12,000
0
0
0
0
0
0
0
0
0
9,252
10,908
12,000
Consumption:
Taiwan was the fifth largest export market for U.S. cherries. This market is particularly important for
U.S. growers because Taiwan consumers will pay premium prices for the largest cherries, with 9-10 row
cherries preferred by local buyers. Cherries are perceived as a specialty imported fruit rather than an
item for regular consumption. Furthermore, cherries are popular because of their attractive appearance
and distinctive flavor. Only dark red cherries are imported as consumers feel dark cherries are sweeter
and more flavorful than light-colored Rainier types. The most common variety is Bing.
Trade:
Taiwan was the fifth largest export market for U.S. cherries in 2016. Wholesalers and retailers also
prefer stone fruits because of their profitability and variety. Many fruit importers purchase fruit not
only for Taiwan but also for China and other neighboring countries throughout Asia, and some have set
up offices in China.
Total imports of cherries increased by 18 percent in 2016 to 10,908 MT. The United States remains the
leading supplier with 57 percent of the import market, followed by Chile (19 percent), New Zealand (10
percent), Canada (8 percent) and Australia (5 percent).
Import demand for cherries varies depending on supplies of other fresh fruit. Consumers have a wide
variety of fresh fruit available to them, both locally produced and imported. Consumption of cherries is
expected to decrease because of competition from other locally grown fresh fruit, such as grapes,
banana, watermelons, grapefruit, and oranges. These fruits are available at lower prices than cherries.
Importers, therefore, tend to be more conservative in placing orders with U.S. suppliers when the prices
of U.S. cherries are perceived to be relatively high by Taiwan consumers.
Taiwan: Total Imports of Fresh Cherries
Imports from the U.S. & U.S. Market Share
Unit
2014
2015
2016
Total Imports
M.T.
$US million
11,744
92.3
9,252
75.4
10,908
87.4
Imports from U.S.
M.T.
$US million
6,581
48.2
4,657
30.7
6,309
43.8
U.S. Market Share
Percentage
52 %
40 %
50 %
Marketing:
Cherries are highly seasonal and are available mostly in summer. Consumers are receptive to imported
cherries and consider them as a special treat. With the improving trade relations between Taiwan and
countries in the Southern Hemisphere, such as New Zealand, Chile, and Australia, cherries are now
available for a longer period each year.
Cherries are delicate, highly perishable, and require cold-chain technology to preserve freshness. As a
result, most cherries are brought in by large importers that have the ability to handle the fruit properly.
The importers act as “gatekeepers” and are critical to maintaining a strong market presence.
Policy:
General Phytosanitary Requirements
Stone fruit imports are regulated by the Taiwan Food and Drug Administration (TFDA) under the
Ministry of Health and Welfare (MOHW). The main three regulations that govern stone fruit are the
Food Sanitation Act, the Food Safety Management Regulations, and the Maximum Residue Level
(MRL) standards. Taiwan currently bans imports of stone fruit from some countries due to pests of
quarantine concern.
Imports of stone fruit from the United States require a phytosanitary certificate issued by the office of
Plant Protection & Quarantine of the Animal and Plant Health Inspection Service within the United
States Department of Agriculture. The certificate must state that the fruit has been inspected and found
free from relevant pests.
Taiwan also closely monitors MRLs of chemical compounds. These standards subject to change by
Taiwan authorities with no prior public notification requirements. It is important for U.S. stone fruit
exporters to note that Taiwan’s MRLs are often not the same as those established in the United States or
by international standard-setting bodies. U.S. exporters need to work closely with Taiwan importers to
comply with local standards, or the shipments may be denied entry.
TFDA is the competent authority responsible for border food safety inspection, and shipment
inspections are conducted on a random basis. MOHW is in the process of reviewing a backlog of MRL
applications for agrochemicals that are internationally-approved and commonly used in the United
States and other countries. The American Institute in Taiwan and U.S. industry representatives have
been working with Taiwan authorities to develop a review process that will allow for the timely
establishment of MRLs for agrochemicals on the backlog lists as well as for new agrochemicals that
would replace older, less effective compounds. For an updated list of Pesticide Residue Regulation,
please visit: Pesticide Residue Regulation