The importance of trade for Washington's apple industry

By: Emily Makings
12:00 am
April 11, 2016

The U.S. Department of Agriculture recently released an outlook for the U.S. fresh apple industry. It illustrates how important trade is for Washington's apple growers.

Interestingly, Washington apples account for 65 percent of the nation's production, but apple acreage in Washington is only 46 percent of that of the U.S.

On average across all varieties, plantings in Washington State increased from 262 trees per acres in 1993 to 434 trees per acre in 2006 and 562 trees per acre in 2011.

Unfortunately,

While overall fresh-fruit demand in the United States has been increasing steadily over the past three decades, fresh-apple demand has remained almost stagnant, with consumption averaging between 16 and 19 pounds per person annually since the 1980s.

This means that export markets are even more important for Washington growers. In the 1980s, 13 percent of production was exported; in the 2014/2015 season, 29 percent was.

The U.S. has the world's second-highest production of apples, after China. Apple production in China is vastly outpacing that of the U.S. (In 2013, China produced 40 million metric tons while the U.S. produced 4 million metric tons.) Still,

A bright spot in U.S. apple exports is future sales prospects to China. China lifted its suspension on imports of Washington Red and Golden Delicious apples in October 2014 and in January 2015 the two countries signed an agreement allowing all U.S. grown apples to gain access to the Chinese market. . . .

This 2015/16 season will be the first full marketing year with expanded market to China and already, export volume this season through January is 98 percent higher than the same time in 2014/15. The U.S. apple industry estimates that within two years, exports to China will reach a value of nearly $100 million per year.

As the outlook concludes,

Future production is likely to continue to increase, particularly in Washington where high-density plantings have combined with increased planted acreage, and so the greater need to maintain and further enhance the global competitiveness of U.S. apples.

The agreement with China is already helping with our growers' competitiveness. Another current trade policy example is the Trans-Pacific Partnership (TPP). Vietnam and Japan are both big markets that are parties to that agreement. According to the Northwest Horticultural Council, Washington apples are currently subject to tariffs of 10 percent in Vietnam and 17 percent in Japan. Under the TPP, U.S. apples would have duty-free access to those markets.

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