THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
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:
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.
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.
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
Total Imports Imports from U.S. U.S. Market Share
M.T. $US million M.T. $US million Percentage
2014 12,982 36.9 11,270 30.7 86
2015 16,108 42.7 12,411 32.5 77
2016 19,761 49.4 15,376 38.0 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, isgradually 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.
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. Non-store 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.
Total Supply 9,252 10,908 12,000
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
Total Imports Imports from U.S. U.S. Market Share
Unit M.T. $US million M.T. $US million Percentage
2014 11,744 92.3 6,581 48.2 52 %
2015 9,252 75.4 4,657 30.7 40 %
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
