Marketing and Distribution for Citrus Fruit in China:
Present Situation and Future Prospects

Qi Chunjie
College of Economics and Trade
Huazhong Agricultural University (Wuhan, China)

TABLE 1

China: Annual Total Production and Per capita Output of Fruit in Some Selected Years

year

fruits

apples

citrus fruit

pears

grapes

banana

Total
(10,000 MT)

Per capita
(kg)

Total
10,000 MT

Per capita
(kg)

Total
10,000 MT

Per capita
(kg)

Total
10,000 MT

Total
10,000 MT

Total
10,000 MT

1952

244.3

4.3

11.8

0.21

20.7

0.36

39.4

4.8

11.0

1978

657.0

6.9

227.5

2.36

38.3

0.40

151.7

10.4

8.5

1985

1163.9

11.1

361.4

3.42

180.8

1.71

213.7

36.1

63.1

1999

6237.6

49.8

2080.2

16.52

1078.7

8.58

774.2

270.8

419.4

Source: National Statistics Bureau. Rural Statistical Yearbook of China, 2000

TABLE 2

China: Comparison between Fruit Production and Population by Regions, 1999

items region	output and proportion		Population and proportion
items region	output (ton)	proportion (%)	population (person)	proportion (%)
North (Huabei)	5943961	9.53	140991399	11.51
North-east (Dongbei)	3234837	5.19	103801769	8.47
East (Huadong)	19483665	31.24	353174704	28.83
Middle-south and south (Zhongnan and Huanan)	17587914	28.20	346092051	28.25
South-west (Xinan)	4133506	6.63	192790500	15.74
North-west (Xibei)	7632994	12.24	88064953	7.19
Total	62376432		1224915376

Source: Ministry of Agriculture, P.R.C., Chinese Agriculture Statistics Data, 1999

Table 3

Chinese Provincial Fruits and Citrus Production and Per Capita Output, 1999

		Fruits total 10,000 (MT)		Fruits (kg/pers/year)		Citrus fruit total (MT)		Citrus fruit (kg/pers/year)
		Production	Precedence	Production	Precedence	Production	Precedence	Production	Precedence
Total		62376432		49.8		10787059		8.81
North China	Beijing	540577	22	43.2	13
	Tianjin	255187	25	26.6	18
	Hebei	6437654	2	95.5	5
	Shanxi	2102476	11	65.9	9
	Inner Mongolia	208067	27	8.8	28
North east	Liaoning	2566685	9	61.6	11
	Jilin	496192	23	18.7	22
	Heilongjiang	171960	29	4.5	30
East China	Shangai	251084	26	17.1	24	133860	10	10.19	10
	Jiangsu	1630878	14	22.7	21	62081	13	0.89	14
	Zhejiang	2791878	8	62.5	10	2120078	1	47.5	2
	Anhui	961726	17	15.5	26	6859	17	0.11	17
	Fujian	3941037	6	119.2	2	1589142	2	48.40	1
	Jiangxi	703877	21	16.7	25	539222	8	13.10	8
	Shandong	9203185	1	103.9	3
Central & South China	Henan	3494215	7	37.4	15	14084	15	0.15	16
	Hubei	2085010	12	35.2	16	993502	6	16.72	6
	Hunan	1730080	13	26.5	19	1496568	3	22.95	3
	Guangdong	6226758	3	86.4	6	836091	7	11.46	9
	Guangxi	4051851	5	86.3	7	1061790	5	22.80	4
	Hainan	759555	18	100.3	4	11219	16	1.501	13
South west	Chongqing	717046	20	23.4	20	526695	9	17.14	5
	Sichuan	2345280	10	27.5	17	1162243	4	13.90	7
	Guizhou	325724	24	8.8	27	112731	11	3.15	11
	Yunnan	738302	19	17.7	23	89435	12	2.23	12
	Tibet	7154	31	2.8	31
North west	Shaanxi	4934916	4	136.8	1	29588	14	0.84	15
	Gansu	1107397	16	43.8	12	1871	18	0.08	18
	Qinghai	24144	30	4.8	29
	Ningxia	202343	28	37.4	14
	Xinjiang	1364194	15	77.5	8

Source: State Statistics Bureau. Rural Statistical Yearbook of China , 2000.

Table 4

Chinese household food expenditures and fruit¹ consumption in selected years

Year		1985	1990	1994	1995	1996	1997	1998	1999
Item
Urban family	Food expenditures (Yuan)	351.27	639.77	1422.49	1766.02	1904.71	1942.59	1926.89	1932.10
	Expenditures on fruit (Yuan)	11.25	22.35	81.12	112.10	117.69	127.03	120.73	130.02
	Fruit share (%)	3.2	3.5	5.7	6.3	6.2	6.5	6.3	6.7
	Fruit consumption (kg/pers)	5.12	13.58	33.51	36.56	40.72	45.48	47.86	46.07

Rural family	Food expenditures (Yuan)	183.43	343.76	589.47	768.19	885.49	890.28	849.64	829.02
	Expenditures on fruit (Yuan)	4.42	9.69	30.26	39.89	45.17	47.19	44.18	46.00
	Fruit share (%)	2.4	2.8	5.1	5.2	5.1	5.3	5.2	5.5
	Fruit consumption (kg/pers)	2.01	5.89	12.50	13.01	15.63	17.23	19.24	18.35

Source: State Statistics Bureau. China Statistical Yearbooks, 1985-2000; Rural Statistical Yearbook of China ,1996- 2000.

Table 5

China: Variation on Per Capita Net Income between Urban and Rural Family (Yuan), 1978-1999

year	Rural Family		Urban Family			Rural Family		Urban Family
year	Per capita net income	Index (1978=100)	Dominated Income	Index (1978=100)	year	Per capita net income	Index (1978=100)	Dominated Income	Index (1978=100)
1978	133.6	100.0	343.4	100.0	1990	686.3	311.2	1510.2	198.1
1980	191.3	139.0	477.6	127.0	1991	708.6	317.4	1700.6	212.4
1981	223.4	160.4	492.0	127.7	1992	784.0	336.2	2026.6	232.9
1982	270.1	192.3	527.0	134.1	1993	921.6	346.9	2577.4	255.1
1983	309.8	219.6	564.0	140.7	1994	1221.0	364.4	3496.2	276.8
1984	355.3	249.5	651.0	158.1	1995	1577.7	383.7	4283.0	290.3
1985	397.6	268.9	739.1	160.4	1996	1926.1	418.2	4838.9	301.6
1986	423.8	277.6	899.6	182.5	1997	2090.1	437.4	5160.3	311.9
1987	462.6	292.0	1002.2	186.9	1998	2162.0	456.2	5425.1	329.9
1988	544.9	310.7	1181.4	182.5	1999	2210.3	473.5	5854.0	360.6
1989	601.5	305.7	1375.7	182.8

Source: State Statistics Bureau. Rural Statistical Yearbook of China, 2000.

Table 6

Projection of fruit demand in China, 2005-2030

item	Per capita demand (kg)					Total demand (10000 ton)
item	1998 Actual	2000 Projected	2005 Projected	2015 Projected	2030 Projected	1998 Actual	2000 Projected	2005 Projected	2015 Projected	2030 Projected
Fruit	42.0	43.1	52.8	60.0	93.6	5242	5503	6751	8713	14982
apple	15.6	15.4	14.9	16.0	20.0	1948	1965	1898	2320	3202
citrus	5.0	5.3	10.3	11.7	16.0	624	678	1315	1699	2565

Source: Strategy of China Agriculture Development in the early 21st Century by Liu jiang.
China Agriculture Publish Press. June ,2000.

Table 7

China: Balance Table of Fruits Supply and Demand (10,000MT)

Year Items		1998 Actual	2000 prediction	2005 prediction	2015 prediction	2030 prediction
Fruits	Demand	5242	5503	6751	8713	14982
	Production	5453	5725	7673	10311	16539
	Surplus & deficit	211	222	922	1599	1557
	Share in Demand	4.0%	4.0%	13.6%	18.4%	10.4%
	Share in Production	3.9%	3.9%	12.0%	15.5%	9.4%
Apples	Demand	1747	1790	1898	2320	3202
	Production	1747	2045	2741	3684	4958
	Surplus & deficit	0	255	843	1363	1756
	Share in Demand	0.0%	14.2%	44.4%	58.8%	54.8%
	Share in Production	0.0%	12.5%	30.7%	37.0%	35.4%
Citrus fruit	Demand	624	678	1315	1699	2565
	Production	624	876	987	1326	2100
	Surplus & deficit	0	198	-328	-373	-465
	Share in Demand	0.0%	29.2%	25.0%	21.9%	18.1%
	Share in Production	0.0%	22.6%	33.3%	28.1%	22.2%

Source: Strategy of China Agriculture Development in the early 21st Century by Liu jiang.
China Agriculture Publish Press. June, 2000.

Table 8

China: the Transaction of Consumer Goods on the Urban and Rural Markets, 1985-1998

year		1985	1990	1995	1996	1997	1998
No of country markets	urban areas	8013	13106	19892	20832	22352	24127
	rural areas	53324	59473	63000	64559	64753	65050
	total	61337	72579	82892	85391	87105	89177
Turnover of country markets (100 million RMB)	urban areas	120.4	837.8	6176.4	7882.5	9468.8	11042.8
	rural areas	511.6	1330.4	5413.7	6812.4	7955.7	8792.7
	total	632	2168.2	11590.1	14694.9	17424.5	19835.5
Agricultural and livestock products turnover in country markets trade (100 million RMB)	cereal and oil	49.6	146.8	904	1141.1	1360.6	1464.8
	meat, poultry and egg	140.1	618.8	2221.4	2754	3338.2	3557.4
	fishery products	33.2	182.3	870.1	1134.7	1386.1	1659
	vegetable	48.8	264.2	1202.8	1590	1944.6	2207
	dried and fresh fruit	25.4	183.5	781.9	980.4	1106.4	1234.7
	cattle	32.6	38.3	105.5	123.4	139.5	148.1

Source: State Statistics Bureau. Market Statistical Yearbook of China , 1999.

Table 9

The Markets of Chinese Agricultural Products and Their Trade Value

	Number of the markets			trade value (100 million Yuan)
	total	urban	rural	total	urban	rural
agricultural and by-products markets	26236	9600	16636	5372.9	3220	2152.9
comprehensive markets of agri. and by-products	18192	7021	11171
specialized markets of agri. and by-products	8044	2579	5465
wholesale markets of agri. and by-products	4243	1880	2363	2869.3	1914.5	954.8
wholesale markets of vegetables	1288	528	760	926.2	618.4	307.8
wholesale markets of dried and fresh fruit	836	440	396	398.5	296.8	101.6
wholesale markets of fishery products	323	150	173	320.1	193.2	127
wholesale markets of meat, poultry and egg	270	169	101	168.7	124.6	44.1
wholesale markets of cereal products	543	193	350	223.8	130.3	93.6
wholesale markets of food vegetable oil	23	4	19	9.8	0.8	9
wholesale markets of piglet	221	24	197	21.2	5.9	15.3
wholesale markets of medicine	35	12	23	130.7	108.5	22.2
other wholesale markets	704	360	344	670.3	436	234.3

Source: State Statistic Bureau. Market Statistics Yearbook of China, 1999

Table 10

China: Volume of purchase, Sales and Storage for the Supply and Marketing Cooperative

	purchased from producers	imports	wholesale		retail	Year-end stock
	purchased from producers	imports	Sales to processing industry	Sales to wholesalers and retailers	retail	Year-end stock
apples	380793	--	28661	388213	110196	36820
citrus	315134	--	16617	325373	38005	3333

Source: State Statistics Bureau. Market Statistical Yearbook of China , 1999.

Table 11

China's Fruits: Production, Export Volume of 1980-1999

year	production (10,000 tons)			volume of export
year	fruit	apples	citrus	fruits (10,000 tons)	apples (tons)	citrus (tons)
1980	679.3	236.3	71.3	24.2	110,418	77,526
1981	780.1	300.6	79.8	19.9	67,068	73,953
1982	771.3	243	93.9	20.8	65,005	78,943
1983	948.7	354.1	129.6	19.6	57,854	83,410
1984	984.5	294.1	149.9	17.4	44,496	69,157
1985	1163.9	361.4	180.8	21.4	56,935	81,599
1986	1347.7	333.7	254.8	22.4	50,334	99,855
1987	1667.9	426.4	322.4	24.4	63,302	102,124
1988	1666.1	434.4	256	29.8	100,288	109,317
1989	1831.9	449.9	456.1	25.2	79,018	101,422
1990	1874.4	431.9	485.5	22.6	70,688	89,938
1991	2176.1	454	633.3	16	33,137	69,323
1992	2440.1	655.6	516	14.6	51,396	92,830
1993	3011.2	907	656.1	32	134,222	114,257
1994	3499.8	1112.9	680.5	39.2	124,062	152,108
1995	4214.6	1400.8	822.5	39.8	138,106	156,950
1996	4652.8	1704.7	845.7	56	190,019	171,741
1997	5089.3	1721.9	1010.2	68	214,962	233,011
1998	5452.9	1948.1	859	66	204,469	175,458
1999	6237.6	2080.2	1078.7	73	219,196	176,336

Source: export data of apple and citrus (including tangerines and oranges) from FAOSTAT DATA, FAO; other data from State Statistics Bureau. Rural Statistical Yearbook of China , 2000

Table 12

Chinese Citrus and Other Fruit Export Volume and Value, 1990's

commodities	unit	1990	1995	1998	1999	% of 98
fresh, dried fruit and nuts	10,000MT		49	66	73	110.61
fresh, dried fruit and nuts	$1,000	10286	18175	36982	34211	92.5
tangerines and oranges	10,000MT		131798	161159	166448	103.28
tangerines and oranges	$1,000	3108	5570	4612	3957	85.8
fresh apples	10,000MT		108946	170329	219196	128.69
fresh apples	$10,000	2559	4530	6454	7593	117.7

Source: State Statistics Bureau. Rural Statistical Yearbook of China, 2000

Table 13

Chinese Citrus fruit: Volume and Value of Import and Export, 1998

Registered No of commodities	items of commodities	Export			export
Registered No of commodities	items of commodities	volume (kg)	value ($1,000)	export price ($/kg)	volume (kg)	value ($1,000)	import price ($/kg)
805	Fresh of dried citrus	175458437	48886	3.59	5591962	1924	2.91
851000	oranges	5430969	1097	4.95	3734779	1267	2.95
8052010	Jiao Tangerines	14255240	6022	2.37	103175	37	2.79
8052090	Other& cross citrus	141473184	39003	3.63	150956	66	2.29
8053000	Lemons & limes	177879	88	2.02	493605	228	2.17
8054000	pomelos	9501900	1377	6.9	1107411	311	3.56
8059000	Citrus fruit unlisted	4619265	1299	3.56	2036	15	0.136

Source: China's Customs Statistics, 1998.

Table 14

Tariffs and valued-added Tax for Citrus,1999

		Tariff rate		Value-added tax rate	Effective minimum duty rate
		(MFN)	(general)	Value-added tax rate	Effective minimum duty rate
Fresh citrus	Oranges	40	100	13/17	58
	Tangerines	40	100	13/17	58
	lemons	40	100	13/17	58
	Grapefruits	40	100	13/17	58
	Other citrus	40	100	13/17	58
Canned citrus	Citrus	30	90	17	52
Canned citrus	Other citrus preps	30	90	17	52
Fruit juice	Orange juice(frozen)	35	90	17	58
	Orange juice (unfrozen)	35	90	17	58
	Grapefruit juice	35	90	17	58
	Other citrus juice	35	90	17	58

Rate is applied to imports from countries enjoying most favored nation(MFN) trading status with China
General rate is applied to imports from non-MFN trading partners.
Source: PRC Customs Tariffs Handbook 1999

1 Including melons

year	fruits		apples		citrus fruit		pears	grapes	banana
year	Total (10,000 MT)	Per capita (kg)	Total 10,000 MT	Per capita (kg)	Total 10,000 MT	Per capita (kg)	Total 10,000 MT	Total 10,000 MT	Total 10,000 MT
1952	244.3	4.3	11.8	0.21	20.7	0.36	39.4	4.8	11.0
1978	657.0	6.9	227.5	2.36	38.3	0.40	151.7	10.4	8.5
1985	1163.9	11.1	361.4	3.42	180.8	1.71	213.7	36.1	63.1
1999	6237.6	49.8	2080.2	16.52	1078.7	8.58	774.2	270.8	419.4

Marketing and Distribution for Citrus Fruit in China:Present Situation and Future Prospects

Qi Chunjie College of Economics and Trade Huazhong Agricultural University (Wuhan, China)

Marketing and Distribution for Citrus Fruit in China:
Present Situation and Future Prospects

Qi Chunjie
College of Economics and Trade
Huazhong Agricultural University (Wuhan, China)