World Orange Market and Consumption

THE WORLD MARKET FOR
FRUIT JUICE PRODUCTS:
CURRENT SITUATION AND PROSPECTS
M. T. Laing
R. L. Sheppard
Research Report No. 150
March 1983
Agricultural Economics Research Unit
Lincoln College
Canterbury
New Zealand
ISSN 0069-3790
;
, ~ . ~
THE AGRICULTURAL ECONOMICS RESEARCH UNIT
Lincoln College, Canterbury, N.Z.
The Agricultural Economics Research Unit (AERU) was established in i962 at Lincoln
College, University ofCanterbury. The aims of the Unit are to assist byway ofeconomic
research those groups involved in the many aspects ofNewZealand primary production
and product processing, distribution and marketing.
Major sources of funding have been annual grants from the Department of Scientific
and Industrial Research and the College. However, a substantial proportion of the
Unit's budget is derived from specific project research under contract to government
departments, producer boards, farmer organisations and to commercial and industrial
groups.
The Unit is involved in a wide spectrum of agricultural economics and management
research, with some concentration on production economics, natural resource
economics, marketing, processing and transportation. The results of research projects
are published as Research Reports or Discussion Papers. (For further information
regarding the Unit's publications see the inside back cover). The Unit also sponsors
periodic conferences and seminars on topics of regional and national interest, often in
conjunction with other organisations.
The Unit is guided in policy formation by an Advisory Committee first established in
1982.
The AERU, the Department of Agricultural Economics and Marketing, and the
Department of Farm Management and Rural Valuation maintain a close working
relationship on research and associated matters. The heads of these two Departments
are represented on the Advisory Committee, and together with the Director, constitute
an AERU Policy Committee.
UNIT ADVISORY COMMITTEE
B.D. Chamberlin
(Junior Vice-President, Federated Farmers of New Zealand Inc.)
P.D. Chudleigh, B.Sc. (Hons), Ph.D.
(Director, Agricultural Economics Research Unit, Lincoln College) (ex officio)
. ]. Clarke, C . M . G . ~ ~
(Member, New Zealand Planning Council)
].B. Dent, B.Se., M.Agr.Sc., Ph.D.
(Professor & Head of Department of FarmManagement & Rural Valuation, Lincoln College)
Professor RH.M. Langer, B.Se. (Hons.), Ph.D., F.RS.N.Z.,
F.A.N.Z.A.A.S., F.N.Z.I.A.S.
(Principal of Lincoln College)
A.T.G. McArthur, B.Se.(Agr.), M.Agr.Sc., Ph.D.
Head of Department of Agricultural Economics & Marketing, Lincoln College)
E.]. Neilson, B.A.,B.Com., F.C.A., F.C.I.S.
(Lincoln College Council)
P. Shirtcliffe, B.Com., ACA
(Nominee of Advisory Committee)
E.]. Stonyer, B.Agr. Sc.
(Director, Economics Division, Ministry of Agriculture and Fisheries)
].H. Troughton, M.Agr.Se., Ph.D.,D.Se., F.RS.N.Z.
(Assistant Director-General, Department of Scientific & Industrial Research)
'UNIT RESEARCH STAFF: 1984
Director
P.D. Chudleigh, B.Se. (Hons), Ph.D.
Research Fellow in Agricultural Policy
].G. Pryde, O.B.E., M.A., F.N.Z.I.M.
Senior Research Economists
A.C. Beck, B.Sc.Agr., M.Ec.
RD. Lough, B.Agr.Se.
RL. Sheppard, B.Agr.Sc.(Hons), B.B.S.
Research Economist
RG. Moffitt, B.Hort.Sc., N.D.H.
Research Sociologist
].R. Fairweather,B.Agr.Sc.,B.A.,M.A.,Ph.D.
Assistant Research Economists
L.B. Bain, B.Agr., LL.B.
D.E.Fowler, B.B.S., Dip. Ag. Econ.
G. Greer, B.Agr.Sc.(Hons) (D.S.I.ILSecondment)
S.E. Guthrie, B.A. (Hons) ~ .
S.A. Hughes, B.Sc.(Hons}, D.B.A.
M. T. Laing, B.Com.(Agr), M.Com.(Agr) (Hons)
P.]. McCartin, B.Agr.Com.
P.R McCrea,B.Com.(Agr), Dip. Tchg.
].P. Rathbun, B.Sc., M.Com.(Hons)
Post Graduate Fellows
c.K.G. Darkey, B.Sc., M.Sc.
Secretary
G.S. McNicol
CON TEN T S
Page
LIST OF TABLES
LIST OF FIGURES
PREFACE
ACKNOWLEDGEMENTS
SUMMARY
Cix)
(xvii)
(xix)
(xxi)
(xxiii)
CHAPTER I
CHAPTER 2
INTRODUCTION
1.1 Background to Research
1.2 Outline of Report
UNITED STATES OF AMERICA
2. I Introduction
2.2 Domestic Production
2.3 International Trade
2.4 Consumption
3
3
3
5
8
2.4. I
2.4.2
2.4.3
The United States Beverage Market
The West Coast USA Beverage Market
Consumer Flavour Preferences
I. Soft-Drinks
2. Fruit Juice and Nectars
3. Fruit Drinks
4. Drink Mixes
5. Convenience Teas
6. Bottled Water
8
II
II
II
13
14
15
16
17
CHAPTER 3
2.5 Fruit Based Drink
2.6 Fruit Based Drink
2.7 Fruit Based Drink
2.8 Market Structure:
2.9 Market Access
CANADA
Retail Packaging 17
Pricing 18
Promotion 18
Distribution Channels and End-Users 20
23
25
3.1 Introduction 25
3.2 Domestic Production 25
3.3 International Trade 25
3.4 Consumption 27
3.5 Market Structure: Distribution Channels and End-Users 29
3.6 Market Access 30
( i)
CHAPTER 4 CENTRAL AND SOUTH AMERICA
4.1 Introduction
4.2 Domestic Production
31
31
31
4.2.1
4.2.2
4.2.3
4.2.4
Argentina
Brazil
Chile
Mexico
31
32
33
34
4.3 International Trade 34
CHAPTER 5
4.3.1
4.3.2
AUSTRALIA
Importance in World
Brazilian Exports: Froducts and Destinations
34
35
39
5.1 Introduction
5.2 Domestic Production
5.3 International Trade
5.4 Consumption
39
39
4 1
46
5.4. 1
5.4.2
Fruit Juice
Other Beverages
46
48
5.5 Supermarket Product Line, Fruit Drink Packaging and
Pricing 48
5.5.1
5.5.2
5.5.3
5.5.4
5.5.5
Pure Fruit Juice
Fruit Drinks
Drink Mixes
Nectars
Cordials and Syrups
49
49
49
52
53
CHAPTER 6
5.6 Market Structure
5.7 Market Access
JAPAN
54
54
55
6.1 Introduction 55
6.2 Domestic Production 55
6.3 International Trade 58
6.4 Consumption 60
6.5 Market Structure: Distribution Channels and End Users 62
6.6 Market Access 64
CHAPTER 7 PACIFIC ISLANDS
7.1 Introduction
7.2 Population
7.3 Economy and International Trade
7.4 Fruit Production and Fruit Juice Trade
7.5 Fruit Juice Consumption
( iii)
67
67
67
67
71
74
CHAPTER 8 ASIA (EXCLUDING JAPAN) 77
8. 1 Introduction 77
8.2 Fresh Fruit Production 79
8.3 International Trade 81
8.4 Consumption 81
8.5 Retail Packaging and Prices 84
8.6 Distribution 84
8.7 Market Access 85
CHAPTER 9
CHAPTER 10
MIDDLE-EAST 87
9.1 Introduction 87
9.2 Domestic Production 89
9.3 International Trade 89
9.4 Consumption 92
9.5 Packaging and Pricing 94
9.6 Market Structure: Distribution Channels and End Users 94
9.7 Market Access 96
EUROPE - EEC 97
10. I Introduction
10.2 Domestic Production
10.3 International Trade
97
98
100
10.3.1 Importance and Place of World Trade in EEC
Market 100
10.3.2 Imports by Product and Source 103
(i)
( ii)
Citrus Juice
Non-Citrus Juice
103
104
10.3.3 Germany, the Netherlands and Belgium-
Luxembourg as Re-Exporters 108
10.4 Consumption 108
10.5 Retail Packaging 112
10.6 Market Structure: Distribution Channels and End
Users 113
10.7 Market Access 114
CHAPTER 11 EUROPE: NON-EEC
I I. I Introduction
11.2 Domestic Production
11.3 International Trade
11.4 Consumption
I 17
117
118
118
123
11.4.1
11.4.2
West European Coun'tries
East European Countries
123
124
11.5 Distribution and Market Access 124
11.5. I
11.5.2
West European Countries
East European Countries
(v)
124
125
CHAPTER 12 THE WORLD FRUIT JUICE MARKET: SITUATION AND PROSPECTS 127
12.1 Introduction 127
12.2 Major Features of Fruit Juice Production and Trade 127
12.2.1 Brazil: the Dominating Factor on the World
Markets 127
12.2.2 Trade in Raw Materials Increasing Faster
than Trade in Consumer Products 127
12.2.3 Emergence of Third World Supplies of Tropical
Juices 127
12.2.4 Peaking of Fresh Fruit Consumption in
Developed Countries 128
12.2.5 Re-Exporting Roles 128
12.3 Major Features and Trends in Fruit Consumption,
Consumer Preferences and Consumer Habits 128
12.3.1
12.3.2
12.3.3
12.3.4
12.3.5
12.3.6
12.3.7
Competition with Other Beverages
Flavour Preferences and Acceptance of New
Flavours
Product Developments
Packaging Development
Demographic Changes
Growing Health Consciousness
Growth in the Foodservice Sector
128
128
129
129
129
130
130
12.4 Market and Product Opportunities 130
12.4. I
12.4.2
12.4.3
12.4.4
12.4.5
12.4.6
12.4.7
Introduction
Domestic Production and Total Demand
Consumption, Income and Population
Consumer Product Preferences
Distribution
Access
Market Opportunities
130
131
132
134
136
136
138
REFERENCES
12.5 Conclusion
(vii)
140
143
Table
2
3
4
5
6
7
8
9
10
11
12
LIST OF TABLES
United States: Fruit Juice Production
United States: Fruit Production and Utilisation (1981)
United States: Importance in World Trade of Fruit and Vegetable
Juice (1977-1981)
United States: Fruit Juice Imports ( 1977-198 I)
United States: Fruit Juice Exports ( 1977-198])
United States: Dependence on Imports (1977-1981)
United States: Beverage Consumption ( 1981)
United States: West Coast Beverage Consumption ( 198 J)
United States: Soft Drink Flavour Shares (1980)
United States: Fruit Juice Flavours Shares ( 1980)
United States: Fruit Juice Sales Growth Rates ( 1967-1977)
United States: Fruit Drink Flavour Shares (1980)
Page
3
4
5
6
7
8
9
10
12
13
14
15
13 United States: Drink Mix Flavour Shares (1980) 16
14 United States: Convenience Tea Sales (1980) 17
15 Fruit Based Drink Product Line and Retail Prices -
Californian Supermarket (May 1983) 19
16 United States: Fruit Based Drink Advertising Expenditure 20
17 United States: Fruit Juice Availability in Commercial
Restaurants 22
18 Canada: Fruit Production (1981) 25
19 Canada: Importance in World Trade of Fruit and Vegetable
Juice (1977-1981) 26
20 Canada: Fruit Juice Imports (1981) 27
21 Canada: Fruit Juice and Soft-Drink Flavour Shares 28
22 Canada: Fruit Drink Product Line and Retail Prices January 1982 29
23 Central and South America: Fruit Production (1981) 32
24 Brazil: Orange Juice Production (1976-1981) 33
Cix)
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
4 I
42
43
44
45
46
47
48
49
50
Chile: Production of Fruit Pulp Concentrate, Paste and Pure
Juice (1974-1981)
Central and South America: Importance in World Trade of Fruit
and Vegetable Juice (1977-1981)
Brazil: Exports by Product and Destination (1981)
Australia: Fruit Juice Production
Australia: Citrus Production and Utilisation
Australia: Fruit Juice Trade Summary
Australia: Fruit Juice Imports ( 1982)
Australia: Fruit Juice Exports (1982)
Australia: Non-Alcoholic Beverage Exports (1982)
Australia: Fruit Juice Per Capita Consumption
Australia: Per Capita Consumption of Beverages
Australia: Pure Juice Retail Prices (May 1983)
Australia: Fruit Drink Retail Prices (May 1983)
Australia: Drink Mix Retail Prices (May 1983)
Australia: Fruit Nectar Retail Prices (May 1983)
Australia: Fruit Juice Cordial and Syrup Retail Prices
(May 1983)
Japan: Production of Fruit Juice Raw Materials (1971-1980)
Japan: Fruit Production (1981)
Japan: Fruit Juice, Drinks and Nectars for Direct Consumption
by Type of Fruit (1980)
Japan: Fruit Juice Concentrate Production by Type of Fruit
( 1980)
Japan: Importance in World Trade of Fruit and Vegetable Juice
( 1977-1981)
Japan: Fruit Juice Exports (1981)
Japan: Fruit Juice Imports (1977-1981)
Japan: Beverage Market Shares
Japan: Frequency of Fresh Food Purchases by Restaurants
Japan: Fruit Juice Import Quotas
(xi)
34
35
36
39
40
42
43
44
45
47
48
50
51
52
52
53
55
56
57
58
59
59
61
62
64
65
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
Pacific Islands: Population ( 1981)
Pacific Islands: Ethnic Composition
Pacific Islands: Tourists
Pacific Islands: Fruit Production ( 1981)
Pacific Islands: Import Tariffs
Papua New Guinea: Fruit Juice Product Line and Prices -
Steamships Supermarket, Boroko (May 1983)
Asia: Population and Income (1981)
Asia: Fruit Production (1981)
Asia: Exports of Fruit and Vegetable Juice (1977-1981)
Asia: Imports of Fruit and Vegetable Juice into Principal
Importing Countries (1976-198])
Asia: Income Distribution in Some Asian Countries
Middle-East: Dependence on Oil and Per Capita Income
Middle-East: Expatriate Populations (1980)
Middle-East: Importance in World Trade of Fruit and Vegetable
Juice (1977-1981)
Middle-East: Import Sources
Middle-East: Fruit Juice Product Consumption
Middle-East: Beverage Market Shares
Middle-East: Fruit Juice Product Flavour Preference
EEC: GDP Per Capita (1982)
EEC: Fruit Production (1981)
Germany and France: Fruit and Vegetable Juice Production from
Fresh Fruit
Germany: Dependence on Imported Fresh Apples and Pears for
Juice Production·
EEC: Importance in World Trade of Fruit and Vegetable Juice
( 1977-198 I)
EEC: Classification of Markets
EEC: Trends in Citrus Juice Imports (1978-1982)
EEC: Citrus Juice - Import Sources
(xiii)
68
69
7 ]
72
73
75
78
80
82
83
85
87
88
90
91
92
93
94
97
99
100
10 I
102
103
105
106
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
EEC: Importance of Non-Citrus Juice Imports
GFR, the Netherlands, and BLEU: Exports of Fruit and
Vegetable Juices
EEC: Beverage Consumption Per Capita
EEC: Fruit Juice Product Consumption per Capita
EEC: Fruit Juice Flavour Preferences
EEC: Common External Tariff (CET) for Fruit Juices
EEC: Value Added Taxes (VAT)
Europe Non-EEC: Population (1981)
Europe Non-EEC: Fruit Production (1981)
Europe Non-EEC: Exports of Fruit and Vegetable Juice
(1977-1981)
Europe Non-EEC: Imports of Fruit and Vegetable Juice
( 1977-1981)
West European - Non-EEC: Trends ~ n Major Juice Imports
(1977-1981)
West European - Non-EEC: Beverage Consumption Per Capita
West European - Non-EEC: Tariff Barriers
Domestic Juice Production and Importance of Imports
Fruit Juice Consumption Compared to Income and Population
Levels
Juice Product Preferences
Importance of Distribution Outlets for Fruit Juice Product
Sales
Barriers to Access for New Zealand
Product - Market Opportunities
(xv)
107
109
110
111
112
115
116
117
119
120
121
122
123
126
132
133
135
137
138
139
Figure
2
3
4
LIST OF FIGURES
United States: Market Structure for Fruit Juice Products
Japan: Distribution Channels for Imported Juice Concentrates
Middle-East: Market Structure - Distribution Channels and
End Users
EEC: Market Structure: Distribution Channels and End-Users
(xvii)
Page
21
63
95
113
PREFACE
This report presents a review of the trends in production, consumption, and
trade in fruit JU1ce products. The report is intended to give a broad
background to existing and potential producers and exporters of frVit juice
products. Although the report is widely focussed, it will be useful as a
starting point for more specific market research efforts.
An earlier Unit publication (Discussion Paper No. 60) reviewed the world
sheepmeat market. The present report has a similar objective and geographic
focus but is the first AERU report to concentrate on products of the
horticultural sector. In this respect it should be seen as complementary to the
many Horticultural Research Unit Reports that have been published over the past
few years.
This research has been stimulated by the interest of the Horticulture and
Processing Division of the Department of Scientific and Industrial Research
(D.S.I.R.). The financial assistance of the D.S.I.R. in supporting this study
is gratefully acknowledged.
P. D. Chudleigh
Director
(xix)
ACKNOWLEDGEMENTS
The authors wish to acknowledge with gratitude the assistance given by the
Department of Trade and Industry in allowing the Trade Commissioner service to
be used to gather information relevant to this research. In particular, the
following officers of the Department of Trade and Industry have been especially
helpful:
Philip Atkinson, NZ High Commission, London
Michele E. Boyle, Marketing Officer, NZ Consulate General
San Francisco.
Christopher Butler, First Secretary (Commercial), NZ Embassy
Bonn.
Peter Cole, Executive Officer, Wellington.
Geoffrey Connor, Assistant Trade Commissioner, NZ High Commission,
Port Moresby.
John Driscoll, Trade Commissioner, Hong Kong.
John Hundleby, Christchurch.
Ivan W. Lindoss, Trade Commissioner, NZ Embassy, Brussels
Peter J. Luxton, First Secrp.tary (Commercial), NZ Embassy,
The Hague.
Winnifred Oehninger, Marketing Officer, NZ Embassy, Santiago.
John A. Preston, Counsellor (Commercial), NZ Embassy, Vienna.
Mr Seeker, Wellington.
Katherine Sillars, NZ High Commission, Canberra.
Mr D. Thompson, Wellington.
Linda Wareing, Christchurch.
Mr Yee Ah. Kow, Marketing Officer, NZ High Commission,
Kuala Lumpur.
Information contributed to
Affairs Manager, New Zealand
acknowledged with appreciation.
this research by
Apple and Pear
Mr P. M.
Marketing
Turner,
Board,
Corporate
is also
While acknowledging the debt this research owes to the information provided
by the people listed above, the authors accept responsibility for all errors of
fact and interpretation.
(xxi)
SUMMARY
The recent and future expansion of the horticultural industry, especially
in the fruit production area, is directed mainly at the production of fresh
export quality product. While this is the primary endeavour of the production
systems which have been put in place, it is inevitable that a proportion of the
production will not be of export quality. In the past, such production has been
sold on the local market as fresh fruit. Given the expansion that is taking
place, however, it is probable that this market outlet will not be able to
absorb the quantities of product that will be available. One alternative use
for the non-export grade fruit is a raw material for production of fruit based
drinks.
This report presents an evaluation of the export market potential for drink
products, identifying a range of potential export markets, together with the
products appropriate to these markets. The range of drink products considered
in this report includes pure fruit juice, fruit drinks, nectars, powders (or
drink mixes) and cordials. The report is organised into a number of Chapters,
each Chapter containing a review of the market in a particular country or
region. The majority of countries reviewed are situated in and around the
Pacific Basin, and include the United States, Canada, Australia, Japan,
South-East Asia, and the Pacific Islands. Europe and the Middle-East are also
reviewed, as is Central and South America, which is included in the report
because of its dominating influence on the world trade in fruit juices.
Chapter 12 of this report highlights a number of overall
individual markets. In terms of juice production and trade,
include:
features
important
of the
factors
- the dominance of Brazil as an exporter of fruit juice, and its
continued juice production expansion;
- a continuing trend towards trade in juice concentrates and pulps
rather than finished consumer packed juice products;
- the emergence of Third World suppliers of tropical juices;
the peaking of fresh fruit consumption in many developed countries,
so that additional fruit production is being diverted into juicing; and
the emergence of a number of juice re-exporting countries, dominating
the juice trade within a particular region.
A number of trends in fruit juice consumption and consumer preferences are
also noted, including:
increasing competition in the overall beverage market for fruit juices
particularly coming from sparkling and still mineral water, white wine,
and sugar-free carbonated soft drinks;
the dominance of citrus flavours in consumer flavour preferences,
and the slow acceptance of non-traditional flavours;
the faster growth of single serve juices for immediate consumption,
usually packaged in aseptic Tetra Brik containers, compared to the
slower growth of frozen and/or concentrated products;
(xxiii)
the proliferation of multi-flavour juice products ~ n well-developed
single-flavour markets;
- the development of products incorporating fruit juice and other
beverages, particularly mineral water and milk;
- demographic changes leading to a re-positioning of juice products
in the market in order to appeal to a broader group, especially males
over 25 years old;
- growing consumer awareness of the health attributes of food products;
and
- growth in the importance of the foodservice sector as an outlet for
fruit juices, due to the increasing proportion of meals eaten outside
the home.
Recognising these influences in
Chapter 12 of this report goes on
individual fruit juice products in
identified by classifying each market
including:
the overall market
to identify specific
each market. These
according to a number
for fruit J u ~ c e s ,
opportunities for
opportunities are
of characteristics
- the level of domestic production ~ n relation to the level of
total demand;
- the current level of demand ~ n relation to income levels and
total population;
- consumer product preferences;
- the distribution outlets that reach particular market segments,
and
- the accessibility of the market for exporters.
The ability of New Zealand to exploit the identified opportunities
on a number of factors which were not covered by- this report. These
include:
depends
factors
- the cost at which New Zealand fruit-growers can produce processing
quality fruit;
- the juice flavours produced by New Zealand;
- the relative transport costs of exporting consumer packed juice
and bulk packed product, and the potential for off-shore processing;
and
- the ability to retain the identity of New Zealand juice products.
It is concluded that while opportunities do exist on many markets for fruit
juice products, the markets are extremely competitive.
(xxiv)
CHAPTER 1
INTRODUCTION
1.1 Background to Research
The recent and future expansion of the horticultural industry, especially
in the fruit production area, is directed mainly at the production of fresh
export quality product. While this is the primary endeavour of the production
systems which have been put in place, it is inevitable that a proportion of the
production will not be of export quality. In the past, such production has been
sold on the local market as fresh fruit. Given the expansion that is taking
place, however, it is probable that this market outlet will not be able to
absorb the quantities of product that will be available. Therefore, it will be
necessary to find alternative uses for the non-export grade fruit. A number of
alternatives are available. These range from the use of the fruit in the
canning industry, the confectionery industry, or fruit drink preparations.
Alternatively, the ~ x c e s s production of lower grade product could be destroyed.
In order to decide which type of processing system should be encouraged
within New Zealand, it is necessary to evaluate the potential for the different
options. This report presents an evaluation of the export market potential for
drink products, identifying a range of potential export markets, together with
the products appropriate to these markets. The range of drink products
considered in this report includes pure fruit juice, fruit drinks, nectars,
powders (or drink mixes) and cordials. Fruit drinks are products containing
less than 100 per cent pure juice, the additional ingredients including both
water and sugar. Depending on the country ~ n which the fruit drinks are
marketed, the required pure juice content of the product varies. Nectars
usually contain between 40 per cent and 50 per cent pure juice and have fruit
pulp added as well as water and sugar. Powdered juice products usually produce
fruit drinks when water is added. Many powdered fruit drinks are artificially
fruit flavoured, containing little if any pure fruit juice. Like powders,
cordial products also produce fruit drinks when water is added, being
concentrated fruit drinks requiring dilution.
1.2 Outline of Report
Given the objective of evaluating the export market potential for fruit
based drink products, the report is subdivided into a number of chapters, each
chapter containing a review of the market in a particular country or region.
The majority of countries reviewed are situated in and around the Pacific Basin,
and include the United States, Canada, Australia, Japan, South-East Asia, and
the Pacific Islands. Europe and the Middle-East are also reviewed, as is
Central and South America, which is included in the report because of its
dominating influence on the world trade in fruit juices.
Within each chapter, available statistics relating to the production, trade
and consumption of fruit drink products are presented. Market access to
individual countries, and the distribution channels within the market, are also
discussed. Where available, data relating to current consumer market prices for
fruit based drink products are presented, highlighting not only the overall
level of prices, but also the competitive positions of individual fruit based
drink products.
Chapter 12 summarises the current world market situation and identifies a
number of product-market opportunities.
I.
America
198 I,

1982).
at 2.8
CHAPTER 2
UNITED STATES OF AMERICA
2. I Introduction
In terms of Gross National Product (GNP), the United States of
(USA) is the largest economy in the world, reaching US$2577 billion in
greater than the combined GNP of all ten EEC member states. Per capita
in the USA is one of the highest in the world, US$II,319 in 1981 (FEER,
Over the period 1971-1981, OECD (1983) reports that GNP in the US grew
per cent per annum, just under the OECD average of 3.0 per cent.
Total population in the United States reached 230 million in 1981, having
grown at an annual rate of 0.7 per cent over the period 1975-1981.
2.2 Domestic Production
In 1981, production of fruit juice in the USA totalled over 1.2 billion
litres (Table I), 61 per cent of this being frozen concentrated citrus
33 per cent single-strength citrus juice, and only six per cent non-citrus
juice. Orange juice alone made up 83 per cent of juice output.
TABLE I
United States: Fruit Juice Production
Product
1977 1978
Season
1979 1980 198 I
Proportion of
Total 1981
Production
(million litres)
Frozen Concentrated Citrus Juice
Orange 598.2 610.2 655.0 875.3 660.6
Grapefruit 42.6 51.8 53.9 73.6 78.6
Tangerine 3.5 6.3 5.2 8. I 4.4
Limeade 4.8 7.0 9.9 7.0 7.0
Total 649. I 675.3 724.0 964.0 750.6
Chilled Single-Strength Citrus Juice
Orange 47 I. 5 508.6 472.9 510. I 362.2
Grapefruit 66.5 72. I 55.4 63.8 48.5
Total 538.0 580.7 528.7 573.9 410.7
Non-Citrus
.. a
11.4 22.7 20.2 23.9 69.9
All juice 1198.5 1278.7 1272 .9 156 1.8 123 1.2
54
6
6 I
29
4
33
6
100
a
mainly grape, pineapple, apples, cranberry
Source: ITC (1982)
3.
TABLE 2
United States: Fruit Production and Utilisation (1981)
Fruit
Citrus
Oranges
Lemons
Tangelos
Temples
Temperate
Apples
Nectarines
Peaches
Cherries
Blackberries
Raspberries
Strawberries
Tropical
Avocados
Pineapples
Production
'000
(short tons)
10524
1208
221
162
3806
182
1329
213
9
19
370
231
650
Proportion
Processed
(%)
8 I
64
58
69
45
I
49
66
100
68
n.a.
n.a.
82
Fruit
Grapefruit
Limes
Tangerines
Apricots
Prunes and Plums
a
Pears
Grapes
Blueberries
Cranberries
Other berries
Bananas
Papayas
Production
'000
(short tons)
2759
48
239
89
261
893
4428
58
133
4
3
32
Proportion
Processed
60
42
44
87
13
58
88
62
83
100
n.a.
13
a
excludes dried fruit production.
Source: ITC (1982)
FAD (1982)
5.
Production in 1981 dropped by 21 per cent from the record 1980 production
level of over 1.5 billion litres, largely because of unseasonal pre-harvest
frosts. The 1982 season suffered in a similar way, so that production was
expected to be below the levels attained in 1981.
Table 2 presents data showing the importance of processing (including
juicing) in USA fruit production. For oranges and grapefruit, the important
juice sources, 81 and 60 per cent respectively of total production is processed.
Geographically, citrus production is centred in Florida, which produced 69 per
cent of all citrus output in 1981. Over 85 per cent of this production was
processed. California, which contributed 25 per cent of total US citrus
production, processed less than half its crop in 1981. For temperate fruit,
grapes, apples, and cranberries are the major contributors to total processing.
Pineapple is the predominant tropical fruit processed.
2.3 International Trade
The United States is prominent in the world trade in fruit juices as both
an importer and an exporter. The USA accounted for 22 per cent of world imports
in 1981, giving it the number one position as an importer (Table 3). USA
imports, however, are extremely volatile, subject particularly to the level of
domestic production and hence the domestic price level. Exports from the USA
have grown steadily. Over the period J977 to 198J, the value of fruit juice
exports increased by 67 per cent, volumes by over 190 per cent. The USA ranks
second to Brazil in world trade as an exporter of fruit juices.
Orange juice accounted for 70 per cent of fruit juice imports by value in
1981. In volume terms, 1981 imports of orange J u ~ c e were over 250 per cent
higher than 1980, a year of record domestic juice production. Almost all orange
juice imports originate from Brazil.
TABLE 3
United States: Importance in World Trade of
Fruit and Vegetable Juice (1977-1981)
World Importance
Year
1977
1978
1979
1980
1981
Source: ITC (1982)
World Importance
Rank
5
1
I
3
1
Exports
Per cent
(US$'OOO) ( %)
152178 16
166831 14
J88830 13
225157 14
254627 J3
Rank
2
2
2
2
2
TABLE 4
United States: Fruit Juice Imports (1977-1981)
o.
Apple juice makes up the second most important juice imported, with
309 million litres being imported in 1981. Argentina and South Africa
the majority of apple juice imported.
almost
provide
half
terms
total
It
varies
The United States' major export is frozen concentrated orange juice (FCOJ),
accounting for 44 per cent of total exports by value. In total, citrus juice
makes up over 75 per cent of fruit juice exports. The major destinations for
USA exports include Canada, which absorbs 42 per cent of USA fruit juice
exports, Europe 25 per cent, Japan 7 per cent, and the Middle-East 6 per cent.
South-East Asia, Central America and the Caribbean absorbed the remainig
exports.
From Table 6, it can be seen that exports are usually less than one
the level of imports, hence, the USA is a net importer of fruit juice. In
of domestic consumption, the net trade result accounted for almost half of
consumption in 1981, indicating the dependence of the USA on imports.
clear from Table 6 that the United States' dependence on imports
inversely with the level of domestic juice production.
TABLE 6
United States: Dependence on Imports (1977-1981)
Year
(J)
. a

(2) b
Imports
(3) c
Exports
(4 )
Net
Trade
(5)
Domestic d
Consumption
(million litres) (%)
1977 1198.5 508.4 217.7 290.7 1489.2 43 20
1978 1278.7 999.5 329.4 670. I 1948.8 33 34
1979 1272.9 I I 16.2 360.3 755.9- 2028.8 32 37
1980 156], 8 692 .2 552.3 139.9 1701.7 80 8
1981 123], 2 1716.2 634.5 108 1.7 2312.9 37 47
a
from Table
b
Table 4 from
c
from Table 5
d
These figures are only indicative of domestic consumption since concen-
trate and single-strength juice are combined in the aggregate data. Also,
since juice is used in the manufacture of drinks with varying juice content,
final consumption will be at much higher levels. Domestic consumption
would also be affected by the holding of stocks.
2.4 Consumption
2.4.1 The United States Beverage Market
Total beverage consumption in the United States during 1981 was over
billion litres, valued at US$85.9 billion (Table 7). Beer and soft drinks
up the majority of per capita beverage consumption, estimated at 128 and
litres per capita respectively in 1981.
71.6
made
141
TABLE 7
United States: Beverage Consumption ( 1981)
Product. Volume Retail Value Retail-Wholesale
Total Per Capita Proportion Total Per Capita Proportion Price Spread
(million (litres) ( %) (US$m) (US$) (%) ( %)
litres)
Beer 21334 128 36 23719 142 31 41
Wine 1878 II 3 7375 44 10 III
Spirits 1711 10 3 21956 131 28 229
Total Alcoholic 24923 149 42 53050 317 69 96
Soft Drinks 31959 141 40 23381 103 22 26
Fruit Based Drinks
- citrus juice 4541 20 6 n.a. n.a. n.a. n.a.
- other juice 1489 6 2 n.a. n.a. n.a. n.a.
- fruit drink 2491 II 3 n.a. n.a. n.a. n.a.
- total 8521 37 II 7228 32 7 24
Mineral Water 2084 9 3 666 3 I 64
Drink Mixes 4151 18 5 1570 7 2 173
Total Non-Alcoholic 46715 205 59 32845 145 32 29
Total Beverages 71638 354 100 85895 462 100 64
Source: BW (April, 1981; April, May, 1982). n.a. - Not Available
TABLE 8
United States: West Coast Beverage Consumption (1981)
o
Product Total Volume
Washington Oregon California
Per Capita Volume
Washington Oregon California
Market Sharea
Washington Oregon California
(million litres) (litres) (%)
Beer 389 243 2358 128 126 136 34 34 29
Wine 53 31 412 17 16 24 5 4 5
Spirits 33 19 221 II 9 13 3 3 3
Total Alcoholic 475 293 2991 156 151 173 42 41 37
Softdrinks 455 283 3121 110 108 132 40 40 38
Fruit Based Drinks
- citrus juice 82 52 435 20 20 19 7 7 5
- other juice 22 16 156 5 6 6 2 2 2
- fruit drink 37 27 260 9 10 II 3 4 3
- total 141 95 851 34 36 36 12 13 10
Water II 6 980 3 2 4 I I I 12
Drink Mixes 49 32 293 12 12 12 4 5 4
Total Non-Alcoholic 656 416 5245 159 158 221 57 59 64
Total Beverages 1131 709 8236 315 309 394 100 100 100
Total Population
(mill ion) 4. I 2.6 23.7
a
may not add to 100 due to rounding.
Source: BW (April , 1981; April, May, 1982).
II.
Fruit based drink consumption had an II per cent share of the beverage
market in volume terms (8.5 billion litres), and a seven per cent share of
retail expenditure on beverages (US$7.2 billion). Per capita, Americans
consumed 37 litres of fruit based drink products, spending US$32 in 1981. Of
the 37 litres of fruit based drink products, pure citrus juice accounted for 20
litres, other pure juices 6 litres, and the remaining I I litres were made up of
fruit drinks.
Both soft drinks and drink mixes include juice flavours, so
fruit juice consumption is higher than that indicated by the fruit
category in Table 7 (see Section 2.4.3).
2.4.2 The West Coast USA Beverage Market
that
based
actual
drink
For New Zealand exporters, the West Coast of the USA presents
accessible market. In Table 8, data are presented detailing the
market size and the share of individual beverages in the market.
the most
beverage
Of the three West Coast states, California is by far the largest, both 1n
terms of total beverage consumption, and per capita consumption. The 8.2
billion litres of beverages consumed in California represents more than I I per
cent of total USA beverage consumption. In per capita terms, Californians
consume an additional 40 litres above the national average of 354 litres. Both
Washington and Oregon, the other West Coast states, consume below the national
average.
On a per capita basis, Californians are high alcoholic drink consumers, low
soft-drink and drink mix consumers, and average fruit based drink consumers.
Consumption of bottled mineral and sparkling water is however, the
distinguishing feature of the Californian market. At 41 litres per capita,
consumption in California is over 350 per cent higher than the national average,
reflecting consumer attitudes to the State's water quality.
The importance of the Californian State in the total beverage market
largely arises out of the consumption habits of the large and affluent
population centres of Los Angeles and San Francisco. When ranked along with all
other USAcities in terms of total retail expenditure on beverages, Los Angeles
is ranked second, Sari Francisco sixth (BW; May 1982) .
Per capita consumption of citrus and other pure juice and fruit
not significantly different between any West Coast State, or between
Coast and the national average.
2.4.3 Consumer Flavour Preferences
drinks is
the West
Fruit based drink products have been defined as part of a wider "Cold
Refreshment Beverage Group" (CRBG). The members of this group include
carbonated and uncarbonated soft-drinks, fruit juice, fruit drinks, drink mixes,
convenience teas, and bottled water (BW; November 1981). Consumer perceptions
of these products, as well as flavour preferences differ between each product
group.
I. Soft-Drinks
In 1981, the United States consumer, had the highest international
consumption of soft drinks, at 141 litres per capita. Demographically, soft
drink consumption is highest among teenagers, hence, declining USA birth rates
12.
are working against continued growth in soft drink consumption. However, the
fast growing Black and Hispanic populations within the USA are also heavy soft
drink consumers.
The soft drink market is dominated by cola flavours. The data presented in
Table 9 show colas accounting for 60 per cent of all soft drink sales. Fruit
flavoured soft-drinks account for 26 per cent of the market, with citrus
flavours dominant. Non-citrus fruit flavours account for only two per cent of
the soft drink market.
TABLE 9
United States: Soft Drink Flavour Shares (1980)
Flavour Share
Volume Value
74 74
n.a.
60
n.a.
4
n.a.
7
n.a.
2
100 100
Flavour
A. Fruit Flavours
I. Total Carbonated
Lemon-Lime
Orange
Citrus
Grape
Strawberry
Grapefruit
Reds (cherry, rasp-
berry, fruit punch)
Apple, coconut, others
2. Total Non Carbonated
Lemonade
Fruit Punch
Orange
Grape
B. Total Other Flavours
Cola
Root Beer
Pepper Type
Mixers
Total Soft-Drinks
Volume Value
(million (US$m)
litres)
8217 9076
7891 8734
3573 3954
1711 1891
1491 1650
405 447
310 344
208 241
129 138
64 69
326 342
n.a. 207
n.a. 90
n.a. 27
n.a. 18
22868 25302
n.a. 20627
n.a. 1478
n.a. 2406
n.a. 791
31085 34378
26
25
I I
6
5
I
I
I
( %)
26
25
12
6
5
I
I
I
Source: BW (Nov. 1981; Feb. 1982).
Within the soft-drink market, diet drinks are growing at eight to nine per
cent per annum, a much faster rate than the 3.8 per cent growth rate of the
total market. Diet drinks appeal to an increasingly health conscious consumer,
concerned at the high added sugar content in soft-drinks. Until recently, the
after taste associated with saccharin sweetened diet soft drinks (and
carcinogenic fears) has limited the appeal of diet drinks. The introduction of
diet
for
among
13.
the better tasting aspartame sweetner may increase the acceptability of
drinks, especially to male consumers who are less willing to trade "taste"
"diet". Caffeine free soft drinks are also finding a ready acceptance
consumers.
During the recession years of 1980 and 1981, soft drink
increasingly competitive. A Pepsi-Coke discounting "war" saw
margins reduced from 98 per cent to only 26 per cent.
2. Fruit Juice and Nectars
pricing
average
became
retail
Orange juice dominates the pure JULce market, with over 60 per cent of the
market segment (Table 10). Its closest rival, apple, has only 15 per cent.
According to a survey undertaken by the Florida Department of Citrus, consumers
regard orange juice as having value for money, and being natural, healthy,
tasteful, and versatile (consumed any time) (BW; September 1981). Other
flavours that have significant proportions of the juice market include
grapefruit, grape, pineapple, prune and lemon. Nectars made largely from
apricots, peaches and pears have gained a one per cent share of the pure juice
market segment. Tropical nectars comprising guava, mango, banana and
passionfruit are also gaining a share of the market, aimed specifically at the
Hispanic population who already are familiar with these fruits (BW; April 1981).
TABLE 10
United States: Fruit Juice Flavour Shares (1980)
Flavour Volume
(million
litres)
Value
(US$m)
Flavour Share
a
Volume Value
( %)
Orange
Apple
Grapefruit
Grape
Pineapple
Prune
Lemon/Lime
Apricot, Peach, Pear Nectar
Blended juice
Total
3861
813
510
270
114
100
50
62
46
5826
2580
646
395
224
103
99
87
62
36
4233
66
14
9
5
2
2
I
I
1
100
61
15
9
5
3
2
2
I
I
100
a
Totals may not add to 100 due to rounding.
Source: BW (Nov. 1981; May 1982).
In Table 11, data are presented showing the product growth rates for
particular flavours over the period 1967-1977. Orange juice grew at 13.2 per
cent per annum, second only to "other juices and mixtures". Nectars grew at 6.2
per cent per annum. Although grapefruit juice sales grew at 7.3 per cent per
annum, in combination with other juices (especially pineapple), sales declined.
14.
TABLE I I
United States: Fruit Juice Sales Growth Rates (1967-1977)
Flavour
Orange
Apple
Grapefruit
Grapefruit/Orange
Grapefruit/Pineapple
Prune
Other juices and mixtures
Nectars
Source: BW (September 1981)
3. Fruit Drinks
Annual Compound
Change
( %)
13.2
9.6
7.3
-9.5
-30.0
- 1.8
17.6
6.2
Fruit drink sales are less than half the level of pure juice drinks. As
for pure juices, citrus flavours dominate the market (Table 12), however,
cranberry juice is the single most important juice. Until recent years,
cranberry juice was largely considered a health food only, its heaviest users
being women over 25 years old. Presently, cranberry is being promoted as a
product with appeal to all age groups, especially the young. Cranberry juice is
usually offered in a blend with either grape or apple juice.
15.
TABLE 12
United States: Fruit Drink Flavour Shares (1980)
Flavour Volume Value
a
Flavour Share
(By Value)
(million
b
(US$m)
litres)
Cranberry 265
Orange 230
Fruit Punch 219
Lemonade 166
Citrus 154
Grape 115
Pineapple 37
Cherry 19
Berry 18
Apple 15
Limeade 9
Peach 9
Grapefruit 5
Strawberry 4
Tangerine 3
Other 18
Total 2548 1287
21
18
17
13
12
9
3
I
I
I
I
I
100
a
may not add up to 100 due to rounding.
b
Only total available.
Source: BW (April, 198 I; November, 198 I) .
4. Drink Mixes
The drink mix market segment incorporates three major product types:
powdered fruit drinks, electrolyte (variously known as isotonic, energy, thirst
quencher) beverages, and specialty products such as whipped fruit drink mixes,
and fruit flour (powdered pure juice). By far the largest product group are the
powdered fruit drinks. In recent years their image has changed from an
inexpensive children's drink to a quality, all family beverage (BW, May 1981).
The brand leader within this category is Kool Aid. Other leading brands are
marketed by major beverage companies such as Coca Cola, hence the market is very
competitive.
The most popular flavour used in drink mixes is lemonade, with 34 per cent
of the market (Table 13). It should be recognised however that although a
drink mix is marketed with a particular flavour, it does not necessarily contain
any fruit juice. For example, Tang, a brand holding 85 per cent of the orange
breakfast drink-mix market, has no orange juice component. A recent competitor
in this market segment, 'Daybreak', contains 10 per cent real orange juice and
thus can appeal to its greater 'naturalness' (BW; December 1981).
Electrolyte drink mixes make up less than 10 per cent of the overall drink
mix market, but are a growing component of the market. Electrolyte products are
10.
aimed at the recreational sportsperson, so that the potential market size in the
USA is large. Like many other fruit flavoured drink mixes, electrolyte products
often contain no real juice ingredient.
TABLE 13
United States: Drink Mix Flavour Shares (1980)
Volume Value
a
Flavour Share
(By Value)
(million
b
(US$m)
Ii tres)
Lemonade 445
Fruit Punch 254
Cherry 181
Grape 141
Orange 131
Raspberry 32
Apple 29
Peach 10
Berry 9
Other 87
Total 5051 1319
(%)
34
19
14
II
10
2
2
1
1
7
100
a
may not add up to 100 due to rounding.
b
Only total available.
Source: BW (April, 1981; November, 1981; May, 1981).
5. Convenience Teas
The level of convenience tea consumption in the USA during 1980 was ~ n
excess of 60 per cent of the consumption level of pure fruit juice; hence, it
represents an important competitor in the CRBG market. Consumption of
convenience tea is divided almost equally between iced tea, which contains added
sugar, and instant tea (Table 14). Iced tea is an especially important
competitor, since peak sales occur over the spring/summer period.
17.
TAB1.E 14
United States: Convenience Tea Sales (1980)
Volume
(million
litres)
Value
(US$m)
Share
Volume Value
(%)
A. Retail
- Iced Tea
- Instant Tea
B. Foodservice (70% iced)
Total
Source: BW (June, 198 I) .
6. Bottled Water
2657
1090
1567
871
3528
354
219
135
1714
2068
75
31
44
25
100
17
II
7
83
100
The development of the bottled water market has arisen out of consumer
concern over the quality of tap water, in association with heightened diet
consciousness. Bottled water, being salt, sugar, calorie, caffeine, and
preservative free has considerable appeal to the diet conscious consumer. The
growth in bottled water sales adds weight to the prediction that "cold, light
and white" beverage consumption will grow faster than other beverages in the
future (BW, March 1981). Chilled white wine already has over half of the US
table wine market, and among fruit juices, chilled grapefruit JUlce consumption
is expected to increase at an annual rate of IS per cent. "Brown" soft drinks
(cola, root beer, pepper) are not expected to maintain their market share in the
future.
2.5 Fruit Based Drink Retail Packaging
Until 1981, fruit juices, fruit drinks, and nectars were almost exclusively
packaged in tin and aluminium cans. 'Hot-packed' juice tended to be packed
predominantly into 6 ounce (170.5 ml) and 46 ounce (1.3 1) cans, and frozen
juice, juice drinks and nectars in cans ranging from 6 to 24 ounces. The major
exception to the use of cans was found for chilled juices which were usually
bottied in 32 (0.9 1) to 64 ounce (1.8 1) glass bottles.
Since 1981, the "aseptic. packaging craze" has hit the USA fruit drink
market (BW; December 1981). Aseptics have proved to be a less expensive method
of packing perishable, non-carbonated beverages, and a more acceptable package
to consumers. The youth market, and the 25 to 54 years old female segment of
the population have accepted asceptics faster than men. Most of the major
branded juice producers (e.g. Coca Cola, General Foods, and Ocean Spray) have
introduced asceptics into their product line.
18.
2.6 Fruit Based Drink Pricing
Table 15 reports the price levels for a range of fruit juices sold in a
Californian supermarket. Fruit drinks are predictably sold at lower prices in
comparison to pure juice, except for the multi-flavour Hawaiian Punch, which
retails at a price equivalent to US$3.62 per litre. Multi-flavour drinks
incorporating exotic flavours appear to command a premium in the market.
The nectar price recorded in Table 15 1S about 30 per cent more expensive
than pure juices and fruit drinks.
2.7 Fruit Based Drink Promotion
Fruit based drink products are promoted largely through a combination of
television advertising and in-store promotion. Television advertising accounted
for 90 per cent of all advertising expenditure in 1980 (see Table 16).
Advertising expenditure is dominated by the three major fruit based drink
producers: Coca Cola, General Foods and the Florida Citrus Commission.
While the major companies spend the bulk of their advertising on network
television, small producers and distributors of less known beverages prefer
local television and radio stations, targeting their advertising on specific
market segments. This strategy is particularly important in reaching ethnic
minorities.
Although total advertising expenditure on the major brands in 1980 totalled
over US$100 million, fruit based drink advertising accounted for less than five
per cent of total beverage advertising expenditure which reached $1.1 billion in
1980. The majority of advertising promoted alcoholic beverages, taking a 65 per
cent share of total advertising. Almost 30 per cent of advertising expenditure
was spent on promoting soft-drinks.
TABLE 15
Fruit Based Drink Product Line and Retail Prices -
Californian Supermarket (May 1983)a
Unit
Product Type Brand Flavour Packaging Volume Price Price
(f1 oz) (litres) (US$) (US$/I)
I. Pure Juice
Single strength Dole Pineapple Can 46 I. 31 I. 55 I. 18
Concentrated Tree Top Apple Can 46 I. 31 I. 57 1.20
Concentrated Welch Grape Glass Bottle 24 0.68 1.39 2.04
Concentrated Ocean Spray Grapefruit Glass Bottle 48 1.36 2.09 1.54
2. Fruit Drink
Carbonated Country Time Lemon/Lime Can 12 0.34 0.40 I. 18
Preservatives Sunkist Orange Can 12 0.34 0.35 1.03
Carbonated Schweppes Lemon/Lime Glass Bottle 10 0.28 0.40 1.43
Carbonated Orelia Orange/Tangerine Can 12 0.34 0.50 1.47
Preservatives Hawaiian Punch Mix
b
Can 32 0.91 3.29 3.62
3. Nectar Kern's Guava Can 12 0.34 0.59 I. 74
4. Drink Mix
Powder Tang Orange Glass bottle 27 0.77 3.25 4.22
5. Cordial Rose's Lime Glass bottle 25 0.71 2.89 4.07
a
b
Bon Appetit (Safeway chain), San Francisco
Including orange, grapefruit, peach, apricot, pineapple, papaya, guava.
Source: NZ Consulate General, San Francisco, pers. comm.
20.
TABLE 16
United States: Fruit Based Drink Advertising Expenditure
1. Fruit Juice
Coca Cola
F.C.C.
Coca Cola
Ocean Spray
2.
Company
Total
Fruit drinks and
General Foods
General Foods
R. J. Reynolds
Borden
Stokely-Van Camp
Coca Cola
Total
Brand
Minute Maid
Florida Citrus Commission
Snow Crop-Five Alive
Ocean Spray
Other Brands
drink mixes
Kool-Aid
Country Time
Hawaiian Punch
Realemon
Lemon Tree
Gatorade
Minute Maid
Expenditure
1980 1981
(US$) (US$)
16,467,000 n.a.
15,149,600 n.a.
6,610,500 n.a.
2,471,800 n.a.
9 712 100 n.a.
50,400,000 n.a.
21,213,400 25,987,100
11,752,600 10,559,400
8,647,400 18,346,400
3,888,500
3,171,200
2,886,900 4,266,700
4,507,700
51,560,000 63,667,300
n.a. Not Available
Source: BW (June 1981) and BW (June 1982).
2.8 Market Structure: Distribution Channels and End Users
In Figure 1, an outline of the distribution channel followed by imported
bulk and consumer packed fruit juices is presented. Brokers are the most
important importers of fruit J u ~ c e , usually obtaining juice on behalf of
industrial end users, especially the beverage industry. The broker performs the
key role of seeking out reliable and cost efficient sources of supply, and ~ s
always interested in identifying new sources of supply.
The beverage industry usually obtains its imported requirements via
brokers. Since the majority of the beverage industry's juice requirements are
met by domestic supplies, imports fill the troughs of domestic production
fluctuations. Imports are also required by beverage producers seeking to
diversify their product line with flavours not available domestically.
21.
FIGURE 1
United States: Market Structure for Fruit Juice Products
IMPORTERS
Brokers, Agents, Specialised Importers
~
'-B""'"UL-K-J-U-I-C-E--'
/ ~
Beverage < Flavouring
I ~ / rndust\ ;uses
Institutional Dairy Industry
Food Service Bakeries
Industry Baby Food Manufacturers
I CONSUMER PACKED JUICE
Wholesalers
1
Health
Food
Shops
Retail Organisations
Supermarket Buying
Chains & Co-operatives
1
Supermarkets
Source: ITC (1982), Cooper (1982)
Flavouring manufacturers formulate
product manufacture (e.g. ice-cream and
products.
ingredients
yoghurt),
required for
baby foods,
beverage
and bakery
The institutional foodservice industry comprises three components. The
first makes up about 85 per cent of the sector and includes commercial eating
outlets such as restaurants, cafeterias, bars, taverns, hotels, sports centres
and mobile caterers. Approximately 25 per cent of all fruit juice sales ~ n the
United States are sold through these outlets (ITC; 1982). In Table 17, which
contains details of the juice product lines sold in commercial eating outlets,
it is clear that orange, grapefruit and tomato juice dominate. The availability
of 'other' juices only rises above 10 per cent in hotel/motels and restaurants.
Hotels and motels tend to hold the most diversified product line overall.
The second component of the foodservice sector is made up of non-commercial
TABLE 17
United States: Fruit Juice Availability 1n Commercial Restaurants
N
N
Flavour All
Restaurants
a
Counter
b
Service
Table
Service
c
H o t e l ~
Motel Drive-lns
e f
Drugstores
Restaurants
Serving Liquor
g
(% of outlets)
Orange 55 54 55 88 33 74 77
Grapefruit 37 37 35 76 15 61 57
Tomato 46 46 49 84 18 60 75
Pineapple 9 8 9 26 4 14 19
Grape 6 5 5 20 5 9 9
Apricot 2 I I 6 I I 3
Other 10 9 10 28 5 7 15
a
370 060 outlets
b
145 180 outlets
c
71 240 outlets
d
31 920 outlets
e
58 110 outlets
f
10 450 outlets
g
97 660 outlets
Source: BW (March. 1981)
23.
outlets such as employee canteens, educational institutions, hospitals and
community centres. Since 1981, the sale of carbonated beverages has been
banned in USA schools before lunch-time. Sales of pure juice and juice drinks
have increased dramatically since then, especially from vending outlets (BW;
January 1981).
The third component of the foodservice industry includes the military and
other government institutions.
Supermarket buying organisations handle the majority of fruit juice sold in
the USA. Often supermarket chains have fruit juice packed under their own label
by the beverage industry. Most supermarkets have gourmet and health food
sections, and exotic products, including exotic flavoured fruit juices, are
featured.
Specialist health food shops are usually supplied through wholesalers.
Often this type of food shop predominantly sells 'take-away' food for immediate
consumption. Hence, unit sales tend to be small, but high priced in relation to
supermarkets which offer identical products.
2.9 Market Access
No quantitative restrictions exist for the import of fruit juices into the
United States. Tariffs vary between a maximum of 35 cents per gallon on citrus
concentrates and free entry for apple and pear juice. Grape juice enters at 25
cents per gallon, pineapple at 20 cents per gallon, and all others at 3 cents
per gallon. The term "gallon" in the USA tariff refers to gallons of natural
unconcentrated juice or gallons of reconstituted juice. Thus, the tariff on
concentrated juice imports is calculated on the number of reconstituted gallons
able to be produced from the concentrate.
CHAPTER 3
CANADA
3. I Introduction
Canada's population was 24.2 million in 1981 (FAO; 1982), having grown at
an average of I. I per cent per annum throughout the previous decade.
The Canadian economy grew at an annual rate of 3.7 per cent over
1971-1981 (OECD, 1983), significantly above the OECD average of 3.0
In 1983 the economy is expected to have grown by 2.0 per cent, third
countries behind the USA and Japan. Per capita income in Canada is
US$IO,OOO.
3.2 Domestic Production
the period
per cent.
among OECD
just over
Canada is not a major producer of fruit juices, fresh fruit production
being limited mainly to pip and stone-fruits. In Table 18, it is reported that
apple production totalled 409,000 tonnes in 1981. Peach and pear production
were the next most important fruits with 32,000 and 35,000 tonnes being produced
in 1981 respectively.
Given the quantity
limited to apple juice.
was produced.
of fresh fruit available, juice production
In 1980, 90,000 tonnes of single strength
TABLE 18
Canada: Fruit Production (1981)
Volume
is largely
apple juice
Apples
Pears
Peaches
Plums
Apricots
Source: FAO (1982)
3.3 International Trade
Devel
('000 tonnes)
409
35
32
5
3
Change
(% change from
1969-1971 average)
-I
-33
-44
50
In the absence of significant domestic production of citrus and tropical
fruit, Canada must rely on imports to satisfy consumption requirements. In
1981, Canada imported fruit juice valued at US$194 million, ten per cent of
total world imports, making Canada the third largest importer of fruit juice
behind Germany and the United States.
25.
26.
Over the five year period 1977 to 1981, the total value of fruit juices
imported into Canada increased by over 100 per cent, while the volume of imports
increased by 30 per cent. Proportionately, imports- in concentrate form have
increased while single-strength imports have declined. In 1981, concentrates
made up 71 per cent of total imports, compared to 53 per cent ~ n 1977. This
trend reflects a decline in consumer packed imports, giving way to bulk juice
for use as a raw material in Canada's growing juice processing industry.
TABLE 19
Canada: Importance in World Trade
of Fruit and Vegetable Juice (1977-1981)
Year Imports World
Importance
Per cent Rank
Exports World
Importance
Per cent Rank
(US$'OOO) (%) (US$'OOO)
1977 93,783 10 3 1,749
1978 130,661 10 4 3,937
1979 153,915 10 4 6,384
1980 159,329 10 4 9,594
1981 193,842 10 3 9,016
Source: ITC (1982)
(%)
38
32
29
25
25
By value, orange juice makes up 70 per cent of fruit juice imports. Other
citrus juices contribute another five per cent to total imports. Citrus J u ~ c e
is almost exclusively supplied by the USA, Brazil and Italy (see Table 20).
The category 'other' fruit juice in Table 20 is largely made up of
tropical juices. Again, the United States is the principal supplier, adopting
the role of are-exporter.
Canada is not a major exporter of fruit juices. In percentage terms,
Canada accounts for one per cent of total world juice exports. Exports tend to
be in the form of consumer packed juice for the United States market, utilising
imported bulk juices. Domestically produced apple juice also contributes to
juice exports.
27.
TABLE 20
Canada: Fruit Juice Imports (1981)
(tonnes) (Can$'OOO) (%)
Orange Juice
- concentrated
- not concentrated
Grapefruit Juice
- concentrated
- not concentrated
Lemon Juice
- concentrated
- not concentrated
Grape
Apple
Pineapple
Other Fruit Juice
- concentrated
- not concentrated
Blended Fruit Juice
Tomato Juice
Total
Source: ITC (1982)
3.4 Consumption
Volume
95048
12003
1102
9067
1574
380
3285
10014
14855
15438
1190 I
1405
1176
177248
Value
14283
7923
1826
5464
2338
471
3397
12203
5782
24732
6548
930
377
214474
Per cent
of Value
66
4
I
3
2
6
3
12
3
100
Major Sources
(per cent)
USA (54) Brazil (44)
USA (100)
USA (68) Italy (32)
USA (52) Philippines (47)
USA (83)
USA (95)
Per capita consumption of fruit juice in Canada is estimated at
(lTC, 1982). This can be compared with United States consumption of
per capita. Soft-drink consumption in Canada is estimated at 84
capita (BW, August 1981), well down on the USA consumption of 141
capita.
26 litres
37 litres
litres per
litres per
In terms of flavour preferences, orange is the preferred juice flavour,
with apple and grapefruit rated second and third respectively. Tropical JUlces
other than pineapple are virtually unknown among most consumers, except specific
ethnic minorities. Berry flavours are also largely unknown.
28.
TABLE 21
Canada: Fruit Juice and Soft Drink Flavour Shares
Flavour
Orange
Apple
Grapefruit
Lemon-Lime
Other fruit
Hixers
Cola
Others
Total
Source: ITC (1982)
BW (August, 198 J)
Fruit Juice
(% of sales volume)
60
15
6
19
100
Soft-Drink
7
19
4
10
58
2
100
Soft-drink flavours are dominated by cola, which has a 58 per cent share of
the market. Fruit flavours together account for 30 per cent of soft drink
sales.
The majority of fruit juices consumed are sold in glass bottles. Canned
juices predominate in particular geographical areas, but their importance ~ s
declining. Asceptic packaging is still at an introductory stage in Canada.
In Table 22, representative prices of juice products in Canadian
supermarkets are summarised. Of the single flavour juices, orange has at least
a nine cents per litre price advantage on every other juice. It is also clear
from the prices contained in Table 22 that unit prices are substantially higher
for package volumes of less than 48 fluid ounces, the most popular size.
29.
TABLE 22
Canada: Fruit Drink Product Line and Retail Prices
January 1982
Product Flavour Volume Price Unit Price
(fl oz) (litres) (Can$) ($/U
Juice Apple 48 1.36 I. 27 0.93
Grapefruit 48 1.36 I. 32 0.97
Orange 48 1.36 1.07 0.78
Pineapple 48 1.36 1. 19 0.87
Pineapple 19 0.54 0.73 I. 35
Lemon 0.46 1. 13 2.46
Lemon 0.23 0.77 3.35
Grape 1.00 I. 12 I. 12
Grape 40 I. 14 2.22 1. 95
Tomato 100 2.84 2.29 0.81
Multi-flavour Hawaiian punch 48 I. 36 1. 12 0.82
Fruit Punch 48 1.36 0.94 0.69
Multi-vitamin
- juice Apple 48 I. 36 I. 50 I. 10
- drink Apple 48 I. 36 1.00 0.73
Nectars Prune 48 1.36 I. 89 I. 39
Apple 48 I. 36 I. 05 0.77
Apricot 10 0.28 0.44 1. 57
Source: ITC ( 1982)
Multi-flavour and multi-vitamin drink prices also appear in Table 22.
These products seem to be very competitively priced. Apple nectar sells at a
substantial price discount in relation to pure apple juice, viz; Can $1.05/48 fl
oz compared with Can$I.27/48 fl oz.
3.5 Market Structure: Distribution Channels and End Users
Figure I in Chapter 2 presents an outline of
followed by imported bulk and consumer packed fruit
The Canadian distribution network is very similar
estimate that 95 per cent of all imported juice is
beverage industry. The residual five per cent
processing sector, particularly the dairy industry
ice-cream manufacture.
the distribution channels
juices in the United States.
to this. The ITC (1982)
processed by the Canadian
is utilised by the food
for use ~ n yoghurt and
The fruit drink products produced by the beverage industry are largely sold
to the retail trade; only 15 per cent of production is consumed v ~ a
institutional and food service industry outlets.
30.
3.6 Market Access
No quantitative restrictions exist for the import of fruit J u ~ c e into
Canada. The general tariff for fruit juice imports into Canada varies between
25 per cent and 35 per cent ad valorem, depending on the type of juice. New
Zealand exports to Canada enter under the British Preferential Tariff (BPT).
Under the BPT, citrus juice, pineapple juice and passionfruit juice enter free,
while apple juice and other fruit juices incur a 10 per cent ad valorem tariff.
CHAPTER 4
CENTRAL AND SOUTH AMERICA
4. I Introduction
Although not significant importers of fruit juice, the level of juice
production ~ n counties making up Central and South America has an important
influence on the world juice trade. The following sections detail the
importance of this region. Data from only four countries in Central and South
America, viz. Argentina, Brazil, Chile and Mexico, are presented. Fruit
production in every other nation within the region is dominated by bananas and
plantains, and hence is less relevant to the world juice market.
4.2 Domestic Production
In Table 23 data are presented detailing the level of fruit production ~ n
Argentina, Brazil, Chile and Mexico during 1981.
4.2. I Argentina
Fruit production in Argentina is split evenly between deciduous and citrus
varieties. Apple production in 1981 was 905,000 tonnes, up 108 per cent from
1971, while orange production fell 27 per cent from its 1971 level to 654,000
tonnes. Hartog (1982) reports that 30 per cent of the Argentinian apple crop ~ s
processed into juice, 50 per cent of which is exported to the United States.
31.
TABLE 23
Central and South America: Fruit Production (1981)
Fruit
Apples
Pears
Peaches
Plums
Apricots
Oranges
Tangerines, Mandarines
Clementines
Lemons, Limes
Grapefruit
Avocados
Mangoes
Pineapples
Bananas
Papayas
Argent ina
905
130
222
72
12
654
208
300
156
4
I
3
180
2
Country
Brazil Chile
( '000 tonnes)
80 300
35 44
115 121
16
15
9315 54
470
115 75
37
140 26
600
625
6696
380
Mexico
301
46
174
76
8
1600
120
530
163
474
620
568
1562
322
(% change from average of 1969-1971)
Apples 108 433 11 I 72
Pears 44 -35 42 35
Peaches -13 4 33 8
Plums 13 -24 I
Apricots -29 88
Oranges -27 271 29 16
Tangerines -12 97 14
Lemons, Limes 52 109 88 63
Grapefruit 2 I 6 409
Avocados -60 15 117 114
Mangoes -67 -10 108
Pineapples 200 43 I 17
Bananas -8 39 67
Papayas 100 252 148
Source: FAO (1982)
4.2.2 Brazil
Brazil's fruit production, apart from bananas, is dominated by the citrus
crop. Citrus production has grown rapidly since 1971, with orange output
growing 271 per cent to 9.3 million tonnes in 1981. Tangerine and lemon
production have both doubled since 1971; to 470,000 tonnes and 115,000 tonnes
respectively. Brazil is also a major producer of tropical fruit. Pineapple
production totalled 625,000 tonnes in 1981, mangoes 600,000 tonnes, papayas
380,000 tonnes, and avocados 140,000 tonnes. Of the tropical fruit, production
of papayas has grown the fastest; by 252 per cent since 1969-1971.
33.
Much of the growth in output in Brazil has been aimed specifically for
processing, and the resulting juice production is aimed at the export market.
In Table 24, the volume and value of orange J u ~ c e production in Brazil is
recorded. Over the period 1976 to 1981, production more than trebled, while the
value of production increased by over 550 per cent, enabling unit values to
increase by 114 per cent. The rapid growth in the volume of juice produced in
Brazil has found a ready market in the United States, especially over recent
years when adverse climatic conditions reduced USA juice production significantly.
However, these. adverse conditions have only served to postpone a
long-predicted over supply situation on the world orange juice market. A recent
report (LACR, 1983) estimates Brazilian orange juice production during the
1983/84 season at 550,000 tonnes. Although down on the 639,000 tonnes produced
in 1981, opening Brazilian juice stocks for the 1983/84 season are estimated at
120,000 tonnes. Given the stocks and production situation in Brazil, a record
level of orange production in the USA during the 1983/84 season has created a
very weak export market for Brazil.
TABLE 24
Brazil: Orange Juice Production (1976-1981)
Year
1976
1977
1978
1979
1980
1981
Volume Value Unit Value
(000 tonnes) (US$m fob) (US$/tonne, fob)
209.9 100.9 481
213.6 177 .0 829
335.6 332.6 991
292.4 281. 5 963
40 I. I 338.7 844
639. I 659.2 1031
Source: NZ Embassy, Santiago, Chile. pers. comm.
In the short term, Brazilian orange production will continue to increase.
In the 1983/84 season, seven million new trees begin producing, and most of the
90 million already in production have yet to achieve maximum output. Between
1983/84 and 1984/85, orange production is expected to increase a further 15
percent (LACR, 1983).
4.2.3 Chile
Chile is primarily a producer of temperate pip and stone fruits, a product
mix very similar to New Zealand's. The avocado is the only tropical fruit Chile
produces in significant volumes.
In terms of the average production level during the period 1969-1971, apple
production in 1981 increased by I I per cent. Apricot and lemon production both
grew by 88 per cent, while peach (including nectarine) production increased by
33 per cent from its 1971 level. Avocado production increased by 117 per cent
over the ten year period prior to 1981.
34.
In Table 25 production levels of fruit processed into pulp,
juice are summarised. Overall, it is apparent that total production
has not shown a definite growth trend. Apple juice production
consistently over the period 1978-1981. In 1981, production was 715
per cent higher than 1978. 'Other Fruit' juice production
consistently by 50 tonnes per year, over the period 1978-1981.
paste and
since 1974
has risen
tonnes, 83
also rose
Compared with Brazilian juice production, Chilean production is extremely
small.
TABLE 25
Chile: Production of Fruit Pulp Concentrate,
Paste and Pure Juice (1974-1981)
Product
1974 1975
Year
1978 1979 1980 1981
(tonnes)
Apricot n.a. n.a. 550 400
Peach n.a. n.a. 780 960
Apples n.a. n.a. 390 450
Other Fruit n.a. n.a. 200 250
Total 2474 2090 1920 2060
n.a. - not available
Source: NZ Embassy" Santiago, Chile pers. comm.
4.2.4 Mexico
486 556
1110 866
610 715
300 360
2506 2497
frui ts. In
Generally,
In the last
the increase
Mexican fruit production is dominated by citrus and tropical
1981, total Mexican citrus production was over 2.4 million tonnes.
citrus fruit production in Mexico has not increased dramatically
decade. Grapefruit production did increase by 409 per cent, but
occurred off a small base.
Tropical fruit production in Mexico during 1981 reached over 3.5 million
tonnes. Bananas accounted for 44 per cent of this total, mqngoes 17 per cent,
pineapples 16 per cent, avocados 13 per cent, and papayas 9 per cent. Overall,
tropical fruit production rose by around 100 per cent during the period
1971-1981. Banana production grew more slowly than other fruits.
4.3 International Trade
4.3. I Importance in World
From Table 26 the importance of Brazil, Argentina, Mexico and Chile In
world fruit juice exporting can be identified. Brazil has ranked first in the
world as an exporter in every year since 1977. In 1981, Brazil had a 35 per
35.
cent share of world exports, valued at US$695 million. Argentina and Mexico
also rank highly as world exporters, taking eighth and seventeenth position
respectively in 1981. Chile is a relatively insignificant exporter on the world
market, although the value of exports appears to be increasing. Recent
information shows that Chilean juice exports totalled over US$6.2 million in
1982, almost 140 per cent up on the 1981 level (NZ Embassy, Santiago, pers.
comm.) .
4.3.2 Brazilian Exports: Products and Destinations
Brazil has a dominant position in world juice exports. Orange juice
concentrate contributes 95 per cent of the total juice export figure (Table
27) . The United States and the Netherlands are the princ iple export
destinations for orange juice, together accounting for 70 per cent of total
exports. Given the predominance of orange concentrates, it is clear Brazilian
exports are shipped in bulk containers. Thus, Brazilian orange J u ~ c e is a raw
material for American and European beverage manufacturers, rather than a
consumer product marketed by Brazilian exporters.
TABLE 26
Central and South America: Importance in
World Trade of Fruit and Vegetable Juice (1977-1981)
Country Year Export Value Per cent of
World Exports
Rank
Brazil
Argentina
Mexico
Chile
(US$'OOO)
1977 180 499
1978 346 318
1979 298 505
1980 364 054
1981 695 169
1977 27 702
1978 37 940
1979 49 797
1980 4 I 998
1981 53 500
1977 21 570
1978 27 631
1979 25 436
1980 17 979
1981 20 775
1977 101
1978 838
1979 2 482
1980 I 640
1981 2 638
( %)
19
29
21
23
35
3
3
3
3
3
2
2
2
I
I
10
9
8
8
8
14
13
16
16
17
48
45
43
46
47
Source: ITC (1982)
TABLE 27
Brazil: Exports by Product and Destination (1981)
Product
Pineapple Juice
Coconut Hilk
Volume
(tonnes)
2529
1164
Value
(US$'OOO fob)
4445
1263
Proportion
of Total
Value
(%)
0.6
0.2
Destinations (per cent)
Netherlands (35), UK (33),
Argentina (13), Chile (9),
W. Germany (5)
USA (87), France (6),
Netherlands (3)
Orange Juice
- concentrate
- single strength
Cashew Juice
Guaiaba Juice
Apple Juice
Peach Juice
Lemon Juice
Passion fruit Juice
Grapefruit Juice
Tangerine Juice
Grape Juice
Other Juices
Total Juice
638058 660147
116 50
302 326
618 676
6 7
7 7
1875 1503
4766 13155
1631 1889
7068 7679
2139 2465
1378 1574
661657 695186
95.0
O. I
0.2
1.9
0.3
1.1
0.4
0.2
100.0
USA (41), Netherlands (29),
W. Germany (9), UK (5),
Canada (4), Sweden (2)
Paraguay (79), Argentina (19)
UK (84), Netherlands (10)
Venezuela (94)
Venezuela (90), Chile (10)
Uruguay (73), Chile (25)
Netherlands (44), Canada (18),
USA (17), Spain (13), Poland (3)
Netherlands (70), W. Germany (15)
Sweden (5), South Africa (4)
Netherlands (59), Israel (13),
W. Germany (13), Denmark (6)
Netherlands (53), UK (23),
W. Germany (22)
Sweden (40), USA (24),
W. Germany (16), Canada (14)
Netherlands (83), W. Germany (10)
Source: NZ Embassy, Santiago, Pers. Comm.
37.
It is significant that the Netherlands is the principal export market for a
number of juices, viz. pineapple, lemon, passion-fruit, grapefruit, tangerine
and 'other'. Given the size of the Netherlands population-; and the level of its
juice imports, it is likely that a large proportion of Brazilian imports are
re-exported to other European countries after undergoing further processing ln
the Netherlands beverage and blending/flavouring industries.
CHAPTER 5
AUSTRALIA
5.1 Introduction
In 1981, Australia's total population was 14.8 million. Over
1975-1981, population grew by an average of 0.9 per cent annually.
per capita income in Australia is one of the highest in the world,
the last decade income growth in Australia has not matched that of
industrialised economies. OECD (1983) report that over the period
in Australia grew at 2.2 per cent per annum, in comparison to the
of 3.0 per cent.
the period
At US$9580,
although in
other western
1971-1981 GDP
OECD average
5.2 Domestic Production
In 1981, total production of single strength fruit juice in Australia
totalled 203 million litres, an increase of 122 per cent on the volume produced
in 1972 (see Table 28). Fruit juice concentrate production has been relatively
stable at around 15 million litres, while fruit juice based cordial and syrup
production has been stable at around 70 million litres.
TABLE 28
Australia: Fruit Juice Production
. c
Factory Productlon Year Fruit
Orange a Apple b PineapplE?
(single strength equivalent)
Fruit juice
Single Concentrate
Strength
. d
Fruit CordJ.als
and Syrups
(Million Litres) (Million Litres)
1972 29.8 n.a. n.a.
91.5 12.8
n.a.
1973 74.2 53.9 n.a. n.a. 13.9
n.a.
1974 51.3 33.6 5. I 166.3 10.5 70.0
1975 76.3 25.7 10.4 179.8 13.8 60.1
1976 78.4 20.2 10.8 187.8 17.5 72.9
1977 71.2 22.2 8.5 156.5 10.7 68.4
1978 88.6 26.7 8.4 197.6 15.5 77.7
1979 88.7 32.8 8.3 186.2 15.4 70.3
1980 96.9 46.0 n.a. n.a. n.a. 75.0
1981 114.7 n.a. n.a. 202.7 15.0 P
n.a.
1982 87. I n.a. n.a. n.a. n.a. n.a.
1983 107.4 n.a. n.a. n.a. n.a. n.a.
P
a
b
c
d
e
provisional
BR (June, 1983)
BAE (1980)
Yearbook (various)
Contain at least 25% pure JUJ.ce
ITC (1982),55% citrus, 15% apple, 30% other fruit.
39.
4U.
By far the most important juice produced is orange J u ~ c e . In 1981, 115
million litres of orange juice were produced, 283 per cent higher than the level
of orange juice production in 1972. Since 1981, orange juice production has
ceased to increase consistently. From Table 29 it can be seen that the lack
of recent growth in domestic orange juice production can be attributed to a lack
of significant growth in total citrus fruit production in Australia. Production
peaked in 1981 at 537 000 tonnes, but has since declined so that a harvest of
458 000 tonnes is expected in the 1984 season.
TABLE 29
Australia: Citrus Production and Utilisation
Year Domestic
Production
Exports Imports
a
Total
Australian
Availability
Domestic Prodn.
Fresh Processed
Consumed:
Processed
as a % of
Prodn.
(kt fresh equivalent) ( %)
1973 423.9 32.6 3.9 395.2 20 I. 7 189.6 (44)
1974 389.2 24.7 35.0 399.5 217.4 147. I (38)
1975 419.6 15.3 6 I. 5 465.8 198.3 206.0 (49 )
1976 443.6 19. I 77 .5 502.0 220.5 204.0 (46)
1977 410. I 19.6 43.0 433.5 199.8 190.7 (47)
1978 444. I 22.5 64.8 486.4 193.3 228.3 (5 I)
1979 454.0 26.2 4 I. 0 468.8 198.5 229.3 (5 I)
1980 488.0 45.0 122.0 565.0 195.7 247.3 (5 I)
1981 537.0 34.0 54.0 557.0 198.0 305.0 (57)
1982 422.0 32.0 98.0 488.0 175.0 215.0 (5 I)
1983P 495.0 30.0 110.0 575.0 215.0 250.0 (5 I)
1984E 458.0 3 l. 0 110.0 537.0 176.0 251. 0 (55)
a
all processed products
P provisional
E estimate
Source: BAE (1980), QRRE (1983)
Over time, the proportion of citrus production processed has increased
(Table 29), while both the proportion and absolute level of citrus production
consumed fresh has declined. In recent years, at least 50 per cent of all
citrus production has been processed, usually into fruit juice. The volume of
fruit processed rises sharply in years of high production, providing an outlet
for excess fresh supplies, and in years when frost affects the harvest
increasing supplies of inferior quality fruit. These points highlight the role
of the citrus processing sector in Australia as an adjunct to fresh fruit
marketing. This role can be contrasted with Brazil and Florida, where the
citrus industries are orientated almost exclusively to supplying juice
processors.
Given the orientation of the Australian citrus industry, the data contained
in Table 29 showing the development of high levels of citrus imports is not
These imports are all processed products, supplying the
difference between domestic juice production and the growing consumer demand for
fruit juice.
Returning to Table 28" it is apparent that after orange juice, apple juice
is the next most important juice produced in Australia. In 1980, 46 million
litres of apple juice were produced. Like the citrus industry, apple juice is a
by-product of a fresh product orientated apple industry. Thus, juice production
is largely tied to the demand for fresh product. Historically, total apple
production increased prior to 1971, when a 443,000 tonne crop was harvested, but
has declined since then, to around 300,000 tonnes in 1982. Total production is
expected to decline slightly over the longer term. Thus, the future level of
apple juice production is constrained by the lack of growth in fresh production.
Juice production is particular years will increase if the quality of the fruit
harvested is low.
5.3 International Trade
Australia is, in world terms, not an important participant in
fruit juice trade. According to the ITC (1982), Australia was ranked
in the world as a juice importer, accounting for 0.8 per cent of world
As an exporter Australia ranked twenty-first, accounting for 0.5 per
world exports.
the world
twentieth
imports.
cent of
From Table 30, it can be seen that over the last decade, orange juice
imports grew from 0.1 million litres to 75 million litres. Orange juice imports
are almost exclusively frozen concentrates for further processing in Australia.
Apart from orange juice imports, no significant import or export trends for any
other juice are apparent.
4:l.
Sources: BAE (1980), BR (June 1983), ABS (various)
In Table 31, a detailed analysis of Australian juice imports in 1982 ~ s
presented. Orange juice accounted for 78 per cent of all imports by value.
Brazil supplied 86 per cent of Australia's orange juice requirements; the United
States nine per cent. Lime juice was the second most important citrus import.
In 1982, 148 tonnes of lime juice were imported, 83 per cent from the United
Kingdom.
Juices other than citrus juice accounted for 19 per cent of total imports.
Pineapple, passionfruit and blackcurrant juices were major non-citrus juices
imported. The United States, United Kingdom, Fiji, New Zealand, and Asian
countries such as the Philippines, Malaysia, and Thailand were the major
suppliers of non-citrus juice.
The total value of J u ~ c e s imported in 1982 amounted to A$13.3 million. In
the ten month period to April 1983, fruit juice imports were valued at A$20.3
million. The increased value of imports was due entirely to a 77 per cent
increase in the value of orange juice imports over the period, and a 102 per
cent increase in the volume of orange juice imports. An adverse growing season
~ n Australia reduced the total orange harvest considerably from expected levels.
The majority of fruit juice exports were of non-citrus juices. In 1982,
4. I million litres of non-citrus juice were exported, valued at A$6.4 million
f.o.b., in addition to 3.8 million litres of citrus juice, valued at A$3.0
million f.o.b. (see Table 32). Apple juice made up the largest single category
of juice exported, accounting for 19 per cent of the total value of juice
TABLE 31
Australia: Fruit Juice Imports (1982)
Product
Lime juice
Orange juice
Mixtures of Citrus
Grapefruit juice
Lemon juice
Lime juice
Other citrus
Total Citrus
Passionfruit juice
Fruit Juice Mixtures
Pineapple
Other juices
Other juice (including
blackcurrand
Other Fruit juice
Tomato juice
Other vegetable juice
Total Non-Citrus
Total
Quantity
'a
(tonnes)
147.5
4304.3
12.3
54.5
0.9
0.3
4519.8
15. I
(000 litres)
151. 7
460. I
1728.4
331.0
0.9
48.6
2735.8
Value
(A$'OOO)
314.9
10395.6
24.9
86.7
1.3
0.5
10823.9
22.0
145.4
627.0
1179.6
431. 3
0.4
108.2
2513.8
13337.8
Proportion
of Value
2.4
77.9
0.2
0.7
81.2
0.2
1.1
4.7
8.8
3.2
0.8
18.8
100.0
Major sources (per cent)
UK (83), USA (6)
Brazil (86), USA (9)
USA (53), Cayman Is. (47)
Italy (85), W. Germany (14)
USA (86), Thailand (14)
Greece (100)
Fiji (72), NZ (26)
USA (51), Fiji (27), Brazil (22)
USA (99)
UK (49), NZ (17), France (I I),
Ph il ippines (I I)
Thailand (28), USA (21),
Philippines (13), Malaysia (7)
Israel (100)
W. Germany (61), USA (25)
a total soluble solids content.
~ r \ 1 ' 1 - r ..... ",. 1\1'7 II..: .... 1- r'I ~ --
TABLE 32
Australia: Fruit Juice Exports (1982)
Product
Orange juice
Containers less than 4.6 L
Containers more than 4.6 L
Quantity
('000 Litres)
899.5
1649.6
Value
(A$'OOO fob)
644.3
843.4
Proportion
of Value
10. I
13.2
Major Destinations (per cent)
Fr. Polynesia (32), PNG (IB), Fiji (10)
Philippines (20), Malaysia (16)
PNG (14), Singapore (II)
Grapefruit juice
Containers less than 4.6 L
Containers more than 4.6 L
Lemon juice
Containers less than 4.6 L
Containers more than 4.6 L
Other citrus juice
Containers less than 4.6 L
Containers more than 4.6 L
Total Citrus
Pineapple juice
Tomato juice
Blackcurrant juice
Pear juice
Apple juice
Other fruit JUlce
Other juice
Total Non-Citrus
Total
103.3 58.5 0.9
12.3 12.8 0.2
24.2 20.5 0.3
367.3 642.9 10. I
458.8 358. I 5.6
323.9 411.9 6.4
3838.9 2992.4 46.8
1025.8 373.3 5.B
42.9 30.4 0.5
77 .4 92.1 1.4
18.5 44.B 0.7
906.5 1240.5 19.4
2003.1 159B.9 25.0
23.5 0.4
4097.7 3403.2 53.2
7936.6 6395.6 100.0
Saudi Arabia (31), UAE (22)
PNG (59), Philippines (27)
NZ (47), UAE (21), Singapore (19)
USA (B9), Japan (5)
NZ (29), Fr. Polynesia (14),
South Africa (10)
NZ (BI), PNG (5)
NZ (32), Fiji (12), PNG (I I)
Fiji (30), NZ (2B), PNG (27)
Canada (26), Malaysia (63)
NZ (99)
UK (40), South Africa (20), Canada (20)
New Caledonia (23), Libya (/8), Canada (/1)
Japan (85)
Source: NZ High Commission, Canberra, Pers. comm.
TABLE 33
Australia: Non-Alcoholic Beverage Exports (1982)
Product
Fruit and Vegetable juice
Carbonated Beverages
Fruit Cordials
Other
Total
Quantity
('OOOlitres)
7936.6
12199.4
1238.9
n.a.
21374.9
Value
(A$'OOO fob)
6395.6
6552.5
866.3
889.6
14704.0
Proportion
of Value
( %)
43
45
6
6
100
Major Destinations (per cent)
(see Table 5.5)
Hong Kong (32), USA (14), New Caledonia (9)
Singapore (8), PNG (6), Malaysia (6)
Solomons (4), Nauru (4)
PNG (75), Malaysia (6)
Singapore (30), Hong Kong (25),
Malaysia (12)
Source: NZ High Commission, Canberra, Pers. Comm.
46.
exports. The United Kingdom accounted for 40 per cent of apple juice exports,
while 20 per cent each went to South Africa and Canada.
Apart from apple juice, the majority of juice exports were destined for the
Asia-Pacific region. Pacific Islands such as Papua New Guinea, French
Polynesia, New Caledonia and Fiji were important markets for both citrus and
non-citrus juice products. Asian countries such as the Philippines, Malaysia,
Singapore, and Japan were also prominent destinations for Australian exports.
New Zealand was also an important juice market.
It is significant that the export data presented in Table 32 show that a
large proportion of citrus juice exports were in containers of less than 4.6
litres. Thus, it is clear that Australia exports consumer packed juices to its
Asia-Pacific neighbours. A similar breakdown of exports by container size was
not available for non-citrus exports, but it is likely that consumer packed
juices also feature for these exports.
Apart from fruit JU1ces, Australia also exports other non-alcoholic
beverages to the Asia-Pacific region. In Table 33, it is reported that 12.2
million litres of carbonated beverages (soft-drinks and sparkling water) were
exported in 1982, valued at A$6.6 million f.o.b. Over 1.2 million litres of
fruit cordials were also exported, largely to Papua New Guinea.
5.4 Consumption
5.4. I Fruit Juice
Given available data, Australian consumption of fruit juices 1S
approximately 18 litres per capita in single strength terms (see Table 34).
Some estimates of per capita consumption would almost double this figure to 33
litres, after accounting for the use of juice in fruit drink products which have
juice contents of between 25 and 50 per cent (BR; July 1983). At 33 litres per
capita, Australia would compare favourably with United States consumption of 37
litres per capita. If Australian consumption of fruit cordials was added to
pure juice and fruit drink consumption, per capita consumption of juice in
Australia may exceed that of America, at least in terms of the final beverage
volume consumed.
a
b
c
d
47.
TABLE 34
Australia: Fruit Juice Per Capita Consumption
a
Year Orange
b
Apple
c
Pineapple
c
All
d
Fruit Cordials
Total Imported Juice and SyrupsC
Proportion
(litres) ( %) (litres) (litres) (litres) (litres)
1973 2.38 3.96 n ..a. I I. 37 n.a.
1974 6.35 19 2.47 0.37 15.29 5.14
1975 7.49 25 I. 89 0.76 17.25 4.41
1976 8.19 30 1.48 0.79 18.92 5.35
1977 6.39 18 1.55 0.59 13.92 4.78
1978 7.75 20 1.86 0.59 18.13 5.43
1979 7.32 15 2.29 0.58 17.30 4.91
1980 10.96 39 3.18 n.a. n.a. 5.18
1981 9.43 17 n.a. n.a. 17.92 n.a.
1982 8.77 32 n.a. n.a. n.a. n.a.
1983 12.44 4 I n.a. n.a. n.a. n.a.
n.a. not available
single strength equivalent.
apparent consumption (production, Table 28; plus imports, Table 30).
based on production data in Table 28 imports and exports
insignificant compared to domestic production.
based on factory production of single strength and concentrates data in
Table 28. Since imports of concentrates are further processed in
Australia, factory production can be taken as an apparent consumption
(domestic production plus imports) aggregate.
Orange juice is the dominant juice flavour on the Australian market (Table
34). The ITC (1982) estimates that 90 per cent of the JULce consumed in
Australia is orange, either as a single flavour or in combination with pineapple
or mango. The residual ten per cent share of the juice market includes apple,
apple/guava, grapefruit, blended tropical juice, and grape flavours.
Of the orange juice consumed in Australia, an estimated 70 per cent is
consumed as a fruit drink, rather than as a pure juice (QRRE; February 1982). A
shift in consumer demand away from pure juices to fruit drinks has been evident
in recent years, due largely to high orange prices and hence high orange JULce
prices (see BR; June 1983). To some extent, the high orange juice prices are
the result of the import protection afforded domestic citrus producers,
requiring processors to pay premiums to domestic orange producers rather than
obtain cheaper juice supplies on the world market. Orange juice that LS
imported has a variable duty imposed on it bringing it closer to domestic juice
prices.
5.4.2 Other Beverages
The non-alcoholic beverage market had estimated sales of
]982 (BRW, ]983). Soft-drink sales contributed 38 per cent to
30 per cent, fruit juices 20 per cent, and mineral water five
other beverages making up the residual seven per cent.
A$2 billion in
this total, milk
per cent, with
In Table 35, per capita consumption data for a range of beverages are
presented. Tea, coffee, soft-drink and spirit consumption all appear to have
been relatively stable over the ]973 to 1981 period. Beer consumption has
stabilised too, at a level of ]34 litres per capita. The only category to have
a clear growth trend is wine. Per capita consumption of wine has increased by
80 per cent since 1973, to 17.6 litres in 1981. By comparison, fruit juice
consumption increased by 58 per cent over the same period, to 18 litres per
capita. It is significant to note that both fruit juice and WIne have
comparatively better 'health' images among consumers than soft drinks or beer,
their main competitors.
TABLE 35
Australia: Per Capita Consumption of Beverages
Tea
a
Coffee
a
Carbonated Beer Wine Spirits
b
Year
Soft-Drinks
kg kg (litres) (Htres) (litres) (Htres)
]973 2.0 1.2 64.7 129.5 9.8 1.2
1974 1.9 1.2 63.4 ]39.0 ]1.0 1.2
1975 2.0 1.4 59.6 140.3 12.3 1.2
1976 1.9 1.1 65.0 137.4 13.0 1.]
1977 2.0 1.5 68.1 136.2 13.7 1.3
]978 1.6 1.8 68.8 137.6 14.3 1.3
1979 1.7 1.3 67.0 134.2 16.5 1.1
1980 1.6 1.7 66.3 134.3 ]7.4 1.0
]981 1.5 1.9 67.7 134.7 ] 7.6 1.1
a
b
in terms of dry product
litres of alcohol
Source: BAE (]980)
ABS (various)
5.5 Supermarket Product Line, Fruit Drink Packaging and Pricing
In Tables 36 to 40, the fruit drink product line sold in a
representative Australian supermarket is summarised. The complete product line
of 132 items included pure juice, fruit drinks, fruit drink mixes, nectars, and
fruit cordials. Within most product categories, a wide range of flavours,
package types and sizes, and brandnames is available. Pure juice, fruit drinks
and fruit cordials were particularly diversified.
49.
5.5. I Pure Fruit Juice
Of the 132 separate items making up the product line offered, 60 items or
45 per cent were pure fruit and vegetable juices (see Table 36). The majority
of these items were single strength fruit juice. It is evident from recent
newspaper reports that Australian food standards are not always complied with by
juice manufacturers. Some products described as pure juice have been found to
contain less than 50 per cent juice (SMH, May 1983).
Orange and orange/tropical juice blends were the dominant single strength
juice flavours offered, although as a single-flavour product, apple juice
totalled I I product items while orange juice only accounted for nine items.
Other flavours represented included grapefruit, pineapple, apricot and grape.
were
were
that
For pure single-strength fruit juices, two to five litre plastic
the most popular package types. Products sold in units under one
usually canned. Given the dominance of high volume packages, it is
pure juices are sold for consumption later in the home.
bottles
litre
likely
In
had
sold
Apple
discounts
ml cans
product
juice.
In terms of prices, pineapple juice retailed at substantial
comparison to every other juice flavour. Grape juice sold in 370
the highest price per litre at A$I.57, although a two litre grape
at an equivalent of A$0.95 per litre, a similar price to orange
juice sold at a slight premium in comparison to orange juice.
Concentrated pure juices were largely orange juices, and sold in units of
500 ml or less.
mls.
pure
Vegetable juices were largely sold in units varying between 375 mls and 850
All vegetable juices were sold in cans, and were priced competitively with
juices sold in packages with a similar volume of product.
5.5.2 Fruit Drinks
In comparison to pure juice products, the majority of fruit drink products
are sold in units of less than one litre (Table 37). Aseptic Tetra Paks
dominate these smaller package sizes. It can be concluded from this that while
pure juice products are generally sold in high volume containers, probably for
consumption in the home, fruit drinks, being in single serve packages, are
orientated more for immediate consumption.
Orange and orange blends dominate the flavours offered for
Mango and pineapple juice are the most popular JUlces blended
Other flavours offered included apple, tropical, and apricot.
fruit
with
drinks.
orange.
It is significant that no price discrimination was practised In the
representative supermarket among juice flavours. That is, for products sold in
similar packages and volumes, prices were the same for all flavours available.
For a number of fruit drinks available, added sugar was listed as an
ingredient in their manufacture.
5.5.3 Drink Mixes
Drink mixes were not a large component of the total supermarket fruit based
drink product line. Of the six drink mixes available, three were in powder form
and three were liquids. The powders were all packaged in glass bottles with a
capacity of 250g or 500g, while the liquids were all contained in 700g cans.
50
TABLE 36
Australia: Pure Juice Retail Prices (May 1983)
Flavour No. of Brands Package Volume Price Unit Price
Range Average per Litre
(ml) (A$) (A$/l)
Concentrate
Orange Tetra Pak 500 1.55- 1.69 1.60 3.20
Orange/Mango Tetra Pak 500 I. 57 3.14
Orange (F) Can 170 0.84 4.94
Orange Can 2980 3.09 1.04
Lemon Plastic Bottle 250 0.58 2.32
Apple/Blackcurrant Glass Bottle 375 1.89 5.04
Single Strength
Orange 5 Plastic Bottle 2000 1.89-2.39 2.17 1.09
Orange I Tetra Pak 2000 1.95 0.98
Orange 1 Plastic Bottle 4000 2.99 0.75
Orange I Plastic Bottle 5000 4.79 0.96
Orange I Can 850 0.94 I. I 1
Orange/Passionfruit I Plastic Bottle 2000 I. 99 1.00
Orange/Mango 2 Plastic Bottle 2000 1.89-1.99 1.94 0.97
Orange/Pineapple 1 Can 3000 1.39 0.46
Apple 3 Glass Bottle 750 0.75-0.85 0.82 1.09
Apple 3 Glass Bottle 2000 1.99-2.45 2.26 I. 13
Apple 2 Plastic Bottle 2000 I. 89- I. 99 1.94 0.97
Apple 2 Can 375 0.42 I. 12
Apple 1 Can 3000 1.85 0.62
Apple/Pear I Glass Bottle 2000 1.99 1.00
Grapefruit I Can 850 0.94 I. 11
Grapefruit 2 Plastic Bottle 2000 1.89-1.99 1.94 0.97
Pineapple 1 Can 850 0.54 0.64
Pineapple J Tetra Pak 1000 0.62 0.62
Pineapple 2 Can 3000 1.39 0.46
Apricot 2 Can 850 0.79 0.93
Apricot I Plastic Bottle 2000 1.89 0.95
Apricot I Plastic Bottle 2980 2.65 0.89
Grape I Can 370 0.58 I. 57
Grape 1 Plastic Bottle 2000 1.8'? 0.95
Carbonated Single Strength
Grape 4 Glass Bottle 750 0.95- 1.42 1.28 I. 7 I
Apple I Glass Bottle 750 0.85 1.13
Vegetable Juices
Tomato I Can 415 0.52 I. 25
Tomato I Can 750 0.72 0.96
Tomato 3 Can 850 0.69-0.79 0.74 0.87
Tomato I Can 2980 2.19 0.73
Vegetable 1 Can 375 0.59 1.57
Vegetable 1 Can 750 0.99 I. 32
Vegetable I Can 850 0.95 I. 12
(F) Frozen
Source: Shoprite Supermarket, Deakin, Canberra, May 1983 from NZ High Commission, Canberra (pers. comm.).
TABLE 37
Australia: Fruit Drink Retail Prices (May 1983)
Flavour No. of Brands Package Volume Price Unit Price
Range Average per Litre
(ml) (A$) (A$/l)
Concentrate
Orange 2 Tetra Pak 500 0.99-1.05 1.02 2.04
Orange/Mango I Tetra Pak 500 0.99 I. 98
Single Strength
Orange (S) (F) I Tetra Pak 250 0.32 I. 28
Orange 1 Plastic Bottle 500 0.62 I. 24
Orange I Tetra Pak 2000 I. 25 0.63
Orange (S) I Can 415 0.89 2.14
Orange I Plastic Bottle 4000 2.49 0.62
Orange I Plastic Bottle 5000 3.99 0.80
Orange/Mango 1 Tetra Pak 250 0.32 I. 28
Orange/Mango I Tetra Pak 500 I. 05 2.10
Orange/Mango I Tetra Pak 2000 I. 25 0.63
Orange/Mango I Plastic Bottle 4000 2.49 0.62
Orange/Pineapple I Tetra Pak 250 0.40 1.60
Orange/Pineapple (S) (F) I Tetra Pak 250 0.32 I. 28
Orange/Pineapple (S) I Cans 850 0.54 0.64
Orange/Pineapple I Tetra Pak 1000 0.62 0.62
Apple (S) (F) I Tetra Pak 250 0.32 1.28
Apple I Plastic Bottle 2000 I. 99 1.00
Tropical (S) (F) 3 Tetra Pak 250 0.32 I. 28
Tropical (S) I Tetra Pak 1000 0.62 0.62
Tropical 2 Tetra Pak 2000 I. 25 0.63
Pineapple (S) I Can 850 0.54 0.64
Apricot/Pineapple (S) I Can 850 0.54 0.64
(S) Sugar added
In
(F) Frozen
i" _____ __ • ("'IL __~
52.
Lemon, lime, orange and barley flavours were represented among the
available drink mixes, often in combination with each other.
TABLE 38
Australia: Drink Mix Retail Prices (May 1983)
Flavour Product Volume Price
Lemon/Lime Powder Glass Bottle
Orange Powder Glass Bottle
Orange/Mango Powder Glass Bottle
Orange/Barley Liquid Can
Lemon/Lime/Barley Liquid Can
Lemon/Barley Liquid Can
250g
500g
500g
700g
700g
700g
(A$)
3.29
2.58
2.42
2.65
2.65
2.65
Source: Shoprite Supermarket, Deakin, Canberra, May 1983 from
NZ High Commission, Canberra (pers. comm).
5.5.4 Nectars
Only three fruit nectars were available in the representative supermarket,
illustrating their small share of the total fruit juice product market. Apricot
was the only flavour offered. All products were canned either in 425ml or 850
ml containers.
In terms of price, apricot nectar was positioned alongside pure fruit
juices sold in similar sized containers. Like pure juice, nectars were priced
at a premium of between 45 per cent and 75 per cent over fruit drinks of similar
packaging and volume.
TABLE 39
Australia: Fruit Nectar Retail Prices (May 1983)
Flavour
Apricot
Apricot
Apricot (S)
Package
Can
Can
Can
Volume
(ml)
425
850
850
Price
0.52
0.94
0.79
(S) sugar added
Source: Shoprite Supermarket, Deakin, Canberra. May 1983 from
NZ High Commission, Canberra (pers. comm.)
53.
5.5.5 Cordials and Syrups
Thirty-six of the 132 items present in the representative
product line were either fruit based cordials or syrups. The
these products is an important feature of the Australian market.
supermarket I S
importance of
The majority of cordials and syrups available were sold in plastic bottles
with a volume of either 750 ml or two litres. Glass bottles with a volume of
750 ml were also used.
A significant feature of the fruit based cordials and syrups available is
the wide variety of flavours offered in comparison to both pure fruit juices and
fruit drinks. Apart from orange, pineapple and mango which dominate pure fruit
juice and fruit drink flavours (except for apple), cordials and syrups are also
available in lemon, lime, barley, raspberry, blackcurrant, berry, passionfruit
and tropical flavours.
In terms of price, cordials and syrups are extremely price
relation to pure juice and fruit drinks, since the actual
consumed is much higher than the volume of product sold.
TABLE 40
competitive in
beverage volume
Australia: Fruit Juice Cordial and Syrup Retail Prices (May 1983)
Plastic Bottle
Added Sugar and
Preservatives
Flavour
Orange
Orange/Pineapple
Orange/Lemon/Lime
Orange/Mango
Orange/Barley
Lemon
Lime
Lemon/Lime
Lemon/Barley
Lemon/Lime/Barley
Raspberry
Blackcurrant
Pineapple
Berry
Passionfruit
Tropical Fruit
Mango
750ml
0.67-0.92
0.67
0.67
0.82
0.82
0.67
0.82
0.67
0.67
0.82
0.82
0.82
2000ml
1.59
Glass
Bottle
750ml
No Added Sugar,
Preservatives
Plastic Glass
Bottle Bottle
750ml 375ml
Source: Shoprite Supermarket, Deakin, Canberra, May 1983 from
NZ High Commission, Canberra (pers. comm.).
54.
5.6 Market Structure
Figure I in Chapter 2 presents an outline of the distribution channels
followed by imported bulk and consumer packed fruit juices in the United States.
The Australian distribution network is very similar to this, although some
industrial end users described in Figure I are not important juice processors
in Australia. For example, in Australia, the food processing industry (e.g.
dairy industry, bakeries, baby food manufacturers) does not use large a m o u n ~ s of
fruit juice as a raw material in its product manufacture.
Most imported juice concentrate is utilised by the beverage industry. The
beverage industry in Australia comprises two components: processors and
converters. Processors produce juice concentrate out of fresh fruit, and hence
do not handle imported juice. Converters reconstitute juice concentrate into
various juice products. Often the processing and converting functions are both
handled by a single company, however, for imported concentrate, a number of
specialist converter companies have been established.
The majority of fruit based drink products are sold Vla supermarket chains.
5.7 Market Access
The Australian citrus industry has been insulated from world market forces
by a variable tariff on orange juice, ensuring imported JUlce is priced at
levels closer to the price domestic processors can profitably manufacture orange
juice from domestically grown oranges. Until 10 December 1982, a floor price
for imported orange juice of A$2.40/kg of total soluble solids (TSS) was
established (BAE, 1980). Given world prices at the time of A$I.45/kg, a duty of
A$0.95/kg TSS was payable on imported orange juice. Apart from this variable
tariff protection, domestic citrus producers were also protected by a sales tax
of 25 per cent on orange juice sold with a domestic content of less than 75 per
cent.
Since 10 December 1982, the variable tariff on orange juice has been joined
by a composite ad valorem and specific tariff (PIMUR, 1983). The composite
tariff comprises a 10 per cent ad valorem duty and a specific duty of A$0.75/kg
TSS. In addition, a variable duty equal to the amount by which the customs
value of imports is less than a floor price of A$I.25/kg TSS is imposed. The
specific duty and the floor price will both be reduced by five cents per
kilogram each year to $0.50/kg TSS and $I.OO/kg TSS respectively. Overall, the
ad valorem equivalent of the new tariff is calculated at 45 per cent, compared
to 70 per cent under the old system dominated by the variable tariff.
Apart from orange juice, most other juice imports enter Australia with a 10
per cent ad valorem tariff. Imports from developing countries usually enter
with only a five per cent ad valorem duty. New Zealand exports to Australia
enter free of any tariffs.
It can be concluded that apart from orange juice, entry to the Australian
market is not significantly restricted by tariff barriers. New Zealand has only
a slightly more competitive position in relation to imports from other sources
in terms of tariffs incurred.
CHAPTER 6
JAPAN
6. I Introduction
Japan is the most industrialised economy in Asia, and earns the highest per
capita income of any Asian country. FEER (1982) report that per capita income
in Japan reached US$8887 in 1981, having grown at 5.4 per cent per annum over
the period 1970-80. In recession dominated 1983, Japan's economic growth was
reduced to 3.25 per cent per annum, though still the highest growth rate of any
OECD country (OECD, 1983).
Total population in Japan totalled 117.8 million ~ n 1981, having grown at
0.85 per cent per annum over the period 1975-1981.
6.2 Domestic Production
Japanese production of fruit juice concentrates for the domestic beverage
industry totalled over 79,000 tonnes in 1980, almost 600 per cent higher than
concentrate production in 1971 (Table 41). Over the same period, single
strength juice production increased by over 200 per cent to 5416 tonnes,
although production in 1980 was lower than the 1978 peak of 8789 tonnes. Apart
from concentrates and single-strength juice, puree is also produced by the
Japanese fruit processing sector. While only 57 tonnes of puree was produced in
1971, by 1978 production reached over 11000 tonnes, before falling to 9576
tonnes in 1978.
TABLE 41
Japan: Production of Fruit Juice Raw Materials (1971-1980)
Year
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
Concentrate
11353
12980
17381
21915
25337
43371
56412
66354
78078
79168
Natural
100%
Fruit Juice
(tonnes)
1765
2837
6823
7745
6283
6083
5697
8789
6914
5416
Puree
57
177
1094
1754
3032
4490
8384
I 1137
7540
9576
Source: Kitson and Miller (1982)
55.
56.
The rapid increase in output from the Japanese fruit processing sector has
been facilitated by the growth in domestic fresh citrus production, together
with static levels of consumer demand for fresh fruit. Thus, the 20 per cent
increase in mandarin production between J97J and J98J has been largely processed
(see Table 42). Any further increases in domestic production of fresh fruit
will also be processed.
TABLE 42
Japan: Fruit Production (J98J)
Fruit
Citrus
Oranges
Mandarins
Other Citrus
Deciduous
Apples
Pears
Peaches and Nectarines
Plums
Tropical
Pineapples
Bananas
Total
Source: FAG (1982)
Level
('000 tonnes)
395
2Ml
300
847
522
287
65
60
3
5320
Volume
Change
(% change from
1969-1971 average)
23
20
219
-J8
12
5
25
-25
50
13
Based on the raw materials produced by the processing industry, the
Japanese beverage industry produces a wide range of juice based products for
sale to consumers. In Tables 43 and 44 summaries of consumer juice product
production by fruit type are presented. Overall production of consumer products
for direct consumption totalled 200 million cases (Table 43) while production
of consumer products requiring added water reached over 3J million cases. Of
the directly consumed products, over 53 per cent were fruit drinks containing
around JO per cent fruit juices and J3 per cent were fruit drinks containing
fruit segments or grains. Thirty per cent of direct consumption fruit products
were pure fruit juices, while nectars made up five per cent of production. The
fact that over 65 per cent of direct consumption products are fruit drinks with
low pure juice content is an indication of the effect import restrictions on
fruit juice have had on the domestic beverage industry, and hence on the range
of products offered to consumers. The existence of import controls has ensured
the continued dominance of the Japanese mandarin (mikan) as principal source of
juice for all juice products except nectars (see Tables 43 and 44). The mikan
flavour accounts for 67 per cent of direct consumption juice products, and 55
TABLE 43
Japan: Fruit Juice, Drinks and Nectars for Direct Consumption
by Type of Fruit (1980)
Pure Fruit Fruit Nectar Fruit Juice Total Per cent
Juice Drink
a
Drink Including of Total
Segments
('000 Cases) (%)
Mikan 37404 70970 1246 24664 134284 67
Apple 1394 I 1143 I 14 I 4 25517 13
Grape 618 4960 5578 3
Pineapple 64 2465 9 2538 I
Kabosu 93 27 120
Mixed Fruits 4455 5751 2514 1658 14378 7
Sour Peach 49 49
Guava 452 105 557
Shikuwashyu 155 155
Peach 47 1137 5914 II 7109 4
Japanese Pear 10 37 47
Strawberry 2 21 I 213
Plum 16 583 177 776
Grapefruit 251 3959 47 4257 2
Lemon 131 4347 4478 2
Passionfruit 112 112
Melon 45 3 I 76
Total 56974 106716 10134 26420 200244 100
- less than one.
a
10% juice.
Source: Kitson and Miller (1982)
58.
per cent of concentrate production. Apple accounts for 13 per cent of direct
consumption products. Grape, pineapple, grapefruit and lemon are the only other
fruits that account for significant shares of fruit juice products manufactured,
almost entirely as fruit juice drinks. Nectar production is dominated by
peaches.
TABLE 44
Japan: Fruit Juice Concentrate Production by Type of Fruit (1980)
Fruit
Mikan
Apple
Grape
Pineapple
Mixed Fruits
Guava
Lime
Peach
Banana
Strawberry
Plum
Grapefruit
Lemon
Passionfruit
Melon
Total
less than one
Pure Fruit
Juice
792
55
30
143
890
Fruit
Drink a
('000 Cases)
16449
1323
4124
2900
1695
19
6
14
I
396
299
2292
924
13
47
30502
Total
17241
1378
4154
2900
1838
19
6
14
I
396
299
2293
924
13
47
31392
Per cent
of Total
( %)
55
4
13
9
6
-1
I
7
3
100
a
10% juice content
Source: Kitson and Miller (1982)
6.3 International Trade
The Japanese juice industry was ranked thirteenth in the world as an
importer of fruit juices in 1981 (Table 45), having risen seven places in world
rankings since 1977. In spite of this higher ranking, Japan still accounts for
only one per cent of world imports of fruit juices, indicating that imports into
higher ranked countries have grown faster than imports into Japan.
As an exporter, data reported in Table 45 indicate that Japan was ranked
seventh in the world in 1981, accounting for four per cent of world exports with
Japanese exports valued at US$75 million. Initially, it is difficult to
reconcile this information with the level and value of pure juice exports
recorded in Table 46. Fruit juice exports in 1981 amounted to 0.3 million
litres, valued at Y84 million or US$0.4 million. The difference between the
59.
export data is explained by the fact that nearly all juice exports reported in
Table 45 are exported not as fruit J u ~ c e , but as consumer packaged
non-alcoholic beverages. Two thirds of these beverages contain mikan J u ~ c e , a
further 20 per cent apple juice. In terms of destination, around 90 per cent of
these exports are sold in the Middle-East, with Saudi Arabia, Kuwait, United
Arab Emirates and Bahrain forming the principal markets. Clearly, unlike most
other countries involved in the world juice market, Japan is predominantly an
exporter of finished juice products, rather than concentrated raw materials.
TABLE 45
Japan: Importance in World Trade of Fruit and
Vegetable Juice (1977-1981)
Year Imports World Importance
Per cent Rank
Exports World Importance
Per Cent Rank
(US$'OOO) ( %) (US$'OOO) ( %)
1977 8980 I 20 47148 5 6
1978 11547 I 19 63540 5 6
1979 24501 2 13 67704 5 6
1980 2574 I 2 13 77586 5 7
1981 26818 I 13 75493 4 7
Source: ITC (1982)
TABLE 46
Japan: Fruit Juice Exports ( 1981)
Product Volume Value
('OOOlitres) (y'OOO) (% of Valuer
Orange juice 10.5 2490 3
Other citrus 186.2 555 II 66
Other fruit 11.4 10714 13
Mixtures 35.9 8222 10
Tomato 29.2 6592 8
Other vegetable 0.9 783 I
Total 274. I 84312 100
a
100 due to rounding. may not add to
Source: ITC (1982)
,
60.
Japan almost exclusively imports concentrates as raw materials for the
domestic beverage industry. Since 1977, the volume of JUlce imports has risen
by 94 per cent, and the value by 141 per cent. From Table 47, citrus juice ln
1981 accounted for 63 per cent of the value of all imports, with orange and
grapefruit juice being of equal importance. Grape juice accounts for another 20
per cent of the import value in 1981. Japan's juice imports are sourced from a
very limited range of countries. Apart from Brazil and the United States which
together account for over 90 per cent of imports, only Israel and the
Philippines contribute significantly to Japanese imports.
6.4 Consumption
Based on the production data contained in Tables 43 and 44, Japanese
consumption of juice products can be estimated at 1.97 litres per capita, made
up of pure juice 0.48 litres, fruit drinks 1.13 litres, nectar 0.09 litres, and
concentrates 0.27 litres. With a per capita consumption of under two litres,
Japanese juice consumption is the lowest of any developed country. To a large
extent, the low level of Japanese juice consumption is due to import
restrictions on raw materials rather than consumer preferences.
Although juice consumption is low, its growth rate has been over 20 per
cent per annum over the last decade, as surplus domestic production of fresh
fruit has made available increasingly large quantities of JUlce. Still, the
range of flavours available has continued to be quite narrow, with mikan alone
accounting for 70 per cent of the juice market, apple 13 per cent, and grape
three per cent.
In terms of the total non-alcoholic beverage market in Japan, fruit juice
products comprise a growing but minority share. From Table 48 the effect of
tight "juice availability is identified in the declining share of pure juice and
nectars, while the share of fruit drinks has risen.
Overall, the share of non-carbonated fruit drinks rose by three percentage
points between 1976 and 1979 to 33 per cent. During the same period, carbonated
non-alcoholic beverages suffered a six percentage point decline in share to 58
per cent. Within the carbonated group, colas, clear (lemon, lime) drinks, and
grape coloured drinks dominate. Total consumption of soft drinks is estimated
at 23 litres per capita (BW; August 1981). Apart from soft drinks, health
drinks (electrolyte replacers, stamina drinks) contribute significantly to the
carbonated beverage market.
TABLE 47
Japan: Fruit Juice Imports ( 1977-1981)
Product Volume of Imports Value of Major Sources
1977 1978 1979 1980 1981 Imports 1981 (per cent)
(000 Litres)
(y
million) ( %)
Orange juice 1438 1581 3430 2781 3810 1495 25 Brazil (84 )
Grapefruit juice 1102 1344 1767 1941 3329 1552 26 USA (93)
Other citrus juice 1026 1427 1587 1657 1425 721 12 USA (45) Israel (25)
Pineapple juice 274 210 280 320 303 34 Philippines (85)
Grape juice 1151 582 959 1113 1875 1216 20 USA (95)
Other fruit juice 1356 205 2723 3610 1046 691 12 USA (5 I ) , Brazil (37)
Tomato juice 284 62
Other vegetable juice 680 177 3
Total Juice 6347 5349 10746 11422 12752 5948 100
Source: ITC (1982)
Kitson and Miller (1982)
62.
TABLE 48
Japan: Beverage Market Shares
Category
Carbonated
Cola
Clear drink
Fruit flavoured
Grape coloured
Milk products
Soda
Other
Health Drinks
Total Carbonated
Non Carbonated Fruit Drinks
Fruit Juice (100%)
Fruit Juice ( 100%)
Nectar
Juice Drinks (10%)
Juice Drinks including segments
Other Drinks for direct consumption
Concentrate for making up
Fruit Syrup
Total Fruit Drinks
Coffee Flavoured Drinks
Total
Source: Kitson and Miller (1982)
1976
20.4
23.7
1.8
14.7
0.4
0.9
0.7
1.5
64.0
3.8
3.9
2.7
8.7
5.3
5.5
0.5
30.4
5.6
100
Year
1979
( %)
20. I
19.0
2.4
12.4
0.8
0.8
0.6
2.0
58. I
2.9
5.8
1.8
I I. I
1.4
5.0
4.9
0.4
33.3
8.6
100
6.5 Market Structure: Distribution Channels and End Users
Figure 2 summarises the typical distribution network for
concentrate from exporter, to processors, and to consumers
finished juice based products.
imported J u ~ c e
as a range of
Nearly all juice imports are concentrates, and hence must enter the
processing beverage industry. Only about five per cent of imports are utilised
by the food processing sector (dairy industry, bakeries, confectionery and jam).
Imports are usually undertaken through one of Japan's trading houses.
Alternatively, for particular products, specialist food importers compete
strongly with the major trading houses.
After processing, the finished juice products are
wholesalers, supermarkets, vending machines, or direct to
users. Wholesalers may be specialised according to either
distributed through
large institutional
the products they
63.
handle (e.g. food) or the users they supply (e.g. institutions). Often, at
least three wholesalers will handle the consumer product between the beverage
industry and the retail sector. At each level of wholesaler, volumes of product
are broken down into smaller and smaller lots. Retailers tend therefore to
frequently buy small volumes of particular products from wholesalers. Table 49
indicates that for one type of institutional end-user, restaurants, frequency of
purchase is usually daily, reflecting Japanese preferences for fresh food. It
is significant that fruit juices are usually purchased only once per month,
hence, the need for a long chain of wholesalers is less evident. However, low
frequency of purchase may also indicate low usage, so that any increase in sales
through restaurants could lead to more frequent purchases of juice.
FIGURE 2
Japan: Distribution Channels for Imported Juice Concentrates
Exporter
1
Food Processing
Private
Users
Vending
Machines
Supermarkets
Trading House
Specialist Fpod Importer
/
Institutional
Users
Beverage
1ndustry
Wholesaler(s)
"\
Smaller
Retailers
Source: ITC (1982)
Kitson and Miller (1982)
DTI (1982)
64.
TABLE 49
Japan: Frequency of Fresh Food Purchases by Restaurants
Frequency
Daily
2-3 times/week
I/week
2-3 times/month
I/month
End of month
Other
Vegetables
93.4
5. I
0.8
O. I
O. I
0.2
0.3
Fruit
67.4
2 I. 2
8.2
1.8
0.3
0.5
0.6
Marine
Products
83.9
11.6
1.4
1.0
0.2
0.3
1.6
Meat
87.2
10. I
0.7
0.5
O. I
O. I
1.3
Fruit
Juice
12.6
6. I
10.5
18.7
27.9
20.4
3.8
Source: Kitson and Miller (1982)
Apart from wholesalers, Kitson and Miller
institutions, particularly restaurants, also purchase
and 70 per cent of their supplies from retailers.
( 1982) indicate
from between 20 per
that
cent
tax.
the
As end-users, the institutional market has expanded rapidly. Food eaten
outside the home accounted for 14 per cent of food consumption expenditure in
Japan in 1979, compared with 12 per cent in 1970 (Kitson and Miller, 1982).
More significantly, expenditure on eating out over the 1970 to 1979 period grew
at 15 per cent per annum, compared with the I I per cent per annum increase for
all food expenditure.
Of the total institutional market, restaurants and hotels accounted for 67
per cent of eating out expenditure, large institutions (schools, work canteens,
hospitals) 22 per cent, and drinking places (tea shops, beer halls and cabarets)
12 per cent. The most popular form of restaurant is the traditional sushi (raw
fish) restaurant, however, fast food outlets selling western-style food are
second in importance, and hold more potential for fruit juice product sales.
6.6 Market Access
All juice imports into Japan are subject to tariffs and sales
Generally, tariffs for J u ~ c e s containing added sugar are 35 per cent of
c.i.f. valuation, or 27Y/kg, whichever is greater, irrespective of the juice
type. For juices without added sugar the tariff is set at 30 per cent. Apart
from the tariff, all juice imports are also levied a sales tax of five per cent.
Although Japanese tariffs are high, the major trade barrier limiting juice
imports is the existence of import quotas. Only lemon and lime juice are exempt
from quotas. In Table 50, quotas which hold for 1976 and 1980 are listed. It
is apparent that quotas are often tied specifically to particular juices and/or
sources, hence, new sources or juice types must compete with existing juices and
suppliers for access under the general quota. Quotas can also be tied to end
use. The general import quota and quota for hotel use are examples of this.
Quotas are granted to end users or to organisations (e.g. Trading Houses) which
have received orders from end users.
65.
TABLE 50
Japan: Fruit Juice Import Quotas
Quota
General Import Quota
(all juices except orange juice,
pineapple and lemon)
For Hotel Use:
of which:
Orange and pineapple
Grapefruit
Emergency (Supplementary) Quota:
of which:
Grapefruit concentrate
Apple concentrate
Negotiated Quota
United States:
Orange concentrate
Grapefruit concentrate
Okinawa: Orange concentrate
Other: Fruit puree
Fruit pulp
Source: ITe (1982)
1976
1380
620
500
120
2600
1500
1100
1000
3380
4226
(tons)
1980
1380
636
486
150
5800
1800
4000
5000
3000
90
4056
5072
Quotas on raw materials for juice production, fruit puree and pulp limit
the possibility of avoiding quota restrictions on juice itself. These materials
incur at least a 25 per cent tariff, increased to 40 per cent if sugar is added.
Only fruit with a minimal amount of further processing, e.g. frozen, is not
subject to quotas. Tariffs on such fruit are 20 per cent, but rise to 35 per
cent as sugar is added.
From Table 50 it can be seen that apart from
negotiated with the United States, no relaxation
between 1976 and 1980. The emergency quota is
fluctuations in the availability of domestic citrus
emergency quotas and quotas
of quota limits occurred
clearly tied to seasonal
fruit for juice production.
While juice imports under tariff classification 22.07 are subject to
quotas, beverages imported under tariff classification 22.02 are not. The range
of beverages included under this classification in Japan include fruit nectars,
carbonated and non-carbonated fruit beverages containing less than five per cent
juice, cordials with a juice content of under 25 per cent (so long as the juice
is not in its original state), and fruit syrups with a juice content of under 25
per cent (Mr Secker, Dept of Trade and Industry, Wellington, pers. comm.). Such
imports attract a relatively low tariff; 20 per cent rising to 28 per cent if
sugar is added.
CHAPTER 7
PACIFIC ISLANDS
7. I Introduction
The lack of comprehensive data regarding the production, trade and
consumption of fruit juice products in individual Pacific Island countries
precludes any detailed analysis of the juice market in these counries. However,
a more general discussion of population trends, economic activity, and fruit
production in the region will provide insights into the potential for sales of
fruit juice products into these markets.
7.2 Population
In all, the Pacific Islands as a region represents a combined population of
over five million people. A feature of the region is the fragmented nature of
this population's distribution, both between and within individual states. The
population statistics reported in Table 51 reveal that Papua New Guinea alone
accounts for around 60 per cent of the Pacific Island region's population, while
the Cook Islands, Nauru, Niue, Norfolk Island, Tokelau Islands, and Wallis and
Futuna Islands together account for less than one per cent of the region's
population. Within any particular country in the Pacific the population is
usually distributed over a number of islands. For example, the Trust Territory
of the Pacific Islands, made up of the Marianas, Caroline and Marshall island
groups, has over 2000 islands within its territory.
A feature of nearly every island nation is the dominance of the under
fifteen year old in the age distribution of the population. Most Pacific
Islands have at least 40 per cent and up to 50 per cent of their population
under fifteen years old. This statistic both explains the high population
growth rates reported in Table 51, and suggests that in the future rapid
population growth will continue. The Cook Islands, Niue and the Tokelau Islands
all have negative population growth rates in spite of having over 45 per cent of
the population under 15 years old. These negative growth rates are due to
emigration, particularly to New Zealand. Tongan and Western Samoan population
growth rates of only 1.5 per cent and I. I per cent respectively can also be
explained by emigration.
While the majority of Pacific Islanders are of Melanesian, Micronesian and
Polynesian origin, the data reported in Table 52 show that significant
European, Indian and Chinese communities exist in some countries. These
communities developed due to the colonial period in the Pacific Island region's
history, a period which has yet to close for some countries. British and French
nationals make up the major European expatriate populations. Both the Indian
and Chinese ethnic groups came to the Pacific as indentured workers for
plantation agriculture, but now tend to hold higher income positions.
7.3 Economy and International Trade
With few exceptions, all Pacific Island economies are based on agriculture
and tourism. Some countries have important m ~ n ~ n g industries as well. eg Fiji
(gold), Nauru (phosphate), New Caledonia (nickel, manganese) and Papua New
Guinea (copper, gold),
67.
TABLE 51
Pacific Islands: Population (1981)
o
o
County Total
Population
a
Average Population
Growth Rate
1970-1981
Per cent
Workforce in
Agriculture
Per cent Population
under 15 years old
('000) (%/annum) ( %) ( %)
American Samoa 27 3. I n.a. 48
Cook Islands 18 -3.3 22 50
Fiji 641 2. I 39 41
French Polynesia 150 3.3 n.a. 46
Guam 116 2.0 74 40
Kiribati 59 1.8 n.a. 44
Nauru 8 5.6 n.a. 40
Niue 4 -2.8 79 46
New Caledonia 144 2.7 60 39
Norfolk Island 2 1.7 n.a. 25
Papua New Guinea 3241 2.9 82 45
Solomon Islands 237 3.8 45 48
Tokelau Islands 2 -3.2 n.a. 48
Tonga 99 1.5 48 44
Trust Territory of the
Pacific Islands 139 3.5 56 46
Vanuatu 122 3.6 n.a. 46
Wallis and Futuna Is. 9 n.a. n.a. 43
Western Samoa 158 1.1 79 48
a For some countries population data is for 1976.
n.a. not available.
Source: FAO ( 1982)
UN ( 1979)
UN (198Ib)
TABLE 52
Pacific Islands: Ethnic Composition
Country Indigenous
Pacific Islanders
Other Pacific
Islanders
European Indian Chinese Other
(% of total population)
American Samoa 70 28 2
Cook Islands 100
Fiji 44 2 50 I 2
French Polynesia 95 5
Kiribati 83 15 I I
Nauru 56 22 8 14
New Caledonia 42 13 40 5
Niue 100
Papua New· Guinea 99
Solomon Islands 93 5
Tokelau Islands 100
Tonga 98 2
Trust Territory of the
Pacific Islands 100
Vanuatu 93 7
Wallis and Futuna Is. 98 2
Western Samoa 98 2
Sources: Carter (1981)
ACOA (1978)
Agriculture in the Pacific is largely subsistence, with coconuts, cocoa,
coffee and sugar-cane being the major cash crops.
Livestock and fishing hold less important positions in Pacific Island
economies, their development often occurring in association with the development
of canning industries. The declaration of 200 mile Exclusive Economic Zones
(EEZ) has provided many island nations with substantial fisheries resources,
opening opportunities for much bigger fishing industries. Many Pacific Island
countries have entered into joint ventures with Japan and Korea in order to
develop their EEZ's.
Given the primary and extractive industries which form the basis for most
island economies, it is not surprising that agricultural and mining products
contribute the majority of exports. Imports on the other hand usually include
machinery, transport equipment, manufactures and mineral fuels. Food and
beverages also account for an important share of total imports. Only the
Solomon Islands are even close to being self sufficient in food.
Trading patterns tend to follow the historical colonial ties between the
island economy and its European or Pacific 'mother' country. Preferential
access granted to former and current colonies ensures historical trading
patterns are maintained.
The visible trade balance of most Pacific Islands is usually in deficit.
These deficits are offset by invisible transactions which include. foreign aid,
remittances from emigrants, and tourism. French aid contributions to the
economies of New Caledonia, French Polynesia and Vanuatu form particularly large
components of these countries national incomes.
Emigration from the Cook Islands has occurred to such an extent
Cook Islanders live in New Zealand than the number living in their
Remittances from these emigrants provide the remaining islanders with
cash income. Niuean, Tongan, Tokelau and Samoan emigrants are also
sources of cash income for relatives who remained in their homeland.
that more
homeland.
additional
important
Tourism is an important industry in nearly every Pacific Island country.
In Table 53, the number of tourists visiting particular islands is reported.
Fiji recorded the most tourists visiting in a year; nearly 250,000 in 1978.
French Polynesia and New Caledonia together recorded over 180,000 tourists. The
total number of tourists visiting individual islands in a year amounted to
between 40 per cent and 60 per cent of the indigenous population, revealing the
tourist orientation of most island economies. Papua New Guinea, the most
populous island in the region, was less tourist orientated than all the islands,
receiving little over 26,000 tourists, less than one per cent in terms of the
country's population.
While the majority of tourists arrived in the Pacific Island region by air
and tended to stay between one and two weeks, significant numbers of tourists
arrived by cruise ships, tending to stay only a few hours or a couple of days in
any particular port. Most tourists originated from New Zealand, Australia and
the United States, though the number of Japanese tourists is growing quickly.
Islands in the Pacific Island Trust Territory and the Solomon Islands, scenes of
major battles during World War II, have experienced the greatest increases in
Japanese tourist traffic.
71.
TABLE 53
Pacific Islands: Tourists
Tourists as
Country (Year) Number of Tourists Proportion of
Arrival by Arrival by Total
Air Cruise Ship Total Population
( %)
American Samoa (1978) n.a. n.a. 11157 41
Cook Islands (1979) n.a. n.a. 19722 110
Fiji (1978) 186000 57940 243940 38
French Polynesia (1978) 93223 718 9394 I 63
Kiribati (1977) n.a. n.a. 796 I
New Caledonia (1978) 51491 37000 88491 61
Papua New Guinea (1976) n.a. n.a. 26374 I
Solomon Islands (1979) 10200 8345 18545 8
Tonga (1979) 12126 29990 43116 44
Trust Territory of the
Pacific Islands ( 1980) n.a. n.a. 90000 65
Vanuatu (1979) 30454 29105 59559 49
Western Samoa (1979) 49866 10972 60838 38
Source: Carter (1981)
Disposable incomes in most Pacific Island economies tend to be low, around
$1,000 per capita on higher income islands. Only Nauru has a level of per
capita income that compares favourably with more developed industrialised
nations. In 1978 per capita income on Nauru was estimated at A$25,000 (ACOA;
1978).
7.4 Fruit Production and Fruit Juice Trade
The commercial production of fruit does not form a major part of Pacific
Island economies. The majority of fruit is produced and consumed by individual
households. Plantation style fruit growing orientated to export markets is not
well developed.
Tropical fruit, particularly bananas, makes up the major proportion of
fruit production throughout the Pacific Island region. Apart from bananas, the
major tropical fruit grown include avocados, mangoes, pineapples and papayas
(Table 54). These fruit tend to be eaten fresh. Carter (1981) reported that
Fiji, Papua New Guinea and Niue were also significant producers of passionfruit,
much of which was processed for export as pulp. Passionfruit production in Fiji
reached 369 tonnes in 1980, and is controlled by a subsidiary of an Australian
company which buys all the output as pulp. In Papua New Guinea, passionfruit
production has declined in recent years due to the attractiveness of growing
coffee. Niue Island production of passionfruit totalled 380 tonnes in 1980, and
contributed 36 per cent to the value of total Niuean exports.
....
I"-
TABLE 54
Pacific Islands: Fruit Production ( 1981)
Total Of Which:
Country Fruit Oranges Other Avocados Mangoes Pineapple Papayas Bananas/ Other
Production Citrus Plantains
(000 tonnes) ( %)
American Samoa 2 50 50
Cook Islands 15 13 33 7 13 13 13 8
Fiji 13 23 8 23 31 15
French Polynesia 4 25 25 25 25
Guam 2 100
Kiribati 5 80 20
Nauru
New Caledonia II 64 36
Niue 2 50 50
Pacific Is. 3 67 33
Papua New Guinea 1072 87 12
Solomon Is. II 100
Tokelau Is.
Tonga 10 30 30 20 20
Vanuatu 6 17 83
Wallis and Futuna Is. 5 80 20
Western Samoa 55 2 4 II 9 20 40 14
Source: FAa (1982)
Citrus fruit production
French Polynesia and Tonga.
exports.
is only significant
Citrus juice is one
in
of
the
the
Cook
Cook
Islands,
Islands
73.
Fiji,
major
Import statistics for fruit juice products are available for only two
countries, Fiji and Papua New Guinea. The UN (198Ia) reports that Fiji imported
juice valued at US$5.7 million in 1979, compared to US$0.4 million in each of
the previous three years. Papua New Guinea imported US$3.8 million worth of
fruit juices in 1981, 58 per cent being fruit juices, 30 per cent cordials and
syrups, seven per cent powdered fruit juices; the remaining five per cent being
fruit juice extracts (NZ High Commission, Port Moresby; pers. comm.). Of fruit
juice imports into PNG, 60 per cent were citrus juices, six per cent pineapple
juice and four per cent apple juice. Together, Singapore and Hong Kong were the
source of 56 per cent of fruit juice imports by PNG, indicating the imports were
probably finished consumer packages. Australia supplied 36 per cent of fruit
juice imports, as well as supplying 92 per cent of cordial imports which, like
juice imports, were dominated by citrus flavours.
Import
countries.
islands are
Country
tariff regimes vary considerably between individual Pacific Island
Indications of the overall level of tariffs operating in some
reported in Table 55.
TABLE 55
Pacific Islands: Import Tariffs
Tariff Schedule
American Samoa
Cook Islands
Fiji
French Polynesia and
New Caledonia
Nauru
1¢/8 fl oz excise duty on soft drinks.
Free trade with New Zealand.
40 per cent tariff on juice imports.
Preference for France and other EEC countries.
Customs duty 10% (not levied on EEC countries)
plus import duty 1-32 per cent.
Free trade.
Papua New Guinea 2.5% general import levy.
duty on non-essentials or
with domestic industry.
Up to 50% import
imports competing
Solomon Islands
Tonga
Western Samoa
50% tariff on soft drinks.
Fruit juices and cordials 14%, soft drinks 10%.
Tariffs up to 100%.
Source: Carter (1981)
NZ Department of Trade and Industry (pers. comm).
Fiji and Papua New Guinea, the two major Pacific Island importing nations
have quite high tariffs on fruit juices, generally regarded as non-essential or
luxury items. French Polynesia and New Caledonia both give the EEC and
particularly France preferential access to their markets. The presence of
significant higher income European populations on these islands, and growing
tourist industries make both these markets particularly attractive for
exporters of less essential foodstuffs such as fruit juices.
7.5 Fruit Juice Consumption
~ f h i l e no data areavailable indicating the level
particular islands, a number of observations can be
discussion regarding consumption behaviour.
of juice
made from
consumption on
the preceding
It is clear that the purchasing power of the indigenous populations is not
great, although incomes on many islands are supplemented by remittances from
emigrants. Given the income levels of indigenous populations, cordials would
tend to be the major source of fruit juices, having a low proportion of pure
juice in the product and hence being much cheaper than pure juices. The price
information obtained from a Papua New Guinea supermarket illustrates this point
(Table 56). Two demographic features influencing juice consumption among
indigenous islanders are the high proportion of the population under fifteen
years old, and the proportion of the population engaged in agriculture. The
youthful age distribution in most Pacific Islands indicates that the demand for
imported food and beverages will continue to rise along with total population.
In other countries, young people tend to be heavier consumers of fruit juices.
Given that around 50 per cent of island populations are engaged 1n
agriculture, it can be concluded that the major fruit juice consumers are the
other 50 per cent of the population, living in urban centres. The rural economy
tends to be much less monetised than the urban economy. Population growth will
tend to be centred in urban areas.
in
the
fruit
line
juice
Expatriate and tourist populations form a higher income market segment
the Pacific Island region. Supermarkets, hotels and restaurants would be
major outlets catering for this market segment. Pure fruit juices and
drinks would tend to be consumed rather than cordials. The product
reported in Table 56 for a Papua New Guinean supermarket shows that fruit
dominates, especially canned juice in 250, 425 and 850 ml units.
TABLE 56
Papua New Guinea: Fruit Juice Product Line and Prices -
Steamships Supermarket, Boroko (May 1983)
Product Country of Package Size Price
Origin
(mU (kina) (NZ$)
Fruit Juice and Juice Drinks
Orange PNG Can 170 0.29 0.51
Orange Australia Tetra Brik 250 0.37 0.65
Orange Hong Kong Tetra Brik 250 0.25 0.36 0.44 0.63
Orange and Pineapple Australia Can 250 0';33 0';58
Orange Australia Can 425 0.68 I. 19
Grapefruit Australia Can 425 0.57 1.00
Tomato Australia Can 425 0.45 0.79
Pineapple Australia Can 425 0.37 0.65
Orange Australia Can 850 I. 23 2.15
Grapefruit Australia Can 850 I. II I. 94
Apricot PNG Can 850 0.86 I. 51
Apricot and Passionfruit PNG Can 850 0.86 I. 51
Pineapple Australia Can 850 0.68 I. 19
Pineapple and Orange Australia Can 850 0.68 I. 19
Orange Australia Can 2980 3.71 6.50
Tomato Australia Can 2980 2.55 4.47
Nectar
Peach PNG Can 425 0.55 0.96
Mango PNG Can 415 0.55 0.96
Cordial
Lime Australia Plastic Bottle 750 0.85 1.49
Pineapple, lime, orange Australia Plastic Bottle 750 0.90 I. 58
Lemon, orange Australia Plastic Bottle 750 0.91 J. 59
Lemon, orange Australia Plastic Bottle 2000 2.51 4.40
Pineapple, lime, lemon,
"
orange Australia Plastic Bottle 2000 2.23 3.91
Ln
Source: NZ High Commission, Port Moresby (pers. comm.).
CHAPTER 8
ASIA (EXCLUDING JAPAN)
8. I Introduction
The Asian region includes the countries situated on the south and
south-east regions of the Asian sub-continent, and includes the off-shore
islands making up Singapore, Hong K o n g ~ the Philippines, Indonesia, Malaysia and
Sri Lanka. As a means of classifying the large number of states included in the
Asian region, three basic divisions can be made. The first division includes
four countries, viz., Hong Kong, Republic of Korea, Singapore and Taiwan. These
countries are often described as Newly Industrialising Countries (NIC), due to
their rapid economic growth based on export orientated manufacturing industries.
Electronic, garment and textile industries are particularly important.
Singapore and Hong Kong are also important trade, communications and banking
centres. Both countries are involved in the re-export of commodities to other
Asian countries. In terms of agricultural trade, all four NICs are net
importers.
The second group of Asian countries includes Indonesia, Malaysia, the
Philippines and Thailand. Like the NICs, their development strategies are based
upon manufacturing industries, though compared to the NICs, development is at an
infant stage. Industrial development in these countries, unlike the NICs, is
based largely on domestic natural resources. Indonesia has extensive reserves
of tin, bauxite, copper and oil, while Malaysia, in addition to tin and oil,
relies on palm oil, rubber and tropical timber. Mining also plays a large part
in the Philippines industrial development, especially copper and gold mines.
Thailand, in addition to iron and tin smelting, is rapidly developing textiles
and canning industries. The natural resource based nature of industrial
development in these countries makes them particularly vulnerable to
fluctuations in the commodity markets. All four countries are net exporters of
agricultural produce.
Most other nations within Asia are
based economies. Burma, Bangladesh,
Cambodia fit within this category.
to a much greater extent agriculturally
China, India, Pakistan, Vietnam and
In Table 57 a number of population and income statistics for important
Asian economies are reported. In comparison to other Asian countries, NICs have
both lower population growth rates and proportions of the workforce engaged In
agriculture. Per capita incomes in NICs are much higher than the rest of Asia
(apart from Malaysia), and in the past have grown at faster annual rates. Hong
Kong and Singapore, while the Asian economies with the highest per capita
incomes (both over US$4,500), also have the two lowest populations and
population growth rates. Per capita incomes in the four less industrialised
economies vary between US$440 and US$1800, on average 70 per cent lower than
the average NIC per capita income. Population growth in the less industrialised
economies is over 2.0 per cent per annum, and is reflected in the statistics
showing over 40 per cent of the population being under fifteen years old. In
the NICs, the proportion of the population under fifteen years old has declined
in recent years, to a maximum of 35 per cent.
The more agriculturally based economies of Asia are notable for a
combination of high population growth rates (except China), a highly
agricultural workforce, a youthful population age distribution (except China),
and low per capita incomes. The total populations of these more agriculturally
77.
TABLE 57
Asia: Population and Income (1981)
(million)
( %) ( %) ( %) (US$)
Newly Industrialising Countries
Hong Kong 5. I 1.2 1.3 28 4600
Korea. Rep. of 38.9 1.7 32.0 35 1553
Singapore 2.4 1.2 1.5 30 4850
Taiwan Province 18.2 2.0 19.5 35 1720
Other Industrialising Market Economies
Indonesia 149.4 2.0 59.0 44 439
Malaysia 14.3 2.3 38.4 4 I 1763
Philippines 48.9 2.4 52.7 43 732
Thailand 48.6 2.0 73.8 43 708
More Agricultural Asian Economies
Bangladesh 92.8 2.6 77 .5 43 120
Burma 35.2 2.4 66.0 41 157
China 985.0 1.2 59.0
c
32 281
India 688.6 2. I 73.0 4 I 230
Pakistan 88.9 2.8 55.9 46 289
Sri Lanka 15.3 2.2 50. I 36 282
a
Source: FEER (1982)
Not Available n.a. -
b
Source: FEER ( 1983)
c
Source: FAO (1982)
Country Total
Annual
Growth
1975 1981
a
Population
Agricultural
Workforce
Under 15
Years Old
GNP per
C
. a
apl.ta
Income
Annual
Growth a
1970 1980
(%)
8.5
8.7
14.4
8.5
7.5
8.0
6.2
7.0
6.5
3.6
6.5
3.5
4.0
6.9
b
Real GDP Growth
1982 1983
(%) (%)
2.4 4.0
6.0 7.5
6.0 4.0
3.8 5.5
2.5 3.5
4.6 5.0
2.6 2.9
4.5 5.5
n.a. n.a.
n.a. n.a.
n.a. n.a.
n.a. n.a.
n.a. n.a.
n.a. n.a.
79.
based economies also tend to be higher than the eight more industrialised Asian
countries.
Statistics regarding the production, trade and consumption of fruit J u ~ c e s
by individual Asian countries are not readily available. Data that are
available are discussed below. Given the higher levels of income in the eight
more industrialised and open-market economies, the discussion concentrates on
these countries.
8.2 Fresh Fruit Production
Production of fresh fruit in the eight major industrialising economies ~ n
Asia ~ s dominated by tropical fruit, particularly avocados, mangoes, pineapples,
papayas and bananas (Table 58). Of the four NICs, only Korea and Taiwan
produce significant quantities of fruit. Due to climatic influences, temperate
pip and stone fruit contribute the majority of fruit production, the only
countries in Asia where this occurs. Citrus fruit production is also important
~ n Taiwan.
Excluding bananas, pineapple is the most important tropical fruit produced
in Asia. In 1981, Thailand was the leading producer with an output of 1.8
million tonnes, followed by the Philippines with a 1.2 million tonne production.
The growth of pineapple production in these two countries has been extremely
rapid with Philippine production increasing by nearly 400 per cent in the 10
year period ending 1981, while over the same period Thai production grew by over
850 per cent. The rapid growth in pineapple production occurred in association
with the development of canning industries, orientated largely to export sales.
The export orientation of pineapple production is understandable given the
predominance of large multinational companies in the industry, e.g. Dole, and
Del Monte, who have developed vertically integrated production and marketing
systems. Pineapple juice is an essential by-product of the canning industry,
being made from pineapple cores, trimmings and rejects. For every tonne of
canned pineapple produced, an equivalent amount of juice is produced. The FAa
(1972b) reported that "probably as much as 50 per cent of juice output is wasted
for lack of outlets".
Apart from pineapples and bananas, the other important tropical fruit are
mangoes and papayas. Indonesia and the Philippines are the principal producers
of these fruit among the eight countries listed in Table 58. World production
of mangoes and papayas reached 13.4 million tonnes and 1.9 million tonnes
respectively in 1981 (FAa; 1982). India alone accounted for over 60 per cent of
mango production, and dominates world trade in mango products, though most are
sold in only a semi-processed state e.g. pulp.
The data reported in Table 58 show that with four exceptions, fruit
production in every country and for every fruit type has increased over the past
decade, often by over 100 per cent. As was discussed above for pineapple, these
production increases have been largely motivated by the desire to develop a
domestic fruit processing sector whose output could be exported, especially to
North America and Europe. These processing and export orientated tropical fruit
industries have achieved significant success in introducing exotic juice
flavours to these markets.
TABLE 58
Asia: Fruit Production (1981)
o
c
Country Apples Pears Peaches Plums Oranges,
Mandarines
Lemons, Other
Limes Citrus
Avocados Mangoes Pineapples Papaya Banana,
Plantains
(000 tonnes)
I
-----------460----------- -----------375-----------
Hong Kong
Korea, Rep. of
Singapore
Taiwan Province
a
Indonesia
Malaysia
Philippines
Thailand
523 72 89 9
194 46 357
8 9 II
55 45 35 27 380
55 I 16
(% change over 197 J)
2
290 200
266 277 1622
207 6 460
1200 65 4280
1800 2021
-----------110----------- ------------78-----------
Hong Kong
Korea, Rep. of
Singapore
Taiwan Province
Indonesia
Malaysia
Philippines
Thailand
141 47 25 350
109
-20
100
25
400
100
25
78
15
69
19
38
166
-15 -61
149 85 4
-23 50 23
378 18 348
862 68
a
1978 data from USDA Statistical Bulletin 619
Source: FAO (1982)
81.
8.3 International Trade
Asian exports of fruit and vegetable J u ~ c e totalled just under US$78
million in 1981, a 110 per cent increase over the level of exports in 1977
(Table 59). In terms of total world exports of fruit juice, Asia accounted for
only 4.0 per cent, though this is equivalent to a world ranking of seven among
juice exporting nations. Individually, the Philippines achieved the highest
ranking among Asian juice exporters (fourteenth), accounting for 1.4 per cent of
world exports. Exports from the Philippines largely consist of pineapple juice,
and mango and guava pulp. Behind the Philippines, Thailand was ranked twentieth
in the world, with exports of US$14 million in 1981, over 1300 per cent higher
than 1977. The rapid growth in Thai exports reflects the development of their
pineapple canning industry.
Both Singapore and Hong Kong are also significant exporters of fruit
juices, in spite of the absence of a large domestic fresh fruit industry. In
Singapore, Dunphy (1981) reports that the food processing industry, relying
entirely on imported inputs, is the fourth largest industry group. Table 60
reports juice imports into Asia, showing the dominance of Hong Kong and
Singapore among juice importers. Imports into Hong Kong and Singapore increased
by 270 per cent and 69 per cent over the level of imports in 1976. Malaysia is
another Asian country with significant imports of fruit juice, totalling over
US$6 million in 1980, an increase of 104 per cent over 1976. Between 30 and 40
per cent of juice imports into Malaysia originate from the Hong Kong and
Singaporean beverage industriei.
Korean imports of orange juice totalled US$3.5 million ~ n 1980, 648 per
cent higher than ~ n 1976.
Imports into all four Asian countries reported in Table 60 are
predominantly citrus juices. Orange juice alone usually makes up at least 50
per cent of all imports.
8.4 Consumption
It is clear from the international trade data reported in Section 8.3 that
apart from Hong Kong, Korea, Singapore, and Malaysia, all other Asian countries
are largely self sufficient (although often imposed by import barriers) in fruit
juices.
The availability of fresh tropical fruit in Asia has a marked influence on
flavour preference for fruit juice. Tropical flavours such as mango, guava,
lychee, longan, coconut, watermelon, pineapple, and starfruit dominate the
market. Temperate juice from oranges, apples, grapefruit, limes, cherries,
grapes and blackcurrants complete the fruit flavour spectrum. Other beverage
flavours available include sugarcane, soya-bean, barley, chrysanthemum tea and
herbal tea. One important point to note from the flavours available is the
dominance of sweet juices, a preference for sweet foods being a characteristic
of the Asian palate.
The majority of fruit juices sold in Asian countries are fruit drinks
rather than pure juices. Nearly all have sugar added and often are vitamin C
enriched. Powdered products and nectars do not have more than five per cent of
the total juice market. In some Asian countries UHT flavoured milk is an
important competitor to fruit juices, although the milk flavours themselves are
dominated by orange, mango, lychee, guava, and blackcurrant.
co
N
TABLE 59
Asia: Exports of Fruit and Vegetable Juice (1977-1981)
Year Proportion of World Percentage
Country World Trade Ranking Change
1977 1978 1979 1980 1981 1981 1981 1977-1981
(US$'OOO) ( %) (%)
Hong Kong n.a. n.a. n.a. n.a. 1933 0.1 51 n.a.
Korea. Rep. of n.a. n.a. n.a. n.a. 187 n.a.
Singapore 2504 3386 3550 5569 7706 0.4 28 207
Taiwan Province 10912 24098 26282 20541 8297 0.4 26 -24
Sub-Total 13416 27484 29832 26110 18123 0.9 18 35
Indonesia
a
Malaysia 3835 4211 3913 4989 5000 0.3 35 30
Philippines 8808 7343 13760 16168 26500 1.4 14 201
Thailand 997 2191 6748 12413 14000 0.7 20 1304
Sub-Total 13640 13745 24421 33570 45500 2.3 9 234
China 3703 8099 9131 7824 5086 0.3 32 37
India 5808 5156 5705 5500 6000 0.3 31 3
Sri Lanka 458 554 1204 2244 2997 0.2 42 554
Sub-Total 9969 13809 16040 15568 14083 0.7 19 41
Total 37025 55038 70293 75248 77706 4.0 7 110
a
than US$IOO.OOO less
Source: ITC (1982)
TABLE 60
Asia: Imports of Fruit and Vegetable Juice into Principal Importing Countries (1976-1981)
Year Proportion of World
Country World Trade Ranking
1976 1977 1978 1979 1980 1981 1980 1980
(US$'OOO) (%)
Hong Kong 4806 8493 12211 16239 23153 17761 1.4 15
Korea, Rep. of
a
467 647 887 1778 3492 n.a. 0.2 below 25
Singapore 4584 5337 5799 6051 7739 n.a. 0.5 below 25
Malaysia 3002 4146 5274 5005 6121 n.a. 0.4 below 25
Total 12859 18623 13171 28073 40505 n.a. 2.5 10
n.a. not available.
a
Orange Juice only
Source: ITC (1982)
UN (1981)
Percentage
Change
1976-1980/81
(%)
270
648
69
104
192
00
w
84.
In Malaysia and Indonesia the
forbids the consumption of alcohol,
consumption.
8.5 Retail Packaging and Prices
dominance of the
is an important
Moslem religion,
factor influencing
which
juice
As with other countries, the recent introduction of Tetra Brik and Pure-Pak
packaging is credited with boosting juice consumption in Asia considerably.
Single-serve 200ml and 250ml Tetra Brik packages dominate the fruit drink, iced
tea, and URT milk market. In Malaysia, 250 ml Tetra Brik packages containing
fruit drinks were retailing for M$0.45-0.60 in July 1983, equivalent to
NZ$0.30-0.40 (NZ High Commission, Kuala Lumpur, pers. comm.). It is evident
therefore that the juice beverage market is extremely competitive.
Two litre plastic containers of orange cordials (with added sugar) sold for
around M$5.00 (NZ$3.33) in Malaysia. At the same time, locally packed one litre
bottles of blackcurrant J u ~ c e concentrate (IIRibena") retailed at M$8. 70
(NZ$5.80). Powdered juice drinks were priced at M$7.60-9.60 per kilogram
(NZ$5.06-$6.40/kg).
8.6 Distribution
Dunphy (1981) in her study of the
horticultural-market, identified three major
be described as major outlets for beverages:
(i) supermarkets,
(ii) hotels and restaurants,
Hong Kong and Singapore
end-user categories that can
fresh
also
(iii) small stores and hawkers (street vendors).
The same three categories of end-user can also be applied to the other six
industrialising countries without any major qualifications.
Supermarkets are developing as outlets in line with the industrialisation
of the economies and the westernisation of shopping and dietary habits for a
significant segment of the local population. Supermarkets close to city centres
tend to sell largely imported goods and cater for higher income nationals and
expatriates, who tend to be less price, and more quality conscious. Table 61
reports typical income distributions within some Asian countries. In comparison
to the average western industrial economy, the income distribution is skewed
towards higher income earners. In both the Philippines and Malaysia, nearly 40
per cent of all income is earned by only 10 per cent of the population. It is
this 10 per cent that would tend to frequent the western-style supermarkets.
85.
TABLE 61
Asia: Income Distribution in Some Asian Countries
Country Lowest
20%
Second
Quintile
Third
Quintile
Fourth
Quintile
Highest
20%
Highest
10%
(% of total disposable income)
Indonesia 6.6 7.8 12.6 23.6 49.4 34.0
Philippines 5.2 9.0 12.8 19.0 54.0 38.5
Malaysia 3.3 7.3 12.2 20.7 56.6 39.6
Western Industrial
Market Economy 8.0 12.0 17.0 23.0 40.0 22.0
Source: World Bank (1981)
A second type of supermarket tends to be located in residential areas of
local ethnic populations. Products sold tend to be domestically produced, and
consumers frequenting them are more price conscious.
Like the different types of supermarkets, hotels and restaurants can also
be sub-divided according to their clientele. Large hotels cater for tourists
and expatriates and use predominantly imported food supplies. Dunphy (1981)
reported that 50 per cent of tourists entering Hong Kong originated from Europe,
North America, and Oceania, the remaining 50 per cent coming from other Asian
countries. In Singapore 65 per cent of tourists came from Asia. The origin of
tourists is important since it influences the types of food required by hotels
and restaurants. For fruit juices the flavour preferences of European and Asian
tourists would vary considerably. Smaller hotels and restaurants selling more
ethnic food cater to a larger extent to the local population. Fast food outlets
are increasingly popular throughout Asia.
The third major outlet for beverages ~ n Asia ~ s the street vendor or
hawker. These "Asian style" fast-food outlets tend to be low priced and sell
domestically produced items. Of all distributors, they are the most numerous,
and cater, along with smaller restaurants, for mainly the local population. In
most industrialising Asian countries, the local population is spending
increasing proportions of its income on purchasing pre-cooked food and food
eaten outside the home.
8.7 Market Access
No tariff or quantitative barriers on fruit juice imports exist for the two
major importing countries of Hong Kong and Singapore.
The much lower level of juice imports into other Asian economies can be
explained by high tariffand (often) quantitative barriers. Korea imposes a
tariff of 40-150 per cent on non-essential items, plus a value added tax of 10
per cent on the duty paid c.i.f. import value. In addition to these, a
consumption tax of between 10 per cent and 100 per cent is levied on luxury
goods. Fruit juice imports into Indonesia are classified as either group C or D
items. Group C items include less essential consumer goods and have a tariff of
50-70 per cent imposed on them. Luxury or consumer goods competing with locally
produced items have a tariff of at least 100 per cent. Both group C and D goods
incur a sales tax of 5-20 per cent.
CHAPTER 9
MIDDLE-EAST
9. I Introduction
The Middle-East region includes those countries which occupy the Arabian
Peninsula, viz. Saudia Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates,
Oman, Peoples Democratic Republic of Yemen (South Yemen) and the Yemen Arab
Republic (North Yemen).
For the fruit juice product market, a number of features common to all
Middle-East countries can be identified.
I. Climate: Even in the December to March winter period, temperatures
reach 30°C in some countries, and never go below 10°C. Over summer (May
to October), temperatures sometimes reach over 45°C.
2. Fresh water: Associated with the high temperatures in the Middle-East
is a low level of precipitation. For example, three-quarters of Saudi
Arabia, which occupies most of the Arabian Peninsula, is an uninhabitable
environment. Fresh water supplies in the habitated fringes
of thedArabian Peninsula are inadequate to support the desired level of
water use.
3. Religion: The countries on the Arabian Peninsula are all Islamic with
varying degrees of strictness with which Islamic requirements are
enforced. The prohibition to alcohol consumption is enforced
rigidly in most countries.
4. Oil: Only Yemen and Oman do not depend to a large extent on oil for their
economic development and activity. Table 62 shows that the oil rich
nations of the Arabian Peninsula enjoy very high per capita incomes.
TABLE 62
Middle East: Dependence on Oil and Per Capita Income
Dependence
on
Oil
Low
Medium
High
Low
(under 0.5 million)
Bahrain
(n.a.)
Qatar
(n. a. )
Population
Medium
(0.5-1.5 million)
Country
(Per capita Income, US$)
Oman
(n.a. )
United Arab Emirates
($26850)
Kuwait
($19830)
High
(over 1.5 million)
Yemen Arab Republic
($430)
Saudi Arabia
($11260)
Source: ITC (1982)
87.
88.
The United Arab Emirates and Kuwait, with per capita incomes of US$26850
and US$19830 respectively in 1980, have the two highest per capita
income levels in the world. Yemen Arab Republic, primarily a subsistence
agricultural economy, has a very low per capita income of US$430. However,
given the approximately two million men working in Saudi Arabia and send-
ing remittances to their families in Yemen A.R., purchasing power is
considerably higher.
5. Expatriate Workforces: The dependence of Middle East oil producers on
foreign technology, and the speed at which the oil revenues have been
spent on both broadening the countries' economic bases and improving
living standards has led to the influx of considerable expatriate
workforces. Table 63 shows that excluding Oman and Yemen A.R.,
Middle-Eastern countries have expatriate populations making up from
30 per cent to 80 per cent of the total population. Given the fact that
expatriates usually do not bring their families with them, the proportion
of expatriates in the wqrkforce is often much higher than their con-
tribution to the total population. For example, in Kuwait expatriates
make up 58 per cent of the total population, but 75 per cent of the
workforce.
TABLE 63
Middle-East: Expatriate Populations (1980)
Country
Bahrain
Kuwait
Saudi Arabia
United Arab Emirates
Yemen Arab Republic
Oman
Qatar
Source: ITC (1982)
Hayward (1981)
Total
Population
( '000)
360
1400
8400
1000
7000
1500
200
Expatriate
Population
(%)
32
58
30
70
80
Nationality of Expatriate
Population
Oman, Yemen A.R.
Palestine, Egypt, Lebanon
Syria, India, Pakistan,
Korea, USA.
Sudan, Yemen, Egypt
Oman, India, Pakistan,
Iran, UK, USA, Egypt,
Jordon, Lebanon, Syria
India, Pakistan, Yemen,
European.
89.
Expatriates from particular countries tend to be associated with
particular occupations. The civil services in Middle-East countries
tend to be filled by expatriates from other Arab countries (e.g.
Palestine, Egypt, Lebanon, Syria), with construction workers usually
coming from India and Pakistan. Asian countries (especially Korea
and Japan) often supply technicians and supervisors, while multi-
national oil companie8 tend to be staffed by Europeans and Americans.
9.2 Domestic Production
Domestic fresh fruit production in the Middle-East ~ s not used for
processing into juice products. The climate restricts the volume of fruit
produced to such an extent that large volumes of fresh fruit must be imported to
satisfy domestic requirements.
Juice processing industries have been established in nearly every
Middle-East country, but all rely on imported raw materials. In Saudi Arabia,
50 per cent of the beverages consumed locally are produced domestically. The
development of a domestic beverage industry is seen by many Middle-East
countries as a means of diversifying their economy.
9.3 International Trade
In the world fruit juice market, the Middle-East accounts for over
cent of imports, but little over one per cent of exports (Table 64).
majority of exports from the Middle-East are simply r e ~ e x p o r t s to
Middle-East countries.
12 per
The
other
Saudi Arabia accounted for nine per cent of world imports in 1981, spending
over US$161 million, up almost 50 per cent from 1977. The Yemen Arab Republic,
increased imports of fruit juice by 75 per cent over the period 1977-1981,
reaching US$17.5 million. Apart from Saudi Arabia and Yemen A.R., the value of
imports into other Middle-East countries has not changed significantly from
1977.
In terms of import sources, Table 65 reports the volume and value of
imports into the Middle-East, together with the major source of supply. Japan,
the United States, and Taiwan provide the bulk of supplies to each country. A
number of other Asian countries including Hong Kong, Singapore and India also
supply product to the Middle-East. European suppliers include Germany, the
United Kingdom, Denmark, Italy and Austria.
The majority of imports into the Middle-East are of consumer packed
products, though a growing proportion of juice is being imported as concentrates
for subsequent processing in the domestic beverage industry. Japan and other
Asian countries tend to supply fruit drinks and nectars, while pure fruit juice
products are largely sourced from the United States and Europe. The United
Kingdom and Denmark supply the majority of syrups, squashes, and cordials.
Table 05 also reports Saudi Arabian imports by juice type. Citrus juices
make up 38 per cent of Saudi imports, mango and guava together account for nine
per cent, apple three per cent and grape two per cent. 'Other' fruit juices and
fruit juice concentrates account for 31 per cent and I I per cent of imports
respectively. Since 1977, the volume of both these import categories has
increased by over 100 per cent. All other juice types, apart from citrus and
grape, have declined by up to 84 per cent. The growth in concentrate imports
illustrates the development of domestic processing facilities in the
Middle-East.
TABLE 64
Middle East: Importance in World Trade of Fruit and Vegetable Juice (1977-1981)
n.a. n.a.
15857 7366
108644 160790
10176 5668
10000 21668
n.a. 2770
Imports
Bahrain
Kuwait
Saudi Arabia
United Arab Emirates
Yemen Arab Republic
Qatar
1977 1978
Year Proportion of World
World Trade Ranking
1979 1980 1981 in 1981 1981
(US$'OOO) ( %)
n.a. 4041 n.a.
12218 12071 13000 I 23
172655 182812 161824 9 5
9464 13829 11000 I 25
14552 16303 17500 I 19
3555 n.a. n.a. n.a.
Exports
Bahrain
a
Kuwait
b
Saudi Arabia
United Arab Emirates
Yemen Arab Republic
n.a.
3171 1473 2444 2414 2600 n.a.
2743 3893 4556 7334 6674 30
2268 122 435 2832 2723 45
n.a. n.a. n.a. 1367 n.a. n.a.
n.a.
a
b
not available
less than I
Bahrain has a free transit zone where both imports and re-exports are not recorded.
Re-exported approximately 20% of imports over 1975-1979 period. Assume 20% of imports detailed above are

Source: ITC (1982, Hayward (1981)
TABLE 65
Middle East: Import Sources
Country (Year)
Bahrain (1980)
Kuwait (1979)
Saudi Arabia (1981)
Single Strength
Juices Prepared for Baby Food
Date Molasses
Apple
Citrus
Mango/Guava
Grape
Other Fruit
Tomato
Other Vegetable
Fruit Juice Concentrates
Total
United Arab Emirates (1980)
Dubai
Abu Dhabi
Total
Yemen Arab Republic (1980)
Source: ITC (1982)
Volume
(tonnes)
4764
16863
2663
375
6425
83470
16127
4016
68444
9475
2230
12055
205280
21851
1567
16992
Value
(BD'OOO)
1523
(KD'OOO)
3374
(SRLs'OOO)
8142
1083
13931
208435
50600
9141
170852
21112
5249
59226
547771
(Dh'OOO)
47385
3885
(US$'OOO)
16303
Per cent
of Value
3
38
9
2
31
4
I
II
100
8
100
Major Sources (per cent)
USA (23), Japan (17), UK (14),
Taiwan (9), Denmark (9)
Taiwan (44), Japan (17), USA (10),
Singapore (5), Denmark (5)
Japan (53), W. Germany (26)
Japan (36)
USA (24), Austria (18)
Japan (61), Denmark ( 1 2 ~
Egypt (51), Cuba (22)
Austria (27), W. Germany (19)
Japan (65), USA (9)
USA (33), Italy (16)
Japan (50), USA (15)
USA (53)
Japan (29), Taiwan (26), USA (23),
Egypt (10)
USA (26), Taiwan (19), Japan (II)
Taiwan (18), India (16),
Hong Kong (16), Saudi Arabia (10),
UK (8), Japan (5)
92.
9.4 Consumption
Consumption of fruit J u ~ c e products in Saudi Arabia and the United Arab
Emirates is high by world standards, at 24 litres and 20 litres per capita
respectively (Table 66). Bahrain and Kuwait with per capita consumption of
over 10 litres, are intermediate consumers of fruit juice. Although the Yemen
Arab Republic's consumption is only four litres per capita, significant sections
of the population are not likely to consume any juice at all, so that
consumption by actual juice purchasers would be much higher.
TABLE 66
Middle East: Fruit Juice Product Consumption
Country
Bahrain
Kuwait
Saudi Arabia
United Arab Emirates
Yemen Arab Republic
Source: ITC (1982)
Consumption per
Capita
(Litres)
13
II
24
20
4
Within the Middle East the juice product line consumed, and the importance
of juice products in the overall beverage market varies considerably. Table 67
shows that Bahrain consumers prefer fruit drinks and cordials, UAE consumers
prefer nectars, while pure juices are preferred by consumers in the Yemen A.R.
Within each market, high and middle income groups consume more pure juice
products than low income consumers, who are more price conscious and so prefer
fruit drinks. In most Middle-East countries expatriate populations are
represented more in lower and middle-income groups, and so tend to be price
conscious.
Apart from fruit juice products, Table 67 also reports the market shares
of carbonated drinks and other beverages in the overall beverage market. Apart
from Yemen A.R. where fruit juice products have a majority 54 per cent share of
the beverage market (by value), juice products tend to hold from 25-30 per cent
of the market. Carbonated beverages account for over 50 per cent of the total
beverage market by value in Kuwait, Saudi-Arabia and UAE. In terms of sales
volume, 'other' beverages dominate the Saudi market. The 'other' beverage
category largely comprises mineral waters, the beverage with the fastest growing
sales volume and value in the Middle-East.
93.
TABLE 6-7
Middle East: Beverage Market Shares
Product Bahrain Kuwait
Saudi
Arabia
United
Arab
Emirates
Yemen
Arab
Republic
(% by volume, 198 I)
Fruit Juice
Pure Juice
Nectar
Fruit Drinks, Squashes,
Cordials, Powders
Total
Total Beverage Market
Fruit Juice Products
Carbonated Drinks
Other (mainly mineral
water)
Total
15
25
60
100
n.a.
n.a.
n.a.
n.a.
n.a. n.a.
n.a. n.a.
n.a. n.a.
n.a. n.a.
25 25
50 25
25 50
100 100
20
50
30
100
n.a.
n.a.
n.a.
n.a.
65
15
20
100
50
30
20
100
(% by value, 1979)
Total Beverage Market
Fruit Juice Products n.a. 30 30 24 54
Carbonated Drinks n.a. 50 50 62 27
Other (mainly mineral
water) n.a. 20 20 14 19
Total n.a. 100 100 100 100
Source: ITC (1982)
Hayward (1981)
Table 68 reports flavour preferences in the Middle-East. Apart from Yemen
A£.,orange is the most preferred flavour in all countries. A marked preference
for tropical flavours such as mango, guava and pineapple is also evident in all
Middle-East countries. Kuwait is the only market where a temperate fruit,
apple, accounts for a large market share.
94.
TABLE 68
Middle-East: Fruit Juice Product Flavour Preference
Flavour Bahrain Kuwait Yemen Arab
Republic
( %)
UO
Orange 60 38
Apple 5 20
Mixed Fruit 17
Mango 20 10
Guava 5
Grape 5 3
Pineapple 10 3
Grapefruit
Other 4
Total 100 100
Source: ITC (1982)
9.5 Packaging and Pricing
60
20
20
100
The most popular package type used for juice produced in the Middle-East is
the 170 ml can. Other popular can sizes include 245-275 ml, and the 1360 ml can
for bulk purchases of pure fruit juices. The introduction of the asceptic
'Tetra Brik' carton was accepted by Middle Eastern consumers quickly, and the
250 ml unit is especially popular for pure juices, nectars and drinks. Syrups,
squashes and cordials are usually sold in glass bottles with a capacity of
around 750 mI. Glass and carton jars are popular units for powdered drinks.
The most recent pricing information relates to prices holding in November
1981 (ITC; 1982). Being out of date they are not reported in detail, apart from
noting that the relatively free market for fruit juice products in the
Middle-East makes for extreme price competitiveness. For example, a 170 ml can
of pure juice sold for the equivalent of US$0.46, while a 250 ml Tetra Brik
packaged juice drink sold for US$O.37. Nectars were priced at the same level as
fruit drinks. A 750 ml bottle of juice squash sold for US$I.39.
For exporters, price competitiveness is especially important if the product
is aimed at middle and low income consumers. Consumers at the top end of the
market are less price conscious, and pay premiums for internationally known
branded juice products.
9.6 Market Structure: Distribution Channels and End Users
Figure 3 details the channels followed by juice products imported into
the Middle-East. The pattern outlined in Figure 3 is typical for all Middle-
East countries.
At present, the majority of imports are in finished consumer packages, with
95.
the minority bulk juice imports going to the domestic beverage industry. The'
domestic beverage industry is expected to account for a greater share of imports
in the future. Recognising this, many exporters to the Middle-East are entering
into joint ventures with the domestic industry to produce the exporters) product
line under licence. Thus, the exporters are able to maintain their identity in
the market.
FIGURE 3
Middle East: Market Structure - Distribution Channels
and End Users
IRaw Material I
1
Domestic
Processing
Sector
Exporter
I
Agent/Importer
!
Packages I
1
~
Supermarkets Other Retailers
(e.g. souk or
bazaar trade,
superettes)
I Consumer
~
Hotels Caterers
(e.g. Oil
Company
Catering
Source: ITC (1982)
Imports into
importers, although
larger outlets such
role also, although
entering the retail
the Middle-East usually are undertaken via agents or
significant volumes of consumer products are sold direct to
as supermarkets. Importers usually fulfill the wholesalers
some product is distributed to smaller wholesalers before
sector.
The major outlet for fruit JUlce products is the supermarket. Other
important retailers include the souk or bazaar trade, and superettes, which are
attached to apartment buildings.
Caterers and hotels .are smaller but still important end users for
juice products. Hotels especially tend to sell only premium quality and priced
products.
Both Bahrain and Dubai are seeking to establish themselves as entry points
96.
to the Middle-East. Each country is having to face the prospect of exhausted
oil reserves, and hence must find alternative enterprises on which to build its
economy. Bahrain already has a free trade zone for goods in transit to other
Middle-East countries. Also, the completion of a causeway between the island of
Bahrain and Saudi Arabia will open up both the Saudi Arabia and Kuwait markets
via Bahrain.
9.7 Market Access
Access for fruit JU1ce products into nearly all Middle East markets is not
hindered by import barriers. Ad valorem duties for imports into Bahrain are 10
per cent, while imports into Kuwait enter duty free. Saudi Arabia imposes a
three per cent ad valorem duty on juice imports, plus a 10 per cent surcharge.
Individual Emirates in the UAE set their own tariff levels. Dubai and Abu
Dhabi, the principal juice importers, have tariffs set at three per cent (two
per cent by air) and one per cent respectively.
YemenA.R.has the most restrictive import regime. Ad valorem duties amount
to 35 per cent on pure juices, 20 per cent on concentrates, but only five per
cent on concentrates imported for the domestic beverage industry. In addition
to the custom duties, a five per cent defence tax and two per cent statistical
tax is imposed. Non-tariff barriers also exist. Imports by land are forbidden,
as are imports of mixed juices and carbonated juices.
97.
CHAPTER 10
EUROPE - EEC
10. I Introduction
With the accession of Greece to the EEC on I January 1981, the number of
countries making up the community reached 10.
1
Other countries within the
community include Belgium and Luxembourg (BLEU) Denmark, France, Federal
Republic of Germany (GFR) , Greece, Republic of Ireland (Eire), Italy,
Netherlands, and the United Kingdom (UK).
The population of the EEC totalled over 271 million in 1982, less than four
per cent higher than the total population in 1970. France, GFR, Italy and the
UK each account for over 20 per cent of the EEC's population, while together the
remaining six countries account for less than five per cent each. Total gross
domestic product (GDP) in the EEC was US$2347 billion in 1982, equivalent to
US$8660 per capita (Table 69). The economies of Germany and France produced
the two largest GDPs and also had two of the highest per capita incomes. The
smaller economies of Denmark and the Netherlands all had per capita incomes
higher than the community average. Greece, Ireland and Italy all had per capita
incomes of under US$6500 in 1982, at least 25 per cent below the community
average.
During 1983, growth of GDP in all EEC countries slowed considerably 1n
comparison to the average growth rates achieved during the period 1971-1981.
TABLE 69
EEC: GDP Per Capita (1982)
Country
Total
Gross Domestic Product
Growth in Real Growth in
GDP Per Annum GDP 1983
1971-1981
Gross Domestic
Product Per
Capita (1982)
(US$ billion) ( %) ( %) (US$)
Belgium 83 2.7 0.25 8380
Denmark 56 2. I 1.00 10960
Germany 657 2.5 0.50 10570
Greece 38 3.9 0.50 3840
France 539 3. I -0.50 9940
Ireland 18 3.8 -0.25 5180
Italy 348 2.9 -0.50 6180
Luxembourg 3 2.5 -1.25 8500
Netherlands 138 2.4 -1.25 9660
United Kingdom 469 1.4 I. 75 8370
EEC - 10 2347 8660
Source: Barclays ( 1983)
OECD (1983)
Belgium-Luxembourg Economic Union.
98.
10.2 Domestic Production
Apart from Greece, Italy, and some regions ln France (community members
with Mediterranean climates allowing the production of citrus fruit), EEC fruit
prOduction is almost entirely pome (apples and pears) and berry fruit. In 1982,
apple produc.tion in the EEC amounted to over 7.5 million tonnes; Italy, Germany
and France being the principal producers (Table 70). Although EEC apple
production in 1982 was over one third higher than the 1981 harvest, which was
adversely affected by climatic conditions, in comparison to ]971 production it
has declined significantly. Apple production in France declined 50 per cent
over the period 1971 to 1982. In spite of the long-term decline of apple
prOduction in the EEC, the 1982 season still saw a "preventative withdrawal" of
700,000 tonnes of apples from the fresh market under the provisions of the
Common Agricultural Policy (CAP). Continued overproduction of apples in the EEC
has also led to incentives for orchardists to uproot treestocks.
The production data reported in Table 70 reveal that Italy and Greece,
the two Mediterranean EEC members, show growth in nearly every fruit production
category, particularly stonefruit and citrus. Greece, the most recent accession
to the EEC, has undergone the most rapid expansion in fruit production of any
EEC member. The implications of this for exporters of fresh and processed fruit
to the EEC are evident. The consequence of higher EEC production of fruit which
is presently imported is a higher level of self sufficiency, reducing the need
for imports, and raising the competition between exporters to the EEC.
In terms of actual juice production, available statistics tend not to
differentiate between juice produced from fresh domestic fruit, and juice
produced from either imported fresh fruit, preserved fruit, or concentrated
fruit JUlce. Given the type of fruit produced in the EEC, it is clear that
apple and pear juice would dominate juice production in most countries. The
fruit growing industry in the EEC is, apart from some citrus growing regions in
Greece and Italy, orientated to fresh fruit production. Hence, juice production
is dependent on the level of unmarketable surplus in any particular year.
Excluding Greece and Italy for which data are unavailable, Germany and
France are the only EEC countries with a significantly large juice industry.
Table 71 reports the level of juice production from fresh fruit for Germany
and France. Both industries are dominated by apple and pear juice, although
grape juice production in France is almost as important.
Over the period 1977-1981 apple juice production in France increased by
over 80 per cent and grape juice by 34 per cent. Nectar production in France
has been relatively stable, and is largely made from apricots 02 per cent) and
pears (16 per cent). Juice concentrate is almost exclusively apple based.
Production of concentrates in France has fluctuated considerably, for example,
production in 1978 reached 24,000 tonnes, compared to under 6,000 tonnes in
1977. This instability reflects the dependence of juice production on seasonal
fluctuations in the level of unmarketable fresh production.
TABLE 70
EEC: Fruit Production ( 1981)
Fruit Belgium- Denmark France Germany Greece Ireland Italy Netherlands United EEC - 10
Luxembourg Kingdom
(000 tonnes)
Apples 250 62 1954 1980 254 10 2250 470 307 7537
Pears 81 15 213 417 67 613 84 36 1526
Peaches 480 II 448 1550 2489
Apricots 85 I 104 113 303
Plums 2 154 171 14 180 14 535
Oranges I 690 1778 2469
Mandarins 33 37 300 370
Lemons I 210 720 931
Strawberries
a
19 8 80 36 10 184 19 51 407
Raspberries
a
8 19 I I 19 48
Currants
a
3 6 100 2 20 132
(% change over 197 ))
Apples -10 -49 -50 -6 10 -44 17 -3 -41
Pears 10 25 -61 -8 -40 -65 -29 -48
Peaches -17 -72 143 43
Apricots 8 -80 181 84
Plums -50 -17 -65 -34 29 -73
Oranges -67 65 27
Mandarines 371 16 6
Lemons 56 -12
Strawberries -43 -32 23 60 107 -41 3
Raspberries 48 -17 -85 2
Currants -42 -57 -18 -19 -74
a
1981 data
~
~ .
FAO (1982)
.
Source:
CS (December. 1982)
100.
TABLE 7 I
Germany and France: Fruit and Vegetable
Juice Production from Fresh Fruit
Product
Fruit Juice
Apple and Pear
Grape
Berry
Other
Total
Fruit Nectar
Fruit Juice Concentrates
Germany (1982)
(million litres)
485
36
521
n.a.
n.a.
93
7
100
France (1981)
(million litres)
59
52
112
8
5642 (t)
53
46
100
Source: ITC (1982)
Annual Report of the Association of German Fruit Juice Industry
(Bonn 1983).
The data in Table 72 indicate a similar situation occurs in Germany for
apple juice production. Germany, however, makes up for season variations in
domestic fruit availability by importing processing quality apples from other
EEC countries and Eastern Europe. Hence, while 78 per cent of juice produced In
1981 was extracted from fresh imported fruit, a substantial domestic harvest In
1982 reduced the import dependence to only 20 per cent.
10.3 International Trade
10.3. I Importance and Place of World Trade in EEC Market
In 1981, fruit juice imports into the EEC totalled over US$806 million,
while exports amounted to nearly US$434 million (Table 73). With over US$800
million of imports, the EEC as a whole accounted for 43 per cent of world
imports making it the single largest importer of fruit juices in the world.
Individually, Germany accounted for 15 per cent of world imports, ranking second
in importance only to the United States. The United Kingdom was ranked fourth
in the world as an importer of fruit juice in 1981, accounting for 10 per cent
of world imports. Belgium-Luxembourg, France, and the Netherlands were also
ranked among the top ten importers of fruit juice in the world.
As exporters of fruit juice, EEC countries together accounted for 22 per
cent of world exports, taking second place behind Brazil In the world as
exporters. Among the community's nations, Italy was ranked the highest as a
world exporter of fruit juice, yet still contributed only six per cent to world
exports. Italy was ranked third behind Brazil and the US who together
contributed almost 50 per cent of total world juice exports. Apart from Italy,
it can be seen from Table 73 that Germany, the Netherlands and
TABLE 72
Germany: Dependence on Imported Fresh Apples and Pears for Juice Production
Fresh Fruit Juice Production
Year Domestic Imports for From From Total Import
Production Processing Domestic Fruit Imported Fruit Dependence
( OOOt) (million litres) ( %)
1977 1175 84 170 n.a. n.a. n.a.
1978 1782 59 234 n.a. n.a. n.a.
1979 1951 13 253 n.a. n.a. n.a.
1980 1880 29 257 161 418 39
1981 772 82 115 406 521 78
1982 2775 19 390 95 485 20
Source: Annual Report of the Association of German Fruit Juice Industry (Bonn, 1983).
o
103.
Belgium-Luxe:mbourg are also major exporters of fruit juice. It is significant
that apart from Germany, the other two countries are not major producers of
fruit juice. Hence, it is clear that the exports from these countries are in
fact re-exports. Extending this analysis to all EEC countries enables
individual countries to be classified according to the degree of re-exporting
undertaken, and the level of juice production from domestically produced fruit.
The analysis is summarised in Table 74. Ireland and the United Kingdom, with
juice exports amounting to less than 30 per cent of juice imports, and with
'insignificant juice production from domestic fruit, can be classified as juice
importers which utilise the fruit for domestic consumption. Imported juice
supplies the majority of juice demand. France, though also an importer of J u ~ c e
for domestic consumption purposes, has a major juice industry based on domestic
fresh fruit, so that imported juice has a lower share of the domestic market.
Belgium-Luxembourg, Denmark, Netherlands and Germany may all be classified
as re-exporters. All four countries have exports of juice at over 60 per cent
of the level of their imports. Apart from Germany, these countries also depend
almost exclusively on imported juice to satisfy domestic requirements.
TABLE 74
EEC: Classification of Markets
Fruit Juice Production
From Domestic Fruit
Production
Exports as a Proportion of Imports
Low
<50 million litres
Medium
50-200 million litres
High
>200 million litres
Importer
0-30%
United Kingdom
Ireland
France
Re-Exporter
30-120%
Belgium-Luxembourg
Denmark
Netherlands
Germany
Exporter
>120%
Greece
Italy
Both Greece and Italy are largely exporters of fruit juice. Imported juice
does not contribute to any large extent to domestic juice requirements.
10.3.1 Imports by Product and Source
(i) Citrus Juice
Citrus J u ~ c e imports account for around 60 per cent of total juice
into EEC member states. In 1981, over 85 per cent of citrus juice
comprised orange juice. Grapefruit juice accounted for nine per cent of
imports
imports
imports
1U,+.
in 1981. while the residual six per cent of imports was made up of 'other'
(mainly lemon) citrus juice (Table 75). Total imports of orange juice increased
by 68 per cent in volume terms over the period 1978-1981. During the same
period, grapefruit juice imports increased by only I I per cent, while 'other'
citrus juice imports fell by one per cent.
Germany, the Netherlands and the United Kingdom each accounted for over 20
per cent of total EEC orange juice imports in 1981. Of these three countries,
the Netherlands experienced the most rapid growth in orange juice imports. Over
the period 1978-1981, Netherlands orange juice imports grew by 122 per cent
volume terms.
The United Kingdom accounted for 35 per cent of total EEC grapefruit
imports in 1981, compared to 40 per cent in 1978. In volume terms, imports of
grapefruit juice into the UK declined by 22 per cent over the period 1978-1982.
Only Belgium-Luxembourg, Denmark, Italy and the Netherlands have shown
significantly large increases in demand for grapefruit juice. However. together
these five countries accounted for only 26 per cent of total EEC imports of
grapefruit juice in 1981.
Germany dominates imports of 'other' citrus taking 45 per cent of
total EEC imports in 1981. Apart from Belgium-Luxembourg and France, all other
EEC members' imports of 'other' citrus juice have declined markedly or shown no
increase from their 1978 levels.
By source of supply, Brazil, Israel and the United States are the major
suppliers of both orange and grapefruit juice to the EEC. Argentina and Italy
are the major suppliers of lemon and 'other' citrus juice (Table 76). It is
significant that the citrus juice import sources for a number of EEC countries
include Germany and the Netherlands, highlighting their roles as re-exporters
within the EEC. As for most intra-EEC trade in fruit juices, finished consumer
packed juices enter the trade rather than concentrates for further processing.
Exports from Italy and Greece are exceptions to this.
(ii) Non-Citrus Juice
In Table 77, EEC import volume statistics for non-citrus are
reported. The data show that for most countries, non-citrus juice accounts for
between 40 per cent and 50 per cent of total juice imports. France and Germany,
the two EEC members with non-citrus juice contributing over 50 per cent of
imports, both have high levels of grape juice imports. Much of these imports
are grape must i.e. unfermented grape juice destined for wine making, and hence
are not consumed as juice.
Apart from grape juice, and pear juice is the most important
non-citrus juice import in the EEC. Pineapple and tomato are the only
other individual juice categories to show significance in every EEC country.
In terms of sources, Italy, France and Greece are the main suppliers of
both apple and grape juice. Pineapple juice originates from a number of sources
including Brazil, the Philippines, South Africa, Ivory Coast and Kenya. Israel
is a major supplier of tomato juice. Both Germany and the Netherlands also
appear as important suppliers of temperate and tropical juices for most EEC
member states.
TABLE 75
EEC: Trends in C.itrus Juice Imports (1978-1982)
Year Proportion of Growth over
Juice/Country 1981 EEC 1978-81
1978 1979 1980 1981 1982 Imports (or 1978-82)
(tonnes) (%) (% change)
Orange
Belgium-Luxembourg 29225 32934 35600 38539 32472 7.4 II
Denmark 9364 11588 12503 15024 n.a. 2.9 60
France 47558 55868 60764 69546 n.a. 13.3 46
Germany, Fed. Rep. 99839 109943 123988 142331 130042 27.3 30
Greece 174 n.a.
Ireland 6463 8417 8928 13281 13309 2.5 106
Italy 1159 2354 3552 3591 n.a. 0.7 210
Netherlands 56116 69131 86163 124349 n.a. 23.8 122
United Kingdom 61174 85711 87426 115437 93107 22. I 52
EEC - 10 310898 375946 418924 522272 n.a. 100.0 68
Grapefruit
Belgium-Luxembourg 1434 1569 1868 2128 2315 3.9 61
Denmark 358 452 552 640 n.a. 1.2 79
France 10897 10770 9198 8253 n.a. 15.0 -24
Germany, Fed. Rep. 10079 11400 11551 12250 10843 22.3 8
Greece I 247 42 24 n.a. 2300
Iceland 850 1146 916 884 604 1.6 -29
Italy 2848 4777 5498 6420 n.a. 11.7 125
Netherlands 3824 4976 4996 5006 n.a. 9.1 31
United Kingdom 19072 25423 22591 19338 14781 35.2 -22
EEC - 10 49363 60760 57212 54943 n.a. 100.0 II
Other Citrus
Belgium-Luxembourg 17 II 1624 1802 2516 1963 8.2 15
Denmark 1291 585 502 479 n.a. 1.6 -63
France 1835 2137 2814 3397 n.a. II. I is
Germany, Fed. Rep. 14019 12897 14105 13671 14197 44.6 I
Greece 2 I 752 2519 9 n.a. -57
Ireland 548 439 686 478 515 1.6 -6
Italy 218 180 302 144 n.a. 0.5 -34
Ne the rl ands 3919 5807 5717 2852 n.a. 9.3 -27
United Kingdom 7433 10347 7593 7124 7489 23.2 I
EEG - 10 30995 34048 36040 30670 n.a. 100.0
-)
Source: ITC (1982)
1982 data from Trade Statistics of Individual Country. 0
\.n
"'06
TABLE 76
EEC: Citrus Juice - Import Sources
Country (Year) Volume Proportion of Total
Imports into Country
(tonnes) ( %)
Belgium-Luxembourg ( 1982)
Orange 32472 53
Grapefruit 2315 4
Other Citrus 1963 3
36750 60
Denmark (1979)
Orange 11600 63
Grapefruit 500 3
Other Citrus 600 3
12700 69
France (1981)
Orange 69520 42
Grapefruit 8253 5
Other Citrus 3571 2
81344 49
Germany (1982)
Orange 130042 39
Grapefruit 10843 3
Lemon 8866 3
Other Citrus 5497 2
155248 47
Ireland (1982)
Orange 13309 82
Grapefruit 604 4
Other Citrus 515 3
14428 89
Italy (1979)
Orange 2400 19
Grapefruit 4800 38
Other Citrus 200 2
7400 59
Netherlands (1981)
Orange 124349 52
Grapefruit 5005 2
Other Citrus 2852
Major Sources (per cent)
GFR (42), Netherlands (22), Brazil (21)
GFR (38), Netherlands (32), Israel (17)
GFR (48), Italy (21), Netherlands (9)
Brazil (75), Israel (5)
Israel (40)
Brazil (28), Israel (24), USA (23)
Israel (53), USA (21), Morocco (7)
Italy (45), Ivory Coast (23), Argentina (6)
Brazil (63), Israel (9), USA (8), Italy (5)
Israel (54), USA (15), Argentina (13)
Argentina (43), Italy (24), USA (8)
Brazil (76), Netherlands (19), Italy (I)
GFR (27), BLEU (21), Israel ( I ~ ) , ~ (17)
UK (81)
Israel (58)
Brazil (54), GFR (22), BLEU (10), USA (10)
USA (18), Argentina (18), Jamaica (14),
Israel (13)
Italy (28), Brazil (26), USA (II):
Argentina (10)
United Kingdom (1982)
Orange
Grapefruit
Other Citrus
132206
93107
14781
7489
115377
55
51
8
4
63
Israe1 (4 I), Netherlands (19), Brazil (I n ,
GFR (9)
Israel (77), Netherlands (6)
Italy (39), Greece (19), USA (II), BLEU (8)
Source: ITC (1982)
CS (various)
1982 data from Trade Statistics of Country.
TABLE 77
EEC: Importance of Non-Citrus Juice Imports
Country (Year) Grape Apple Pear Apple Cherry
a
Black-
a
Pineapple Tomato Other
a
Other Total
and Currant Vegetable Juice
Pear
(tonnes)
Belgium-Luxembourg ( 198 J) 6361 14354 1530 2238 5735 24669
Denmark (1979) 1100 2700 300 500 1200 5800
France (1981) 56824 3161 163 5320 8407 2432 9784 86091
Germany (1982) 81025 26019 3719 24883 3324 2245 2378 8622 12383 14090 17.8688
Ireland (1982) 447 209 1102 1758
Italy (1979) 2300 1100 800 100 1100 5400
Netherlands (1981) 13629 73959 3687 6931 10011 108217
United Kingdom (1982) 12983 6242 47469 66694
(% of Total Juice Imports)
Belgium-Luxembourg 9 21 2 3 9 40
Denmark 6 15 2 3 7 31
France 34 2 3 5 2 6 51
Germany 24 8 8 I 3 4 4 54
Ireland 3 I 7 II
Italy 18 9 6 I 9 42
Netherlands 6 31 2 3 4 45
United Kingdom 7 3 26 37
a
not reported separately for some countries; included "Other Juice". 1n
Source: ITC (1982)
CS (various)
1982 data from Trade Statistics of Country.
0
'-J
108.
10.3.3 Germany, the Netherlands and Belgium-Luxembourg as Re-Exporters
The importance of Germany, the Netherlands, and to a lesser extent
Belgium-Luxembourg as re-exporters has already been identified. In order to
indicate the volume of product exported from these countries, and the
destinations of this product, Table 78 reports some available export statistics.
The statistics show that Germany exports significant quantities of concentrated
apple and pear juice to both EEC and third countries. The USA in particular is
important. Germany also exports large volumes of a ~ p l e juice that is not
concentrated, largely to the Netherlands as consumer packed products. Finished
consumer packed orange juice is also exported, produced from concentrates
imported from Brazil. Again, the Netherlands is the most important market,
followed by BLEU. Apart from apple and orange juice, 'other' fruit juices
(largely tropical) make up the next most important export category. Other EEC
members are the principal destinations for this juice, although Scandanavia and
the Middle-East are also important.
The Netherlands is established as an important fruit-juice re-exporter to
EEC members. Citrus and tropical juices account for nearly all J u ~ c e exports
from the Netherlands, produced entirely from imported concentrates. Orange
juice alone accounted for nearly 70 per cent of juice exports from the
Netherlands in 1981, destined for Germany, the United Kingdom, BLEU and France.
The Netherlands has established itself as a re-exporter because of the presence
of an advanced food technology industry producing flavourings and juice blends,
and because it is a major European trading and communications centre.
With exports of over 69000 tonnes of fruit juice in 1982,
Belgium-Luxembourg has attained a level of re-exporting similar to the
Netherlands. In terms of the volume of imports, exports of fruit juice by BLEU
are 13 per cent higher, reflecting the reprocessing of imported concentrates
into single strength consumer packed juice. The data reported in Table 78 show
that orange and apple juice together account for 83 per cent of juice exports.
The Netherlands is the single-most important export destination, followed by
France, the United Kingdom, Germany and Ireland. Very little juice is exported
outside the EEC.
10.4 Consumption
Of the 10 EEC member states, only United Kingdom, German and French fruit
juice consumption levels exceed 10 litres per capita. Only German consumption
exceeds 20 litres per capita (Table 79). Hence, EEC consumers cannot be
regarded as heavy consumers of fruit juice. It is clear from the data reported
in Table 79 that the beverage 'mix' consumed varies considerably among EEC
countries. In both Italy and France, wine is the most important beverage
consumed, consumption of wine being at least 250 per cent higher than in any
other EEC country. Beverage consumption in Belgium-Luxembourg and Germany is
dominated by beer, with per capita consumption reaching 127 litres and 146
litres respectively.
TABLE 78
GFR, the Netherlands and BLEU: Exports of Fruit and Vegetable Juices
Germany (1982) Netherlands (1981) Belgium-Luxembourg (1982)
Juice Quantity Proportion Major Destinations Quantity Proportion Major Destinations Quantity Proportion Major Destinations
of Exports (per cent) of Exports (per cent) of Exports (per cent)
(tonnes) ( %) (tonnes) (%) (tonnes) (%)
Concentrated
Grape
a
80 67 Netherlands (80)
Apple and Pear
a
23521 II USA (43), UK (19), 9659 14 Netherlands (90)
Netherlands (13),
BLEU (6)
Orange 2558 105 GFR (49), BLEU (31) 105
Other Citrus 83 106 GFR (76), BLEU (18) 417 Ireland (33), UK (24).
Netherlands (20)
Other Fruit 208 523 UK (23). USA (22), 354 Netherlands (34),
GFR (14) Ireland (In
Vegetable
a
18
Not Concentrated
Grape
a
5899 3 1351 2 Netherlands (32),
UK (24). France (20)
Apple and Pear
a
6U605 29 Netherlands (82) 14712 21 Netherlands (77),
UK (16)
Orange 66119 32 Netherlands (43) • 51283 68 GRF (28), UK (20), 33328 48 Netherlands (61),
BLEU (26) France (18), Ireland (9)
Grapefruit 3293 2 3317 4 UK (32), GFR (In. 3599 5 Italy (49),
France (14), BLEU (10) Netherlands (23),
Switzerland (10) France (12)
Lemon 1691 2429 3 GFR (54).
Saudi Arabia ( 17),
France (14)
Other Citrus
a
325 1187 2 UK (43), Norway (16)
Pineapple 361 5077 7 UK (6 I), GFR ( 13), 1263 2 France (47),
France (9) Netherlands (27)
Tomato
a
1281 2434 4 Netherlands (60)
Other Fruit
b
France (22), GFR (5)
34750 17 12250 16 GFR (70), France ( 10), 933 Netherlands (39),
Other Vegetable
b
6720 3
BLEU (2) France (26), GFR (15)
Total 207516 100 75090 100 6'94'09 IiiO
a not reported separately for some countries.
b
including mixtures.
Source: Netherlands - ITC (1982)
Germany and BLEU Trade Statistics 1982.
110.
TABLE 79
EEC: Beverage Consumption Per Capita
Country
Wine a Beer a
Soft b
drinK:
Bottled
Water b
Fresh
Milk a
Fruit
d
Juice
(kg) (kg) (HCres) (lieres) (kg) (litres)
Belgium-Luxembourg 18 127 60 53 92 7
Denmark" 13 n.a. n.a. n.a. 148 2
c
France 93 45 26 52 76 9
Germany 24 146 71 40 90 21
b
Greece n.a. n.a. 25 10 n.a. 8
Ireland 3 84 n.a. n.a. 289
n·S·
Italy 87 16 2 I 30 74 8
Netherlands 12 85 60 4 105 18
United Kingdom 8 n.a. 60 n.a. 157 10
a
OECD (1981) 1978 data from
b
BW (November. 1981 ) 1979 data from
c
( 198 j) Kilograms, 1974 data from OECD
d
ITC (1982). Based on 1981 data reported in
A feature of beverage consumption in continental Europe community members
is the high consumption of bottled water. Only the Netherlands does not consume
bottled water at levels similar to its EEC neighbours. One result of the high
consumption of bottled water is the quite low consumption of soft-drinks by
world standards. Growth in fruit juice sales must occur at the expense of both
soft-drinks and bottled water. In the United Kingdom. fruit juices are largely
competitive with tea and coffee rather than soft-drinks. The ITC (1982) reports
that prior to 1975, 80 per cent of juice sales were consumed at breakfast time.
By 1981 this figure was reduced to 40 per cent. Along with the change in image
to an 'all-day' beverage, has been a shift away from young consumers to a
broader range of consumers.
Although fruit juice consumption 1n the EEC is low, actual beverage
consumption of fruit juice based drinks is often much higher than official juice
consumption statistics. Table 80, which details sales of fruit drinks in
both France and Germany. indicates total juice beverage consumption of 35 litres
and 49 litres per capita respectively.
The data supplied in Table 80 indicate the recent growth in juice sales,
with all countries reported showing juice sale increases of at least 52 per
cent. and up to 129 per cent since 1976. Most of the growth has been in sweet
juices such as orange and apple, rather than juices such as grapefruit. The
relatively recent nature of the growth in juice sales has been largely
attributed to the introduction of aseptic 'Tetra-Pak' packages, wider
distribution at retail level, and the 'health' image of fruit juices. The
introduction of multi-fruit, multi-vitamin juices on many markets has
contributed to this health image. In France, a change in food regulations that
a
Netherlands data for 1975, UK data for 1977
b
German data for 1982.
c
Citrus 6% juice, Pome fruit and grapes 30% juice, Berry and stonefruits
10% juice.
III.
d
Half the juice content of Fruit Drinks.
Source: ITC (1982)
Annual Report of the Association of German Fruit Juice Industry
(Bonn, 1983).
J J ~ .
Fruit nectars are only a significant juice product in Germany. Within
Germany, nectar consumption has grown rapidly, but largely at the expense of
pure juice sales. Hence, the actual increase in juice consumption in single
strength terms is likely to be lower than that reported in Table 80. In the
Netherlands, almost no market exists for nectars due to drink and sugar taxes
which make nectars almost as expensive as pure juices, which are exempt from the
tax.
TABLE 81
EEC: Fruit Juice Flavour Preferences
Country Orange Grape Apple Grape Pine- Tomato Others
fruit"" & Pear apple
( Z)
Belgium
Luxembourg 60 3 20 4 2 3 7
France 37 4 3 1 18 4 2 3
Germany
-----62----
19 20
Netherlands 50 3 37 5 4
United
Kingdom 62 17 8 7 4 3
Source: ITC ( 1982)
Preferences in the major EEC member states for particular juice flavours is
dominated by orange and apple which together usually account for over 75 per
cent of total sales. In the United Kingdom, grapefruit is also important,
though its market share has declined while apple and pineapple's shares have
risen. Another market with flavour preferences different from the EEC norm ~ s
France, where grape juice has an 18 per cent share of the juice market. In
relation to nectars sold in France, 72 per cent of the market is comprised of
apricot nectar and 17 per cent pear nectar, while plum and blackcurrant nectars
have six per cent and one per cent shares respectively. Fruit drink consumption
in France is dominated by citrus which has over 80 per cent of the market, the
residual market being filled by pineapple and grapefruit.
10.5 Retail Packaging
Aseptic 'Tetra-brik' packaging accounts for at least 50 per cent of juice
sales in each of the major EEC JUkce markets (Belgium-Luxembourg, Denmark,
France, Germany, Netherlands, United Kingdom). In the Netherlands, 90 per cent
of juice sales are in 'Tetra-brik' packages.
Glass bottles continue to have a significant share of juice sales in both
the United Kingdom and France, accounting for 25 per cent and 33 per cent of
juice sales respectively. The use of glass bottles in the U.K. is expected to
decline rapidly as bottlers convert to 'Tetra-brik' packaging systems. In
France, however, glass bottles have an image of 'purity' , and so are likely to
retain a significant share of the juice market.
113.
Retail packages tend to have of 0.2 litres to 1.0 litre for
'Tetra-brik' units, while bottles are usually 0.7 litres or 1.0 litre.
10.6 Market Structure: Distribution Channels and End Users
In Figure 4., an outl ine of distribut ion channels followed by imported
bulk and consumer packed fruit juices is presented. The complexity of the
distribution network matches the sophisticated United States market structure.
Imports originate from three major sources: EEC re.exporters, EEC
exporters, and 'other' (third country) exporters. The three most important
community re-exporters are the Netherlands, Germany, and Belgium-Luxembourg,
though Denmark is also important. Re-exporters provide finished consumer packed
juice produced from citrus and tropical juices originating in third countries.
Also, compound or blending houses within the re-exporting country provide juice
blends, flavours and essences for use in the importing country's beverage
industry.
FIGURE 4
EEC: Market Structure: Distribution Channels and End-Users
EEC EEC
r------ Re-Exporters Exporters

Other
E_:''':Tters -------,
Retail Consumer
Packed Juice
Compounds
Flavours
Essences
Bulk Juice
and Concentrates
Importer, Agent, Broker
Export/
Re-Export
Vending
Machines

Beverage Houses
Industry 1
Other Food
Industry
Catering Institutional
Hotels
Restaurants
Cafes
Wholesalers
Supermarket Buying Groups
1
Supermarkets
Grocers
Dairies
Home Delivery
Source: ITC (1982)
114.
EEC exporters supply juice produced by their domestic fruit: growing
industry. Italy and Greece in particular are major exporters of bulk citrus
juice to other EEC member's beverage industries, or to compound houses for
blending. Though importers, agents or brokers are usually intermediaries
tacHitating the trade, bulk shipments are also made direct to individual
reprocessors and bottlers/packers. Within the EEC, Germany and France are also
significant exporters of consumer packed apple and grape juice produced from
domes.tically grown fruit.
Exporters from third (non-EEC) countries predominantly supply
concentrated, J u ~ c e . Major producing nations such as Brazil and
supply direct to the beverage industry. Supplies of fruit juice
large volumes are usually imported via brokers.
bulk, usually
Israel often
not sold in
Between 80 per cent and 95 per cent of all bulk juice imported into the EEC
is eventually used by the beverage industry. The residual bulk J u ~ c e imported
is utilised by the food industry which includes the dairy indUstry, bakeries,
confectioners, jam manufacturers, baby-food manufacturers, and the fruit canning
industry. Within the food industry the dairy industry is the main end-user of
fruit juice, especially for the manufacture of yoghurt, the majority of'which is
frui t fl avoured .
The beverage industry's main customers are retail outlets including
supermarkets, grocers, dairies, and in the United Kingdom, milkmen who deliver
fruit juice direct to the home. In most EEC countries, retail sales account for
about 7S per cent of total fruit juice product sales. Major supermarket chains
usually obtain consumer packed juice direct from beverage producers, while
smaller retail outlets buy via wholesalers.
The institutional caterers and HORECA (hotels, restaurants and cafes)
end-users account for around 20 per cent of juice consumption in most EEC member
states. Juices consumed via caterers are usually dispensed from single serve
200 ml Tetra-brik packages or from one litre packages. Little bulk distribution
is undertaken.
Vending machines are a recent innovation in the marketing of fruit J u ~ c e s .
Their introduction has been facilitated by the development of long-life
asceptically packaged juices.
Given the importance of intra-EEC trade in finished consumer packed fruit
juice, a proportion of domestic fruit juice beverage production in every EEC
member state is exported to other EEC countries. Third countries exporting bulk
juice to a number of EEC countries are likely to have the juice packed under a
number of national brands, competing against itself in each country. Of course,
juice shipped in bulk loses any identity with the original exporting country.
Nevertheless, it can be concluded that effective penetration of all EEC
countries can be achieved solely by concentrating marketing effort on major
beverage producers and compound houses in major re-exporting countries e.g.
Germany, the Netherlands and Belgium-Luxembourg.
10.7 Market Access
While the EEC does not impose quantitative restrictions on fruit juice
imports, import duties, value added taxes, and variable levies imposed on juices
containing added sugar raise the landed price of imported J u ~ c e considerably.
In Table ·82, the EEC's Common External Tariff for fruit juices is summarised.
The general tariff ranges from 15 per cent to 50 per cent ad valorem, depending
115.
on the juice and its degree of concentration. Generally, duty is highest on
grape and apple juice, affording the large domestic production a high degree of
protection. It is significant that the 63 African, Caribbean and Pacific (ACP)
signatories of the Lome Convention are given free access for all juices. A
number of Less Developed Countries (LDC) are also afforded free access for
citrus and tropical juices. Many other countries, largely Mediterranean, are
also allowed preferential duty rates.
TABLE 82
EEC: Common External Tariff (CET) for Fruit Juices
Product General
Tariff
ACP
(% ad valorem)
LDC
A. Specific gravity exceeding 1.33 at 15°C
Grape
Apple and/or pear
Other
50
42
42
Free
Free
Free Free
B. Specific gravity of 1.33 or less at 15°C
Grape
Apple and/or pear
Apricot and peach
Orange
Grapefruit
Lemon
Other Citrus
Pineapple
Tropical fruit J u ~ c e
Berryfruit juice
28
24-25
21-22
19
15
18-19
18-19
19-20
19-23
2 1
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Source: ITC (1982)
Department of Trade and Industry, Wellington, pers. comm.
Apart from customs duty, a variable levy is also applied on fruit J u ~ c e
imports with added sugar. The variable levy was established not so much to
protect the domestic juice industry, but rather to protect the EEC's sugar
industry. A variable levy for sugar is calculated quarterly, essentially by
estimating the difference between the average threshold sugar price (similar to
a minimum import price) and the average c.i.f. sugar price in the previous
quarter. This sugar levy is then applied to any imported product containing
added sugar. For fruit juice, the difference between the actual sugar content
of imported juice and the natural sugar content of that juice is calculated in
order to assess the proportion of the sugar levy that should be paid as a
variable levy. For example, on I June 1983, imports of fruit juice with added
sugar contents of over 30 per cent paid a variable levy of US$20 per 100 kg of
product (NZ Embassy, Bonn, pers. comm.).
116.
Value added taxes (VAT) are payable on the duty paid value of fruit juice
imports, i.e. the c.i.f price plus customs duty and variable levy. VAT varies
between different EEC members. In Table 83, where VAT are reported, it should
be noted that fruit juices usually are classified under the standard rate,
rather than the foodstuffs and essential goods rate. In most EEC member states,
VAT are in the range of 10-20 per cent.
TABLE 83
EEC: Value Added Taxes (VAT)
Country Standard Rate Foodstuffs and Luxury Goods
Essential Goods Rate
( %)
Belgium 17.0 6.0 33.0
Denmark 22.0
France 18.6 5.5 33.3
Germany 13.0 605
Ireland 35.0 23.0
Italy 15.0 1-12 18 or 35
Luxembourg 10.0 2.0
Netherlands 18.0 4.0 28 or 35.5
United Kingdom 15.0
Source: Department of Trade and Industry, Wellington, pers. comm.
CHAPTER II
EUROPE: NON-E.E.C.
I I. I Introduction
The European countries that are not members of the EEC can be sub-divided
into two groups: the first group may be defined as 'West European' countries and
include Austria, Finland, Norway, Portugal, Spain, Sweden and Switzerland. The
second group comprises so-called 'East European' countries with a high degree of
central planning in their economy. Countries in the centrally planned group
include Bulgaria, Czechoslovakia, Democratic Republic of Germany (GDR) , Hungary,
Poland, Romania, Soviet Union (USSR) and Yugoslavia.
Total population in the Non-EEC European countries was over 478 million in
1981, 84 per cent of which lived in East European countries (Table 84).
TABLE 84
Europe Non-EEC: Population (l98l)
Country
Austria
Finland
Norway
Portugal
Spain
Sweden
Switzerland
Total West European
Bulgaria
Czechoslovakia
German Dem. Rep.
Hungary
Poland
Romania
USSR
Yugoslavia
Total East European
Total Europe, Non-EEC
Source: FAO (1982)
Population
('000)
7559
4798
4100
9908
37535
8324
6380
78604
8900
l5330
16750
10713
35902
22427
267735
22520
400277
478881
117.
Population Growth
Since 1970
(%)
1.8
4.2
5.8
14.8
11.7
3.4
1.8
8.5
4.8
6.9
-1.8
3.8
10.4
10.7
10.3
10.5
9.3
9.2
118.
Of the West: European countries, only Spain had a population of over 10
million in 1981, whereas only Bulgaria in East Europe had a population of under
10 million. In addition to being much larger countries in terms of total
population, East European populations have also grown at a faster rate than
those in the West. Apart from Portugal and Spain, population in Western Europe
grew by less than five per cent during the decade ending 1981. By contrast most
East European countries grew by between 7 and I 1 per cent over the same period.
11.2 Domestic Production
Fruit production in non-EEC Europe is dominated by temperate pome, stone
and berry fruit (Table "85). Citrus fruit is only produced in any volume in
Portugal and Spain. Of the countries listed in Table 85, only fresh fruit
production in Spain and Romania has shown definite growth trends since 1971 for
most fruit categories. Apple and pear production in every East European country
has also displayed growth over the last decade.
Given the limited range of fruit grown in Non-EEC Europe, juice production
is also based on domestically grown a.pple, pear, peach and berryfruit.
11.3 International Trade
Non-EEC European nations do not figure prominently in the world fruit juice
trade. Tables 86 and 87 which summarise the value of exports and imports
respectively for each country, show that, individually, the top ranked exporter
in 1981 was Austria (ninth) and the top ranked importer was Sweden (ninth).
Collectively, the West European countries ranked eighth in the world as
exporters, and s beth in the world as importers, though in percentage terms they
only accounted for 3.8 per cent of exports and 7.8 per cent of world imports.
East European countries together accounted for 2.5 per cent of world exports and
2.0 per cent of world imports, and so are ranked below West European countries.
Over the period 1977-1981, the value of exports from non-EEC European
countries increased by 71 per cent to over US$123 million, while imports reached
US$184 million, an increase of 39 per cent over 1977. The growth in exports
from non-EEC countries is largely confined to two East European countries,
Hungary and Yugoslavia. East European countries have also exhibited the most
rapid increases in imports, particularly the Soviet Union and Poland. In West
European countries, imports into Finland, Norway and Switzerland all increased
by over 50 per cent over the period 1977-1981, while imports into Sweden
declined by six per cent. Imports into Sweden, the most important non-EEC
importer in Europe, have been stagnant at around US$50 million for five years.
Only Spain and Yugoslavia are predominantly J u ~ c e exporters in
Europe. All other countries tend to be largely J u ~ c e importers,
Austria, Switzerland, Hungary and Poland all exported over US$5 million
1981, largely apple and berryfruit juice.
non-EEC
although
worth in
by citrus
Table 88,
cent of
originate
juice are
Both these
for domestic
packed juice
Juice imports into all non-EEC European countries are dominated
juice. Data available for West European countries are reported ~ n
showing that orange juice alone often accounts for around 90 per
imports. Citrus juice imports into West European countries usually
from Brazil, the United States or Israel. Imports other than citrus
sourced from compound houses located in other European countries.
juice imports and citrus juice concentrates are usually destined
beverage producers. Very limited imports of finished consumer
occur.
TABLE 85
Europe Non-EEC: Fruit Production ( 198 J)
Country Apples Pears Peaches Plums Apricots Oranges Other Bananas Strawberries Raspberries Currants
Citrus
('000 tonnes)
Austria 243 97 9 4 I 6 10 27
Finland 16 6 5
Norway 47 9 14 18 3 17
Portugal 97 44 35 3 6 92 39 26 2
Spain 1064 520 441 105 174 1500 1156 445 51
Sweden 92 13 5
Switzerland 240 130 55 5 4
Bulgaria 393 94 113 160 39 22 7 I
Czechoslovakia 170 27 19 69 25 17 I 22
German Dem Rep. 522
Hungary 1100 80 74 170 50 15 20 17
Poland 800 100 210 157 21 117
Romania 395 78 55 590 34 32
USSR 6000 620 250 520 125 250 80 80 52
Yugoslavia 380 110 80 809 30 4 46 13
Source: FAa (1982)
TABLE 87
Europe - Non EEC: Imports of Fruit and Vegetable Juice (1977-1981)
Year Proportion of World Percentage
Country World Trade Ranking Change
1977 1978 1979 1980 1981 1981 1981 1977-1981
(US$'OOO) ( %) (%)
Austria 22665 26464 26488 28813 27880 1.5 13 23
Finland 12851 16197 16714 24267 20245 1.1 15 58
Norway
a
10903 12809 14014 16343 17664 0.9 18 62
Portugal n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Spain a n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Sweden 50745 53831 53653 52476 47695 2.5 9 -6
Switzerland 19508 27614 33610 34193 34504 1.8 10 77
Total West
European 116672 136915 144479 156092 147988 7.8 6 27
Bulgaria 798 1200 1500 2600 1700 O. I 30 113
Czechoslovakia 2500 3700 4800 6040 3100 0.2 28 24
German Dem. Rep.
Hungary 2600 3900 2400 4300 4200 0.2 27 62
Poland 5800 5950 7900 11500 9980 0.5 26 72
Romania 933 1400 1700 787 2300 O. I 29 147
USSR 3621 4505 6249 10535 15067 0.8 21 316
Yugoslavia
a
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Total East
European 16252 20655 24549 35762 36347 2.0 10 124
Total Europe:
Non-EEC 132924 157570 169028 191854 184335 9.8 4 39
N
a
not available but less than US$2 million.
Sonrrp: rrr. (lqR?)
TABLE 88
N
West European - Non-EEC: Trends in Major Juice Imports (1971-1981)a
N
.
Year Proportion of Total 1981 Growth over
Country Citrus and Pineapple 1978-1981
1978 1979 1980 1981 Imports into Country Period
(tonnes) (%)
0:>
Orange
Finland 10778 10834 16398 11301 93 5
Norway 6587 7226 7538 8476 88 29
b
Portugal 26 35 31 41 19
Spain 2358 3452 4272 3264 54 38
Sweden 27748 26716 25172 27063 92 -2
Grapefruit
Finland 238 28 126 153 I -36
Norway 313 480 288 338 4 8
Portugal
Spain 20 27 27 35
Sweden 481 515 561 510 2 6
Other Citrus
Finland 158 154 86 110 I -30
Norway 534 584 401 337 3 -37
Portugal 2 10 6 B 200
b
Spain 634 1006 796 734 12 16
Sweden 1152 1295 1200 1245 4 8
Pineapple
Finland 496 321 744 567 5 14
Norway 101 248 329 493 5 388
b
Portugal 33 I 39 51 18
Spain 3009 3724 3550 1988 33 -34
Sweden 433 436 442 744 3 72
a Austria and Switzerland excluded from table since do not provide data disaggregated into these juice types.
b Per cent change over period 1979- 1981. Source: ITC (1982).
123.
East European countries also import mainly concentrated citrus J u ~ c e ,
though often the juice is obtained from other centrally planned economies, e.g.
Cuba and Vietnam. Like West European countries, the imported juice is utilised
by the domestic beverage industry. In East European countries, imported citrus
juice is usually imported as flavouring for carbonated soft-drinks.
11.4 Consumption
11.4. I West European Countries
In Table 89, beverage consumption data for non-EEC West European
countries are reported. The three Scandanavian countries: Finland, Norway and
Sweden are all relatively high consumers of beer and milk, while consumption of
wine is very low at less than 10 kg per capita. Swedish consumers also drink 40
litres of soft-drinks· per capita.
TABLE 89
West European - Non-EEC: Beverage Consumption Per Capita
Country Wine Beer "Fresh Soft-Drink Bottled Fruit Juice
Milk Water
1978 1978 1978 1979 1979 1979 1981
(kg) (kg) (kg) (Litres) (Litres) (Litres)
Austria 35 103 149 n.a.
n.a.
12 13
Finland 8 55 246 n.a. n.a. 14 20
Norway 3 46 222 n.a. n.a. 8 9
Portugal 87 29 60 29 16 19 20
Spain 59 47 107 17 3 3
Sweden 9 51 156 40 21 21
Switzerland 40 67 174 51 35 21 21
(% change over 1975) (% change over 1977) (% change over
1979)
Austria -3 -2 n.a. n.a. 8
Finland -II 3 n.a. n.a. 43
Norway 2 -3
n.a. n.a.
13
Portugal -34 -15 2 7 14 5
Spain -II 7 5 3
Sweden 13 -15 -4 3
Switzerland 8 -4 4 6 6
Source: ITC (1982) Fruit Juices (1979 and 1981 )
DECO (1981) Wine, Beer and Fresh Milk (1978)
BW (November 1981 ) Soft-drink, bottled water, fruit juices (1979).
124.
Both Portugese and Spanish consumers drink more wine than beer. Wine
consumption in Portugal and Spain is around 59 and 87 kilograms per capita
respectively, while beer is only 29 and 47 kilograms respectively. Swiss
consumers have quite high wine consumption at 40 kilograms per capita, but still
have the second highest per capita beer consumption in non-EEC West European
countries at 67 kilograms. Both soft-drink and bottled water also contribute
significantly to the beverage consumption of Swiss consumers, in per capita
terms the highest of any non-EEC West European country.
Fruit juice consumption in Finland, Portugal. Sweden and Switzerland
reached at: least 20 litres per capita in 1981. Per capita consumption of fruit
Juices in non-EEC West European countries is less than 10 litres in only two
countries, Norway and Spain. Overall, consumption of fruit juices in most West
European countries has stabilised in recent years. Finland was the only country
to experience a rapid increase in per capita consumption over the period
1979-1981. If consumption follows the trend of other countries, per capita
consumption of fruit juice in Finland will not increase to the same extent in
future years. For example, in both Switzerland and Sweden, dietary campaigns by
consumer associations and more stringent laws regarding synthetic food additives
imposed in the early 1970's, saw rapid increases in pure fruit juice
consumption. Swedish fruit juice consumption increased from six litres per
capita to 23 litres per capita in 1977, before stabilising at 21 litres in 1981
(ITC; 1982).
Most of the juice consumed in West European countries
Nectars and fruit drinks are not regarded as either natural or
many countries fruit syrups are more accepted since they
home-made products.
is pure juice.
'healthy' . In
are traditional
Flavours in non-EEC West European countries are dominated by apple and
orange, which together share around 80 per cent of the market. Apricot, peach,
grape and berryfruit account for a further 15 per cent of the market while
tropical juices contribute around 5 per cent, usually in blends with apple or
orange. Consumers are generally regarded as being conservative, showing only
novelty, rather than long-term, interest in new flavours.
Fruit juices are sold in both glass bottles and
packages.
11.4.2 East European Countries
aseptic 'Tetra Brik'
East European consumption is dominated by domestically produced temperate
juices, especially apple. Very little citrus juice is consumed as pure juice,
most being used in the manufacture of soft-drinks.
11.5 Distribution and Market Access
11.5.1 West European Countries
The majority of fruit juice imports into non-EEC West European countries
enter the beverage industry, often via agents or importers, but for high volume
citrus juices, usually direct to the reprocessor and packer. In some West
European countries, juice is imported for blending by domestically based
"compound houses", although most countries rely on other European countries to
fulfill this function. The majority of consumer packed juice is sold through
retail outlets, with the catering and hotel/restaurant trade accounting for
around 25 per cent of sales.
125.
Tariff information for three of the most important non-EEC West European
countries: Austria, Switzerland, and Sweden, is reported in Table 90. The
tariff in each country is specific, although an ad valorem duty on
unconcentrated apple juice imported into Austria is applied. Both Austria and
Switzerland have much higher tariff barriers than Sweden, which lacks a domestic
juice industry. While Swiss tariffs do not vary according to juice type,
Austrian tariffs are highest for apple and berryfruit, juices produced
domestically in large quantities. Tariffs in all countries increase with
increasing degree of concentration, the addition of sugar, and decreasing size
of containers.
11.5.2 East European Countries
Imports into East European countries tend to be juice concentrates for
further processing by domestic beverage industries. Monopoly, state-controlled
foreign trade organisations control the level of juice imports so that tariffs,
although they exist, do not determine the ability to trade. State trading
organisations are influenced by the need to conserve foreign exchange and the
desire to protect domestic producers of temperate fruit juices from import
competition. Hence, domestic juice consumers are given little choice among
various juice flavours. East European countries also attempt to source imports
from other centrally planned economies.
In most East European countries, a small volume of consumer packed juice is
imported for sale in "hard currency" and duty free shops and some hotels, for
sale to tourists, diplomats, and nationals with the necessary hard currency.
TABLE 90
West European - Non-EEC: Tariff Barriers
a
N
'"
Product Switzerland Sweden Austria
Apple juice
Concentrates
Other
Unsweetened
Sweetened
Orange juice
Concentrates
Other
Unsweetened
Sweetened
Berryfruit juice
Concentrates
Other
Unsweetened
Sweetened
(Fr/100 kg)
28
30-70
(NZ$/100 kg)
20
22-50
(kr /100 kg)
10-12.50
30
(NZ$/100 kg)
2-2.50
6
(sch/100 kg)
630
25% a.v.
(NZ$/100 kg)
54
9-36
9-13
9-36
15
43
a
tariff ranges reflect different sized containers.
bulk juice at lower end.
Small consumer packed juice at upper end of range,
Source: NZ Department of Trade and Industry, Wellington, pers. cornrn.
CHAPTER 12
THE WORLD FRUIT JUICE MARKET:
SITUATION AND PROSPECTS
12.1 Introduction
The preceding Chapters have described in some detail the production, trade,
consumption, and distribution of fruit juice products on individual world
markets. In this Chapter, a number of overall features of these individual
markets are discussed, first in terms of juice production and trade, and then in
terms of consumption, consumer preferences and habits. Having described the
current situation in the world market for fruit juice products, the remainder of
the Chapter identifies markets where opportunities exist for exporters of
particular product types.
12.2 Major Features of Fruit Juice Production and Trade
12.2.1 Brazil: the Dominating Factor on the World Markets
Brazil is the major exporter of fruit juice on the world market, and given
supply predictions, will continue to have increasing volumes of juice available
for export. In recent years, increases in Brazilian juice production have found
ready markets in the United States, due to poor citrus harvests in Florida. The
existence of higher than expected supply deficits in the United States has
masked the fact that the world juice market is generally in a state of
over-supply. Trade in fruit juices doubled in both volume and ~ a l u e terms over
the period 1977-1981. The commodity trade nature of the market for the major
fruit juices (orange, grapefruit, apple and pineapple) will ensure that excess
supply will be reflected in a weakening of export prices.
12.2.2 Trade in Raw Materials Increasing Faster than Trade In Consumer
Products
The growing commodity trade nature of the world juice market is reflected
in a continuing trend towards trade in juice concentrates and pulps rather than
finished consumer packed juice products. High transport costs penalise the
shipment of single-strength or diluted juices, while tariff and other trade
barriers encourage the development of domestic beverage industries. Even In
markets with minimal trade barriers, such as the Middle-East, Hong Kong and
Singapore, domestic beverage industries are developing rapidly.
12.2.3 Emergence of Third World Suppliers of Tropical Juices
Tropical Asian, African and Latin American countries increasingly entered
the world juice market during the 1970's, establishing themselves as suppliers
of tropical juice raw materials. Juice production for export is seen as one
method of encouraging development of their agricultural sector. Fruit growing
for juicing has been undertaken using large scale plantation agriculture
systems, rather than traditional small scale techniques. Often, multi-national
companies have supplied the capital, technology, and market outlets in the
development of a vertically integrated processing industry. Juice processing
industries have also developed as an adjunct to tropical fruit canning
operations.
127.
121::1.
12.2.4 Peaking of Fresh Fruit Consumption in Developed Countries
With the peaking of fresh fruit consumption in many developed countries,
short run surpluses in domestic fruit production due to favourable growing
conditions are tending to be diverted into juicing. The volume of processed
fruit also increases in years of adverse climatic conditions which reduce the
quality of fruit below that acceptable for fruit sold in a fresh state. The
European. Australian and Japanese fruit growing industries are all orientated
towards production of fresh fruit and hence the volume of fruit processed
depends on the amount of unmarketable fruit produced. Juice production in these
countries, and hence demand for imported juice, is therefore inherently
unstable. Of course, some countries, such as the EEC have, chronic excess
supply problems for some fruit.
Countries with fruit growing industries orientated to the production of
fruit marketed fresh can be contrasted with the almost entirely juice orientated
fruit growing industries of Brazil and the USA (especially Florida).
12.2.5 Re=exporting Roles
A feature of the growth in the world fruit juice market has been the
emergence of a number of re-exporting countries. These re-exporters tend to
dominate trade within a particular region, for example, West Germany, the
Netherlands and Belgium are re-exporters to the rest of Europe, both inside and
outside the EEC. Singapore and Hong Kong are important regional re-exporters to
Asia, while Bahrain and Dubai are developing a similar role in the Middle-East.
Usually, re-exporting countries are also food technology centres,
performing juice blending and flavouring functions for countries lacking similar
facilities. While re-exporting countries often export their blended JUl.ces in
bulk and concentrated forms, a much higher proportion of their output is shipped
in finished consumer packages.
12.3 Major Features and Trends in Fruit Juice Consumption. Consumer
Preferences and Consumer Habits
12.3.1 Competition with other Beverages
In most countries sales of fruit juices are less than 10 per cent by
volume of total beverage sales. While sales of fruit juices have risen
dramatically in recent years, other beverages such as sparkling and still
mineral water. white wine. and sugar-free carbonated soft drinks have also
experienced rapid sales growth in many countries. Western developed economies
have been characterised in the last few years by low population and disposable
income growth, slowing down the expansion of the overall beverage market. Thus,
increasing sales of a particular beverage must be to some extent at the expense
of market share for other beverages. Declining real incomes and inflationary
price pressures have also encouraged 'trading down' from pure juice products to
fruit drinks and cordials with lower pure juice contents.
12.3.2 Flavour Preferences and Acceptance of New Flavours
The growth of fruit juice consumption throughout the world has been
encouraged by low cost supplies of citrus juices from Brazil and the United
States. Hence, citrus juice flavours, particularly orange, tend to dominate
flavour preferences in nearly every market. Apart from orange, other flavours
with significant market shares are grapefruit, apple, grape and pineapple.
129.
In recent years, tropical juices have begun to become established in North
America, Europe, Japan and Australia and are already finding acceptance in Asia,
the Middle-East, and the Pacific Islands. Tropical juices, including pineapple
juice, are largely used in blends with citrus and temperate juices. For the
majority of markets, tropical flavours are an acquired taste, so that a long
period occurred before significant consumer acceptance developed. Even then,
consumers have not accepted them in the form of single flavour pure juice
products, though this has resulted from their high price as much as their taste.
A significant feature in the acceptance of tropical juices has been the
increased level of imports of fresh tropical fruit into temperate countries.
Consumers familar with eating fresh tropical fruit more readily accept tropical
fruit juice. The prospects for the juice of a particular fruit are also closely
associated with the image of its fresh counterpart, since the processed product
tends to be marketed emphasising the attributes of the fresh fruit. An exotic
fresh fruit marketed successfully at a premium price will also attract a premium
as a juice. An unknown or unpreferred fresh fruit cannot be sold at a premium
in juice form.
12.3.3 Product Developments
Product developments for fruit juices have centred three areas.
Firstly, in response to consumer demand for more service in a product, ready to
drink juice products have sold faster than juices requiring preparation. This
is particularly true in the pure juice market where consumer packed frozen
concentrates are giving way to chilled and ,aseptic single-strength products.
The second development relates to the growth products incorporating
juice blends or combinations. Also, multi-flavour products often incorporate
multi-vitamin ingredients. juice products have usually been introduced
where the single-flavour juice market is well developed and mature, so that the
multi-flavour juice represent a response to an increasingly
sophisticated and discriminating consumer. To some extent however,
multi-flavour products have also been a response to manufacturers' desires for
greater profitability. The competitiveness of the single-flavour market,
dominated by commodity traded juices has squeezed the profitability of juice
marketing.
The third area of product development has been in relation to combinations
with other beverages, particularly mineral water and milk. Milk beverages with
juice ingredients include flavoured URT milk, cultured yoghurt-type drinks, and
lacto-serum sports drinks.
12.3.4 Packaging Development
The development of aseptic cardboard-foil packages giving extended
shelf life without refrigeration has revolutionised the juice market where it
has been introduced. Consumers have found aseptics a convenient package,
especially the single serve 200ml and 250 ml sizes. Aseptics have also allowed
distribution of fruit juices to a much broader range of retail outlets.
12.3.5 Demographic Changes
In the past fruit drinks have tended to be consumed mainly by children,
teenagers and women in the 25 to 50 age range. Demographic changes,
particularly in western developed economies, have led to juice products being
re-positioned in the market in order to appeal to a broader group, particularly
UU.
males over 25 years old. Aseptic packaging and product developments have
contributed greatly to this re-positioning.
Demographic changes in western economies include slow population growth
and declining household size. A decline in population growth is producing an
older age distribution, with an absolute decline in the youth market size.
Smaller household sizes decrease the unit volume of products purchased. The
increase in the number of women working outside the home, and the increase in
the number of two income households has developed a market for prepared foods
and meals outside the home. Such consumers tend to be less price conscious.
The rise in the number of men shopping has also led to the growth in convenience
orientated shopping. Some western economies are also experiencing ethnic
composition changes. In the United States in particular. the Black and Hispanic
populations are growing faster than the white population. For exporters of
tropical juice, the Hispanic population is an important market segment, being
more familar with fresh tropical fruit.
Asian, Pacific Island and Middle-Eastern countries all
population increases, creating a greatly enlarged youth market,
factor encouraging future increases in aggregate juice consumption.
12.3.6 Growing Health Consciousness
show rapid
a positive
Consumer awareness of the health attributes of food products consumed has
led to a much greater concern by manufacturers for the image of their products.
Concern over food additives and preservatives has created a market for natural
foods. The desire to reduce calorie intake has tended to reduce demand for
beverages with a high added sugar content. Finally, the desire for a balanced
diet has been a positive factor in creating demand for products with high
vitamin content.
Among beverages, soft-drinks have tended to suffer the most from the
growing health consciousness, due mainly to their sugar and caffeine contents.
Both mineral waters and fruit juices are regarded as more natural and healthy,
and hence have tended to gain market share at the expense of soft-drinks. The
healthy image of fruit juice products is largely limited to pure J u ~ c e s , with
both fruit drinks and nectars being associated with added sugar.
12.3.7 Growth in the Foodservice Sector
The increasing proportion of meals eaten outside the home, whether in
hotels, restaurants, cafes, take-away fastfood and lunch bars, employee canteens
or educational institutions has increased the demand for fruit juices,
particularly in the daytime non-alcoholic drinks market. As.eptic packaging not
requiring refrigeration has increased the use of vending machines in these
outlets, selling single serve packages. Specialist gourmet and health food
shops selling take-away food are also mainly selling single serve packages of
fruit juice.
12.4 Market and Product Opportunities
12.4.1 Introduction
Having summarised briefly the major features and trends of trade and
consumption in fruit juices, this section indicates the characteristics of
particular markets, and the opportunities for individual fruit juice products in
13 J.
these markets. The number of factors that must be considered identifying a
market-product opportunity are large, including:
(i) the level of domestic production in relation to the
level of total demand,
(ii) the current level of demand in relation to income levels
and total population,
(iii) consumer product preferences,
(iv) the distribution outlets that reach particular market
segments, and
(v) the accessibility of the market for exporters.
These factors are discussed in the sections below.
12.4.2 Domestic Production and Total Demand
In order to categorise
production in each market can
is an exporter or importer of
summarised in Table 91.
individual markets, the level of fruit
be compared with the degree to which the country
fruit juice. The results of such a comparison are
Although rather arbitrary in terms of the range for each classification
factor, the analysis presented in Table 91 highlights which markets can be
largely disregarded and which are likely to be most favourable as export
destinations. Obviously, the self sufficient juice exporters comprising Latin
America, Mediterranean Europe, and less developed tropical Asian countries do
not present significant market opportunities. The predominantly juice
countries do present opportunities for juice exporters, the degree of
opportunity being largely determined by the level of domestic production, and
the trade barriers in existence. The higher the level of juice production from
domestically grown fruit, the less the country depends on imports to meet
domestic consumption requirements. Thus, both the United Kingdom and the
Middle-East stand in contrast to Australia and the United States, where
importers face considerable competition from juice produced from domestically
grown fresh fruit. In the United Kingdom and the Middle-East, the greatest
source of competition originates from other exporters.
132.
TABLE 91
Domestic Juice Production and Importance of Imports
Exports as a Proportion of Imports Fruit Juice
Produced from
Domestic Fruit
Production
Low
«50 million
litres)
Medium
(50-200
million litres)
High
(> 200 million
litres)
0-35%
Importer
Pacific Islands
Hong Kong
Middle-East
United Kingdom
Ireland
Switzerland
Norway
Finland
Portugal
Sweden
Romania
Czechoslovakia
USSR
Japan
Korea
Taiwan
France
Canada
Australia
United States
35-]20%
Re-Exporter
Belgium-Luxembourg
Denmark
Netherlands
Singapore
Bahrain
Dubai
Malaysia
Poland
German Fed. Rep.
>120%
Exporter
Chile
German Oem. Rep.
Philippines
Indonesia
Argentina
Austria
Bulgaria
Yugoslavia
Brazil
Greece
Italy
Spain
Hungary
Thailand
The group of countries classified in Table 91 as "re-exporters" afford
similar opportunities as "importers", except for those countries with high
domestic juice production (e.g. Germany). In these countries, only particular
types of juice will be required, to fill the gap in the domestic juice product
range, and provide for production of juices for re-export.
12.4.3 Consumption, Income and Population
Even if a country has a low level of domestic production and relies
heavily on juice imports to satisfy domestic demand, the country may not be a
good prospect as an export market if the overall juice market is very small,
either in terms of per capita consumption or total population. Also, the level
of income in a country is a good indicator of the ability of consumers to pay
for imports.
In Table 92, markets are classified according to per capita levels of
juice consumption, per capita incomes, and total population. In general,
TABLE 92
Fruit Juice Consumption Compared to Income and Population Levels
Low «$2500)
1
. a
Popu at1.on
H1.gh (>$7500)
Population
a
Juice
Consumption
Per
Capita Low Medium High
Income Per Capita (US$)
Med1.um ($2500 ~ 7 5 0 0 )
Population
Low Medium High Low Medium High
Low
« 10 Litres)
Pacific Is. Taiwan
Malaysia
Yemen A.R.
Korea
Indonesia
Philippines
Thailand
Hong Kong
Singapore
Ireland
Greece
Bulgaria
Hungary
Czech.
German D.R.
Italy
Spain
Poland
USSR
Luxembourg Belgium
Norway Denmark
Japan
France
Medium
( 10-20 Litres)
Portugal Finland
U.A.E.
Bahrain
Kuwait
Australia U.K.
Netherlands
Austria
High
(>20 Litres)
Canada
Saudi Arabia
Sweden
Switzerland
USA
German F.R.
a
Low
Medium
High
<5 million
5-30 million
>30 million
Lv
Lv
countries with high disposable incomes also recorded the highest levels of per
capita juice consumption. Japan with its high level of protection for the
domestic juice industry, and a number of European cot.;ntries, proved exceptions
to the rule.
The Pacific Islands and all Asian and East European countries recorded per
capita juice consumption of under 10 litres. Many of these countries, however,
with their medium to high populations, and fast rates of population and income
growth, still constitute large and potentially important markets for fruit
juices.
12.4.4 Consumer Product Preferences
The mix of juice products consumed differs markedly between countries.
Consumer income, product image, and the cost and availability of juice raw
materials are all important factors influencing the mix of juice products
consumed in a particular country. Table 93 contains a summary of juice product
preferences for the countries and regions examined in previous chapters.
Only in North America and Western Europe does pure juice consumption
dominate over fruit drink consumption. Australia, Japan, Asia and the
Middle-East all tend to consume fruit drinks in preference to pure J u ~ c e s . To
some extent this preference is due to the higher cost of raw materials in these
countries, but consumer attitudes to added sugar and preservatives are also less
hostile than North America and Europe. However, in Australia especially,
consumers are becoming more aware of the attributes of particular juice
products, and are exercising greater discrimination between products, mainly on
the basis of juice content.
Nectars have quite varied images depending on the market in which they are
sold. As with juice drinks, European and United States consumers regard nectars
as less healthy and natural than pure juices, mainly as a result of the added
sugar content. Canada, Australia and the Middle-East all have a significant
demand for nectars, although in Canada the product is seen as a cheaper
alternative to pure juices. In contrast, in Australia, nectars are sold at a
premium in relation to pure juices. The Middle-East is the only market where
nectars make up a large share of the total juice market, accounting for 30 per
cent of juice sales in most Middle-Eastern countries.
Fruit flavoured carbonated soft-drinks and drink mixes tend to have a very
limited range of flavours available (mainly citrus), and contain very low pure
juice contents. The United States is the only country where drink mixes account
for a substantial proportion of overall fruit flavoured beverage consumption,
and where a wide range of flavours are available. Drink mixes with pure juice
contents of 10 per cent are gaining market share in a market dominated by
artificially flavoured mixes.
Multi-vitamin enriched fruit drinks, electrolyte sports drinks, flavoured
mineral waters (especially sparkling water), flavoured milk, flavoured cultured
milk, cordials, squashes and fruit syrups complete the mix of fruit drink
products available to consumers. Vitamin enriched drinks, sports drinks and
flavoured mineral waters are finding greatest acceptance in the higher income
industrialised economies such as the United States, Canada, Australia, Japan and
the EEC. Cordials have importance in Australia, Asia, the Middle East, the
Pacific Islands and the United Kingdom. A feature of the cordial market is the
much broader flavour spectrum available, and their positioning as a cheaper
alternative to pure fruit juices.
TABLE 93
Juice Product Preferences
Country
or
Region
Pure
Juice
Fruit
Drink
Nectar Fruit Flavoured
Carbonated
Soft-Drink
Drink
Mix
Other
United States
Canada
Australia
Japan
Pacific Islands
70% of juice consumed
pure, 30% juice drinks.
Multi-flavour trend
Dominated by orange and
apple. Tropical, berry
flavours unknown.
Mainly 25-50% juice content
products sold. Single
flavour orange dominates but
multi-flavour trend.
65% juice consumed as drinks.
Imposed mikan flavour
preference.
Little pure juice sold,
mainly to expatriates and
tourists.
Very small,
mainly
tropical
Mainly apple,
Sold at
discount
Small market,
Sold at
premiums
Limited by
lack of raw
materials
Mainly, citrus,
trend to
die t So ft Drinks
Lemon-lime
only
Citrus
flavours
Lemon-lime
and grape
Growth area.
Juice content
increasing
Small
market
Lemon. 1ime ,
orange, only
Small
market
Vitamin enriched
drinks
Electrolyte
drinks
Flavoured mineral
water
Vitamin enriched
drinks.
Cordials
Flavoured milk
Flavoured cultured
milk
Flavoured mineral
water.
Electrolyte
sports drinks
Cordials
Asia Fruit drinks dominate due to Limited by Small
cost of raw materials and cost of raw market
natural sweetness of tropical materials
fruit.
Middle-East 20% juice consumed pure. 30% market Fruit-flavour Small
50% fruit drinks (including important market
cordials and squashes).
EEC UK and Germany pure juice Small market Fruit-flavour Small
dominates, Fruit drinks except in important market
dominate in France. Germany
Cordials
Flavoured milk
Flavoured cultured
milk.
Cordials,
squashes.
Cordials in UK
Fruit flavoured
mineral waters
in Germany
Electrolyte Sports
drinks.
Europe - Non-EEC Pure juices dominate in
Western Europe. Fruit
drinks unnatural image.
Not regarded
as natural or
healthy
Dominate juice
consumption in
Eastern Europe
Fruit syrups
w
'"
consumer
Markets
packed
Pacific
136.
Overall, the markets undergoing the greatest changes in product mix
preferences would be Canada, Australia and Asia where the introduction of
aseptics is proving to be a catalyst in both increasing consumption levels and
changing the product mix towards pure juice consumption. In more mature markets
such as the United States, the EEC and the Middle-East the major changes are
occurring in respect of flavour preferences, with the proliferation of
multi-flavoured juice products. Similar changes would also occur in the
Japanese market should import restrictions on raw materials be relaxed. Canada
and non-EEC European countries tend to be more conservative in terms of flavour
preferences, with little possibility of accepting new flavours in their own
right. Exotic flavoured juices tend to be restricted to gourmet and health food
stores.
Competitively, fruit juices compete mainly with soft-drinks, bottled
water, tea and coffee, and to a lesser extent with wine and beer. While the
competitive position of fruit juices in comparison to these other beverages
varies considerably between countries, the nutritional benefits perceived from
fruit juice consumption stand out as a major factor encouraging consumer
acceptance. Other factors include price, convenient packaging and storage, and
wide distribution. The growth of bottled water sales in many countries has
mirrored the growth in fruit juice sales, at the expense of soft-dr{nk sales
which have plate'aued or declined. Sugar and caffeine free soft-drinks will
increasingly challenge further growth of fruit juice and bottled water sales ..
12.4.5 Distribution
In the majority of fruit markets, the retail sector accounts for
over 85 per cent of all fruit juice sales (Table 94). Only in the United States
and Western Europe (including EEC) does the foodservice sector account for
between 25 and 30 per cent of sales.
For the markets where the foodservice sector accounts for only 10 to 15
per cent of total sales, the sector tends to be dominated by hotels and
restaurants catering for higher income consumers (including tourists). Hence,
though a small segment of the fruit juice market, premium prices are paid.
Supermarkets account for the major proportion of retail sales in most
countries. In North America, Australia, Japan and Europe, supermarkets compete
for custom largely on the basis of price Gourmet and health
food shops cater for consumers who are convenience rather than price conscious
and so tend to reach higher income consumers. In the Pacific Islands, the
Middle-East and Asia, supermarkets tend to be important for higher income
nationals and expatriates. Price is not always the most important factor
influencing buying decisions for these purchasers, who prefer high quality
internationally known branded products.
12.4.6 Access
In many countries tariff and quantitative barriers markedly limit the
growth of fruit juice consumption as well as limiting the range of flavours
available to consumers. Japan, Eastern Europe and Asia (excluding Hong Kong and
Singapore) are all markets where little prospect exists for significant export
growth.
It is significant that trade barriers for bulk packed juice and
packed juice do not tend to be significantly different in most markets.
with high trade barriers exclude major imports of both bulk and consumer
juice (Table 95). North America, Australia, Hong Kong, Singapore, most
TABLE 94
Importance of Distribution Outlets for Fruit Juice Product Sales
Country
United States
Canada
Australia
Japan
Pacific Islands
Asia
Middle-East
EEC
Europe - Non EEC
West European
East Eurepeaa
Retail
70% sales, largely supermarkets but
also specialist health food shops
selling single-serve take-away food.
Supermarkets very price competitive,
health food shops not.
85% sales, largely supermarkets
90% sales, largely supermarkets
85% sales
Supermarkets important for higher income
expatriate populations.
Supermarkets important for higher income
nationals and expatriate population .. S u p e r ~
markets for price conscious low income
nationals don't stock imported goods.
Supermarkets most important outlets.
Bazaar trade and superettes important for
lower income consumers.
75% sales supermarkets, grocers, dairies,
home delivery. Exotic juices important in
gourmet and health food shops.
75% sales.
95% sales.
a
Foodservice
30% sales, 85 per cent of which in commercial
catering. Limited flavour lines sold except
in hotels/motels. 15% foodservice sales in
non-commercial catering, including military
and government. Vending sales in schools
increasing with ban on carbonated drinks.
15% sales.
10% sales.
15% sales, especially restaurants and non-
commercial catering.
Hotels, cafes, important for tourist trade.
Hotels and restaurants important for tourists
from Europe, North America and Asia.
Growth of fast food outlets.
Hotels a small outlet, sell only premium
quality and priced products.
25% sales, 80% of which from commercial
catering, 20% non-commercial.
25% sales.
5% sales.
a
Foodservice includes:
(i) commercial catering - restaurants, cafes, bars, taverns, hotels, motels, sports centres, mobile caterers.
(ii) non-commercial catering - employee canteens, educational institutions, hospitals, community centres.
(iii) government and military institutions.
138.
Islands, the Middle-East, the EEC (as long as there is no added sugar) and some
other European countries all have low to medium trade barriers. Developing
countries (the major suppliers of tropical juices) usually obtain preferential
treatment, often free access, in the tariff schedules of most countries.
TABLE 95
Barriers to Access for New Zealand
Country
United States
Canada
Australia
Pacific Islands
- New Caledonia, Fr. Polynesia
- Fiji, Papua New Guinea
- Others
Asia
- Singapore
- Other
Middle-East
EEC
Europe - Non-EEC
- Western Europe - Sweden
- Austria, Switzerland
- Eastern Europe
Bulk-Packed Consumer-Packed
Juice Juice
Low Low
Low Low
Free Free
High High
Medium Medium
Low-Medium Low-Medium
Free Free
High High
Low Low
. a
. h
a
Low-Hlgh Low-Hlg
Low Low
High High
High High
Low =
Medium =
High =
less than 25% tariff
25-50% tariff
Import quotas, over 50% tariffs, or preferential trade
with other countries.
a
High if added sugar, and due to preferential trade with Third World.
12.4.7 Market Opportunities
Having categorised the countries surveyed in this report according to
their level of domestic JUlce production, trade in fruit juice, income,
population, the level of juice consumption and product preferences, and taking
account of access barriers, a number of product-market opportunities can be
identified (Table 96). Generally, these opportunities exist for any potential
exporter, the successful exporter being able to provide the appropriate products
more successfully than competitors. While particular flavour preferences have
not been noted, the markets chosen tend to be those more receptive to new
flavours. Thus, while the Netherlands, Belgium and Luxembourg are markets with
TABLE 96
Product - Market Opportunities
1m artant Market Features
Size of Importer I Consumer JUice Populat ion Access Products of Target Dist r ibut ion
Country Damest ic Exporter (El: Income Consumpt ion Barriers Greatest Consumers Out lets
Juice or Potential
Product ion Re-Exporter (al
United States Large High High High Low Pure Juice Cinci. Upper income. Health food
mul t i-flavours t multi- Two- income househo Ids J shops
vitamin) 18-44 year aIds. Supermarkets
Drink Mixes working women Hotels, motels.
Flavoured mineral water Sports clubs
Electrolyte sports drinks
Canada Medium High High Medium Low Pure Juice ( incl. Upper income Gourmet and
multi-vitamin) health food
shops
Australia High High Medium Medium Low Pure juice Upper income Health food
Nectar shops
Flavoured mineral water Supermarkets
Fruit drinks ( incl. Middle Income Supermarkets
multi -flavours) Youths
Cordials
Pacific Islands Low Low-High Low Low Medium Pure juice Upper income indigenous Hate Is.
popn, expatriates and Supermarkets
tourists
Cordials Lower income Supermarkets
Singapore. Low R, I Medium Low Low Low Pure juice Upper income ind igenous Hote Is,
Hong Kong Fruit drinks popn, expatriates and Supermarkets
tourists
Cordials Lower income Supermarkets
lliddle-East Low High High Low-Medium Low Pure Juice Upper income indigenous Hotels.
Necter popn. and expatriates Supermarkets
Fruit Drinks Lower income Supermarkets
Cordials, Squashes
Germany, Fed. High R High High High Medium Pure Juice (incl. Middle-Upper income Supermarkets
Rep. of mul t i-flavours, multi- Health food
vitamin) shops,
Flavoured mineral water Foodservices
United Kingdom Low High Medium High Medium Pure Juice ( incl. Upper income Supermarkets,
multi -flavours) Health food
shops,
Foodservices
Sweden Low High High Medium Low Pure Juice Middle-Upper income ~ e a l th food
shops,
Supermarkets f
W
Foodservices
'f'
140.
similar characteristics and product preferences as Germany, consumers in these
countries are regarded as conservative in terms of accepting new flavours.
Overall, it is clear that the majority of opportunities are for pure JUl.ce
products, aimed at more affluent consumers. Multi-flavoured products are likely
to be important in a number of markets. Flavoured sparkling mineral water,
nectars,and cordials have potential in a more limited number of markets.
12.5 Conclusion
The preceding discussion has identified a number of markets in which
specific opportunities exist for exporters of fruit juice products. The ability
of New Zealand to exploit these opportunities depends on a number of factors not
covered in this report. These factors include:
1. The cost at which New Zealand fruit-growers can produce processing quality
fruit: New Zealand's fruit growing industry, especially those growers producing
export quality fruit, is fresh fruit orientated. Orchards tend to be small
scale and labour intensive. While processing into juice is a convenient method
of disposing of excess or unmarketable fresh fruit, a juice processing industry
based on such an input will tend to be high cost in comparison to overseas
industries. It is significant that the internationally competitive Brazilian
and United States juice industries, and the developing tropical fruit juice
producing Asian industries, are both large scale and almost exclusively
processing orientated.
The quality of fruit JUl.ce produced by New Zealand juice processors will
also be affected by the fresh fruit orientation of the industry. Varieties
required for the fresh market may not have optimal processing characteristics.
2. The juice flavours produced by New Zealand: It is apparent that acceptance
of a juice flavour in the international market is closely associated with the
image and acceptance of the associated fresh fruit. Thus, New Zealand juices
will find g r e a ~ e s t acceptance in markets where fresh fruit marketing is well
developed, and the New Zealand fruit is regarded as a premium fruit. Hence, for
example, kiwifruit juice will find a ready markets in both North America and
Europe, whereas blackcurrant juice would be restricted to, at most, health food
shops.
3. Relative transport costs of exporting consumer packed juice and bulk packed
product: Given New Zealand's isolation, on-shore consumer packaging may be
unprofitable, requiring the development of off-shore processing and packaging.
4. Retaining the identity of New Zealand juice products: Associated with the
probable need to engage in off-shore processing and packaging is the problem of
retaining a separate identity for juices originating in New Zealand. Simply
exporting raw materials to the beverage industry in importing countries for sale
under foreign labels turns New Zealand juice into a commodity. Since New
Zealand is unlikely to be a low cost supplier, New Zealand juice would not
compete well with much larger scale competitors. Any off-shore processing and
packaging would have to be done so that the resultant product was still
identified and promoted as originating from New Zealand. The development of a
New Zealand identity would also require a diversified range of flavours in a
product line. A single flavour of one product type is unlikely to create much
impact in the market, unless accompanied with massive promotion (as Sunkist
Orange and 7UP lemon-lime have done in the soft-drink market). An additional
problem in retaining a New Zealand identity is the trend for supermarket chains-
14 I.
to sell fruit juice and other products under their own label.
It can be concluded that while opportunities do exist on many markets for
fruit juice products, the markets are extremely competitive. Successful
exporters will be those who ensure production costs are contained, and who pay
great attention to the positioning of their product, in terms of product image,
distribution outlets, and pricing, on the market.
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RECENT PUBLICATIONS
RESEARCH REPORTS
113: An Economic Survey of New Zealand Wqeatgrowers; Enterprise
Analysis, Survey No.4 1979-80, R.D. Lough, RM. MacLean,
P.]. McCartin, M.M. Rich, 1980.
114. A Review of the Rural Credit System in New Zealand, 1964 to
1979, ].G. Pryde, S.K Martin, 1980.
115. A Socio- Economic Study of Farm Workers and Farm Managers,
G.T. Harris, 1980.
116. An Economic Survey of New Zealand Wheatgrowers: Financial
Analysis, 1978-79, RD. Lough, RM. MacLean, P.]. McCartin,
M.M. Rich, 1980.
117 Multipliers from Regional Non-Survey Input-Output Tables for
New Zealand, 1.]. Hubbard, W.A.N. Brown. 1981.
118 Survey of the Health of New Zealand Farmers: October-November
1980, ].G. Pryde, 1981.
119 Horticulture in Akaroa County,
RL. Sheppard, 1981.
120. An Economic Survey of New Zealand Town Milk Producers, 1979-
80, RG. Moffitt, 1981.
121. An Economic Survey of New Zealand Wheatgrowers: Enterprise
Analysis, Survey No.5 1980-81, R. D. Lough, P.]. McCartin,
M.M. Rich, 1981.
122. An Economic Survey of New Zealand Wheatgrowers: Financial
Analysis 1979-80, RD. Lough, P.J. McCartin, M.M. Rich,
1981.
123. Seasonality in the New Zealand Meat Processing Industry, R.L.
Sheppard, 1982.
124. The New Wheat andFlour Industry: Market Structure and
Policy Implicaliom, B.W. Borrell, A.C. Zwart, 1982.
125. The Ecomomics' of Soil Conservation and Water Management
Policies in the Otago High Country, G.T. Harris, 1982.
126. Survey ofNew ZealandFarmer Intentions and Opinions, September-
November, 1981, ].G. Pryde, 1982.
127. _ The New Zealand Pastoral Livestock Sector: An Econometric Model
(Version Two), M.T. Laing, 1982.
128. A Farm-level Model to Evaluate the Impacts of Current Energy
Policy Options, A.M.M. Thompson, 1982.
, 129.' An Economic Sur1Jey ofNew Zealand Town Milk Producers 1980-
81, RG. Moffitt, 1982
. 1'30. The New Zealand Potato Marketing System, R.L. Sheppard,
198,2.
131. An Economic Survey of New Zealand Wheatgrowers: Enterprise
Analysis, Survey No.6, 1981-82, RD. Lough, P.]. McCartin,
M.M. Rich, 1982.
132. An Economic Survey of New Zealand Wheatgrowers: Financial
Analysis, 1980-8.', RD. Lough, P.]. McCartin, 1982.
133. Alternative Managemmt StrategieJ and Drafting Policies for
hrigated Canterbury Sheep Farms, N.M. Shadbolt, 1982.
134. Economin of the Sheep Breeding ,operations of the Department of
Lands and Survey, A.T.G. McArthur, 1983.
135. Water and Choice ill Callterbury, KL. Leathers, B.M.H. Sharp,
W.A.N. Brown, 1983
136. Survey of New Zealand Farmer Intentllitls tl1ld OpinionJ, Odober-
De{ember, 1982,].G. Pryde, P.]. McCartin, 1983.
137. Inwrtllletlt tlnd SliPI,ll' ReJplJ1lJe ill til(' New Zmltllld PaJtoral
Sector: All EClitllillletric Model, M.T. Laing, A.C. Zwart, 1983
138. The World S/>eepmeat Market: till econometric model, N. Blyth,
1983.
139. An Economic Survey ofNew Zealand Town Milk Producers, 1981-
82, RG. Moffitt, 1983.
140. Economic Relationships within the Japanese Feed and Livestock
Sector, M. Kagatsume, A.C. Zwart, 1983.
141. The New Zealand Art/ble Sedor: Foreli;n Excbtttlge Implict/tilJ1lJ,
R.D. Lough, W.A.N. Brown, 1983.
142. An Economic Survey of New Zealand Wheatgrowers: Enterprise
Analysis, Survey No.7, 1982-83, RD.Lough, P.]. McCartin,
1983.
143. An Economic Survey of New Zealand Wheatgrowers: Financial
Analysis, 1981-82, RD. Lough, P.]. McCartin, 1983.
144. Development of the South Canterbury-Otago Southern Bluefin
Tuna FIshery, D.K O'Donnell, RA. Sandrey, 1983.
145. Potatoes: A Consumer Survey of Auckland, Wellington and
Chrzstchurch Households, RL. Sheppard, S.A. Hughes, 1983.
146. Potatoes: Distribution and Processing, S.A. Hughes, R.L.
Sheppard, 1983.
147. The Demandfor Milk: An EconometricAnalYSISofthe NewZealand
Market, R]. Brodie, RG. Moffitt, ].D. Gough, 1984.
148. Tbe Christchurch and New Zealand Eating Out Markets, A. van
Ameyde, R]. Brodie, 1984.
149. The Economics of Controlling Gorse in Hill Country: Goats versus
Chemicals, M.A. Krause, A.C. Beck, ].B. Dent, 1984.
150. The World Market for Fruit Juice Products: Current Situation and
Prospects, M.T. Laing, RL. Sheppard, 1984.
151. The Economics of ControlledAtmosphere Storage and Transportfor
Nectarines, Apples and Kiwifruit, M T. Laing, RL. Sheppard,
1984.
DISCUSSION PAPERS
60. A Review of the World Sheepmeat Market: Vol. I - Overview of
International Trade, Vol. 2 - Australi,2. New Zealand Argentina,
Vol. 3 - The EEC (10), VolA - North America, Japan & The
Middle East, Vol. 5 - Eastern Bloc, U.S.S.R. & Mongolia,
N. Blyth, 1981.
61. An Evaluation of Farm Owr.'ershlp Savings Accounts,
KB. Woodford, 1981.
62. The New Zealand Meat Trade in the .'980's: aproposalfor change,
B.]. Ross, RL. Sheppard, A.C. Zwart, 1982.
63. Supplementary Minimum Prices: a /iroduction incentive? RL.
Sheppard, ].M. Biggs, 1982.
64. Proceedings ofa Seminar on Road in Rural Areas, edited
by P.D. Chudleigh, A.]. Nicholson, 1982. -
65. Quality in the New Zealand Wheat and Flour Markets, M.M.
Rich, 1982.
66. Design Considerations for Computer Based Marketing and
Information Systems, P.L. Nuthall, 1982.
67. Reaganomics and the New Zealand Agricultural Sector, R.W.
Bohall, 1983.
68 Energy Use in New Zealand Agricultllral Production, P.D.
Chudleigh, Glen Greer, 1983.
69 Farm Finance Data: Availability and RequirementJ, Glen Greer,
1983
70. The Pastoral Livestock Sector and the Supplementary Minimum
Price Policy,M.T. Laing, A.C. Zwart, 1983.
71. Marketing Institutions for New Zealand Sheepmeats,A.C. Zwart,
1983.
72. Supporting the Agricultural Sector: Rationale and Policy, P.D.
Chudleigh, Glen Greer, RL. Sheppard, 1983.
73. Issues Related to the Funding of Primary Processing Research
Through Research Associations, N. Blyth, A.C. Beck, 1983.
74. Tractor Replacement Policies and Cost MinimIsation, P.L.
Nuthall, KB. Woodford, A.C. Beck, 1983.
75. Tomatoes and the Closer Economic RelationshIp with Australia,
RL. Sheppard, 1983.
76. A Survey ofFarmers' Attitudes to Information, RT. Lively, P.L.
Nuthall, 1983.
77. Monetary Policy and Agricultural Lending by Private Sector
Financiailnstitutions, RL. St. Hill, 1983.
78. Recreational Substitutability and Carrying Capacity for the Rakaia
and Waimakariri Rivers, B. Shelby, 1983.
79. "ConsiderJapan": Papersfrom a Seminar Conductedby theJapan Centre
of Chl'1stchurch, Edited by RG. [Ylorntt,19M.
80. Deregulation: Impact on the Christchurch Meat Industry, RL.
Sheppard, D.E. Fowler, 1984.
81. Farmers Record Keeping andPlanning Practices: apostal survey,
]. Ryde, P.L. Nuthall, 1984.
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