November, 1999
Anti-dumping suit, small crop boosting apple prices
by Karen Gentry
Prices for apple juice concentrate and processing apples are on the rise,
because of an anticipated favorable ruling on the United States’ anti-dumping
suit against China and a predicted 7% smaller crop.
Domestic prices for apple juice concentrate were at $7 per gallon (f.o.b. Wash.) and prices for processing apples in Washington were $85 per ton, according to an Oct. 11 report from the Food Institute.
In comparison, concentrate was $4.25 per gallon in October
1998 while the average price nationally for juice apples at the end of September
1998 was $20 per ton, also according to the Food Institute.
In Michigan, minimum prices for juice apples for the 1999-2000 crop were
set at $90 per ton in prices negotiated by the Michigan Processing Apple
Growers Marketing Committee, compared to $70 per ton last year.
The other push on price is coming from importers worrying about the potential announcement of dumping duties on Chinese concentrate. As of Oct. 12, there was no apple juice concentrate coming in from China, according to Justin Marsling, analyst for the Food Institute. Industry representatives speculate that importers are reluctant to purchase product from China as they expect the anti-dumping ruling to be made retroactive by 90 days.
“The complaint in itself is having a positive effect on the price of concentrate around the world,” said Tom Butler, manager of the Michigan Processors Apple Growers Division of the Michigan Agriculture Cooperative Marketing Association (MACMA).
The price for processing apples will likely rise even further in December as soon as the glut of apples is cleaned up, according to Butler, whose organization represents 750 Michigan growers who produce the majority of the state’s apples.
The final forecast of the 1999 apple crops in the U.S. is estimated at 10.6 billion pounds, up slightly from the August 1 forecast, but down 7% from last year’s production, according to the Food Institute report.
“We have seen a strengthening of the cash market value for processing apples,” said Pat Moss, corporate communications manager for Tree Top Inc., a grower-owned cooperative representing 2,500 growers in Washington, Oregon and Idaho who grow primarily for the fresh market. She said that last year at this time juice apples were $10 a ton in the West. Moss said after the anti-dumping case was filed on June 7 there was a tremendous increase of product from China, but as the cased has progressed this influx is “down to a trickle.”
“We think the process is working and it’s very important for the Department of Commerce to issue a decision on this and see the case through to a conclusion,” Moss said.
Letters signed by United States representatives and senators urged the Department of Commerce to rule on the anti-dumping complaint against unfair prices of Chinese apple juice concentrate imports at the earliest possible date, not later than Oct. 5.
A spokeswoman from the Department of International Trade Administration Office of Public Affairs said information is being gathered from all the parties involved and the Department of Commerce will rule in a few weeks or a few days. The request to rule by Oct. 5 was not met.
The suit alleges that China is selling apple juice concentrate in the U.S. market at prices 91% below its cost of production, causing severe economic injury to domestic concentrate producers.
