12. Equivalent. Producer
4.5 Government policies affecting the citrus sector in Syria
According to interviews with some experts and official employees who are working directly or indirectly within the citrus sector in Syria240, the Syrian government policies which affect the citrus sector could be divided as follows:
1. Policies related to production: Since 1992 the Syrian government has applied the biological control programs in order to decrease production cost and to produce special, clean, and free of chemicals fruit. The Ministry of Agriculture and other concerned authorities have offered also all necessary support to enhance both quality and quantity of citrus in Syria. The great expansion that happened in the last twenty years was a result of a lot of efforts done by the government to develop the production of citrus which has become one of the most important crops. These efforts can be summarized as following:
Introducing high yielding varieties and supporting programs for land reclamation.
240 The surveyed persons included some wholesalers, exporters, packers within fruit and vegetable markets and some large growers in addition to experts and official employees in the SMAAR and Ministry of Trade and Economy and their research bodies.
147
Cultivating supported seedlings in governmental nurseries.
Providing the necessary requirements, extension services, and the Integrated Pest Management programs (IPM).
These procedures, which have been accompanied by high prices of domestic citrus fruit, have enhanced their produce and the profitability.
The production planning system has contributed to a great extent to the expansion of citrus cultivation. Credits are provided by the Agricultural Cooperative Bank (ACB) in order to enhance citrus production, to encourage farmers to use new irrigation systems and to improve the quality of citrus and to serve citrus groves by public irrigation nets for low and subsidized prices. Furthermore, as a result of the recommendations proposed by the Ministry of Agriculture and Citrus Bureau, the government issued in 1987 a resolution that bans the importation of orange seedlings, which was one of many resolutions issued for the sake of enhancing citrus production.
2. Policies related to processing: Import taxes are imposed on imported orange concentrates (29% for the concentrate of orange juice used for the industry and 102%
for the concentrate used for orange juice). The members of the Great Arab Free Trade Area (GAFTA) have been exempted from paying these taxes since 2005.
3. Policies related to transportation: The Ministry of Economy and Trade issued on 18 May 2002 resolution No. 672 which illustrates that all private importers are allowed to import used freezing cars and trailers either from original or non-original countries under some conditions like year of head manufacturing is not exceeding five years (including the year of manufacturing). Foreign currency earnings from exporting fruit and vegetables can be used as payments for these cars241.
4. Policies related to trade: A lot of procedures and instructions have been introduced to facilitate export such as:
Exempting agricultural exports from agricultural production and income taxes242.
Eliminating the procedures of compensating the value of imports from foreign currency earned. Another privilege that exporters can make use of is the ability to keep 100% of their foreign currency earnings from exporting fruit and vegetables. They are free to do whatever they want concerning their
241 Imported used freezing trailer should be as one join unit (head of engine with its body).
242 Legislative decree No. 15 issued on 3 July 2001.
148 exportation returns like selling them through the Commercial Bank of Syria as the prices of circulating currencies in the neighboring countries for non-commercial transactions. In the same way, through the Commercial Bank of Syria they can sell them to other traders or cover the value of imports243.
To encourage the industrial private sector and to reduce the transportation cost the legislative decree No. 48 has been issued on 4 August 1998. This legislative decree declares that Syria joined the TIR Treaty244. Consequently, the imposts on the Syrian tracks were reduced.
The Ministry of Transportation issued on 24 September 2001 the generalization No. 17854 to allow Turkish tracks into Syria in order to freight Syrian fruit and vegetables to Western European countries.
The Syrian-European Association Agreement.
The import of orange was banned on 4 August 1981 through the resolution No.
1466 issued by the Syrian Prime Minister. However, after joining GAFTA in 1998 Syrian traders began importing and exporting their products according to the agricultural calendar of GAFTA members.
Other reforms in the agricultural trade policies includes permitting of importing formerly banned products like some tropical fruit concentrates (resolution No. 7207 that issued by Ministry of Economy and Trade in 2003)
Private exporters of fruit and vegetable are allowed to import used lines of packing and waxing, stipulated that manufacturing year is not exceeding four years.
Export is opened to private exporters and exported agricultural products, with their containers, are exempted from taxes. Furthermore, exporters are compelled to put labels on exported products explaining product characteristics, name of the company, and the address of the factory. In addition, exporters are committed to declare that all the exported products are controlled according to the standard characteristics in destination countries.
243 The resolution No. 1100 issued by Ministry of Economy and Trade on 15 July 2003.
244 The Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention) was made at Geneva on 14 November 1975 to simplify and harmonize the administrative formalities of international road transport. The TIR Convention or International Road Transport Convention was adopted under the auspices of the United Nations Economic Commission for Europe (UNECE).
149 5. Supply chain analysis of the fresh citrus fruits market in the EU 5.1 World market of citrus fruit
5.1.1 World production
According to the Food and Agriculture Organization Statistical database (FAOSTAT) in 2010, total citrus fruit production accounted for nearly 20% of the world production of fruit between 1999 and 2009. However, it increased slightly by 1.6% during the same period245 from about 104.5 million tons in 2009 to approximately 122.8 million tons in 2009 (Figure 31).
Figure 31: Citrus fruit world production during 1999-2009 by product; Unit: M.T.
Source: Own figure based on (Appendix 26)
In 2009 oranges production accounted for nearly 55% of total citrus production, equivalent to 67.6 million tons approximately. Its AAGR during 1999 and 2009 was 0.9%. The mandarins group246 represented about 17.9% of total citrus fruit production in 2009, and its production increased very slightly by 0.8% from about 20.3 million tons in 1999 to 22 million tons in 2009. Lemons and limes production grew by 3.3%, over the same period, from 10.5 million tons in 1999 to 14.5% in 2009. It constituted about 11.8% of total citrus production in the same year.
245 All the AAGR percentages were calculated by researcher based on appendix 26.
246 It includes mandarins, clementine, tangerines etc.
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Oranges
150 Other citrus fruit247 products accounted for 9.6% of production in 2009 and their production increased by 5.8% from about 6.7 to 11.8 million tons during 1999-2009. Grapefruit production248 accounted for 5.7% in 2009; its production increased by 3.3% from about 5.1 to 7 million tons during the same period (Figure 31)249.
Citrus fruits are produced in nearly 104 countries with 70% of production centered particularly in Brazil, Mediterranean countries, the United States, and China (Figure 32).
Figure 32: World citrus fruit production in 2009 by country; Unit: %
Source: Own figure based on (Appendix 27)
Table 47 illustrates the most important countries in producing the different types of citrus fruits over the world in 2009/10.
247 It means citrus fruit, nes.
248 It includes pomelos.
249 All citrus fruit products’ share from the total citrus fruit production were calculated by researcher and based on appendix 26.
151 Table 47: Main producer countries of citrus fruit in 2009/2010 by product; Unit:
% of total world production Country
Oranges Brazil 31.8%, United States 15.4%, China 13.4%, EU12.9%, Mexico 8.4%, other countries 18.1%
Mandarins group China 65%, EU 14%, Japan 5.1%, Turkey 3.9%, Morocco 2.9%, other countries 9.1%
Lemons and limes Mexico 31.8%, EU 19.5%, Argentina 16.8%, Turkey 13.2%, United States 13.4%, other countries 5.4%
Grapefruits and pomelos China 53.4%, United States 20.7%, South Africa 6.3%, Mexico 7.4%, Turkey 3.5%, other countries 8.8%
Source: Own table based on (USDA, 2012)
5.1.2 World trade in citrus fruit 5.1.2.1 World exports
Figure 33 shows that the total world exports of grapefruit and lemons decreased very slightly by approximately 1.2% and 0.1% respectively between 2006/07 and 2009/10. However, the total world exports of citrus fruit increased due to the clear increase in total world exports of oranges and mandarins group by 6% and 9.4% respectively during the same period250.
Figure 33: World exports of citrus fruit during 2006/07-2009/10 by product; Unit:
1000 M.T.
Source: Own figure based on (USDA, 2012)
152 In 2009/10 South Africa was the main exporter of oranges in the world with 27.7%, followed by Egypt with 22.5% and the United States with 17.7%. The exports of these three countries accounted for more than 50% of total orange world exports. Other main exporters of other citrus products fruits are illustrated in Table 48.
Table 48: Main citrus fruit exporting countries in 2009/2010 by product; Unit: %
of world exports
Country
Oranges South Africa 27.7%, Egypt 22.5%, United States 17.7%, EU 7.2%, Turkey 5.5%, other countries 19.3%
Mandarins group China 36.1%, Turkey 16.7%, Morocco 16.4%, EU 13.5%, South Africa 5.7%, other countries 11.6%
Lemons and limes Mexico 30.6%, Turkey 29.6%, Argentina 18%, South Africa 9.9%, United States 6.3%, other countries 5.6%
Grapefruits and pomelos United States 28.8%, South Africa 22.2%, Turkey 18.3%, China 14.2%, Israel 10%, other countries 6.5%
Source: Own table based on (USDA, 2012)
5.1.2.2 World imports
The total world imports of citrus fruit increased due to the obvious increase in total world imports of oranges, mandarin group, and lemons by 2.2%, 8.6%, and 2.2%, respectively during 2006/07-2009/10. The total world imports of grapefruit decreased slightly by 1.5%
over the same period251 (Figure 34).
Figure 34: World imports of citrus fruit during 2006/07-2009/10 by product; Unit:
1000 M.T.
Source: Own figure based on (USDA, 2012)
153 In 2009/10 EU countries were the main importers of oranges in the world with 28.8%, followed by Russia with 14.4% and Saudi Arabia with 8.4%. During the same year, the EU countries imported nearly 49% of total world production of grapefruits and pomelos. The EU, the US, and Russian imports of lemons and limes accounted more than 75% of total lemon world imports. Table 49 shows the other main importers of other citrus products fruits.
Table 49: Main citrus fruit importing countries in 2009/2010 by product; Unit: %
of world imports
Country
Oranges EU 28.8%, Russia 14.4%, Saudi Arabia 8.4%, Canada 6.1%, United Arab Emirates 4.5%, other countries 36.5%
Mandarins group Russia 31.1%, EU 21.9%, Vietnam 10.6%, Indonesia 8.4%, Ukraine 7.6%, other countries 20.6%
Lemons and limes EU 32.9%, United States 28%, Russia 14.7%, Saudi Arabia 5.9%, Canada 4.5%, other countries 14%
Grapefruits and pomelos EU 49.1%, Japan 20%, Russia 13.4%, Canada 5.8%, Ukraine 2.7%, other countries 7.8%
Source: Own table based on (USDA, 2012)
5.1.3 World fresh citrus fruit domestic consumption
Figure 35 illustrates that the total world consumption of oranges, grapefruit, and mandarin group increased by 3.7%, 7.6%, and 12.1% respectively during 2006/07-2009/10. China’s citrus fruit market witnessed the largest increase in domestic consumption of these three products over the same period252.
Figure 35: World fresh domestic consumption of citrus fruit during 2006/07-2009/10 by product; Unit: 1000 M.T.
Source: Own figure based on (USDA, 2012)
154 On the other hand, the total fresh consumption of lemons and limes decreased very slightly by 0.1% between 2006/07 and 2009/10. This decline indicates that the main consuming countries of lemons and limes are nearly the same main producing countries, as shown in Table 47 and Table 50.
As presented in Table 50, China was the main consuming country of oranges, grapefruit, and mandarin group in 2009/07. EU countries came into the second place (19.9%, 10.1%, and 13.8% respectively). Regarding lemons and limes EU, Mexico, and the United States consumed more than 70% of the marketed quantities in the same year.
Table 50: Main citrus fruit consumers’ countries in 2009/2010 by product; Unit: %
of world consumption
Country
Oranges China 21.7%, EU 19.9%, Brazil 16.8%, Mexico 11%, United States 4.7%, other countries 25.9%
Mandarins group China 63.8%, EU 13.8%, Japan 4.9%, Russia 2.9%, United States 2.6%, other countries 11.9%
Lemons and limes EU 32.7%, Mexico 27%, United States 17.3%, Turkey 6.8%, Russia 4.9%, other countries 11.3%
Grapefruit and pomelos China 62.9%, EU 10.1%, United States 8.8%, Mexico 6.6%, Japan 3.8%, other countries 7.8%
Source: Own table based on (USDA, 2012)
5.2 Citrus fruits market in EU