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NEW GRADING AND MARKETING STANDARDS FOR CHINA
- DR. RANDY D.HUDSON
NATIONAL PECAN GROWERS COUNCIL
STANDARDS FOR CHINA DR. RANDY D.HUDSON NATIONAL PECAN GROWERS - - PowerPoint PPT Presentation
STANDARDS FOR CHINA DR. RANDY D.HUDSON NATIONAL PECAN GROWERS - - PowerPoint PPT Presentation
NEW GRADING AND MARKETING STANDARDS FOR CHINA DR. RANDY D.HUDSON NATIONAL PECAN GROWERS COUNCIL CHINA China A Very Important Market Shan He Tao [$5.00/LB.] Bi Gen Guo [$12.00/LB.] Chang Shou Guo
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China – A Very Important Market
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山核桃 Shan He Tao [$5.00/LB.] 碧根果 Bi Gen Guo [$12.00/LB.] 长寿果 Chang Shou Guo [$30.00/LB]
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HIGH VALUE MAIL ORDER BUSINESS
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2012 POOR US QUALITYISSUES CHINA STANDARDS PROPOSAL
- Proposed By China in 2012
as a result of disputes between US Pecan Industry and Chinese Processors
- Problems involved
contracted quality issues concerning grade, count and uniformity
- The first Chinese
Standards were released for comment in Spring 2013
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BEIJING SUMMIT ON GRADING AND STANDARDS
December, 2013
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Pecans Are Not Uniform In Size and Shape as Other Nuts
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Explaining the Impact Of Grading and Market Standards on the Pecan Industry and China Markets Beijing, China December, 2013
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China Grading and Standards
- Count / Size
– Number of Nuts Per Pound
- Grade
– Per Cent Kernel (Meat) to Shell
- Uniformity
– Size Variability and Shape
- Moisture
– < 4%
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OVERSIZE JUMBO <45 <55 EXTRA LARGE 46 -55 56 - 63 LARGE 56 – 63 64 - 77 MEDIUM LARGE 64 - 77 NO DESIGNATION MEDIUM 78 – 95 78 - 95 SMALL 96 – 120 96- 120
THE COMPARATIVE DIFFERENCES BETWEEN UNITED STATES AND PROPOSED CHINA STANDARDS ON SIZE
CHINA UNITED STATES
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STUART 45 - 50 44 - 50 WESTERN 57 - 60 54 - 60 DESIRABLE 52 - 54 48 -54 WITCHITA 58 - 62 54 - 62 PAWNEE 58 – 60 56 - 60 CAPE FEAR 54 - 56 50 - 56 MONEYMAKER 43.- 48 42– 48
VARIETY CHINA UNITED STATES
PROPOSED “STANDARD” GRADES FOR SELECT VARIETIES
1) ANY PECAN GRADING BELOW THE PROPOSED LEVEL WOULD BE CONSIDERED “SUB-STANDARD”
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1) THE PRODUCT SHALL FORM A SINGLE GRADE SAMPLE – PURE BY VARIETY 2) IN A PRODUCT CONSISTING OF 2 OR MORE TYPES, THE MAJOR TYPE SHALL CONSTITUTE 92% OF THE TOTAL PRODUCT(S) 3) A PRODUCT CONSISTING OF LESS THAN 92% OF MAJOR TYPE OF 2 OR MORE PRODUCTS IS TO BE CALLED A BLEND, WITH BLEND TYPE DESIGNATION CONSISTING OF MORE THAN 75% OF TOTAL. 4) THE MINIMUM WEIGHT OF THE 10 SMALLEST NUTS IN A 100 NUT SAMPLE MUST EXCEED 7% OF TOTAL. (SAME AS USDA)
UNIFORMITY
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STANDARDS SIGNING CEREMONY
BEIJING, CHINA SEPTEMBER, 2014
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“SIZE, QUALITY AND UNIFORMITY”
- LARGER THE NUT, HIGHER THE PRICE
– DESIRABLE, OCONEE, MAHAN, STUART, SUMNER
- NUTS NEED TO BE SIZED
– JUMBO/EX. LARGE 14 – 16 ($2.45) ($2.90) – LARGE/MED.LARGE 12 – 13 ($1.60) ($1.60)
- NUTS NEED TO BE BLOWN TO REMOVE POPS AND
OFF-QUALITY NUTS (30% BLENDED WITH 52%)
- LOADS NEED TO BE UNIFORM
- (LONG SHINNY NUTS WITH SHORT FAT ONES)
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China Consumption and Impact
- China Imports 30-40% of
US Production (60–100 million pounds annually)
- China Consumes Nearly
70% of Eastern US Production
- Has a Direct Impact on the
price of Large Seeded Nuts > $50-$60 M Annually
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Significant Tariff Reduction
- Reduced From 24% to 10%
- A 14% reduction
Adds an additional $50-75 million in Market Opportunity
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Recent Effects of Standards Effort
1) Set of rules to govern and standardize the international trade of pecans between US and China 2) Tariff reduction from 24 to 10% 3)International HS Code
– 0802909040
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Free Port Zones Mainland In China
- Tariff Free
- Free transportation from Port to Zone
- Bonded Freezer Storage Space
- No storage or Tariff Charges until Sold
and taken from Free Port Trade Zone by Customer