The following GAIN reports were released on December 15, 2023.

Canada: Canada Announces First Cattle Methane Emission Reduction Protocol

Canada proposes a draft protocol, under its Greenhouse Gas Offset Credit System Regulations, to incentivise feedlot operators implement changes to reduce enteric methane emissions from beef cattle, and to generate carbon offset credits. Comments on the draft protocol are accepted until February 6, 2024, with a final protocol expected to be published in summer 2024.

Costa Rica: Craft Beer Seminar Highlights Sector Growth and Progress

A July 29 seminar brought together roughly 100 Costa Rican craft brewers, retailers, restauranteurs, and enthusiasts to promote new brewing products and training courses to further develop the Costa Rican craft beer sector. FAS/San José expects increased sales of featured U.S. products (including hop resin extract, malt, and other brewing inputs) over the next 12 months and will continue to work with importers and craft brewers to differentiate U.S. inputs in this small, but growing, craft beer market.

Ecuador: Exporter Guide

This report serves as a road map for U.S. companies exporting to Ecuador. While Ecuador is a challenging market for U.S. food and agricultural products, it is also one of opportunities. Domestic production cannot meet consumer demand, necessitating continued imports. Additionally, younger and lower to middle-income consumers’ appetite for imported products continues to grow despite an often-challenging economic situation. The Ecuador-EU Free Trade Agreement continues to threaten the United States’ market share in processed and fresh food products.

European Union: EU Citrus Annual 2023

The combination of drought, water irrigation limitations and abnormally high temperatures during flowering and fruit-setting phases have limited the EU’s citrus production potential in MY 2023/24, which is projected to stay at similar levels as the also short MY 2022/23 crop. The increase in the EU’s lemon and grapefruit production offsets the reduction registered in oranges, mandarins, and tangerines output. Imports continue to gain share at the expense of domestic production in a context of inflation-driven weak demand.

Hong Kong: The Hong Kong Wonton - Volume 3 Issue 25

Bite size local news, Post reports and activity summaries wrapped by ATO Hong Kong. In this issue: Triumphant Return of The Great American Texas BBQ; Hong Kong Exports Likely to Face Significant Challenges; Call to Develop In-depth Tourism; Hong Kong’s Traditional Street-Eateries Fight to Stay Open; Hong Kong Scores Top MICE Show; Macau’s October Hotel Occupancy at 83 Percent; Payments at Retail Made Easier for Travelers Between Hong Kong and Thailand; Major Hong Kong Retailers Promote Sustainability; Hong Kong October Retail Sales Up; Welcome Marketing Specialist Crystal Tang; Hong Kong Reports Second Case of African Swine Fever in a Month; Japanese Seafood Back in Flavor; Hong Kong Suspends Imports of Poultry and Products from Sixteen U.S. Counties.

Italy: FAIRS Annual Country Report

This report is intended to supplement the FAS U.S. Mission to the EU's Food and Agricultural Import Regulations and Standards (FAIRS) report with Italy-specific information. Italy's FAIRS provides contact information for the competent authorities that are responsible for the import of animal, plant, fish, and food products into the Italian market.

Japan: Exporter Guide

The Japanese food market was valued at $564 billion in 2022 with retail sales accounting for $327 billion (58 percent) and foodservice sales accounting for $237 billion (42 percent). Japan relies on imports from other countries for the bulk of its food supply. The United States was the leading supplier of consumer-oriented agricultural products with a 17 percent market share. The Japanese market is highly competitive with consumers seeking quality, value, and convenience. This report serves as an all-in-one resource for U.S. exporters to Japan with information on the food and beverage market, business culture, consumer preferences, import regulations, trends, and the U.S.-Japan Trade Agreement. Links are provided to additional resources with further details on each of these topics.

Japan: Prime Minister Office Publishes Agriculture Policy Priorities for Government Economic Package

The Government of Japan announced a new economic stimulus package of 17 trillion yen ($113 billion) on November 2, 2023. To fund the economic package, Japanese Cabinet approved a fiscal year 2023 supplementary budget proposal for 13.1 trillion ($87 billion) on November 10, 2023, of which 818 billion yen ($5.5 billion) will be allocated to the Ministry of Agriculture, Forestry and Fisheries (MAFF). MAFF intends to use the supplementary budget for strengthening food security and boosting agriculture, forestry and fisheries exports, in line with agricultural policy priorities announced by the Prime Minister’s office in October.

New Zealand: New Zealand Government Looks to Bring More Competition to Retail Grocery in New Zealand

New Zealand is about to pass and implement legislation to address one of the most concentrated supermarket sectors in the world. The competitive landscape consists of two leading players and a small number of very minor players. In 2020, the government called upon the Commerce Commission to investigate the supermarket (grocery) sector. The commission concluded in mid-2022 and made several recommendations that will enter into force from 2023 and beyond.

The following GAIN reports were released on December 18, 2023.

Chile: Chile and the EU Finalize Advanced Framework Agreement

On December 13, 2023, Chile and the European Union (EU) signed an updated Free Trade Agreement, or Advanced Framework Agreement as it is currently termed. The new agreement expands market access for Chilean products to the European market and grants expansive protections for 216 geographical indications (GIs), including many commonly used names like feta, gruyere, kölsch, and parmesan. Once ratified, the measure will negatively impact U.S. exports to Chile, while granting a monopoly to EU suppliers. U.S. exporters of impacted products should work closely with their Chilean importers to ensure compliance. In 2022, the United States was the second largest supplier of cheese to Chile at $63.0 million, including an estimated $13.5 million of parmesan which could be affected.

Costa Rica: Citrus Annual

FAS/San José expects a 15 percent decline in Costa Rica’s marketing year 2023/24 orange crop driving production down to 250,000 metric tons on suboptimal precipitation – associated with an El Niño weather system – during the critical fruit development period in 2023. Higher international orange juice prices in 2023 bolstered growers’ efforts to manage the effects of citrus greening in the face of continued high production costs. The United States remained the primary destination for Costa Rican concentrated orange juice exports in marketing year 2022/23, despite continued growth pushing China’s volumetric share of Costa Rican exports above 30 percent.

Kazakhstan: Kazakhstan Restricts Exports of Bulls and Rams

In March 2021, Kazakhstan put in place a ban on breeding cattle and ram exports. The ban remains in place. An annual, per operation export quota has been added for exports of bulls of 12-months of age or older and rams of 6-months of age or older; the quota is regularly updated.

Netherlands: Exporter Guide

The exporter guide provides an economic and market overview, as well as demographic trends and practical tips to U.S. exporters on how to conduct business in the Netherlands. The report additionally describes three market sectors (food retail, food service, and food processing), the best market entry strategy, and the best high-value product prospects, and focuses exclusively on consumer-oriented products. 

Pakistan: Exporter Guide

Pakistan is the 24th largest export market for U.S. food and agricultural-related products, with U.S. exports surpassing $1.37 billion in 2022. The top U.S. exports to Pakistan were cotton, soybeans, pulses, tree nuts, dairy products, planting seeds, dairy cattle, and forestry products. Pakistan is a growing consumer market due to its rapid urbanization and young population. Consumers are shifting away from bulk and raw foods to packaged and processed foods, including ready-to-eat meals, and frozen foods. This Exporter Guide provides an overview of the market, trends, and recommendations to U.S. exporters on how to conduct business in Pakistan.

The following GAIN reports were released on December 19, 2023.

Australia: Citrus Annual

Early seasonal conditions for the MY 2023/24 citrus crop have been favorable, and producers expect to benefit from an easing of fertilizer and crop protection chemical costs, along with a further easing of labor constraints. Orange production is expected to increase five percent to 530,000 metric tons (MT) from the prior’s year estimate, the second highest over the last two decades. Tangerine/mandarin production is forecast at 180,000 MT, the third highest on record. Orange exports are forecast to increase by 13 percent to 180,000 MT, and tangerine/mandarin exports are expected to reach 85,000 MT for MY 2023/24. Orange juice production is forecast to fall by four percent to 15,400 MT, mainly due to the anticipated improvement of fresh (navel) orange fruit quality, while imports are forecast to remain stable at 14,000 MT.

Egypt: Citrus Annual

In marketing year (MY) 2023/24, FAS/Cairo forecasts fresh orange exports to reach 2.0 million metric tons (MMT) up from 1.6 MMT in MY 2022/23. Post attributes this increase to higher yields per hectare, amid favorable environmental conditions, success in opening new markets for Egyptian oranges, and a successful traceability system in registering and monitoring farm production. The Netherlands, Russia, Saudi Arabia, India, United Arab Emirates, Spain, Bangladesh, Syria, China, and United Kingdom are likely to remain Egypt’s top ten export destinations for fresh oranges.

Pakistan: Grain and Feed Update

No significant changes are made to 2023/24 rice and wheat supply and demand forecasts. Private sector wheat import commitments of about 1.4 million tons underpin the 2 million ton 2023/24 wheat import forecast. Rice exports reached a record level in the final quarter of 2023. Given surplus exportable supplies at competitive prices, the rice export pace is expected to remain strong next year, resulting in the 5 million ton rice export forecast for 2024.

South Africa: Citrus Annual

South African production of lemons is forecast to rise by 10 percent in MY 2023/24 on sufficient irrigation and greater input investments by producers, while tangerine/mandarins production is forecast to increase by 4 percent. The remaining citrus types are expected to drop slightly, grapefruit by 5 percent and oranges by 1 percent due to a reduction in area planted as producers are less optimistic on prospects of these citrus types and are not replacing old trees. Orange juice production is forecast to drop by 3 percent on increased routing of oranges to the export market. Despite anticipation of stronger demand from export markets, the citrus industry is challenged by inefficient port operation, degrading transportation infrastructure, and ongoing pest and disease concerns that continue to hinder exports. Duty-free exports of citrus to the United States under the African Growth Opportunity Act (AGOA) are expected to continue their strong annual growth, as the United States is considered a premium market.

Vietnam: Vietnam Extends the Lists of Permissible Food Additives and Flavors

Vietnam’s Ministry of Health (MOH) issued Circular 17/2023 amending several regulations on food additives, flavors, and processing aids. This Circular includes the adoption of the list of food additives and their maximum use levels (MLs) provided in the latest version of the General Standard for Food Additives (GSFA) CODEX STAN 192-1995. In addition, Vietnam allows the use of flavors that have been evaluated by the Joint FAO/WHO Expert Committee on Food Additives (JECFA) or recognized as GRAS by the American Flavor and Extract Manufacturers Association (FEMA) or approved by the European Union. Vietnam also renews the list of processing aids allowed for food use. Circular 17/2023 took effect on November 9, 2023.

The following GAIN reports were released on December 20, 2023.

Bulgaria: Retail Foods Bulgaria

Bulgaria’s grocery retail sector has remained stable and vital despite the COVID-19 pandemic, the galloping inflation, and the war in Ukraine. Grocery retail sales rose year-on-year by 2.8 percent in 2021 and 4.8 percent in 2022 as compared to the previous years. Nevertheless, in 2022 the number of retail outlets in Bulgaria slightly declined by 0.9 percent to 38,628. Modern retail sales, which make up 63 percent of the industry in value terms, remain dominant, and grocery e-commerce continues to grow progressively. U.S. exports of consumer-oriented products to Bulgaria grew by 33 percent. U.S. food exports with best sales potential include distilled spirits, tree nuts, dried fruits, wine, craft beer, snacks and cereals, beef meat, fish and seafood, sauces, spices, and pulses.

Chile: Citrus Annual

In marketing year (MY) 2023/24, Post projects lemon production to grow by 6.7 percent and reach 175,000 metric tons (MT) due to high profits and an increase in area planted. Exports will increase by 8.8 percent and reach 74,000 metric tons. In MY 2023/24, orange production will decrease by 2.2 percent and total 175,000 MT due to low profits and a decrease in area planted. Orange exports will follow the production decrease and total 90,000 metric tons. Mandarin area planted has grown rapidly over the past 10 marketing years due to high profits. As a result, in MY 2023/24 mandarin exports will increase by 7.3 percent totaling 250,000 metric tons. In March 2023, Chile gained access to the Mexican market for lemons, clementines, and mandarins under an inspection system which avoids fumigation, improving the quality conditions and increasing shelf life.

China: Decree 248 Guidance for US Exporters

This report contains guidance from the Office of Agricultural Affairs at the U.S. Embassy in Beijing, China for U.S. exporters who continue experiencing difficulties registering their manufacturing, processing, and storage facilities subject to General Administration of Customs of the People's Republic of China (GACC) Decree 248.

India: Exporter Guide

The Indian market remains a bright spot, as its economic growth continues in 2023. India is one of the fastest-growing major economies in the world despite the volatile geopolitical and economic conditions, India is on an upward trajectory. Post pandemic, Indian consumer preferences toward premium products and perceived health foods remains high, despite continued high food price inflation and rupee devaluation. The Gen Z population is interested in novel foods and new ingredients. The grocery sector is the largest segment of the Indian retail market. It is also the third largest food and grocery market in the world. India’s modern retail sector, including e-retail, which is rapidly developing, presents newfound opportunities for a diverse range of U.S. food product exports. Nevertheless, India persists as a difficult market for U.S. exporters due to supply chain disruptions, high tariffs, a challenging, ever-changing regulatory environment, and competition from domestic and international suppliers.

Indonesia: Cotton and Products Update

Indonesian cotton imports in 2023/24 are forecast to marginally increase by 5.9 percent to 1.8 million bales compared to 1.7 million bales in 2022/23 assuming spinners will use more inventory on hand before making new purchases. Global demand slowdowns and tight competition from cheap, illegally imported clothing in the domestic market led to lower cotton utilization which will increase 2023/24 ending stocks to 379,000 bales.

Japan: Citrus Annual

Japan’s MY 2022/23 mandarin production recovers from last year’s historically lowest production. However, overall Japanese citrus planted area and production is on a downward trend amidst aging farmers, labor shortages, and a lack of successors for running farms. Japanese yen depreciation is projected to impact consumption of largely imported oranges, grapefruit, lemons, and orange juice. Stocks of orange juice is limited, causing sales of some orange juice products to be suspended.

Morocco: Citrus Annual

Post expects Morocco’s Tangerine/mandarin production for MY 2023/24 to reach an estimated 950,000 metric tons, increasing 3 percent over MY 2022/23, orange production should increase by 5 percent over the previous year to 820,000 MT, while lemon/lime production will reach 40,000 MT. Much of the increase in production is due to improved weather conditions compared to the previous season coupled with an increased adoption of drip irrigation techniques. Post estimates Morocco’s MY 2023/24 tangerine/mandarin exports will slightly decrease to approximately 450,000 MT due to high domestic prices while orange exports should reach around 50,000 MT and lemon/lime exports at 7,000 MT.

Nigeria: Exporter Guide

Nigeria is the most populous country in Africa, and has the largest economy on the continent. Demographically, its population is relatively young and urbanizing. While there are clear food and agricultural export opportunities in Africa’s largest consumer market, 2023 has been a challenging year. Consumers have contended with the national currency’s devaluation, food price inflation, and the ending of the national fuel subsidy, all of which has hurt purchasing power. However, consumers, especially in cities, have favorable views of imported food and agricultural products, and domestic food processors seek stable supplies of food ingredients to bridge domestic production gaps. This report serves as a guide for U.S. exporters seeking to export U.S. food, beverages, and agricultural products to Nigeria. It provides an overview of the market potential, import food standards & regulations, import procedures, market trends, and useful contacts.

Peru: Citrus Annual

FAS Lima forecasts Peruvian mandarin/tangerine production at 545,000 metric tons (MT) for marketing year (MY) 2023/24 (March 2024 to February 2025), a decrease of one percent compared to the previous year. Lower yields driven by above average temperatures and other potential adverse weather conditions will negatively impact production and exports. Domestic consumption of fresh mandarins/tangerines is forecast at 318,000 in MY 2023/2024, a two percent decrease from the previous year. Peruvian mandarin/tangerine exports are forecast to remain at 200,000 MT. The United States will likely remain Peru’s top export partner.

Peru: Exporter Guide

Peru is the second largest export market for U.S. agricultural products in South America. U.S.-origin food and agricultural product exports to Peru benefit significantly from the U.S. - Peru Trade Promotion Agreement (PTPA). U.S. consumer-oriented food exports to Peru are forecast to reach $368 million by year's end, a three percent increase compared to 2022.

South Africa: Highly Pathogenic Avian Influenza in South Africa- Update

The Animal Health Directorate in the Department of Agriculture, Land Reform and Rural Development (DALRRD) released a progress report on the Highly Pathogenic Avian Influenza (HPAI) outbreak that was first detected in the Western Cape Province in April 2023. A total of 7.5 million broilers and layer chickens were reportedly culled between April and September 2023. The outbreak appears to be slowing with just 750,000 slaughtered in October and November. A total of twenty-two H5 outbreaks and fifteen H7 outbreaks were reported to the World Organization for Animal Health (WOAH) as of November 2023. The geographic spread has similarly abated, with DALRRD reporting that eleven H5 and fifteen H7 outbreaks have been resolved. To supplement demand and rebuild the lost flock, import permits have been issued for 9 million fertilized eggs, 945,000 day-old chicks, 62 metric tons of egg products and 30,986 metric tons of poultry meat.

Spain: Exporter Guide

In 2022, Spain imported $2.2 billion of agricultural and related products from the United States. Outside the European Union Member States, the United States was the fifth largest origin of agricultural and related imports. Spain received 74.7 million international tourists in the first ten months of 2023, and it is forecast to reach a record-breaking 86.5 million tourists by the end of the year. This positive situation, along with lower unemployment rates, is boosting consumer incomes. This is partly offset by ongoing price increases, forcing some consumers to tighten their budgets. However, the medium-term income growth is predicted to be reasonable, which will continue to create opportunities for certain consumer-oriented food items, as well as enhance long-term prospects for other products. This report provides guidance to U.S. companies interested in exporting consumer-ready food products to Spain and includes an overview of Spain's economic situation, market structure, and export requirements.