Agricultural Exports
FAO COMMODITIES AND TRADE TECHNICAL PAPER 3

FAO COMMODITIES AND TRADE TECHNICAL PAPER 3

The market for non-traditional
agricultural exports

prepared by
David Hallam
Pascal Liu
Gill Lavers
Paul Pilkauskas
George Rapsomanikis
Julie Claro

Raw Materials, Tropical and Horticultural Products Service
Commodities and Trade Division


FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

2004
 
Table of Contents

The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

ISSN 1729-9829
ISBN 92-5-105145-3

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© FAO 2004



Table of Contents

Foreword

Acknowledgements

Executive Summary

Trends in world trade in non-traditional agricultural exports
Trade and import policy in the non-traditional agricultural export sector
Market saturation and "adding-up"
Review of the current literature on the NTAE sector
Alternative markets for non-traditional exports: fair trade and organic

Section 1: Introduction

1.1 PRODUCT COVERAGE
1.2 REPORT STRUCTURE

Section 2: Trends in World Trade in Non-traditional Agricultural Exports

2.1 INTRODUCTION
2.2 WORLD TRADE IN NTAEs

2.2.1 Fruits and vegetables
2.2.2 Selected speciality products
2.2.3 Processed products

2.3 THE CONTRIBUTION OF DEVELOPING COUNTRIES TO WORLD TRADE IN NTAEs

2.3.1 Exports of fruits from developing countries
2.3.2 Exports of vegetables from developing countries
2.3.3 Exports of speciality and processed products from developing countries
2.3.4 Exports of NTAEs from Least Developed Countries (LDCs)

2.4 TREND IN UNIT VALUES OF NTAEs

2.5 TRENDS IN THE EXPORT OF MINOR CROPS AND IN PRODUCT DIFFERENTIATION

2.5.1 Minor crops
2.5.2 Product differentiation and innovation

2.6 TRENDS IN NTAEs VS TAEs: BRAZIL

2.7 TRADE INTENSITY FOR NTAEs

2.8 SOUTH-SOUTH TRADE IN NTAEs

Section 3: Trade and Import Policy in the Non-traditional Agricultural Export Sector

3.1 OVERVIEW

3.2 SPECIFIC IMPORT POLICIES IN THE EUROPEAN UNION, JAPAN AND THE UNITED STATES

3.2.1 European Union
3.2.2 Japan
3.2.3 United States

3.3 TRADE LIBERALIZATION IN THE NTAE SECTOR

3.3.1 Commitments under the URAA among selected countries
3.3.2 The issue of tariff escalation in the NTAE sector

3.4 PREFERENTIAL TARIFF TREATMENT IN THE NTAE SECTOR

3.4.1 European Union
3.4.2 United States
3.4.3 Japan

Section 4: Market saturation and adding-up

4.1 INTRODUCTION
4.2 METHODOLOGY
4.3 ESTIMATION AND RESULTS

4.3.1 Asparagus
4.3.2 Avocados
4.3.3 Cabbages
4.3.4 Green beans
4.3.5 Green corn
4.3.6 Green peas
4.3.7 Mangoes
4.3.8 Pineapples

Section 5: Review of the current literature on the NTAE sector

5.1 INTRODUCTION
5.2 DEVELOPMENTS IN THE SUPPLY CHAIN
5.3 VALUE-ADDING AT ORIGIN: DEVELOPMENTS IN THE MARKET FOR NTAEs
5.4 ENTRY ISSUES: COMPLIANCE WITH GRADES AND STANDARDS

5.4.1 Legal vs. commercial standards of compliance
5.4.2 Meeting compliance standards - new and established producers/exporters
5.4.3 Meeting the costs of compliance with grades and standards

5.5 ENTRY ISSUES - PARTICIPATION IN PRODUCTION AND EXPORTING

5.5.1 Small-scale production
5.5.2 Small-scale exporting

5.6 COST COMPETITIVENESS

5.6.1 Freight

5.7 MACRO ISSUES

5.7.1 The role of governments in facilitating local and inward investment

5.8 FOREIGN INVESTMENT IN THE AGRICULTURAL AND FOOD PROCESSING SECTOR

5.8.1 The general context of Foreign Direct Investment (FDI)
5.8.2 The agricultural sector

Section 6: Alternative markets for non-traditional agricultural exports: fair trade and organic

THE FAIR TRADE MARKET

6.1 INTRODUCTION
6.2 DEVELOPMENTS IN THE MARKET FOR FAIR TRADE PRODUCE

6.2.1 Organization and certification
6.2.2 Demand for fair trade produce
6.2.3 Supply of fair trade products
6.2.4 The role of the supermarkets in the fair trade market for NTAEs
6.2.5 Pricing practices for fair trade products

6.3 CHALLENGES IN THE MARKET FOR FAIR TRADE NTAEs

THE ORGANIC MARKET

6.4 INTRODUCTION
6.5 KEY ISSUES IN THE PRODUCTION AND MARKETING OF ORGANIC NTAEs

6.5.1 Crop production
6.5.2 Phytosanitary and other import requirements
6.5.3 Certification requirements
6.5.4 Demand for imported agricultural produce
6.5.5 Processed products

6.6 CHALLENGES FOR DEVELOPING COUNTRIES

Section 7: Conclusions

7.1 CURRENT PARTICIPANTS IN THE MARKET FOR NTAEs
7.2 DETERMINANTS OF SUCCESS IN THE NTAE SECTOR AND THE CHALLENGES FOR NEW ENTRANTS

7.2.1 Labour market
7.2.2 Land tenure
7.2.3 Monetary policy
7.2.4 Fiscal and other policy incentives
7.2.5 Maintaining grades and standards
7.2.6 Infrastructure
7.2.7 Assistance to small-scale producers
7.2.8 Availability of key inputs
7.2.9 Investment and ownership
7.2.10 Niche markets
7.2.11 Risks

REFERENCES

ANNEX 1

A1.1: Total world trade in non-traditional agricultural exports, by value - fruits, 1992-2001

A1.2: Total world trade in non-traditional agricultural exports, by value - vegetables, 1992-2001

A1.3: Total world trade in non-traditional agricultural exports, by volume - fruits, 1992-2001

A1.4: Total world trade in non-traditional agricultural exports, by volume - vegetables, 1992-2001

A1.5: World exports of selected speciality NTAEs, by volume, 1992-2001

A1.6: World exports of selected processed and partially transformed NTAEs, by volume, 1992-2001

A1.7: World exports of selected processed and partially transformed NTAEs by value, 1992-2001

A1.8: Leading developing countries exporters of selected NTAEs by value - fruits

A1.9: Leading developing countries exporters of selected NTAEs by value - vegetables

A1.10: Leading developing countries exporters of selected NTAEs by volume - fruits

A1.11: Leading developing countries exporters of selected NTAEs by volume - vegetables

A1.12: Leading developing countries exporters of selected NTAEs by value - speciality products

A1.13: Leading developing countries exporters of selected NTAEs by value - processed/partially transformed products

A1.14: Trend in nominal unit values of selected NTAEs - fruits, 1992 to 2001

A1.15: Trend in real1/ unit values of selected NTAEs - fruits, 1992 to 2001

A1.16: Trend in nominal unit values of selected NTAEs - vegetables, 1992 to 2001

A1.17: Trend in real1/ unit values of selected NTAEs - vegetables, 1992 to 2001

A1.18: Trend in nominal unit values of selected NTAEs - speciality, processed and semi transformed products

A1.19: Trend in real1/ unit values of selected NTAEs - speciality, processed and semi transformed products

ANNEX 2

A2.1 - Trend in total world exports of fruits by value, 1992-2001

A2.2 - Trend in total world exports of fruits by volume, 1992-2001

A2.3 - Trend in total world exports of vegetables by value, 1992-2001

A2.4 - Trend in total world exports of vegetables by volume, 1992-2001

A2.5 - Trend in total world production of fruits by volume, 1992-2001

A2.6 - Trend in total world production of vegetables by volume, 1992-2001

A2.7 - Trend in total world imports of fruits by value, 1992-2001

A2.8 - Trend in total world imports of fruits by volume, 1992-2001

A2.9 - Trend in total world imports of vegetables by value, 1992-2001

A2.10 - Trend in total world imports of vegetables by volume, 1992-2001

A2.11 - Avocado: World exports value by country, 1992-2001

A2.12 - Avocado: World exports volume by country, 1992-2001

A2.13 - Mango: World exports value by country, 1992-2001

A2.14 - Mango: World exports volume by country, 1992-2001

A2.15 - Papaya: World exports value by country, 1992-2001

A2.16 - Papaya: World exports volume by country, 1992-2001

A2.17 - Pineapple: World exports value by country, 1992-2001

A2.18 - Pineapple: World exports volume by country, 1992-2001

A2.19 - Apples: World exports value by country, 1992-2001

A2.20 - Apples: World exports volume by country, 1992-2001

A2.21 - Grapes: World exports value by country, 1992-2001

A2.22 - Grapes: World exports volume by country, 1992-2001

A2.23 - Cantaloupes and other melons: World exports value by country, 1992-2001

A2.24 - Cantaloupes and other melons: World exports volume by country, 1992-2001

A2.25 - Pears: World exports value by country, 1992-2001

A2.26 - Pears: World exports volume by country, 1992-2001

A2.27 - Strawberries: World exports value by country, 1992-2001

A2.28 - Strawberries: World exports volume by country, 1992-2001

A2.29 - Fruit, fresh2/: World exports value by country, 1992-2001

A2.30 - Fruit, fresh2/: World exports volume by country, 1992-2001

A2.31 - Tropical Fruit, fresh1/: World exports value by country, 1992-2001

A2.32 - Tropical Fruit, fresh1/: World exports volume by country, 1992-2001

A2.33 - Green Beans: World exports value by country, 1992-2001

A2.34 - Green Beans: World exports volume by country, 1992-2001

A2.35 - Tomatoes: World exports value by country, 1992-2001

A2.36 - Tomatoes: World exports volume by country, 1992-2001

A2.37 - Green Corn: World exports value by country, 1992-2001

A2.38 - Green Corn: World exports volume by country, 1992-2001

A2.39 - Asparagus: World exports value by country, 1992-2001

A2.40 - Asparagus: World exports volume by country, 1992-2001

A2.41 - Eggplants (aubergines): World exports value by country, 1992-2001

A2.42 - Eggplants (aubergines): World exports volume by country, 1992-2001

A2.43 - Onions and Shallots: World exports value by country, 1992-2001

A2.44 - Onions and Shallots: World exports volume by country, 1992-2001

A2.45 - Onions, Dry: World exports value by country, 1992-2001

A2.46 - Onions, Dry: World exports volume by country, 1992-2001

A2.47 - Cabbages: World exports value by country, 1992-2001

A2.48 - Cabbages: World exports volume by country, 1992-2001

A2.49 - Green Peas: World exports value by country, 1992-2001

A2.50 - Green Peas: World exports volume by country, 1992-2001

A2.51 - Chillies and Peppers, Green: World exports value by country, 1992-2001

A2.52 - Chillies and Peppers, Green: World exports volume by country, 1992-2001

A2.53 - Ginger: World exports value by country, 1992-2001

A2.54 - Ginger: World exports volume by country, 1992-2001

A2.55 - Cut Flowers: World exports value by country, 1991-2000

A2.56 - Cut Flowers: World exports volume by country, 1991-2000

A2.57 - Medicinal Plants: World exports value by country, 1991-2000

A2.58 - Medicinal Plants: World exports volume by country, 1991-2000

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