|
COMMITTEE ON COMMODITY PROBLEMS |
SIXTY-SECOND SESSION |
Rome, 12-15 January 1999 |
REPORT OF THE TWELFTH SESSION OF THE INTERGOVERNMENTAL GROUP ON CITRUS
FRUIT
|
I. INTRODUCTION
II. ECONOMIC AND TRADE ISSUES
A. MARKET SITUATION AND SHORT-TERM
OUTLOOK
B. MEDIUM-TERM OUTLOOK FOR FRESH AND
PROCESSED CITRUS FRUIT
C. POLICY DEVELOPMENTS AFFECTING THE
CITRUS MARKET
III. INTERGOVERNMENTAL ACTION ON CITRUS
A. PROJECT ACTIVITIES RELATED TO THE
COMMON FUND FOR COMMODITIES (CFC)|
B. DEMAND ENHANCING ACTIVITIES
C. ACTIVITIES IN OTHER INTERNATIONAL
ORGANIZATIONS
IV. OTHER MATTERS
APPENDIX - List of documents
1. The Twelfth Session of the Intergovernmental Group on Citrus Fruit was
held in Valencia, Spain from 22-25 September 1998. It was attended by 102
delegates from the following members: Argentina, Austria, Brazil, China,
Cuba, European Community, France, Germany, Greece, Guatemala, India, Indonesia,
Israel, Italy, Morocco, Netherlands, Spain, Tunisia, United States of America
and Uruguay. In addition, observers from the following organizations attended:
the International Trade Centre UNCTAD/WTO, the Association of the Industry
of Juices and Nectars from Fruits and Vegetables of the European Union (AIJN),
the Common Fund for Commodities, the Confederation of Importers and Marketing
Organizations in Europe of Fresh Fruit and Vegetables (CIMO), the Liaison
Committee of Mediterranean Citrus Fruit Culture (CLAM), the European Union
of the Fruit and Vegetable Wholesale, Import and Export Trade (EUCOFEL) and
the International Society of Citriculture (ISC).
2. The opening ceremony was presided by Ms Mª. Angeles Ramón-Llin
Martínez, Consellera de Agricultura, Pesca y Alimentación of
the Generalitat Valenciana. The Group was also addressed by Mr Manuel
Lamela Fernández, Subsecretario from the Ministry of Agriculture,
Fisheries and Food, and, by Ms Paola Fortucci, Chief, Raw Materials, Tropical
and Horticultural Products Service, on behalf of the Director-General of
FAO.
3. The Group elected Mr Manuel Gonzalo (Spain) as Chairperson and Mr Liu
Xing (China) and Mr Miguel Alfredo Ferré (Argentina) as Vice-Chairpersons.
4. The Session adopted the provisional agenda, circulated as document CCP:
CI 98/1.
A. MARKET SITUATION AND SHORT-TERM OUTLOOK
5. The Group took note of the information on recent market developments tabled
in document CCP: CI 98/CRS.1. Country statements by many delegates were also
tabled as conference series documents for information purposes. The Group
expressed appreciation for these contributions which enhanced its understanding
of production and trade developments in the respective countries, and aided
the assessment of market prospects for the 1998/99 season.
6. Commenting on the market situation in economies in transition (area of
the former USSR and eastern Europe) with the assistance of document CCP:
CI 98/2, the Group expressed concern over the serious financial situation
prevailing in some of these countries which could considerably limit their
ability to import citrus. The Group drew attention to the possible adverse
effects that a further reduction in imports in these markets could have on
fresh citrus prices. The Group concluded that the continued monitoring of
these and other markets remained a high priority.
7. When discussing the market outlook for mandarins in the United States
with the assistance of document CCP: CI 98/3, the Group concluded that some
opportunities for further growth existed in this market. However, one delegate
noted the difficulties faced in gaining access to this market. The Group
noted that increased clementine imports inton the United States in recent
years, particularly in 1997/98, had been underpinned by temporary shortfalls
in domestic production. The potential response of domestic supply to increased
demand should be taken into account in evaluating longer-term prospects.
8. Based on information provided by the representative of the International
Trade Centre UNCTAD/WTO in document CCP: CI 98/4 regarding the market for
organic (biological) food and beverages, the Group recognized the complexity
of the wide range of issues surrounding the development of standards and
certification regulations governing the production and trade of these products.
Delegates from several important markets for organic products referred to
the development of the necessary regulatory framework under which organic
agriculture operated in their countries. The Group noted that a great deal
of effort and resources needed to be invested in the conversion to organic
agriculture, including the development of alternative production technologies.
It was pointed out that in some cases as productivity declined with this
conversion, market premiums might not provide adequate financial incentives
to producers.
9. The Group noted the difficulties which existed in obtaining information
concerning markets for organic products, including reliable production and
trade statistics. It looked forward to obtaining the results of the ongoing
ITC market survey, including the note on certification and standards, being
prepared by that organization. The Group concluded that the market situation
and prospects for organic citrus should be closely monitored in order to
improve the information base on which to make a more accurate assessment
of this small but growing segment of the market.
B. MEDIUM-TERM OUTLOOK FOR FRESH AND PROCESSED CITRUS FRUIT
10. The Group expressed appreciation for the efforts undertaken to analyze
the market outlook to 2005, as contained in document CCP: CI 98/5. Based
on the interventions of several delegates from different regions, the Group
expressed general concern that increasing production might not be matched
by rising demand, and that price levels might therefore deteriorate for certain
varieties of citrus fruit. It was stated that the consumption of citrus juice
based on concentrate in the EC and some other developed country markets might
perhaps have reached near saturation levels, and consequently growth rates
in consumption could fall short of the modest levels indicated in the projections
document.
11. The Group agreed that there was a need for continued monitoring of the
longer term market outlook. In undertaking this projections work, it urged
the Secretariat to make further efforts to refine methodologies and improve
the data base employed for the analysis. The Group encouraged its members
to provide the Secretariat with information on tree age profiles, numbers
and areas, by variety, and requested the Secretariat to incorporate this
information in subsequent projections exercises in order to enhance the accuracy
of the results.
C. POLICY DEVELOPMENTS AFFECTING THE CITRUS MARKET
12. The Group reviewed recent policy developments affecting trade in citrus
fruit with the assistance of document CCP: CI 98/6. It also considered document
CCP: CI 98/7 regarding sanitary and phytosanitary (SPS) measures having
implications for the citrus sector. Several delegates provided corrections
and supplementary information concerning the policy developments described
in document CCP:CI 98/6.
13. The delegates of some exporting countries stressed the importance of
trade liberalization to ensure a balanced and equitable development of exports
and earnings from fresh and processed citrus. They reported that they encountered
problems in exporting to the EC market under the regulations governing trade
with third countries. Reference was made to the EC entry price system and
the levels of these prices, tariff quota limitations, the level of prevailing
import duties, and the import volumes at which safeguard clauses may be
triggered. In addition, it was stated that EC aids to producer organizations
could constitute a further element of market distortion.
14. The delegate of the EC stated that imports from third countries had not
declined and that the reform of the Common Market Organisation (CMO) for
fruits and vegetables aimed at making the sector more responsive to market
trends rather than at the disposal of structural surpluses. Under the new
regulations, a time-bound limitation had been established on intervention
measures which were being progressively reduced, while growers' organizations
were being encouraged to improve their performance in an increasingly competitive
market. In relation to questions raised concerning the implementation of
Commission Directive 96/15 under which certain "protected zones" ceased to
be recognized, he stated that reportedly Greece had transposed the directive
into its national legislation, and that Italy had already undertaken similar
action, although clarification was required of the interpretation of certain
technical and legal aspects which it was expected would be resolved by late
1998 or early 1999.
15. The delegates of some exporting countries appealed for the extension
of preferential arrangements applied by major importing markets to all citrus
supplying countries.
16. The delegates of some exporting countries expressed their concern that SPS measures established without sound scientific basis and without risk analysis that took into account reasonable levels of risk opened the door for such measures to be used as non-tariff barriers, contrary to the provisions of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. It was recalled that such measures could thus be challenged under the WTO dispute settlement procedure, if these issues could not be resolved bilaterally. Concern was specifically raised that the sanitary and phytosanitary measures applied in several major importing countries and regions should respect the principles of transparency, equivalence and non-discrimination. The delegates of some importing members stated that their SPS measures were in conformity with the WTO provisions.
17. The Group requested the Secretariat to continue to monitor developments in policies affecting the citrus sector.
A. PROJECT ACTIVITIES RELATED TO THE COMMON FUND FOR COMMODITIES (CFC)
18. The Group considered this item with the assistance of document of CCP:
CI 98/8. Based on the report of the Technical Advisory Committee (TAC) to
the Group as the Supervisory Body for project FIGCF/03 "New Approach for
Diagnosis and Prevention of Tristeza Outbreaks," the Group endorsed the excellent
progress made in the implementation of the project.
19. The Group confirmed its endorsement of the reformulated proposal submitted
by the Inter-American Citrus Network (IACNET) on "Integrated Pest Management
for Citrus Production in Latin America and the Caribbean." The Group expressed
its strong support for the reformulated IACNET proposal as being of the highest
priority for citrus in the region and requested that appropriate action be
taken for its submission to the CFC.
20. The Group reaffirmed its support for the proposal endorsed at its 11th
Session entitled "Intensified Selection of New Citrus Rootstocks Combining
Salinity, Alkalinity, Tristeza, Phytophtora and Nematode Tolerance in the
Southern Rim of the Mediterranean Area." The Group noted that this proposal
was of interest not only to Mediterranean countries, but globally, and requested
that this interest be drawn to the attention of the CFC. Moreover, the Group
recommended that the sponsors of the proposal undertake consultations with
the CFC with a view to obtaining clarification on the observations made by
the Consultative Committee and furnish the CFC with the necessary elements
in order to bring the project proposal to fruitation.
21. The Group endorsed the project outline for "The Improvement and Development
of Orange Production among Small, Disadvantaged Farmers in Kaixian County,
Sichuan Province," submitted by the delegation of China in document CCP:
CI 98/CRS.16. In endorsing the concept, the Group stressed that its further
elaboration should take full account of the strategy established by the Group
for the citrus sector, that the results of the project would be shared with
other developing countries, and that the project would focus on meeting domestic
market requirements in China and not contribute to the growth of supplies
on the world market, where there was a possible risk of oversupply in the
longer run.
22. The delegate of Indonesia expressed his interest in having a similar
project intended to improve productivity and disease eradication among
small-scale orange plantations in West Kalimantan Province.
23. The Group recognized the need for an inter-sessional mechanism to deal
with CFC project activities in a more effective manner, and therefore endorsed
the establishment of such a mechanism involving consultations with the Bureau.
It was envisaged that such an arrangement would expedite follow-up activities
concerning CFC projects and proposals between sessions of the Group.
B. DEMAND ENHANCING ACTIVITIES
24. As part of its efforts to seek ways to encourage and expand citrus
consumption throughout the world, the Group considered various aspects of
dietary promotion and marketing strategies. The nutritional and health benefits
of citrus fruits were highlighted in document CCP: CI 98/CRS.15.
25. The Group expressed satisfaction with the solid scientific evidence that
confirmed the health benefits associated with citrus consumption. It noted
the array of essential nutrients and compounds found in citrus, and drew
particular attention to citrus being a low-energy (low-caloric), fat-free
source of vitamin C, dietary fibre, folate, potassium and several phytochemicals.
The Group urged member countries to make concerted efforts to disseminate
the scientific evidence that citrus has an important role to play in preventing
micronutrient deficiencies, including anaemia; and agreed that, as part of
a balanced low-fat diet high in fruit and vegetables, citrus could contribute
to reduced risk of cardiovascular disease, some cancers, and neural tube
birth defects. The Group stressed that the multiple nutritional benefits
from citrus are only possible through consumption of fruits and juices and
currently could not be obtained from supplements. The Group noted a report
concerning the positive health effects associated with the flavinoids (in
all citrus) and anthocyanins (in blood oranges).
26. The Group recognized the important contributions that citrus and citrus
products could make to healthful diets. It was suggested that its members
and citrus organizations and other bodies, seek to foster cooperation between
the public health, nutrition and citrus communities to 1) promote consensus
at the national level regarding the important contributions that citrus could
make to health and nutrition; 2) assist in reviewing and up-dating national
dietary guidelines and nutrition education programmes; and 3) identify and
support opportunities for promoting increased citrus consumption as part
of overall efforts to improve dietary intakes, especially among nutritionally
at-risk groups, and within an appropriate social, economic and cultural context.
27. The Group expressed appreciation for the presentations which were made,
giving examples of innovative generic campaigns to promote agricultural
commodities, including citrus. The apparent success of the Florida Department
of Citrus' campaign to link citrus consumption to health messages was commended.
The Group appreciated the potential of generic promotion and for
intergovernmental and public-private sector collaboration, but expressed
concerns about the mechanisms of co-operation and funding.
C. ACTIVITIES IN OTHER INTERNATIONAL ORGANIZATIONS
28. The Group expressed appreciation for the report by IACNET, tabled as
document CCP:CI 98/CRS.5, which described the activities of the Network and
its various working groups. The Group noted with interest IACNET´s future
plans for action and looked forward to being kept informed of its achievements.
29. The Group was informed of the ongoing activities of the International
Trade Centre UNCTAD/WTO concerning fruits and vegetables, including organics,
and the work of its Market News Service. The Group thanked the representative
of the ITC for his report and the assistance provided to the deliberations
of the Session. The Group expressed appreciation for the continued close
cooperation existing with the Liaison Committee of Mediterranean Citrus Fruit
Culture (CLAM).
DATE AND PLACE OF THE THIRTEENTH SESSION
30. The Group noted that its parent body, the Committee on Commodity Problems
(CCP), would undertake an in-depth review of the mandate and structure of
the intergovernmental group (IGG) system at its Sixty-second Session in January
1999. Subject to the guidance provided by the CCP regarding the role and
functioning of individual IGGs, the Group agreed that the exact date and
place of its Thirteenth Session would be decided by the Director-General
of FAO in consultation with the Chairperson of the Group. The Group stressed
the usefulness of holding its sessions in citrus producing areas.
31. The Group warmly thanked the Government of Spain for hosting the Twelfth
Session and for the excellent working arrangements, as well as for the warm
hospitality provided.
APPENDIX
List of documents
CCP: CI 98/1 Provisional Agenda
CCP: CI 98/2 Current situation and market outlook for citrus fruit in Eastern Europe and the area of the former USSR
CCP: CI 98/3 The market for tangerines in the United States: present situation and medium-term outlook
CCP: CI 98/4 Market prospects for organic food and beverages
CCP: CI 98/5 Citrus production, demand and trade projections to 2005
CCP: CI 98/6 Citrus policy developments
CCP: CI 98/7 Sanitary and phytosanitary measures, citrus industry and trade
CCP: CI 98/8 Progress report on citrus projects submitted to the Common Fund for Commodities
CCP: CI 98/9 Extract from the Report of the Sixty-first Session of the Committee on Commodity Problems (Rome, 25-28 February 1997)
Information documents
CCP: CI 98/Inf.1 Information note on arrangements
CCP: CI 98/Inf.2 Statement of competence and voting rights submitted by the European Community (EC) and its Member States
CCP: CI 98/Inf.3 List of delegates and observers
Conference Room Series
CCP: CI 98/CRS.1 Citrus fruit: Fresh and Processed Annual Statistics 1998
CCP: CI 98/CRS.2 Citrus situation in China
CCP: CI 98/CRS.3 The citrus industry in Chile: an appraisal
CCP: CI 98/CRS.4 Avances de la fruticultura orgánica en Cuba
CCP: CI 98/CRS.5 Informe de la Red InterAmericana de Cítricos (RIAC)
CCP: CI 98/CRS.6 Propuestas para viabilizar la instrumentación del proyecto de lucha integrada contra plagas de los cítricos en América Latina
CCP: CI 98/CRS.7 Tangerinas em São Paulo e no Brasil
CCP: CI 98/CRS.8 Recent policy developments in the EU as concerns fresh citrus fruits
CCP: CI 98/CRS.9 United States Citrus
CCP: CI 98/CRS.10 Health marketing strategies
CCP: CI 98/CRS.11 Informe República Argentina
CCP: CI 98/CRS.12 La función de los agrios en una dieta equilibrada: las naranjas constituyen la elección ganadora
CCP: CI 98/CRS.13 Current production situation and market outlook for citrus in China - Department of Agriculture, Ministry of Agriculture, P.R. China
CCP: CI 98/CRS.14 Informe de Uruguay
CCP: CI 98/CRS.15 The citrus story: the nutritional and health benefits of citrus fruits
CCP: CI 98/CRS.16 Project proposal outline for the improvement and development of orange production among small-disadvantaged farmers in Kaixian County, Sichuan Province