USDA, Foreign Agricultural Service:GAIN Reports from December 26, 2023

 

The following GAIN reports were released on December 26, 2023. _______   Canada: Ontario to Allow Sales of Wine and Beer in Groceries and Corner Stores The Ontario provincial government announced that sales of wine, beer, low-alcohol ready-to-drink beverages, and cider will be allowed in all groceries and convenience stores starting from January 1, 2026. At retail, spirits will continue to be sold only through provincial liquor board outlets, while the liquor board will be the exclusive wholesaler in the province for all retail stores, bars, and restaurants selling alcoholic beverages.   Canada: Wood Pellets Annual FAS/Canada forecasts Canada's wood pellet production to decline by six percent in 2023 as a result of closure of pellet mills, reductions in allowable cut, and a high activity wildfire season. Exports of wood pellets are forecast to decline 14 percent as a result of reduced production and diminished demand from South Korea and the UK for Canadian wood pellets. Canada is forecast to increase imports on a slight growth in domestic demand.   Chile: Exporter Guide Chile presents excellent export opportunities for U.S. food and beverage exporters. After record-setting exports in 2021, shipments of U.S. agricultural and related products to Chile reached $1.1 billion in 2022. Animal feed, dairy, wheat, beer, and beef dominate U.S. shipments to Chile. The United States is the third largest supplier of agricultural and related products to Chile, after Colombia and Peru, holding a 12 percent market share.   China: Food Service - Hotel Restaurant Institutional Annual China ended its three-year long COVID restrictions in late December 2022. Since then, hotels have generally had a robust return of customers, while restaurants performed differently. China’s economic woes are negatively affecting consumer confidence in spending. Changes in both demand and supply patterns for the HRI sector are reshaping HRI operations and supply chains. Demand for pre-prepared dishes grew by restaurants and caterers, however, some consumers have concerns about quality and safety due to the lack of regulatory standards for this emerging sector.   Israel: Agricultural Biotechnology Annual Israel has no policy restricting the use of imported genetically engineered (GE) commodities or derivative products. There have been no changes in Israel’s policy towards plant, animal biotechnology, and microbial biotechnology since 2022.   Mexico: Exporter Guide Mexico was the third largest agricultural export market for U.S. exporters in 2022, with total agricultural exports valued at nearly $28.5 billion. Mexico’s economy grew by 3.1 percent in 2022, returning to near pre-pandemic levels. Mexico’s economic recovery is spurred by the strong peso, continued economic integration with its northern neighbors, and growing hotel, restaurant, institutional (HRI) and food processing sectors. In 2022, over 38 million international tourists visited Mexico, with revenue from tourism totaling over $26 billion. The HRI sector continues to recover as consumers increase travel and return to their normal dining habits. Mexico remains among the top 15 food processors worldwide, and the third largest in the Americas following the United States and Brazil. Mexico’s robust food retail sector offers continued opportunities for U.S. exports.   Morocco: Exporter Guide This report provides an economic and market overview and practical tips for U.S. companies exporting to Morocco. The top prospects for U.S. agricultural exports to Morocco include feed grains (corn, DDGS, soybeans and soybean meal), tree nuts, pulses, live animals, genetics, animal fats and some consumer-oriented products (dairy products, rice, beef, poultry meat,). Under the U.S.-Morocco Free Trade Agreement (FTA), a large number of tariffs for consumer-oriented products were phased out.   South Korea: Exporter Guide As the 5th largest country export market for the United States, Korea provides a promising market for U.S. agricultural products. In 2022, Korea imported about $50 billion agricultural and food products from all over the world and the U.S. supplied a fifth of it, ranking number one. Other key suppliers were China, Australia, Brazil, Vietnam, and Thailand. This year, Korea's overall agricultural imports are forecast to fall short of the 2022 value by 10 percent partly due to decreased demand from both the retail and processing sectors. From January to October, the U.S. exports fell below the level of last year’s record for the same period, primarily driven by reductions in grain, feed, frozen beef, and dairy product exports. However, U.S. food and agricultural products will continue to be competitive in this market in the long run considering extended consumer interests in quality, safety, and sustainability.   Taiwan: Exporter Guide As the US’ sixth-largest export market for food and agricultural products, Taiwan imported a record-high US $4.4 billion of food and agricultural products from the US in 2022. These high-in-demand products include beef, poultry, dairy, fruits, tree nuts, and vegetables. The island is highly dependent on agricultural imports due to its insufficient farmland. Pairs with the fact that it has one of the highest disposable incomes in north Asia, the local consumers are actively seeking out high-end and exotic products and experiences, which makes Taiwan a land full of opportunities. This report is a practical guide for U.S. food exporters who are interested in exploring the Taiwan market, which has now fully opened its border for overseas travel. The following GAIN reports were released on December 27, 2023. _______   China: Citrus Annual Despite challenges related to the slow economy, citrus production in China for marketing year (MY) 2023/24 is expected to continue to grow, outperforming other fruit categories. Growth is anticipated in all citrus crops, resulting from favorable weather and increased yields from replanted trees following bouts of citrus greening disease in previous years. Consumer demand for citrus is expected to remain strong, as Chinese consumers seek to increase their daily intake of Vitamin C. Although trade in citrus is small in comparison to production, noticeable increases in exports could be witnessed if production outpaces consumption.   France: FAIRS Annual Country Report France, as a member of the European Union (EU), generally follows EU directives, regulations, and obligations. This report focuses on food laws in force in France that cover areas which are not EU harmonized. EU regulations are explained in the Food and Agricultural Import Regulations and Standards (FAIRS) E42023-0041 authored by the U.S. Mission to the EU in Brussels, Belgium.   Serbia: FAIRS Export Certificate Report Annual This report provides a guide to the certificate requirements for agricultural and food products intended for export to Serbia. It outlines the certificates acknowledged by the Ministry of Agriculture, Forestry, and Water Management (MAFWM) in Serbia, as well as those recognized by the relevant U.S. authorities, including the U.S. Department of Agriculture (USDA)/Animal and Plant Health Inspection Service, USDA/Food Safety and Inspection Service, USDA/Agricultural Marketing Service, and the U.S. Food and Drug Administration.   South Korea: 2023 Rice Production Update On November 14, 2023, Statistics Korea (KOSTAT) released its final estimate of 2023 rice production at 3.7 million metric tons (MMT), up an additional 0.5 percent from the initial rice production estimates released in early October and down 1.6 percent overall from the prior year. Rice production acreage decreased by 2.6 percent compared to 2022, but increased yield due to favorable weather conditions (sunlight and precipitation) partially offset the reduced acreage. To reduce traditional rice planted area, the Korean government has recently introduced incentives for growing rice for flour, which could have the additional benefit of curbing methane emissions by over one third compared to conventional rice cultivation.   South Korea: Additional Tariff Rate Quotas for Agricultural and Livestock Items In 2023, the Korean government implemented three rounds of tariff rate quotas (TRQs) for various imported agricultural, livestock, and fishery products, including new TRQs to stabilize food prices. The additional TRQs for price stabilization focused on consumer-oriented products like fresh vegetables, meat, and seafood, to relieve the burden of rising food prices on consumers. Similarly, TRQs for intermediate products, such as food and beverage ingredients, feed products, and fish bait, were targeted to lower the production cost of processed foods and drinks, livestock, and seafood, respectively. The additional TRQs are not expected to dramatically increase exports of U.S. agricultural and fishery products to Korea in 2023.  For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/.