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Sunnier Days for
U.S. Citrus in Japan 
By Kenzo Ito
For U.S. citrus exporters targeting Japan, the 2000 season was a real roller coaster ride. What started out as a slow year beset by surpluses could end up with near-record export levels–mostly thanks to a change in the weather. Not in the weather in the United States however, but in Japan.
Grapefruit Glut Means Strong Sales
Japanese imports of fresh grapefruits from all sources, including South Africa and Israel, are projected to reach 290,000 metric tons. Of that total, 240,000 to 250,000 tons will be U.S. fresh grapefruit sales. U.S. grapefruit imports for the 1999/2000 season should top 10 million cartons, up 5 to 10 percent from the previous year.
This growth suggests that Japanese consumers bounced back from their seasonal blahs. Unusually cold and wet weather during February and March dampened fruit sales overall, causing U.S. citrus growers to catch the market chills.
With bulging inventories a large as 15,300 tons above normal springtime levels, exporters slashed wholesale prices by as much as 20 percent from the previous spring just to clear inventories.
But by April, citrus trade with
Japan made a U-turn, then hit the gas as the days became warmer
and brighter.
Sales picked up even more in spring as national chains launched a major fresh grapefruit promotion during Golden Week, April 29 to May 7. This celebration, actually a cluster of national holidays, starts with the birthday of the Emperor on the 29th and ends with Children’s Day on May 5. Many employers honor a week or a 10- day holiday.
This "Golden Week" is traditionally a prime time for marketing U.S. citrus products.
The quality of this season’s U.S. grapefruit is relatively good with a fairly high concentration of juice; Tokyo traders are especially impressed by the quality of ruby-red grapefruit.
U.S. Oranges on a
Rebound
Fueled by low prices and abundant supplies of high-quality U.S. fruit, Japanese imports of fresh oranges are expected
to reach 160,000 tons for 1999/2000, rebounding strongly from reduced sales the previous season.
In 1999/1998 season, U.S. orange growers suffered setbacks due to a killing freeze.
This year, the orange situation resembled the famine-then-feast scenario experienced by grapefruit producers. This means U.S. orange sales will flourish with warmer days and the springtime holiday. Just in time, California navels are marketed nationwide a few weeks before Golden Week. The movement of the fruit has been very steady.
Lemons, too, will see modest growth, up slightly from last year at 90,000 tons. While the United States is still the dominant supplier in this market, Chile and Spain are gaining ground.
Turning up the Juice on Trade
Citrus juice must compete with tea drinks and the market is tight, according to traders. Lately, however, soft drinks with some fruit juice have become popular.
Kirin Beverage, Japan’s major brewery, will launch a big sales promotion for 100 percent natural orange juice this season. Coca Cola will focus sales efforts on grapefruit and orange juices. Lawson’s, a major convenience store chain, will introduce 100-percent orange and grapefruit juice under its private brand this season as well.#
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The author is an agricultural analyst at the American Embassy in Tokyo. Tel.: (011-81-3) 3224-5102; Fax: (011-81-3) 3589-0793; E-mail: AgTokyo@fas.usda.gov
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