China Expects 400,000 MT Asparagus Crop

Asparagus production is expected to remain relatively high in China again this year, with the result the country will remain an intense competitor on world processed asparagus markets.

This year;s harvest the potential to reach 400,000 metric tons (), reports the U.S. agricultural attache for the country, with the country exporting around $100 million worth of processed and fresh asparagus. Most of the product shipped will be processed.

Fresh asparagus shipments totalled just 1,687 MT in 2003 and 1,624 MT last year; while processed asparagus shipments totalled 104,166 MT in 2003 and 97,592 MT last year.

Looking forward, the U.S, agricultural attache believes fresh asparagus exports, despite the production decline, should increase over last year owing to better management, higher quality, and more attractiveness to foreign buyers. Industry sources believe mid- to long-term trade in quick-frozen asparagus will grow quickly, but export levels will remain lower than jarred/canned asparagus exports.

Shandong Asparagus Situation

In ideal production years, as much as three-quarters of China's asparagus production may originate from a few centralized areas of Shandong province: Heze (mostly white asparagus), Jiuxian and Rizhao (both produce green asparagus).

Shandong agricultural officials reported 2004 provincial planted area was roughly 30,000 Ha and production volume was less than 400,000 MT; of which 85 percent was white.

Spring harvest of white asparagus lasts from late-April through early July and occasionally employs laborers at a cost of $1.50 per day whereas green asparagus harvest, mostly conducted by individual growers, in Jiuxian and Rizhao usually lasts from late-April through early July. Sources indicate the bulk of the northern asparagus Spring harvest is completed between twenty to thirty days in May.

Field surveys and government sources indicate farmers receive up to $.75 per kg for green asparagus sold fresh and exported and from $.18 to $.50 per kg for white or green asparagus that will be sold for IQF or jarring. Farm surveys suggest farmers do not intend to plant more asparagus or switch land to grain crops at this time.

Shanxi Asparagus Production

The Shanxi Asparagus Industry Association reported in China Canned Food 2005 Issue No. 1 that provincial planting acreage was 13,333 Ha and the city of Yongji, a production base located near the Shaanxi and Henan borders, accounts for 40% of provincial acreage and produced 35,000 MT; of which 80% was used for jarring/canning.

The association also reports yields are low and that ninety percent of the provincial planting is with F2 seeds. Furthermore, the association reported two Spanish companies invested in asparagus processing in the province.

News reports indicate Hejian, another production base in Western Shanxi, has large sections of land planted with asparagus along the Yellow River. There is also some processing conducted in cooperation with an Australian company whose product appears to be both sold domestically and exported. Another large Shanxi asparagus processor appears to be exploring production of asparagus candies and beverage drinks.

Fujian Asparagus Production

Industry sources report Fujian provincial asparagus production is located in the outlying regions of Xiamen, primarily Zhangzhou ( 2,000 Ha in 2004 with production volume of 20,000 MT), and consists primarily of white asparagus that is harvested over two seasons (Spring: April to July, Fall: September through October).

A few exporters in the area report they are having a difficult time sourcing asparagus and are unwilling to quote FOB export prices at this time. Sources indicate grower prices are much higher than last spring with growers receiving around $.38 per kg of exceptional quality asparagus and $.31 to $.34 per kg of medium quality asparagus.

Development of Industry Standard Arises

The "Wu Gong Hai" or Wholesome Foods Standard appears to have been unofficially adopted as the industry standard for asparagus production. Local level agricultural officials as well as packers and processors provide growers with training on the type and kinds of agricultural inputs permitted while retailers often report to consumers that their products meet the "Wu Gong Hai" standard.

An independent residue analysis laboratory in China's vegetable export hub of Qingdao reports a range of chemical residues are often found on agricultural products in China that would not normally be associated with controlling pests or disease for the commodity of concern.

The lab reports its tests on white and green asparagus did not find levels exceeding allowable levels and that levels were less than one part per million for tests of Atrazine, Biphenyls, Carbendazim, Dichlofluanid, Diphenylamine, Myclobutanil, and p,p'-DDE.

Long-Term Asparagus Consumption Growth Forecast

China 's per capita consumption of all vegetables is high (urban residents 122 kg/per person), but despite being the world's largest asparagus producer, per capita asparagus consumption is small. Present production shortfalls most likely result in less asparagus showing up on store shelves for domestic consumers.

Industry sources expect fresh, IQF, and possibly jarred/canned asparagus consumption will grow over the next three to five years as domestic distribution channels improve and urban incomes rise. This will not immediately impact trade, but rather likely reduce waste.

Urban residents appear more willing to consume a greater variety of fresh vegetable foods and "healthy" foods such as asparagus. Lifestyle changes, such as the increasing number of work hours for urban residents could mitigate at-home consumption increases of fresh asparagus over the long-term unless food preparation becomes easier.

As such, although many Chinese do not favor consuming preserved/packaged vegetables it is conceivable IQF or jarred asparagus consumption will increase. At the same time, rising incomes allow for more meals outside of the home and if incorporated onto the menus of the growing number of Western or even Chinese restaurants, asparagus consumption should grow.

A survey of hypermarkets in Qingdao and Beijing revealed only a few stores stock fresh or jarred asparagus and that most fresh asparagus is only seasonally available. Stores carried jarred white asparagus; produced in compliance with China's voluntary National Standard for Jarred Asparagus (GB/T13208-1991), in 330-gram sizes containing 205-grams of asparagus for $.72 to $.82 per jar. One store carried canned white asparagus packaged under an Australian label in a 430-gram can containing 270-grams of asparagus for $.71.

In mid-May, retail hypermarkets in Qingdao and Beijing offered fresh green asparagus bundled in plastic trays of 0.25 to 0.4 kg for a retail price ranging from $1.81 to $3.62 per kg. Most store packages were sized and priced to result in a package worth about $.80. In early February, fresh asparagus at farmer's markets in Jiangsu province sold for $1.57 per kg while Yunnan produced asparagus sold for $.52 per kg.

Industry sources and exporters report fresh green asparagus exports are shipped loose in upright cartons or in bundles of three or five stalks per bundle. IQF green asparagus exports are often in bulk poly-vinyl bags.

Jarred white asparagus exports are often in a couple of different jar sizes for retail use; e.g., size 212 to Japan and size 370 to Europe which, industry sources report, hold 110 grams to 190 grams of asparagus, respectively. Increasingly, traders and asparagus manufacturers report they are beginning to produce asparagus under private label for European retailers.

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