International Resources: Global Market Profile: United States
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International Resources: Global Market Profile: United States

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As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about the United States from Attaché Reports submitted by the U.S. Department of Agriculture, as well as the CIA World Factbook, embassy sites, and business etiquette reference guides.

Table of Contents

 

Fresh Fruit, Vegetable, and Flower Market

Fruit and Vegetable Market

The United States exported over $14,000 million worth of fruit and vegetables in 2005.

The United States is the fifth largest fruit producer in the world.  Top fruit commodities are table grapes, apples, oranges, and grapefruit.  The biggest market for U.S. fruit is Canada, followed by Mexico, the European Union, and Japan.  Other important markets are Hong Kong, the Republic of Korea, and Taiwan.

Fresh fruit and vegetable imports to the United States have been growing consistently in the past decade.  Fresh fruit imports include bananas, pineapples, citrus, avocados, apples, grapes, and melons.  Costa Rica and Mexico are one of the top suppliers of fresh fruit; other countries include Mexico and China.

Vegetable imports include tomatoes, cucumbers, peppers, and onions. Imports of vegetables, in particular asparagus, peppers, cucumbers, and tomatoes, are increasing significantly.  The main suppliers of fresh vegetables to the United States are Mexico and Canada.

Fresh Produce Exports of the United States: Find specific information, including single commodities, quantity, and the individual countries that import from the United States.

Fresh Produce Imports of the United States: See information on commodities and countries that export to the United States.

Fresh Flower Market

The United States is one of the largest markets for cut flowers.  U.S. imports of fresh cut flowers in 2006 were estimated to be worth $750 million.  Imported fresh cut flowers are now more than twice the value of domestic production sold; thus the United States imports two-thirds of fresh cut flowers.  About half of imports are roses, which are supplied primarily by Colombia and followed by Ecuador.  Orchids are supplied by Taiwan, the Netherlands, and Thailand; tulips and lilies are imported from the Netherlands.

U.S. exports of flowers are about one-fourth of the value of imports.  Flower exports are increasing, particularly to Canada and Mexico.

Exports are roughly one fourth of the value of imports. In 2006, U.S. floriculture exports were $348 million. Exports have climbed steadily, largely to Canada and Mexico.

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Consumer Trends

U.S. consumers consider several factors when buying food. The trend is moving towards safe, nutritious products, a greater variety of foods, and convenience.  Consumers are willing to pay more for safe, high-quality products, and more and more people are demanding natural foods.  The organic market is growing, with fresh produce in the top-selling category.  To some consumers it is important to buy locally grown produce or foods produced in an environmentally sustainable environment.

Variety is very important to U.S. consumers.  Most Americans shop at supermarkets where there are many different brands of food to choose from.  In addition consumers are demanding a variety of produce that is available all-year around, especially during off-seasons. 

Demographics have an impact on consumption of fresh produce.  Adults aged 45-50 years spend the most money on fruits and vegetables, as do consumers of middle- and upper-income levels.  Consumers of Asian backgrounds spend the most on fruits and vegetables, and Hispanics spend the second highest amount.  People living in the west and north east sectors of the United States spend more on produce than do those living in the mid-western and southern regions.

Because the United States is a “melting pot” of many different kinds of backgrounds and nationalities, many consumers are exposed to and enjoy a variety of ethnic or foreign products and tastes.

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Entering the U.S. Market

Importers must procure import permits before their product begins its trip to the U. S. They must also obtain phytosanitary certificates for all plants and some plant products from the exporting country. These verify that quarantine officials of the exporting country have examined the commodities for pests and diseases. For some plants and plant products, no quarantine treatment destroys pests and diseases. These commodities are not allowed to be imported.

Importers must procure import permits before their product begins its trip to the U. S. They must also obtain phytosanitary certificates for all plants and some plant products from the exporting country. These verify that quarantine officials of the exporting country have examined the commodities for pests and diseases. For some plants and plant products, no quarantine treatment destroys pests and diseases. These commodities are not allowed to be imported.

1. Planning to Import Produce into the United States

Whether planning to export from another country into the U. S. or import into the U. S., one should contact the department of agriculture of the exporting country to determine the status of the produce to be exported and to get help in the procedure. Also consider hiring a Customs House Broker who is familiar with exports to the U. S. (See Resources: Customs)

2. Determine Rules and Regulations for Importing into United States

  • APHIS - Contact APHIS to determine import status and requirements for commodity. Obtain a fruit and vegetable import permit prior to importing any fruits or vegetables. A separate permit is needed for shipments from each country and from each port of first arrival into U. S. (See Resources: APHIS Permits and Importing Guide)

*Note: If product is not admissible, have the exporting country request that the item be considered for importation into U. S.

  • CUSTOMS - Prior to importing, contact nearest Customs office at port where goods will enter U.S. for information on specific issues (See Resources: Customs Directory of Ports).  Customs Border and Protection (CBP) requires the electronic filing of cargo declaration data with CBP at least 24 hours prior to arrival at a U.S. port.

  • AMS - Inform the USDA if the produce needs their inspection. The USDA needs to know when it will be available for inspection and shipment details. (See Resources: AMS for produce requiring inspection)

3. File Entry Notice with Customs

If produce is admissible under APHIS, submit these entry documents to Customs (See Resources  :Customs Documents):

a. Customs Entry Form 3461

b. Evidence of right to make entry, e.g. bill of lading

c. Commercial invoice or pro-forma invoice if a commercial invoice cannot be produced

d. Packing list if appropriate

e. A bond which is normally posted with Customs to cover any potential duties, taxes, and penalties that may   accrue after release of the cargo.

4. Submit Permits to APHIS

Submit permits to APHIS for review and inspections. Not all agencies inspect product, but they all must grant release.

a. APHIS inspects approved and permitted goods for disease and pests.  FDA conducts sample inspections when needed.  AMS ensures applicable produce meets grade and quality standards. 

b. After duties are paid, the product is allowed to proceed into U. S. commerce.

5. After Inspection

a. Admissible - If produce is found admissible it is released by Customs and passed into U.S. commerce.

b. Not admissible - If produce appears in violation, FDA issues a Notice of Detention and Hearing to owner or consignee. If product is refused, importer is required to either re-export or destroy goods.

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Trade Agreements

The United States has negotiated or is in the process of negotiating these Regional Trade Agreements:

The United States has Free Trade Agreements or is in the process of negotiating free trade agreements with the following countries:

The U.S. Foreign Agriculture Service has these frameworks or bilateral trade agreements.

Free Trade Agreements Analysis
To help its members understand global marketplace dynamics, PMA has prepared this analysis of current U.S. Free Trade Agreements and Regional Free Trade Agreements.

U.S. Agricultural Trade Data

Latest U.S. Agricultural Trade Data: USDA has summarized the latest U.S. agricultural trade statistics in the following table, using the most recent data released by the U.S. Department of Commerce.

U.S. agricultural trade 1/, fiscal years, calendar years, year-to-date, and current month
Fiscal years 2/ Fiscal year-to-date Mar.
2005 2006 2007 2008 2008 2009 2009
Billion dollars
Agricultural exports 62.516 68.593 82.170 115.450 58.210 51.772 8.003
Agricultural imports 57.736 64.026 70.063 79.317 38.875 38.572 6.575
 
Trade balance 3/ 4.780 4.566 12.107 36.133 19.335 13.200 1.428
 
Calendar years Calendar year-to-date Mar.
2005 2006 2007 2008 2008 2009 2009
Billion dollars
Agricultural exports 63.182 70.948 89.943 115.437 30.055 23.630 8.003
Agricultural imports 59.317 65.326 71.913 80.465 20.164 18.713 6.575
 
Trade balance 3/ 3.865 5.622 18.030 34.972 9.891 4.917 1.428


1/ USDA defines agriculture to include: live animals, meat, and products of livestock, poultry, and dairy; hides and skins (but not leather products); animal fats and greases; food and feed grains and grain products; oilseeds and oilseed products; fruits, nuts, and vegetables and products of these; juices, wine, and malt beverages (not distilled spirits); essential oils; planting seeds; raw cotton, wool, and other fibers (not manufactured products of these); unmanufactured tobacco (not manufactured tobacco products); sugar and sugar products; coffee, cocoa, tea, and products of these; rubber and allied products; and stock for nurseries and greenhouses, spices, and crude or natural drugs. Fish, shellfish, and forestry products are not included in "agriculture."
2/ October 1 of previous year through September 30 of current year.
3/ Exports minus imports.
Data are not seasonally adjusted. Totals for 2007 revised to incorporate annual revisions by Bureau of Census.

Sources: U.S. Department of Agriculture, using data summed from the Bureau of Census, U.S. Department of Commerce.
For historical data, see Total value of U.S. agricultural trade and trade balance.

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Food Standards and Regulations

Imports of fruits and vegetables into the United States are subject to laws to protect human and plant health and to ensure quality. Several government agencies are involved in the import of fresh produce. Not all agencies will inspect product, but they have the privilege to do so. In any case, all shipments must be granted release by each agency.

U. S. Customs and Border Protection (Department of Homeland Security) imposes import requirements. Before entry is allowed, the shipment must have arrived within the limits of the port of entry and the produce delivered and authorized by the U.S. Customs Service. Appropriate documents must be filed by either the importer or their agent. Customs entry papers should be presented before the merchandise arrives. Note: Customs does not notify the importer of the arrival of a shipment. This is usually done by the carrier of the goods. The importer should make their own arrangements to be sure they or their agent is informed immediately so that the entry can be filed and delays in obtaining the goods avoided. If documentation is not filed within 30 days of arrival the goods are sent to a warehouse to be held as unclaimed.

Animal and Plant Health Inspection Service (APHIS) enforces import and export regulations of plants and animals and certain agricultural products. Import requirements depend on the product and the country of origin. Plants and plant materials usually must be accompanied by a phytosanitary certificate issued by an official of the exporting country.

· Plant Protection and Quarantine Service (PPQ) inspects imported plants for pests and diseases before releasing them into U. S. markets. PPQ also advises importers on restrictions and procedures.

Agricultural Marketing Service (AMS) Branch of USDA

Certain agricultural commodities are inspected to meet United States import requirements relating to grade, size, quality, and maturity. An inspection certificate must be issued by AMS to indicate compliance.

Food and Drug Administration (FDA) is the regulatory agency responsible for the safety of all foods. Foods are subject to examination by FDA when they are being imported into the United States. FDA will receive prior notice of goods for inspection determination.

APHIS: Permit Request- USDA, APHIS, PPQ; 4700 River Road, Unit 133, Riverdale, MD 207371. Tel: 1-301-734-8645

*Note: USDA has a 24-hour/7 day automated retrieval system for permit and regulations (1- 301-734-4327)

AMS: U. S. Department of Agriculture: Agricultural Marketing Service: 1400 Independence Ave. Washington, DC 20250, Tel: 1- (202)720-8998

FDA: U. S. Food and Drug Administration

Center for Food Safety and Applied Nutrition: 200 C Street, SW, Room 6815 HFS-1, Washington, DC 20204. Tel:1- (202)205-4850

 

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Business Protocol

  • Men should wear a business suit and tie.  Dark-colored business suits are best; white or blue dress shirts are good choices to wear under suits.  Women should wear a suit or dress with jacket in major cities.  Class colors (such as navy, gray, and white) are good and will give you a conservative appearance.  
  • Rural areas and areas with very warm summers may have more casual dress requirements.  Women may wear a business dress or skirt and blouse in rural areas, and men may do business without wearing a jacket.
  • Schedule appointments a month to six weeks in advance, at least.  Confirm appointments the day before the meeting and never come to an office unannounced. 
  • The standard greeting is a firm handshake, upon meeting and leaving.  Good eye contact is important.
  • Usually business partner will introduce themselves with their first name, and this is the way you will address each other; however, you should be cautious with new customers and people in higher ranks.  If you are unsure how to address someone, use the titles “Mr.” or “Ms.” or “Mrs.” with the last name.
  • Americans are usually courteous and positive while listening to a presentation, which may give a false impression of interest or commitment on their side.  Make sure you clarify what you think has taken place at a meeting.
  • Keep in mind that your first price is just the beginning point for negotiating, and the U.S. side will expect a few offers back and forth before an acceptable ending price is reached.
  • Have a lawyer check any contract reached in business.
  • Voicemail is used as a filtering device by many companies, and messages may not always be returned.  Make sure you have a rehearsed message that is succinct and selling ready.
  • To Americans, time is money. They are eager to discuss business and will not want to waste too much time with social talk during a meeting.
  • Punctuality is extremely important.  You should arrive about five minutes before a business meeting. Never be late for a meeting.  If you are late, you should call and let your business partner know and possibly offer to reschedule.
  •  If you are invited to a meal you should always be on time.  However, you may arrive a few minutes late for a cocktail party.
  • A fast and extensive follow-up is important.  The U.S. businessperson will have relied on you to follow up after the ending meeting if you agreed to, so do not hesitate.
  • Set delivery dates and production qualities must be honored.
  • Smoking is most offices is prohibited.  Some public areas, such as restaurants or public buildings, prohibit smoking due to health concerns, so you should ask if you are permitted to smoke.
  • Business meetings may be scheduled as breakfast meetings, lunch meetings, or dinner meetings.  In general a dinner meetings is like a social meal and is used to build rapport.
  • Gift giving is limited or discouraged by many U.S. companies.  If you give a gift, it should not appear to be a bribe.  An invitation for a meal or a modest gift is acceptable most of the time.
  • Business gifts are often given after a deal is closed.  Usually gifts are unwrapped immediately.
  • When you are visiting a home, it is not necessary to bring a gift—however, it is always appreciated and shows that one is thoughtful.  Flowers, a potted plant, or a bottle of wine are good choices.  For business partners, good gift examples are useful office items, candy, or gift baskets.
  • If you invited guests to a meal you are responsible for paying.  You should also pay if you are having a meal with someone who is giving you valuable advice.
  • Americans hold the fork in the right hand and the knife in the left but change hands when cutting with a knife; then the knife is in the right hand and the fork in the left.  However, if you use Continental manners no one will be offended.
  • Place your napkin on your lap when the host does and begin eating when the host eats or invites everyone to eat.
  • Americans usually strive to be “politically correct”; politics and religion are usually not discussed during social events, gatherings, and business meetings, particularly when you have just met someone.  Race and ethnicity and gender are also not discussed.
  • There are two common gestures to show approval.  One is the “O.K.” sign, which is made by forming a circle of the thumb and index fingers.  The other gesture is the “thumbs up” sign, when someone makes a fist and points the thumb upward. 

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Export Business Reminders

  • Build at least a minimum team within your company to help on the Australian market.
  • Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance and respond to such requests with diligence and in a timely fashion.
  • The date is written Month/Day/Year.
  • Hedge export values with your bank if you are concerned about exchange rate risk.
  • Set up wire transfers for payments.

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Related Links and Government Resources

Customs:

Data Sheets:

Government Resources

 

Related Documents (PDF)

2008 United States Fresh Produce Import and Export Report PDF   -  08/19/2009
US produce imports/exports by metric ton, broken out by commodity and country of origin.