For all the grapes in China

American City Business Journals 29aug97

China has just opened its gates and mouths to California grapes.

After years of barring California fresh produce, China just OK'd the first shipment during a trade mission of the state's agriculture officials.

China is California's top market for agricultural products, rising from $24 million in 1993 to $257 million last year. Until now, though, it has blocked fresh produce for the same reasons this state destroys fruit at the border: fear of infestation.

Ann Veneman, who heads the state Department of Food & Agriculture, said she expects this to be an important step towards further fresh produce exports, many of which go through Bay Area ports and brokers.

The agency, which hosted the two-week trade mission throughout Asia, expects those exports to rise sharply as China's middle class grows from about 120 million now to 500 million by 2005. Table grapes alone are expected to reach $50 million by 2000, according to the California Table Grape Commission.

"With rising incomes and improving living standards, China offers a tremendous prospect for grape exports," said commission president Bruce Obbink. The state produces about 90 percent of U.S. grapes and exports 120,000 metric tons of them, valued last year at $174 million. Three-quarters of those go to the Pacific Rim.