KEYNOTE ADDRESS - THE EXPLOSION OF NEW ASPARAGUS PRODUCTION WORLDWIDE AND WHAT IT MEANS

I felt quite honored to have been asked to serve as the keynote speaker, as in past Symposia, the individuals selected for the assignment, have been outstanding in their presentations. Precedents have been established by the likes of Michael Paske at the Eighth Symposium held in Palmerston North, New Zealand, Dr. Mike Nichols at Ferrara, Italy in 1989, and Dr. Brown in 1985 at the University of Guelph in Ontario, Canada.

In reviewing past keynote addresses, there has been a general tendency to devote some time to the trends in asparagus acreage and production. This appears to me to be a logical venue to update attendees as to progress of the asparagus industry during the preceding four years since the last symposium convened. I am sure that is why I was asked to adopt the given title and philosophize on the subject of the increased acreage devoted to asparagus production since the last symposium in 1993.

While there appears to have been an "explosion" in planted asparagus acreage in the past four or five years, I personally had no data to support the assumption. As I began a literature search, I was amazed to find such a wide range of published information concerning the actual number of acres (hectares) devoted to asparagus. Reviewing government publications soon revealed the reasons for discrepancies in stated acreages. Wide differences have been found between different governmental agencies within the same country. One may report the total planted acreage while another only gives that in production. Grower associations never appear to be in agreement with data in such reports. It is easy to understand why we see one report listing a specific area to have a given number of acres and another report from the same area, projecting another set of figures.

To verify the validity of my title, it is appropriate to evaluate today's acreage with that in 1992, thus providing evidence that within the past five years, there has been an increase in planted asparagus acreage. I would consider it a modest increase and see no data that supports an "explosion" in asparagus production.

Table 1, illustrates the acreage for each of the principle world asparagus producing countries. Effort has been made to use figures as close to 1997 as possible, making comparison with that of the past five years. Data has been obtained from governmental sources where possible, or from individual growers and asparagus associations within the concerned countries. The figures represent the total acreage, both that in production and recently planted nonproducing acres. Accuracy can only be assumed, since figures were often found to differ and difficult to interpret. Where this existed, some discretion was exercised and averages were considered to be the best avenue to follow.

Reviewing Table 1, one sees that there have been significant increases as well as some decrease in asparagus acreage throughout the world. As expected, the larger increase is found in the southern hemisphere. In the European countries significant increases occur in Germany, Switzerland, and Greece, while France and Spain have decreases in asparagus acreage. Both Thailand and Peru have been the world leaders in the total acres now planted with the crop.

Summing the total acreage increases and subtracting the decreases that have occured during the past five years, Table 2 clearly indicates that the overall percentage increase is less than 27% This includes the large China plantings that tend to significantly increase the total percent.

The economic law of supply and demand dictates there should be a demand for a commodity before there is supply that eventually catches up to it. One wonders if the 27% asparagus acreage r increase has disregarded that old tried and true law. To determine that possibility, government publications from the United States and foreign countries were reviewed. This provided data for Table 3, illustrating the imports in 1991–92 compared with those of 1995–96 for the five major importing nations. Both Switzerland and the United States have shown major changes in the total quantity imported, while the other three nations (Japan, Germany, and the United Kingdom) also have shown increases but to a lessor extent.

Table 3 shows an increase of 29% for the reported period. Reasons for the increased imports are many and may include lowered tariffs, increased demand for the product, improved food safety standards, availability for longer periods of time, and the total effort of the entire asparagus industry to supply a quality product at the most reasonable cost to the consumer.

Various incentives have also contributed to increased interests in asparagus production. The United States government, among others, has helped instigate third world interest in the crop by various policies which directly and indirectly influence incentives for planting asparagus (Table 4).

The US involvement in the Agency for International Development (AID) projects throughout the world have frequently assisted in direct development of asparagus projects by financial and technical assistance. Some of these have been successful with proven production and export dollars aiding weak economies. Others have been unsuccessful as a result of poor logistical planning and inadequate facilities to handle such a perishable product as asparagus.

The US has also strongly supported the Food and Agricultural Organization (FAO) projects in many areas of the world through grant contributions and the appropriation of materials and technical skills required for successful asparagus production.

Of less direct involvement, but probably of greater importance in the near future is the various treaties and trade agreements that the US is now negotiating with Western Hemisphere countries.

In Table 4, the current and pending free trade agreements and treaties are outlined.

The "Free Trade Agreement of the Americas" (FTAA) is expected to be signed this year by the US Congress. This agreement will establish free trade for most of the Western Hemisphere and at present includes 34 nations. Various labor and environmental issues will provide major hurdles through the negotiations before final agreements are reached.

NAFTA, or the "North American Free Trade Agreement" is already in its third year of tariff reductions. The Canadian tariff for US asparagus has already been phased out completely in 1996. Mexican exports to the US, formally at 25%, are in the last year of tariff and at 5% for January to July exports. July 1 to 31 December exports under different rates will also be phased ant in the near filture

The Market Access Program (MAP) is an unpopular USDA program that has an annual budget voted upon by Congress that may go from zero to a maximum of $90 million dollars. The project is directed at foreign promotional and advertising costs of specific products and items. Critics accuse the project is biased, discriminatory and should be the responsibility of the specific industry involved. Asparagus USA, comprised of California, Washington and Michigan asparagus growers, is the recipient of funds from this project for promotion of asparagus in Europe and Japan.

The "Supplier Credit Guarantee Program" (SCGP) provides short term (up to 180 days) credits to importers of US fruit and vegetable produce. This provides the US exporters guarantee of payment and avoids long delays in establishing lines of credit

Another highly controversial program is the “Generalized System of Preferences” that has in the past afforded duty free access to US markets for certain products. It has cost taxpayers over $500 million dollars in lost import tax duties. Its unpopularity, both in Congress and in many US grower circles, will probably result in sinking the program.

A US program that has had enormous impact on direct asparagus production is the "Andean Trade Agreement" (ATPA). This is an agreement, between the US and Bolivia, Columbia, Ecuador, and Peru, specifically designed to promote crops that would prevent narcotic production and trafficking through economic development in Andean countries. There are no tariffs on asparagus from these countries. Success of the program is highly debatable, however, the large increase in asparagus acreage, indicates strong support for the opportunity of exporting the product to the US duty free.

Another program that could have a significant impact on future asparagus acreage is the "Southern Cone Common Market" (Mercosur). This is a free trade agreement of Argentina, Brazil, Uruguay, and Paraguay with Chile. The US is especially interested in the organization as it may eventually involve the US and Mexico through its combination with the FTAA agreement that would include all Western Hemisphere countries. Mexico prefers not to become involved with talks with Mercosur as it could jeopardize its present preferential access to US and Canadian markets under NAFTA

Dissolving or reducing tariffs and promotion of free trade will have a tremendous impact on the movement of asparagus from one country to another. It will encourage the promotion of asparagus acreage in some countries and will reduce it in others. High production costs and scarcity of labor will have a drastic influence on those who remain in the industry and will be instrumental in causing many to drop out of the picture.

I hope this discussion has been of interest to you and if nothing else has increased your appreciation of the present position of the asparagus industry and those involved in it. Perhaps it might serve to stimulate your efforts towards advancing and promoting asparagus, whether it be as a grower, scientist, importer, exporter, or retailer. Continued support is necessary for us to realize continued growth in the industry as that witnessed in these past five years.

Again, on behalf of the International Society for Horticultural Science, I welcome you to this symposium and hope it will be professionally rewarding as well as an enjoyable experience for all in attendance. Thank you.