Vegetables and Melons Situation and Outlook Yearbook -- Summary July 27, 2006, ERS-VGS-2006s Approved by the World Agricultural Outlook Board ----------------------------------------------------------------- This SUMMARY is published by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036-5831. In addition to this summary, the complete report is also available electronically. ----------------------------------------------------------------- Vegetable Output Down in 2005 In 2005, U.S. output of vegetables and melons (including potatoes, sweet potatoes, pulse crops, and mushrooms) declined 5 percent as smaller processing vegetable and potato crops more than offset increased pulse crop (dry beans, dry peas, lentils) production. Harvested area for vegetables and melons increased 9 percent to more than 7 million acres due to a 34-percent surge in area devoted to pulse crops. Production of the 21 major fresh vegetables declined 3 percent in 2005. Much of the reduction resulted from lower dry bulb onion acreage--a response to lower prices stemming from the record-large crop of 2004. Fresh vegetable output was also trimmed by weather-reduced yields for bell peppers, garlic, snap beans, and head lettuce. Production of the major vegetables used for processing declined 11 percent to 15.8 million short tons in 2005 led by a 17-percent reduction in tomato output. All major processing crops registered reduced output, with the exception of sweet corn and broccoli/cauliflower. U.S. potato production declined 7 percent to 422 million hundredweight (cwt) in 2005. Area harvested fell 7 percent, while average yields declined 1 percent. Idaho (27 percent of output), Washington (23 percent), and Wisconsin (7 percent) were the top potato-producing States in 2005. U.S. sweet potato production declined 2 percent to 15.7 million cwt in 2005. Average yields increased 2 percent to a record 178 cwt per acre. Area harvested fell 5 percent to 88,400 acres, with most of the reduction in North Carolina (down 19 percent), the top producing State, where growers were reacting to low prices for the previous year’s crop. U.S. dry edible bean production jumped 53 percent to 27.2 million cwt in 2005 as both area and yield rose. Area harvested increased 28 percent to 1.56 million acres, while average yield per acre, recovering from freeze-reduced 2004 yields, surged 19 percent higher to 17.4 cwt. North Dakota remained the top producer with 32 percent of the 2005 dry bean crop. Production of dry peas (including wrinkled seed peas) and lentils increased 20 percent to a record 20.2 million cwt in 2005. Output of all dry peas increased 19 percent while lentil production increased 23 percent--both reaching record highs. According to the Bureau of Labor Statistics, producer prices for vegetables averaged higher than a year earlier across most major product categories. Fresh-market vegetables (up 8 percent), canned vegetables (up 3 percent), dehydrated vegetables (up 2 percent), potatoes (up 23 percent), and pulse crops (up 6 percent) were higher, while prices for melons (down 3 percent) were lower. Retail prices for all fruits and vegetables (fresh and processed) averaged 4 percent above the previous year, with most of the increase occurring during the spring and summer. In 2005, consumers paid 4 percent more for both fresh and canned vegetables and 1 percent more for frozen vegetables. Imports of all vegetables, melons, and pulse crops rose 7 percent to $6.7 billion, led by increases for fresh-market vegetables, melons, pulses, and processed vegetables. Mexico remained the top foreign source, with 47 percent of import value, followed by Canada (25 percent) and China (5 percent). Imports accounted for 15 percent of all vegetable, melon, and pulse crop disappearance in 2005, up from 9 percent a decade earlier. Imports of fresh- market vegetables (excluding potatoes and melons) increased 6 percent to $3.4 billion in 2005. The value of processed vegetable (including potatoes) imports rose 3 percent in 2005 to $2.3 billion, with canned vegetable imports (excluding mushrooms) increasing 9 percent to $766 million. Imports of potatoes and potato products declined 1 percent to $787 million in 2005. Frozen french fried potatoes accounted for 60 percent of all U.S. potato imports in 2005, with the vast majority entering from Canada. Exports of all vegetables, melons, and pulse crops rose 11 percent to $3.9 billion, led by increases for melons, pulse crops, and fresh vegetables. Canada remained the top foreign market, with 47 percent of export value, followed by Mexico (14 percent) and Japan (13 percent). About 8 percent of total U.S. vegetable and melon supplies were exported in 2005--little changed from a decade earlier. The value of fresh-market vegetable exports (excluding potatoes and melons) increased 8 percent to $1.4 billion in 2005. Export concentration has increased over the past decade, with Canada now accounting for 79 percent of U.S. fresh vegetable export value--up from 67 percent a decade earlier. Japan accounted for 7 percent of the value of U.S. fresh vegetable exports in 2005, down from 17 percent 10 years earlier. Exports of processed vegetables (including potatoes) rose 4 percent to $1.9 billion. Frozen exports, which are dominated by potatoes, rose 12 percent in 2005 to $604 million. While U.S. frozen vegetable exports to Japan have eroded over the past decade, volume has increased sharply to Canada and Mexico. The value of dry pea and lentil exports surged 54 percent above a year earlier to $145 million, due in part to a 23-percent reduction in average unit export values (i.e., lower market prices). In 2005, per capita disappearance of all vegetable, melon, and pulse crops fell 1 percent to 444 pounds (farm-weight basis). Potatoes remained the most popular vegetable crop in the United States (29 percent of total use), followed by tomatoes (21 percent) and all lettuce (7 percent). Disappearance of fresh- market vegetables (excluding melons, potatoes, sweet potatoes, pulses, and mushrooms) fell about 1 percent to 148 pounds. Per capita use increased for such crops as spinach, asparagus, squash, pumpkins, and romaine and leaf lettuce and dropped for garlic, bell peppers, snap beans, and onions. Per capita use of processing vegetables (excluding potatoes, sweet potatoes, and mushrooms) increased 2 percent to 125 pounds in 2005 as a 3- percent increase in use of canning vegetables outweighed a small decline in use of vegetables for freezing and dehydrating. According to preliminary data, per capita disappearance of potatoes (measured on a fresh-equivalent basis) likely declined in 2005. Despite this expected reduction in disappearance (caused mostly by a smaller crop and higher prices), potatoes easily remain the most popular vegetable in the United States. In 2004/05, per capita use of all mushrooms remained steady at 4.1 pounds, with lower fresh-market disappearance offset by higher processing use.