The Industry Overview is grouped into the four categories listed below. To jump to a particular category, click on the following links.

•  Import/Export Challenges
•  Buy American Message
•  University of Illinois Canned Food Nutrition Study

Printing Note: The Industry Overview will print to a total of 2 1/2 to 3 pages on most printers.



The US canned peach industry faces formidable markets both domestically and internationally. As national production costs increase, an uncompromising exchange rate, subsidized Greek overproduction and low-cost production in China, South Africa and several other countries threaten the stability of the US canned peach industry.

The cost per case of canned peaches in California (where nearly 100 percent of the US crop is grown) is a direct reflection of increasing production costs. The costs of labor (more than 2/3 of growers' direct production costs), energy, chemicals, fertilizer and equipment have climbed dramatically over the last few years.

Domestically, the result has been significant. As production costs have risen, growers and canners have been forced to raise their selling prices. Now, foreign competition has led to an influx of lower-priced imports. Subsidized and low-cost production in Greece, China and South Africa pose a serious threat to the US canned peach industry. In marketing year 2000-01, the US imported 44,000 tons of peaches while exporting only 13,000.

In the mid-1980s, Greek accession into the European Union (EU) allowed the country to become a major force within the global canned peach market. Within the EU, a 19- percent tariff protected Greek market share from outside competition. Additionally, subsidized production encouraged expansion of the Greek canned peach industry internationally. Greek production quickly oversupplied both European and international markets resulting in extremely low pricing.

Greek exporters, offering rock bottom prices, have inundated most international markets, and Greece's exceptional competitive advantage is severely impacting US canned peach exports. US shipments to Mexico and Central America have decreased significantly. Even Canada, once considered the US's most viable growth market for canned peaches, has increased Greek imports.

Competition from other foreign peach producers, particularly China and South Africa, has also significantly affected US exports.

Low-cost Chinese production has infiltrated the Japanese market, expanding from zero in 1985 to over 36,000 tons in 1999/2000. Chinese peach exports now account for nearly 50 percent of Japanese imports.

South African production has impacted US exports to Asian Pacific Rim countries, including Singapore, Hong Kong, the Philippines and Taiwan. US canned peach shipments to Taiwan have shrunk to only 38 percent of 1998 totals while South African shipments currently account for more than half.


The California canned peach industry, along with the American Commodities industry as a whole, is suffering greatly from the foreign subsidies. The California canned peach industry has therefore set out to campaign for the "Importance of Buying American."

By purchasing American products, specifically canned California peaches, consumers can be assured that the peaches have been selected for canning at the peak of ripeness and processed as soon as possible to retain the highest quality, flavor and nutrient levels. Quality and assurance of food safety are key elements at every meal. When supporting the "Buy American" campaign, one not only supports the American peach growers, but thousands of workers (pickers, cannery workers, truckers, and administrators) employed by the peach industry.


The University of Illinois Department of Food Science & Human Nutrition conducted a study comparing the nutrient value of fresh, frozen and canned fruits and vegetables. The results were extremely favorable to the canned foods market. The canned goods were found to be nutritionally equal to their fresh and frozen counterparts. Specifically, the study found that both fresh and canned peaches provide about the same amount of the Recommended Daily Intake (RDI) for Vitamins A and C.

For additional information on the 1997 University of Illinois nutritional study components, please visit http://www.aces.uiuc.edu/~nutrican/studyfinal.html.

Sources: USDA, Foreign Agricultural Service Commodity Market Programs; University of Illinois Department of Food Science and Human Nutrition; University of California, Davis Department of Food Science and Technology.