Walnut trade and processing in China and abroad

  According to statistics from the International Tree Nut Council, given the deterioration of the human living environment, demand for healthy and brain-boosting foods is growing. The annual demand for walnut kernels is expected to increase continuously at a rate of 5%. At the same time, domestic consumption demand for walnut kernels in China will also grow by 10%~20%.

  1. Export scale At present, the demand space in China's domestic walnut market is expanding, domestic walnut sales momentum is strong, and prices are noticeably higher than those in foreign markets. In the 1950s-1960s, China held a 50%~60% share of sales in the international walnut market, an outstanding achievement; after the 1970s, the United States implemented variety improvement and technological upgrading and leaped to become a major country in export volume and economic returns. Although China is a major country in planted area and total output of walnuts, its share of the international market and its selling prices have declined year by year because of relatively poor product quality, and its dominant position was replaced by the United States, a deeply instructive lesson. US walnuts are now in full bearing, with stable output and a growing trend. India's walnut output is 30,000 tons, its quality is also improving, and its export volume is also increasing, making it highly competitive. Walnut kernel exports from Moldova in Eastern Europe also pose a threat to sales of Chinese walnut kernels in the European market; their exported walnut kernels resemble high-quality French walnuts in appearance and quality, and being closer in distance and lower in price, they are well received.

  In recent years, China's export volume of walnut nuts has fluctuated considerably: 1,650 tons in 1996, 4,750 tons in 1999, and 1,180 tons in 2001, with the average annual export volume basically maintained at 1,200~1,500 tons (nuts), and in some years reaching about 10,000 tons. It can be seen that the market for Chinese walnut kernels as a traditional export commodity is shrinking and export volume is declining. If the problems of water adulteration and impurity adulteration in the harvesting and processing of walnut kernels are not solved, and if problems such as seedling-grown cultivation and extensive management of walnuts are not fundamentally changed, the prospects for China's walnut kernel export market will not be optimistic.

  There are nearly 20 countries and regions to which China exports walnuts, mainly: the United Kingdom, Japan, Vietnam, Germany, Canada and Hong Kong, China, among others. From 2003 to 2006, China's walnut export volume increased year by year: the 2004 walnut export volume was 112.06% of that in 2003, the 2005 walnut export volume was 138.20% of that in 2003, and the 2006 walnut export volume was 145.43% of that in 2003.

  2. Trade structure Walnuts are a traditional export agricultural product of China. In 1921, the national walnut export volume was 6,710 tons, and in the 1960s China began exporting to the United Kingdom and the Federal Republic of Germany. The exported walnut kernels, being milky white in color, sweet in taste, and finely graded, were highly favored in the international market and once stood as one of three equals alongside France and Italy. In the early 1970s, US walnuts gradually captured part of the international market with their uniform appearance and excellent quality. In the late 1980s, because Chinese walnuts were mixed in quality and uneven in size, and other product quality problems made it difficult to compete with foreign products, export volume declined. In 2003, walnut export volume was less than 10,000 tons, and competitiveness in the international walnut market weakened.

  Through the above comparison of items, it can be clearly seen that in both China and the United States there is a close relationship among yield per unit area, export volume, and the quality and selling price of nuts and kernels, further showing that a major producing country is not necessarily a strong competitor or a major country in economic returns. As China joins the WTO, the process of economic globalization accelerates, domestic and international market competition for fruit products becomes increasingly fierce, and the comparative returns of bulk fruits continue to decline, while specialty fruits such as walnuts have broad development prospects because of strong market competitiveness and high comparative returns.

  Entering the 21st century, China's walnut industry has again developed rapidly. According to recent statistics from the International Tree Nut Council, in 2005 China's walnut kernel exports ranked second in international market share, second only to the United States; statistics from the UN Food and Agriculture Organization show that among world walnut production in 2005, China's output reached 499,000 tons, ranking first, with the United States second and Iran third. Although China's walnut production and walnut kernel exports have made tremendous progress, in the export of Chinese walnut nuts and kernels, the share in the international sales market remains low and unstable because of relatively poor product quality. For this reason, selecting and breeding superior walnut varieties, improving walnut quality, and achieving variety-based, standardized, industrialized and commercialized Chinese walnut production have become urgent problems to be solved in the development of the walnut industry.