Total world production of dates increased from 3.4 million metric tons in 1990 to a peak of about 6.4 million tons in 2001, but dropped back a little to about 6.3 million tons in 2002. The upward trend for date production is expected to continue. That is because many trees planted in countries like United Arab Emirates in the recent decade will add to commercial production. Since the UAE exports nearly half of its production, greater production gains there will tend to exert a downward pressure on the average world date price.
World Exports Expanding
Total world exports of dates showed a strong upward trend in recent years. FAO data indicate the world exports of dates increased from 486,643 metric tons during 1998 to 724,088 tons by 2001, a gain of 48.7 percent during that period.
Part of the reason for rapid growth in world date exports is the way United Arab Emirates has become so much more important. In addition to the larger harvests of dates from trees in the UAE which were planted in the last 15 years, there is a substantial exports by UAE transit traders of dates which were delivered by boat from many smaller Iranian traders.
The value for world date exports increased from $270 million in 1998 to $330 million in 2001, which meant a decline in the average export price from $555 per ton in 1998 to $456 per metric ton in 2002. However, the world average price decline does not mean that prices for all exporters declined.
Some exporters of high quality and attractively packaged dates recently increased their export price. During January-March 2003, the average price for U.S. dry date exports rose to $4,460 per ton. While the average price for U. S. date exports to Canada rose to $ 2,772 per ton, shipments to Dutch traders soared to $4,978 per ton.
Special packing methods to preserve the quality and moisture of the U.S. dates prepared in consumer ready containers appear to have been part of the reason for high prices. It appears that the gap between bulk dates and the specially prepared dates which are ready for the grocer shelves in Europe and North America is widening. That makes it obvious that more firms in the date marketing business should strive to sell more of their products in ways which bring higher prices.
World exports of dates rose to about 750,000 tons in 2002. The UAE remained well in the lead, with exports of about 375,000 tons of dates, including the re-export of Iranian dates. Pakistan, Tunisia, Iran, and Saudi Arabia are some of the other important date exporters. Saudi Arabian exporters of dates will benefit from efforts to prepare high quality products in attractive packaging with modern innovations. Dates which are in special packaging to preserve moisture bring a higher price in supermarkets in Europe and North America. In contrast to the average U.S. price of $1,013 per ton for imported dates in 2002, the average world traded price was only about $500 per ton. The average price for bulk date exports from Iran in recent years has been less than $185 per ton.
Concern over the lack of traditional supplies of dates for export from Iraq apparently contributed to the astonishing expansion of date production and exports for United Arab Emirates. Date production also increased in most other countries of the Middle East. During the last 15 years the quantity of dates produced in the Middle East doubled.
Major Products
Pakistan and Egypt are leading world date producers, with harvests of about 1 million metric tons annually in each country. However, most of their crop is marketed domestically, partly because of low world traded prices. Exports of dates from Pakistan fluctuated in the recent decade, ranging from a low of 34,503 tons in 1996 to a high of 69,384 tons in 2001. Egypt's date exports have remained below 11,000 tons annually because of strong domestic demand and low prices in the Middle East.
Tunisian Exports Doubled
Tunisia's date exports were relatively flat during 1997 through 2000, when 22,411 tons were exported. Then, Tunisia's date exports more than doubled and reached 47,043 tons in 2001, for a value of $73.4 million. A project conducted by USAID in about a decade ago on how to bolster Tunisia's horticultural exports may have contributed to recent gains for exports of various commodities from Tunisia. The study provided good details on weekly and monthly price trends in selected European cities. It also had a big focus on the attitudes of some European importers on the quality of horticultural commodities delivered to them by suppliers in various countries.
Saudi Exports
Saudi Arabia's date exports showed an upward trend in the recent decade. Exports of dates from Saudi Arabia increased from 18,183 metric tons in 1993 to 31,881 tons during 2001. However, the value for Saudi Arabia exports dropped from $25.2 million in 1993 to $18.7 million in 2001. Exports of about a tenth more dates from the Kingdom in 2002 helped to push the value for shipments back up to about $28 million during 2002.
Use of dates as part of the ingredient for cookies and high protein flour mixtures may enhance the prospects for exports of Saudi Arabia's dates. Some of the donations for food aid from Saudi Arabia could include date bread, cookies, and mixtures of flour containing dates. A major item for expanding Saudi Arabian dates would include packaging dates in a way out lined by importers in certain countries.
Improved quality control and packaging could enhance exports of dates from Saudi Arabia to Europe and the United States. Iran and the UAE have apparently nearly taken over the market for inexpensive date imports into South Asia. Tunisia has a special arrangement to send dates to countries of the European Union, which encourages improved quality and packaging.
Iraqi Export Revivial
The prospects for a revival of date exports from Iraq will not be all that promising unless efforts are made to provide quality supplies in attractive packaging. Iraq provided mostly bulk dates at low prices for export prior to 1990. Iraq did have a good border trade in dates in the recent decade, when most of the shipments of about 30,000 tons annually went to Turkey, Jordan, and Syria. Iraq had exported 248,234 tons of dates in 1989 for $65.8 million according to data the
Iraq Date Administration reported to FAO. Then, Iraq's date exports dropped to about 20,000 tons in 1991, partly because of problems posed by the Gulf War. Iraq was able to build back date exports to some neighboring countries, and shipments peaked at about 100,000 tons in 1998, before dry weather and smaller supplies reduced exports to about 35,000 tons by 1999.
Iran's Exports
Iran apparently saw the lack of traditional date exports from Iraq as an opportunity for its exporters to fill part of the gap. Exports of dates from Iran soared from just 13,308 tons in 1989 to 46,000 tons in 1990 and 57,775 tons in 1991. Iran continued to expand date exports to a peak of about 200,000 tons in 1996, when large sales were made to South Asian countries. The low price of $248 per ton for Iran's date exports apparently contributed to the reduction to 59,290 tons for shipments that year. The average price for Iran's date exports continued to decline in 2001, dropping to only $155 per ton for the 119,164 tons exported. This is a price which is below that for soybean meal imported into Iran as a major animal feed ingredient.
Different Marketing Arenas
There are different scenes for world trade in dates. In contrast to the big trade in inexpensive bulk deliveries of dates from Iran and the UAE to countries of South Asia there is the trade in high quality specially packed dates from the United States to Canada and northern Europe. Then, there is the trade in Tunisian dates delivered to packing houses in France for distribution throughout Europe. India's imports of about 300,000 tons of dates in 2002 helped to provide a large outlet for date exports from the UAE and Iran.
Exports to US
Saudi Arabia's deliveries of dates to U.S. importers rose 40.6 percent during 2002 to 239 tons, which was double the shipment of 118 tons during 2002. The average price for U.S. imports of dates from Saudi Arabia dropped from $712 per ton during 2000 to $598 per ton during 2002.
The share of U.S. date imports held by Saudi Arabia 2.5 percent in 2000 to 5.8 percent in 2002.
Before the Gulf War in early 1991, world trade in dates was very different from the setting found in 2003. Back then, Iraq was the leading world exporter, and exports from UAE were less than an eighth of what they are expected to be in 2003. Iraq exported an average of about 130,000 tons of dates during 1988-90, but shipments during 1999-02 were only about 30,000 tons annually.
Saudi Arabia ranked next to Iraq and UAE as the third major world exporter of dates in 1989, when 40,218 tons were shipped out. Back in 1989, UAE exports of 49,619 tons of dates were valued at $14.6 million, compared with the value of $23.7 million for Saudi Arabian exports. Pakistan, Iran and Tunisia were the next major date exporters in 1989.
A good potential exists for expansion of dates from Saudi Arabia to the United States if retail prices could be reduced to become more competitive with other dry fruits, especially raisins and apricots.
Demand for high quality dates in supermarkets has increased in the last several years. The increased demand and relatively flat domestic production have contributed to a rise in imports and a decline in exports. Prices for special varieties of dates from California are very high in some stores, in the range of US$15 per kg. The average price for U.S. imports of 4,095 metric tons of dates in 2002 was only US$ 1.01 per kg. Big gaps between retail and import prices may explain why U.S. date imports increased by 63 percent in the first three months of 2003 to 1,879 metric tons, for an average price of $1,083 per ton.
Supermarkets which specialize in displays of a wide range of products are favored by some high income shoppers who like to buy most of their daily food and household needs at one stop. This means that they might buy specially displayed dates at a high price. Dates are also available in attractive packaging which keeps them moderately moist for several months after the purchase at the grocery store. Dates are usually available at supermarkets in the same section where packaged raisins, prunes, apricots, apricots, and mixed dry fruits are sold.
Some of the same firms in California which package and market domestic dates, also package and distribute imported dates. The average producer price for dates paid to farmers in California rose to US$ 1,742 per ton, compared with US$ 1,461 per ton in 2001. The U.S. date harvest fell 1 % in 2002 to 17,690 tons, for a value of US$30.8 m. It would appear that gross receipts of US$ 17,705 per hectare in 2002 would cause more California farmers to plant date trees. However, the area devoted to dates in California dropped 4.4 % in 2002 to 1,740 hectares. U.S. date imports skyrocketed during January-March 2003 by 64 % to 1,738 tons, for a value of $1.9 m.
During 2002, U.S. date imports remained relatively flat in value at US$ 4.15 m, because of a 3 % decline for the average price. Net imports of dates into the U.S. may rise from 952 tons in 2002 to possibly double that quantity in 2003, partly because of the widening gap between domestic and import prices for dates.
Pakistan provided 59 % of the 4,102 tons or dates imported by the U.S. during 2000, but by 2002, its market share had dropped to 29.7 % when 1,216 tons were delivered. The average price for U.S. imports of dates from Pakistan rose from US$ 1,267 per ton in 2000 to US$ 1,368 per ton in 2002. U.S. imports of dates from Pakistan during January-March 2003, more than doubled, reaching 1,117 tons. Iran has been able to expand sales to U.S. importers as wider distribution provided benefits. Iran's share of the U.S. market in terms of value for imported dates rose from just 7.4 percent in 2000, and 17.8 percent in 2001, to 27.1 percent in 2002. Iran moved into second place as a supplier of 904 tons for U.S. importers in 2002.
The average price for U.S. imports of dates from Iran rose from $1,196 per ton in 2001 to $1,244 per ton in 2002, and then dropped to $ 939 per ton in January-March 2003. In contrast to the galloping growth of Iran's exports, China's deliveries of dates to the U.S. market were flat in 2002, when 480 tons were delivered.
The location of Mexico's date orchards just to the south of California's Imperial Valley helps Mexico to expand date exports to the U.S. market which bought 502 tons in 2002, or nearly triple the 2000 quantity. Then came a more than sevenfold rise to 81 tons for U.S. imports of dates from Mexico in the first three months of 2003. If U.S. date producers do not increase their area planted despite higher prices and gross receipts, Mexican farmers just south of the border might be encouraged to plant more date trees. The average price for U.S. imports of dates from Mexico was $ 790 per ton in 2002, which was only about half the producer price in California.
Tunisia's Expanding Sales
Tunisia provides European traders with some dates which are attractively packaged. However, apparently some of the sales to the United States include chopped dates which can be used in cooking. Tunisian deliveries of dates to U.S. importers increased from 146 tons in 2000 to 322 tons in 2001, before dropping by a tenth in 2002.
Tunisian dry date shipments to U.S. importers were 290 tons in 2002, when the average import price was $ 524 per ton. As a low price supplier of quality and tasty dates, Tunisia is very competitive in the U.S. market.
Leading Foreign Markets for Dates
The world's largest importer of dates in the recent decade has been India, although the average price for dates arriving in India has been less than $240 per ton. France and Pakistan have been the two other major date importers.
FAO data showed that imports of dates into India fell from 244,367 tons in 2001 to 171,523 tons in 2002. Smaller arrivals from UAE transit traders caused most of the decline. India remained a large market for Iran's date exports in 2002. India's efforts to more closely inspect arriving food items for quality may have contributed to smaller date imports in the last two years.
The average price for 40,523 tons of dates arriving in France in 2002 was $586 per tons, compared with $635 per ton for the 32,820 tons imported in 2001. Tunisia is a major supplier of French date imports. Pakistan's imports of dates rose slightly to 38,144 tons in 2002, for an average price of $162 per ton. The UAE and Iran provide most of the dates imported by Pakistan.
Russian date imports up sharply in recent years: Russian traders paid an average of $272 per ton for imported dates in 2002, compared with $192 per ton in 2001. Russian imports of dates increased sharply from 11,011 tons in 2001 to 18,076 tons in 2002, and a larger quantity in 2003. The upward trend for Russian date imports was a pattern found also for imports by some other Former Soviet Union countries, including Ukraine, Belorus, Kazakhstan, Uzbekistan, Lithuania, Latvia, Estonia, and Georgia. Iraq had provided FSU with about 30,000 tons of dates annually during 1988-90.
Countries in East Europe also showed an increase in date imports, apparently because of the upward trend for most fruit items which were more controlled prior to 1991. U.S. date imports rise to fill gaps in domestic demand: Domestic demand for dates remained strong, and imports rose from 41,45 tons in 2002 to 5,095 tons in 2003. U.S. imports of dates from Pakistan soared from 1,673 tons in 2002 to 2,991 tons in 2003. U.S. imports of dates from Saudi Arabia had reached a peak of 162 tons in 2001, but were down to 118 tons in 2003. U.S. imports of dates from Mexico rose from 192 tons in 2000 to 508 tons by 2003.
This may have contributed to the way imports of dates from Iran fell from 1,125 tons in 2002 to 481 tons in 2003. China provided U.S. importers with 536 tons of dates in 2003, compared with 479 tons in 2003. Algeria was the source for U.S. imports of 163 tons of dates in 2003, compared with only 25 tons in 2002. U.S. imports of Tunisian dates fell from 152 tons in 2002 to 118 tons in 2003. U.S. imports of dates from UAE had reached 82 tons in 2001, but arrivals in 2003 were down to 16 tons. U.S. date exports increased in 2003: Exports of dates from the U.S. increased from 3,156 tons in 2002 to 4,010 tons in 2003.
Quality dates exported from the U.S. did well in 2003, with increased shipments to Canada, Australia, and some countries of the European Union. U.S. date exports to Canada increased from 868 tons in 2002 to 1,024 tons in 2003. U.S. date shipments to the UK nearly doubled in 2003, reaching 395 tons. A dramatic rise for U.S. date exports to Sweden from 91 tons in 2002 to 309 tons in 2003 indicated superb marketing innovations in supermarkets. Competition from Tunisia limited prospects for gains in sales of U.S. dates in France in 2003 to 135 tons.
Increased exports of U.S. dates occurred in 2003 when the harvest in California fell to 15,000 tons. This meant that about a fourth of the domestic crop was exported. U.S. imports of dates rebounded from 4,147 tons in 2002 to 5,095 tons in 2003. Saudi Arabia's date exports receive favorable prices:
Saudi Arabia's date exports increased from 31,881 tons in 2001 to 33,925 tons in 2002, as the value rose from $18.7 million to $33.9 million. The average price for Saudi exports of dates increased from $586 to $715 per ton between 2001 and 2002. The way Saudi Arabia has been able to get higher prices for date exports because of quality control and improved packaging may serve as an example of the path to go for some other date exporters.
Saudi Arabia has strong competition in countries of the Gulf Cooperation Council because of the availability of large supplies from UAE and Oman. Exports might do well as part of products containing dates. That could include more trail mixtures where dates would be about a fourth of the contents. The peanuts and tree nuts used for the trail mixtures could be imported to have machines to package the rolled dates with the nuts. Also, sunflower and pumpkin seed are often used in these mixtures for distribution to stores in North America. More date nut bread and cookies could also be exported for distribution in supermarkets in GCC countries.
Saudi Arabia's date exports to Yemen have been easier to make since Yemen modernized its banking and foreign exchange system. Yemen imports about 13,000 tons of dates annually. Shipments from Saudi Arabia to the Sanaa market are easier to make than those from Pakistan, which involve truck trips from ports over mountain roads. Saudi Arabia has some imports of dates: Despite the 12 percent ad valorem import duty, Saudi Arabia imported 733 tons of dates in 2002. The displays of a wide range of imported processed foods in supermarkets contributed to greater imports of dates into Saudi Arabia. However, the imports still were less than 0.1 percent of the total supply of dates in Saudi Arabia.
Production of dates in the Kingdom averaged about 745,000 tons annually during 2001-03.
Big U.K. Order for Saudi Dates
Saudi Arabia concluded substantial date export deals with the United Kingdom recently. The transactions were finalized at the Royal Agricultural Show, organized by the Royal Agricultural Society at Warwickshire, U.K. "Many Saudi companies that took part in the show were successful winning contracts to export dates to Britain," said Dr. Fahd Al Sultan, Secretary General of the Council of Saudi Chambers of Commerce and Industry (CSCCI). He was speaking on his return to Riyadh after the four-day show.
He said 14 Saudi companies that exhibited their products were also able to promote a wide range of products using the United Kingdom as a gateway to Europe. The British Embassy in Riyadh organized the Saudi participation in the show in coordination with the CSCCI.
Saudi Arabia produces 830,000 tons of dates annually from the 32 million date palms in the Kingdom and production is likely to increase to one million tons by the end of 2010, Dr. Sultan said. The Saudi date plantations have been modernized and 200 varieties of dates are currently produced.
The Saudi pavilion at the show was organized at the initiative of Prince Turki Al Faisal, Saudi Ambassador in the United Kingdom. In addition to the Saudi businessmen, the others who represented the Kingdom at the show included, Dr. Fahd Balghnaim, Minister of Agriculture, Dr. Abdullah Al Obaid, Deputy Minister of Agriculture, as well as Mr. John Lawton, a British agricultural expert based in Riyadh, who made a presentation about Saudi agriculture.
The total two-way trade between the Kingdom and the UK during the year 2003 was estimated at SR26.88 billion. Saudi imports of merchandize from U.K. stood at SR 12.88 billion, up 32 percent over the previous year and invisibles were valued at SR 14 billion according to U.K. official statistics. Kingdom's exports to Britain totaled SR5.46 billion, up by nine percent over the previous year.
John B Parker
Saudi Commerce and Economic Review 2004
