Demand Analysis For China’s Edible Fungus In The United States Market

Edible fungus industry has become a very important part in China’s agriculture, which is the sixth agricultural products after the crops, cottons, oil, fruit and vegetables. China is the big country of production and trade of Edible fungus, the trade volume account for more than 48% of global trade total. The United States has always been one of the most important export market for China’s edible fungus, between 2010 and 2014, Chinese edible fungi export to the United States over $100 million per year on average, accounted for about 6% of China trade total. According to the article study, we found Chinese export volumes and export sales of edible fungi to the United States have downward trend,and the United States slipped in the export market for China’s edible fungus rankings in recent years; China’s edible fungus price is low in the American market;China is the largest import market of Edible fungus in United States in the past,whice was placed by Canada in 2013,China become the second largest inport market.;The technical barriers to trade of the United States have great negative impact on Chinese edible fungi export; The per capita consumption of edible fungi of the United States is on the decline. Above analysis shows that the prospect of China’s edible fungus exporting American market is not optimistic. Therefore, providing theory support for China’s edible fungus exports to the United States is particularly important.This paper is based on the related research at home and abroad.Using the United States international trade commission database, according to customs HS classification edible fungi can be divided into fresh or frozen fungus, dry fungus and canned fungus.Using Rotterdam model to calculate and analyse the demand characteristics of Chinese edible fungus in the United States market by Eviews7.2 measurement tools, according to the result of model calculate the spending elasticity, price elasticity and cross-price elasticity of hinese edible fungus in the United States market,comparing with the main competitors of three kind of edible fungus,define the impact of the main competitors to China.The paper results show that:The United States import of fresh or frozen edible fungi still increase in the future. American consumers have stronger preference to China’s fresh or frozen edible fungus,which have weak influence in the United States market.The United States total import spending have high elasticity to China’s fresh or frozen edible fungus. The United States have low elasticity to the China’s fresh or frozen edible fungus price,it is not a good choice to reduced the price of Chinese fresh or frozen edible fungus; Of all the competitors, Canada has the greatest substitution effect to China’s fresh or frozen edible fungus, comparing with the other competitors, Chinese fresh or frozen edible fungi have weaker influence in the United States market.The demand of the United States dry edible fungus market is relatively stable. China dry edible fungus are inferior goods in the United States market,which have strong substitution effect on the other country’s dry edible fungus. The spending elasticity and price elasticity of China dry edible fungus in the United States market are positive value and less than 1,which means inelasticity.Chinese dry edible fungus have strong substitution effect on French, Japan and South Korea, and these countries have weak influence on China’s edible fungus instead.The United States canned mushroom market tends to saturation. China will benefit little from the ncreased total imports of dry edible fungus.Low-price strategy will be to China canned mushroom’s disadvantage. The United States total import spending have low elasticity to China’s canned edible fungus. Similar to fresh or frozen and dry edible fungus, the United States prices reflect insensitive to China’s canned edible fungus. China has complementary relationships with other competitors, of which Nrtherland has the strongest impact on China.According to the research conclusion, this paper puts forward advance:developing emerging edible fungus markets, opening up the domestic market, improving the quality of edible fungus products, making differentiation competitive strategy and grasping the situation of competitors edible fungus supplies.