US: oversupply of frozen wild blueberries in Maine
In Maine, the volume of blueberries in the 2014 and 2015 seasons was almost record and the fall in prices generated by "a problem of critical oversupply" has led to prices below the cost of production.
This sharp drop in price has prompted the Maine Blueberry Commission to ask the federal government to buy 13.608 tons (30 million pounds) of frozen fruit to deal with oversupply. The request was supported by a letter from the Maine Congressional delegation.
"The situation for Maine growers is unsustainable and the purchase of 13.608 tons of wild blueberries would help stabilize the decline in prices and farm incomes".
The University of Maine's Cooperative Extension and blueberry specialist David Yarborough said that Maine growers have managed to improve their yields, like Canadians, especially in northern New Brunswick, where acreage has increased. According to estimates from the extension cooperative, wild blueberry production increased on both sides of the border last year.
"With a higher volume of berries on the market, there are more opportunities to develop new products and new markets," said Yarborough. “This is a growing nuisance to say the least, until the market adjusts and finds a consumer for these berries. A temporary postponement would be very useful for everyone ", Agregó.
Yarborough said farmers are working on finding new markets for frozen wild blueberries in foreign markets such as China and Korea, as well as increasing consumption in the United States.
In addition, he added that preliminary publication of average pound prices to producers has been delayed this year, but 2015 prices are expected to be lower than the 60 cents per pound received last year.
In its letter, the congressional delegation wrote that the prices of frozen wild blueberries have decreased by 50% in less than five years: and that "Now it is estimated that they will be less than the cost of production."
Yarborough noted that growers keep their individual frozen wild blueberry inventory up-to-date for competitive reasons, so it is impossible to know exactly the magnitude of the surplus beyond the 13.608 tonnes (30.000.000 pounds) purchase requested.
Finally, the Congress delegation expressed that the USDA has USD 222 million of the 2016 budget available for the purchase of surplus products.
States in the eastern United States such as Maine and Nova Scotia, New Brunswick, Quebec and Prince Edward Island in Canada produce exclusively wild and frozen blueberries.
In the 2015 harvest, there was a drop in production of around 20% on average, compared to the record obtained in 2014. This also means 15-20% less compared to a normal year. This scenario reaffirms how complex the market for frozen blueberries will be in the United States this season, which is already developing in Maine.
Globally, the United States is the world's leading producer of wild and cultivated blueberries, but it also imports about 50% of what it consumes.
Chile is the largest producer of blueberries in South America and ranks second as a producer worldwide, highlighting its 2015 exports that amounted to USD 121 million, a figure higher than the USD 108 million exported in 2014. One of the main markets destination for Chilean sales of frozen blueberries is the United States.
Source: Freshplaza.com: Maine blueberry commission's "critical oversupply issue"
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