The United States Department of Agriculture (USDA) recently published a comprehensive report which sheds light on the changing landscape of the berry industry in the United States. The report details how demand for strawberries and blueberries has increased steadily since the turn of the millennium, leading to substantial growth in both domestic production and imports. The USDA Economic Research Service calculated the share of exports and imports, as well as per capita availability, which was used as an indicator of domestic consumption. The findings indicate significant growth in organic demand, imports and production, highlighting the need for the domestic industry to adapt to these changing market dynamics.

Over the past two decades, strawberries and blueberries have become increasingly popular in the United States. This growing demand is attributed to several factors, including new berry varieties, technological advances in production and expanded planting area. As a result, both domestic production and imports have experienced substantial growth. The report highlights how imports have surpassed domestic production, with Mexico emerging as the dominant supplier of strawberries and both Mexico and Peru emerging as key players in the blueberry market. These developments have not only increased the availability of berries to consumers year-round, but have also raised concerns about foreign competition and its effects on prices for domestic producers.

Strawberries:

Strawberries are the most popular berries in the United States, both in terms of value and production volume. High-yielding strawberry varieties have led to an increase in total national production while requiring less acreage. Importantly, imports of fresh strawberries, particularly from Mexico, have seen significant growth, reaching a record 431 million pounds in 2020. Although Mexican strawberries are available year-round, a staggering 85 percent of their shipments with destined for the United States, they enter the market during the winter and spring months. The report also notes a substantial increase in fresh strawberry exports, most shipped to Canada, while frozen strawberry exports have declined.

The production of organic strawberries has experienced a notable increase, surpassing conventional production. Notably, California, which accounts for more than 75 percent of national organic production, tripled its organic strawberry acreage between 2008 and 2019.

USDA Market News (Agronometrics users can view this chart with live updates here)

Cranberries:

Blueberries, the second most popular berry in the United States in terms of value and production volume, have also seen significant changes. The two main types of blueberries, highbush and lowbush, have different market destinations: highbush blueberries are mainly aimed at the fresh market and lowbush blueberries for processing. While the United States exports some fresh blueberries, it has become a net importer. Imports of fresh blueberries have increased from 44 million pounds in 2000-2002 to 450 million pounds in 2018-2020, accounting for about 62 percent of the national fresh blueberry disappearance.

High prices for fresh blueberries on the market have driven growth in global production, leading to increased imports during the spring and autumn months to supplement supply. Between 2010 and 2020, domestic imports of fresh blueberries from Peru and Mexico grew significantly, thanks to expanded planting area and higher yields driven by suitable production conditions and profitability.

Additionally, the report highlights the rapid growth of US demand for organic blueberries, with sales of organic blueberries increasing to $205 million in 2019, a five-fold increase between 2008 and 2019.

USDA Market News (Agronometrics users can view this chart with live updates here)

On the price front, it is worth noting that despite the seasonal expansion of domestic blueberry production, the availability of US blueberries remains relatively limited during the late fall and early spring periods. This seasonality creates elevated price levels, particularly during the spring and fall when supply is lowest. Producers strategically strive to increase production during these periods to capitalize on the elevated prices that prevail during these “shoulders of the market.” This strategic realignment is further reinforced by the increase in plantings of varieties that extend the market offering beyond the conventional marketing period. Consequently, this diversification of supply has facilitated an upward shift in prices during these specific periods.

Imports of fresh blueberries have increased in response to these market dynamics, effectively improving the availability of fresh blueberries out of season. This, in turn, has contributed to a perceptible moderation in the seasonal price differentials observed in recent years.

USDA Market News (Agronometrics users can view this chart with live updates here)

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All US domestic agricultural commodity prices represent the spot market at the point of shipping (i.e. climate-controlled packing house/warehouse, etc.). For imported fruit, price data represents the spot market at the port of entry.

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