Blueberry oversupply in Europe slows South African season

The small South African market is receiving an unusually large quantity of blueberries this season, fruit that has been grown for export, causing the price on the domestic market to plummet to an average of 12 rand (0,65 euros) per kilo. .

These prices represent an abrupt drop from previous prices. The previous minimum price, reached in December of last year, was still double the current one. The domestic market is so small that some agricultural economists wonder if such high prices in the retail that are not realistic could be hampering local demand.

Air cargo shortages and delays in the cold chain
There is a shortage of air cargo space from South Africa, which is causing delays in the cold chain and, given the oversupply in Europe due to high volumes from Peru, some blueberry producers decide to take the less risky local route of sale, although it generates less income.

The intense early rains in some regions of northern South Africa have complicated the situation: they have had a detrimental effect on the quality of shelf life in some areas, making blueberries unsuitable for sea travel to the northern hemisphere.

In the words of a producer, some of the fruit affected by the rain and sold in the national market "does not do good publicity for the berries South African. Normally, our quality is much better.”

In addition, the cold in the north has reduced the export estimate by a thousand tons.

Alternative markets are needed

The arrival of “massive volumes” from Peru in recent weeks has brought more competition in Europe (a situation familiar to South African avocado growers) and has re-emphasized the risk of over-reliance on a few markets.

"Any other market is an alternative to Europe at this point," says a blueberry exporter. "But it is also said that there is an oversupply in some markets in the East."

"Peru has had a huge amount of blueberries in a short time, so in about two weeks the market should start to clear up," he continues.

Last season, only 4% of South African blueberries were shipped to the Far East, another 2% to the Middle East and less than 1% to Africa and the islands of the Indian Ocean.

The South African blueberry sector is hopeful that its high job creation capacity will be helpful when commodities are prioritized in Chinese market access talks.

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