Mexico's blueberry production in 2024 is forecast to increase by 8% compared to 2023, according to a new USDA report .

Long-term production could be limited by labor availability and competition from Peru, according to the report, Mexico's blueberry production in 2024 is forecast at 81.000 metric tons, an increase of 8% due to sufficient access to water and the growing demand for exports.

With more than 71.000 metric tons exported in 2022, Mexico sends more than 95% of its blueberries to the US market, according to the report. The growth rate of Mexican blueberry production is projected to be slower in 2024 than in 2023 due to competition from Peru, according to the USDA.

In 2023, Mexican blueberry production reached an estimated 74,800 metric tons, the USDA said, a 12% increase from the previous year due to innovations in production and strong export demand. The report says Mexico's blueberry sector has seen rapid growth over the past decade, with rising prices encouraging growers to expand production or switch from other crops to blueberries.

The USDA said Mexican blueberry production grew more than 80% between 2017 and 2022, with Mexico currently the fifth largest blueberry producer in the world. Despite drought conditions across Mexico, local growers said the berry sector will avoid the impact of water shortages over the next one to three years, according to the report. "The sector is well equipped with irrigation systems. highly efficient irrigation systems, including private reservoirs, and extensive operating funds,” the report says.

Market Synchronization and Peruvian Pressure

Historically, Mexico's harvest began in early October and peaked between late April and early May, according to the report. In contrast, sector sources report that for the 2024 harvest, producers have taken measures to delay the start of the harvest until early February, in response to competition from Peru, which offers a similar product at lower prices during the period. from October to January, according to the USDA.

“In the face of this competition, Mexican producers have changed the growing season by delaying new plantings, which is expected to decrease overall production given the relatively significant place of new plantings in the total planted area, with the sector currently undergoing a transition from Biloxi to proprietary varieties. ”the report said. Growers are actively abandoning the Biloxi blueberry variety to take advantage of the continued development of improved varieties that provide higher yields and better flavor. According to contacts with farmers, 23% of the blueberry surface is currently planted with the Biloxi variety and 74% with patented varieties.

Biloxi's share is expected to decline significantly in the near term, according to the report.

Exports

With just 70 grams per capita, blueberry consumption is limited in Mexico, held back by price and consumer preferences. The vast majority of Mexican blueberries are exported. Mexican blueberry exports totaled 71.509 metric tons in 2022, approximately 2% less than in 2021.

The United States is the main export market for Mexican blueberries and represents around 97% of the market share. Other export destinations include the Netherlands, Canada, Germany, the United Kingdom, Japan, Hong Kong and Singapore, according to the report.

Mexican Production Trends

Jalisco, Sinaloa, Michoacán and Baja California together represent 90% of Mexico's blueberry production, according to the report.

Blueberry production in Mexico is carried out under plastic covers that provide 25% ultraviolet protection from intense sunlight, according to the report.

There is no open/exposed production, according to the report, as approximately half of the blueberry crop is planted directly in the ground and the other half is planted in substrate in 7 and 10 liter containers.

"Local contacts expect production through substrate to increase in the coming years, noting that production with substrates reduces susceptibility to disease and facilitates irrigation and harvesting," the report says.

Less than 10% of blueberry production is organic.

“Blueberry growers report significant workforce challenges, noting concerns about ensuring an adequate supply of field and processing plant workers in the near term,” the report says. "Local contacts indicate that labor availability is the main constraint on production growth, not consumer demand or access to water, land, capital or technology."