Summary of the global blueberry market

24/10/2017

Thanks to the early end of the European season, South Africa was able to increase its exports to the continent. This was a necessity, since production in the country has increased markedly, which puts pressure on prices. In Europe, trade is currently focused on Argentine blueberries, but there are qualms about the quality of Peruvians. That is not the case among US importers, who experienced an increase in volume from Peru. Argentina is having a good season and reports higher export figures.

South Africa experiences a large increase in volume

The harvest began in June. The producers intend to fill the gap in the market between the 37 week and the 47, so exports will continue. The total production for the 2017 / 2018 season is from 10.000 to 11.000 tons, which represents a substantial growth compared to the 5,869 tons harvested in the 2016 / 2017 campaign. Exports reached 4.154 tons last year, and the outlook for this season is to reach 8.000 tons.

Producers note that this higher volume also puts pressure on prices. Although official figures indicate that the acreage will remain stable at 1.598 hectares next year, some experts say there are already more than 2.000 hectares. The new plantations are mainly located in the north of the country, where berries can be grown thanks to varieties with low cold requirements. Traditionally, crops can be found in the south and west of the Cape region.

Most exports are destined for the UK, which accounts for around 60% of all exports. The EU follows with 30% of exports. Africa (6%), Asia (3%) and the Middle East (1%) are smaller markets. Thanks to the end of the European season, there has been a good demand for berries.

Argentine exports of blueberries on the rise

Argentine blueberry exports have increased by 35% in the period up to week 40, compared to the same period last year. The country exported 4.234 tons of berries, compared to 3.111 tons in 2016.

El crecimiento se ha registrado tanto en el transporte aéreo como en el marítimo. En la primera categoría, el volumen ha crecido de 2.849 a 3.383 toneladas; un aumento del 18%. Para el transporte marítimo, la tasa de crecimiento es del 213%, con un aumento de 272 a 851 toneladas. «As producers, we have made better planning and, consequently, we have had a better season«, afirma un productor. Dada la situación del año anterior, el sector se preparó esta temporada introduciendo varios cambios en la producción, la logística y el comercio. Por ejemplo, se ha prestado más atención al transporte marítimo que al transporte aéreo.

Los exportadores ven buenas oportunidades para esta temporada, teniendo en cuenta la situación en los países vecinos. «In recent weeks, Peru has been exporting more to the US US, although before they preferred to send to China«, explica un exportador. Chile parece haberse quedado atrás con respecto a las estimaciones. «That is very important, because we are optimistic about the prices for 48, 49 and 50 weeks«.

USA: Peru demands a greater market share

Con el final de la temporada local, el mercado cambia a las importaciones de Sudamérica y México. En la actualidad, según un comerciante, el suministro proviene principalmente de Argentina y Perú y, en menor medida, de México. Se espera que los volúmenes de Perú y Chile continúen aumentando en las próximas semanas. «In general terms, the largest volumes come from South America as a whole«, afirma un comerciante, que comenta que tanto Argentina como Perú esperan aumentar un 20% esta temporada.

Peru seems ready to play a more dominant role in the US market. The country wants to take advantage of the gap between the Argentine and Chilean seasons in December. In those weeks, Peru will send larger volumes, according to the expectations of an importer.

Demand for berries is good and therefore prices are slightly higher than last year. The lower limit is around $ 20 FOB price, but it can go up to $ 30. One trader claims that with Thanksgiving and the December holidays just around the corner, the demand for blueberries is likely to increase.

Dutch trade satisfied with imported fruit

La temporada en el norte de Europa ha llegado a su fin. Hay algunos pequeños volúmenes europeos en circulación, especialmente de Polonia, pero cualitativamente, un importador los describió como «very bad» y dijo que «they no longer belong to the market«.

El suministro ahora proviene de Sudáfrica, Argentina, Perú y un poco de Uruguay. La semana pasada, los precios fueron muy altos, pero se han desplomado esta semana. «It's a strange situation, because there's really a shortage«, dijo un comerciante. El «culpable» de los precios más bajos es Perú. Este importador afirma que «those berries are not good«. En el pasado, los retailers compraban todos los arándanos que estaban disponibles, pero ese ya no es el caso. Los consumidores saben lo que quieren y ya no aceptan mala calidad.

La temporada en Argentina comenzó en la semana 37. «There is a variety whose quality has been disappointing, but the others are good. Everything that has been sent is of good quality«, resume. Perú comenzó con la carga aérea, pero mientras tanto, también cargaron contenedores. «The quality of the Peruvian product is terrible, the berries are soft and tasteless«, asegura el importador. «It really is a problem, everyone talks about it and there is agitation in the market. In this aspect, Argentines are improving«.

El primer envío aéreo desde Uruguay llegó en la semana 40. Fueron pequeños volúmenes, pero también hay algunos contenedores en camino. «In terms of taste, they coincide with the Argentines and I have not detected any important problem«, explica el importador. La temporada sudafricana comenzó en la semana 37/38, coincidiendo con los precios altos y «a perfect product«. Los precios son aún más altos que para el producto sudamericano.

Germany: the demand for foreign trade is growing

In the Federal Republic of Germany, blueberries from abroad are currently the best sellers. These lots come mainly from South America, especially Argentina and Peru. The price of these berries ranges between 12 and 14 euros per kilo, compared to 8 to 10 euros per kilo that is paid for European blueberries. Traders report that current demand is satisfactory on average compared to recent years. Compared to the summer season, the demand for blueberries appears to have decreased somewhat among German consumers.

Great demand despite high prices in Israel

High prices for blueberries have not been an impediment to Israeli consumers. Sales have increased dramatically in the last three years. Prices can reach up to 25 euros per kilo, while the average price fluctuates around 20 euros per kilo. Meanwhile, imported frozen blueberries sell for 10 euros per kilo. And although the demand for frozen berries is high, consumers prefer fresh ones.

The main price difference with other countries is mainly due to the combination of growing demand and insufficient domestic production. Only a few regions in Israel are suitable for growing berries, such as the north of the country, where higher altitude allows for cooler temperatures and there is less likelihood of heat waves. Much has been invested in developing varieties suitable for the country's climate, but studies are still ongoing and will not change the situation for the next five years.

The introduction of new cultivation techniques is another interesting option for producers to increase their production; for example, growing on substrates in climate controlled areas. According to a producer in Golan, this will be done in the near future. In this sense, he mentions how it has been possible to start growing strawberries in greenhouses and thus increase their production.

The Australian market is still good

Although the cultivated areas in the south will not begin to be harvested until December, the northern production areas have been on the market since June. Then the season begins in Queensland and the north of New South Wales. Despite the rain of the last weeks, there is a good market for this fruit. Traders report that blueberries have been one of the most popular products in recent months.

According to figures from the Australian Blueberry Growers Association, 4.500 tonnes of blueberries are produced annually. Of these, 75% is sold for fresh consumption in the domestic market, while another 15% is exported to Asia and Europe, and 10% to the processing industry. Production is expanding rapidly and growers are keeping their eyes and ears open to find new markets. At the end of 2015, Australian berries gained access to the Indian market.

Source: Fresh Plaza