Summary of the global blueberry market
The blueberry market continues to grow, not only in Europe, but also in North America and China. The latter is awakening a lot of attention among Latin American countries, who would like to export to the Asian giant. The countries of Eastern Europe are investing in this crop, in which they see a lot of potential. Prices go up in Israel, but that does not deter the consumer. In Spain, producers are worried. Although the first berries of Huelva are already being harvested, market conditions are expected to be more complicated in April. As last year, oversupply is expected by then, which will lower prices.
Chinese consumption continues to rise
The importation of blueberries in China has increased in recent years and prices have also been on the rise. In the first quarter of the year, it was imported from Peru, Chile and Mexico. Last year, Argentina also gained access to the Chinese market. In the case of Peru, export by air has been complicated and Chinese merchants believe that the quality is somewhat lower than in previous years. The season has also been more difficult for Chile. As of June, there is also an offer from British Columbia.
Meanwhile, national demand and cultivation continue to grow. The biggest challenge for producers is the long transit time to the domestic market and the fact that the Chinese consumer prefers berries with a high Brix.
Germany takes an unpleasant surprise over production problems in Eastern Europe
In Germany, blueberries are being imported from Chile, although there is also a certain amount of Peruvian and Uruguayan fruit. The purchase prices are around 2,50 euros per kilo. There are also Canadian blueberries, which are offered mainly frozen or sold to the industry. As for packaging, the small ones of 125 grams in particular are working very well in the German market. Red fruits and cranberries are not a real competition for blueberries. The latter are in great demand, especially in high season, when the national product is available.
The merchants took an unpleasant surprise last summer because of production problems in Eastern Europe. As a result, there is little product stored and the price per kilo is at 3,50 euros, a relatively high price. In Canada, the blueberry harvest returned to normal last year after the record harvest at 2016. As a result, the prices of 2016 were again raised to an acceptable level. Finally, traders mention that the moderate production of stonefruit last year favored the cranberry sector.
Portugal, unknown in the world market
The season runs from May to September. A trader tells us that the acreage grows every year, which means that it should also be able to increase the export volume. According to a trader, the main destinations for the fruit are Spain, the Netherlands, Belgium, Scandinavia and the United Kingdom. In any case, Portugal still has to build a reputation in the international market, although its berries have good quality, according to a trader.
Spain expects a complicated market from April
The first blueberries of the season are already being harvested in Huelva and the campaign will continue until mid-July. The Snowchaser variety is what is making it possible for the Spanish campaign to begin so early. However, its volume is limited. In addition, there are imports from Peru and Chile that ensure that there is an offer throughout the year. The volume of harvest in Spain reaches its maximum in March / April.
A trader argues that it is positive to start so early with the national harvest because the freshness of the fruit is better than that of the imported berries. At present, the market is good, with high prices. Supply and demand are balanced, although a difficult situation is predicted for April, since the estimates point to an increase of 30% in the volume of production. Last year, there was overproduction in Huelva, which resulted in pressure on prices. Therefore, some producers decided to return to the strawberry crop, whose surface area has been raised by 9% this year.
In the case of blueberries, the increase in volume is due to the entry into production of new plantations in recent years, which are reaching their full capacity. According to one trader, there has been a real "gold rush", as even non-professional producers have jumped on the bandwagon. On the bright side, demand continues to grow. Blueberry cultivation has grown rapidly and a lot is being invested in new packaging and optical sorting lines.
Peru sees its exports grow
At the government level, work is focusing on improving access to the US blueberry market. It is hoped that a visit by a delegation from the United States to the Ica producing region will contribute to this. Last year, exports were 57% higher than in the previous season, with 41.329 tons shipped in 2017 compared to 26.327 tons of 2016. In 2017, exports to the United States also grew. In terms of value, exports grew more than 46% to 350 million dollars. This meant that the United States was also the most important export market, although the market share fell from 56% in 2016 to 44% last year. The United Kingdom (11%) and China (10%) occupied the second and third place. China is expected to advance to second place in the ranking in the coming years.
An increase of 12% in exports over the next four years is estimated thanks to the growing demand in the main markets. In addition, yields are improving and investment is being made in expanding the area under cultivation.
Mexico exports to China
The first Mexican blueberries have arrived in China. The objective is to place them in the 48 Chinese linear hours after the harvest.
Argentina is committed to growth
The national market for blueberries has grown considerably. The season starts in June and lasts until January. Domestic demand has increased by 250%, growth that is due, in part, to a greater familiarization with the product by the consumer, since in recent years several promotional campaigns have been organized.
The cultivated area oscillates between 1.900 and 2.100 hectares, concentrated mainly in the north (Tucumán and Salta), on the coast (Corrientes and Entre Ríos) and in Buenos Aires. Organic farming is booming. The country allocates around 600 hectares to organic production and more and more. In this way, Argentina sets out to differentiate itself from neighboring countries. In October of last year, several farmers reported hail damage. There was talk of losses of 6% of total production.
Although the national market is increasing, most of the production is exported. The United States is the most important market, representing an 65% of exports. The United Kingdom is also a large market and merchants seek to enter Asia. Earlier this year, Chinese borders were opened to Argentine blueberries, among other products. Other export markets are Russia and Israel. This season, the export volume amounts to around 18 million kilos, comparable to the previous season. In recent years, exporters have opted more frequently for shipping; this season, the volume has grown an 20% with respect to 2016 and an 40% with respect to 2015. The volume for the export market has grown for all destinations. The volume sent by air has been reduced, although it is not surprising.
Good market for Chilean blueberries
In the first week of this year, Chile exported 8.032 tons of blueberries, 406 of them organic. That volume exceeded the estimated 6.200 tons. This "confirms the suitability of the meteorological conditions in the main producing regions for the development of the fruit," reports the sectoral association. Rain in southern regions disrupted the harvest but has reportedly had little effect on exports. The share of the southern producing regions will increase from January, when the harvest is in full swing. The main export destinations are North America (58%), Europe (17%) and the Far East.
The season started with some delay, so the Chilean berries had a good start in the market. Because of the cool temperatures, the coloring of the fruit has not been as expected and the harvest started at the end of November instead of a month earlier. There were also some complications to export by air.
The hail damages the Uruguayan harvest
The hail in October last year caused damage to several producers in the Salto region. The most serious damage was recorded in two blueberry fields that were almost completely destroyed. “At this time of year, there are busloads of people coming in from the cities who want to pick their own blueberries, so it's a catastrophe,” one grower said shortly after the October hail storms.
Shortage of collectors in Poland
Polish producers are finding it increasingly difficult to find collectors. The system is said to have been designed with the apple sector in mind, but one producer explains that twice as many people are needed to harvest blueberries. In addition, there are complaints about "the enormous amount of paperwork that is needed." Ukrainians are increasingly less willing to work in Poland, preferring the higher salaries paid in the Netherlands and Germany. Poles don't want the job either, especially now that the country's economy is doing well.
Last season was rated “difficult” as the UK market was complicated by price fluctuations. Primarily, producers are investing in cultivation techniques to improve yields, rather than plans to further expand arable area.
New Zealand expects a good harvest
After a disappointing season last year, the prospects for this new campaign are promising. Although the weather could still reduce the quality, the prognosis is quite good. "This year, the fruit has been harvested earlier due to the exceptionally warm temperatures," says a trader. Most of the fruit is being picked now and the harvest will continue until the end of March. As temperatures have been warm, the fruit has been available earlier in both the local and international markets. The recent rains have delayed the harvest somewhat, but at that time the harvest was "between varieties", meaning the impact has been minimal. The sector continues to see growth opportunities not only in terms of surface area, but also in terms of varietal development.
In neighboring Australia, producers harvested 6.000 tons of blueberries last year. The sector is investing in exports after it was announced that Australian blueberries were included in the list of priorities of Chinese merchants last year.
Limited cultivation in Italy
A trader of blueberry plants points out that domestic demand lags behind that of Eastern Europe. What is sold in Italy is usually used for small plots. This has to do, among other things, with the fact that it is not easy to grow in Italy. The demand from Eastern Europe is much higher. Italian blueberries are grown mainly in the regions of Trentino, the Alps, Calabria and the Apennines. In the wholesale markets, prices range between 14 and 18 euros, depending on the location. In Turin, blueberries cost 18 euros (category I, in trays, origin Peru); in Rome, 16 euros (category I, in trays, origin Peru), and in Verona, 14 euros (category I, various origins).
Ukraine invests in quality improvement
Producers are not only investing in expanding the surface area, but also in improving quality. For example, anti-frost systems are being acquired and investment is being made in researching the correct variety for the country's growing conditions. A producer explains that the type of soil and climate have an important influence on the sustainability of a variety. Producers are not afraid of oversupply in the market. "Demand continues to grow faster than supply and they are not balanced," says a producer. "I see it in Ukraine, where the domestic market is also growing, but also in China, where the demand for blueberries is so strong that the country itself has started growing them." Exports are mainly aimed at the European market, with the United Kingdom being the largest buyer, followed by other EU countries. In addition, the national market is also quite important.
The astronomical prices do not deter Israeli consumers
The insufficiency of local production coupled with high demand has caused a rapid increase in prices. The situation has remained unchanged in the last three years. The price of fresh blueberries fluctuates stably around the 20 euros per kilo. Despite the high price, consumers continue to buy berries; Supermarket sales have grown year after year since 2014.
The country does not have the ideal growth conditions for blueberries, which makes it difficult for local producers to take advantage of the burgeoning market. Blueberries require cool nights and absence of heat waves, and these conditions are only guaranteed in the north of the country. The plantations are mostly in Upper Galilee and in the Golan Heights. Water scarcity and water prices make it difficult to increase production. Efforts are being made to stimulate national production with the development of new varieties. Although the process has started some time, it will still be a few years until the results are harvested.
Difficult market for blueberries in Belgium
The market has been developing a lot in the last two years through some acquisitions. Note, for example, the influence of AH in Delhaize. In Belgium, the demand for blueberries is higher than in France because in the French country relatively few blueberries are consumed, according to one trader.
Both in Belgium and in France, the berries come mainly from Chile and Peru. Those from Spain and Morocco are starting to arrive little by little and an air shipment from Mexico has also been received.
Prices are under enormous pressure due to some quality problems. There are very good blueberries and very bad blueberries. Consumer prices range from 0,99 to 1,25 euros per tray of 125 grams.
Demand continues to grow in the United States
Demand for blueberries is high, while supply is low. The supply from South America is "a little scarce", but it is growing. An importer explains that they are very satisfied with the quality of South American berries this year. Volume increases every year and this year is no exception, and demand is greater than ever, according to one trader. “Blueberries are a commodity similar to bananas or other products,” says one trader. Prices are stable at the moment and remain at a high level, although some retailers are also using them for promotions.
South Africa closes the season with small calibres
The season will come to an end next month. For now, exports of the 2017 / 2018 campaign have amounted to 6.380 tons, 2.200 tons more than in the previous season. However, the volume remains below the estimated 8.000 tonnes. It could be due to drought, because the sizes are small, but still not sure. The total production this season amounts to between 10.000 and 11.000 tons.
The blueberries are sent mainly by air. Around 4.280 tons have been shipped by air, while 2.100 have made the trip by sea. The best export period for the European market is between the 37 week and the 47. The most relevant destinations are the United Kingdom (60%), the EU (30%), Africa (6%), the Far East (3%) and the Middle East (1%). An important challenge for the sector is the development of phytosanitary containers for export to the Far East.
Source: freshplaza.es
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