Supplies of blueberries subdued now, but production will come

Blueberry supplies are subdued at the moment, due to the gap between the North and South American seasons. Blueberries from warmer areas such as Peru are helping to supply the market before the bulk of production gets under way in Chile.

"We're currently receiving very small amounts out of Peru," said John Pandol, of Pandol Brothers. "Production has just started out of Chile but supplies will be modest until December when the 'blue wave' of South America begins in earnest. Of all the export crops in Chile, blueberries are the most geographically diverse with plantings spreading over nearly 1000 miles (or 1600 kms). Last year Chile exported just over 100,000 tons of fresh crop blueberries, of which 67% came to North America. Peru has been coming up in volume in recent years. Peru estimates it will ship 20-25,000 tons to North America."

Before Chilean supplies hit the shelves, the market is expected to remain stable. Prices should steadily decrease as volume picks up from the second half of December and will remain that way for 10-12 weeks until South American production slows down. 

"The market is pretty stable right now," Pandol continued. "The current range is $16 to $22, with major promotions and lower quality in the $16-18 and spot markets for better quality and condition blueberries in the $18-22 ranges. For November our expectation is the price range to remain the same but more blueberries will be sold in the lower end of the range. In December the market will transition from 6oz clamshells to pints, initially at the high range of the $16 to $22. When they transition from 6oz to pints is always a guess but is traditionally around Christmas. For a 10-12 week period from the second half of December, we expect to see over 8,000,000 lbs per week." 

Volume has grown to such an extent that sea freight has taken over air freight in the market. Additionally, consumers are buying more blueberries, thanks to retailers directing significant marketing campaigns to promote the fruit. "Last year at this date air freighted blueberries were prominent. This season the volumes justify sea freight, with minimal air freight," Pandol added. "US retailers are more aggressive in promotion, with the USDA reporting 7216 stores on ad at a weighted average price of $2.64 per unit for the first week of November versus 4447 at $2.91 in the same week in 2016. Overall supply has grown noticeably over the years. However, it's not really a case of increasing demand so much as increased plantings filling an otherwise untapped existing demand."

Early season berries are showing larger sizes, which stem from the Biloxi variety. There are in fact, numerous types of blueberries grown in South America are they not well publicized. Pandol pointed out that the such types as the Emerald, Jewel and Duke are among the most widely cultivated blueberries in South America, but that can depend on where and when it is grown.

"The early fruits out of South America this season are showing good quality and larger sizing," he said. "The sizing is common among early season fruits as well as newer planting as we have seen in Peru with the Biloxi variety. As the season progresses, sizes will taper down. Berries are generally of larger size and good quality and condition but there is a range and the marketplace is sorting it out. In northern Chile Jewel, Emerald and Oneil are prominent and the most common in Central and Southern Chile are Duke and Oneil. Every blueberry variety available is in various levels of experimentation or establishment. The list is dozens if not over 100 total varieties. Some of the types that have been bred specifically for more tropical climates were not around some decades ago. Therefore, plantings in places such as Peru and Mexico would not have been possible or at least, very difficult."

For more information: 

John Pandol

Tel: 661-725-3755