Uruguay: Lack of profitability drives blueberry acreage down

Azul Sereno S.A. is an Uruguayan firm devoted to the production and packing of blueberries; it is the country's fourth largest exporter, heading a group of producers with a total of 45 hectares. Its fruit is normally exported fresh and last year 98% of it was shipped loose in 3.5 and 4 kilo boxes.

The firm's exports begin in late September or early October with a focus on quality. Diego Castagnasso, director of the company, explains that this makes exporting to countries like the US very difficult.

"If you care for the quality during the harvest, packing, etc., the bromuration process and the shipping can be counterproductive. In 2008, as a test, "we sold more than 50% of a production of 100,000 kilos to the US, but we did not like the experience."

As for the European market, in general it is consuming more blueberries, but there are difficulties in obtaining good prices. "The problem is that both Uruguay and Argentina are facing increasing labour, transport and service costs, but prices in Europe do not grow at the same pace," explains Castagnasso.

This lack of profitability is causing a reduction in the number of hectares devoted to the crop. In 2008/09 there were 850 hectares in production in Uruguay and in December 2012 this number was down to 450. In the Argentinian region of Concordia there were 2,000 hectares in 2008/09 and nowadays there are less than 900 hectares. In the same period, Azul Sereno lost 30 from the original 75 hectares. "In 2011 we exported 300,000 kilos and in 2012 only 150,000", affirms Castagnasso.

The firm works with very prestigious importers. The Greenery and Sun Berry in the Netherlands, IPL (International Produce), Wellpak and CPM in England, and right now it is in negotiations with a German company.

"At the moment we are introducing new varieties into our plantations. We have suppressed 25% of the production we had to introduce new varieties such as the Emerald and the Snow Chaser and this entails lower production volumes."

The director of Azul Sereno S.A. expects to be able to provide its clients with larger volumes in two years, when the new varieties go into production. The long-term objective is to increase the acreage and enter new markets, such as Asia, where there is great potential for business.

For more information:
AZULSERENO S.A.
Diego Castagnasso
skype: diegocasta
@: diegocasta@azulsereno.com
diegocasta@gmail.com