New Zealand's strawberry growers are facing unexpected challenges this season as prices have taken an earlier than usual dive, impacting profitability. Despite a promising start to the season with favorable weather conditions encouraging early ripening, aggressive pricing in the market has led to a race to the bottom in wholesale prices. Darien McFadden, the country's second-largest strawberry grower, expressed concern about witnessing aggressive pricing much earlier in the season than usual, with prices dropping to $10 per kilogram, at or below the cost of production for most growers reports farmersweekly.co.nz.
The unexpected drop in prices is putting strain on growers, with fruit selling below the cost of production, a situation typically encountered in early December.
Strawberry Growers NZ manager Sally King explained that this season faced challenges due to a 30% reduction in plant stock availability caused by last year's wet weather impacting plant supply. Approximately a million fewer plants were estimated to be available. While expectations are for a good yielding year, the loss of plant stock is a concern.
New Zealand's strawberry industry typically produces around 9200 tonnes of strawberries annually, with about 90% sold locally. McFadden defended supermarkets' role in purchasing strawberries, stating they pay above competitors while expecting quality. Long-time grower Graham Sims reported a strong start to the season with good-sized fruit but faced challenges due to flooding in October and some strawberry plants being affected by leather rot. Despite these challenges, Sims managed to sell strawberries for $18 per kilogram.
The unusual drop in prices has left growers puzzled, speculating that consumer buying behavior and the overall cost of living might be influencing the market dynamics. The New Zealand strawberry season traditionally extends into December, and growers are hopeful for improved weather conditions to support yields for Christmas.