As California's cherry season is about to start, the state has been impacted by a severe set of storms over the past few days. While the full extent of the wind, rain, and hail is being assessed at the time of writing, the timing is less than ideal for the early cherry varieties getting ready for harvest. More clarity on the impact will follow in the coming days and week. With the season's start being so close, preparations for the domestic and export markets are being finalized.
Opportunities in Asia
"For us, these preparations started months ago," says Chris Medeiros with Rivermaid Trading Company. "We spent several weeks traveling abroad and meeting with various clients," he added. Cherries always create excitement and overseas customers seem to be eagerly awaiting the first air arrivals of fresh premium fruit. Asia remains one of California's key export markets, but the U.S. dollar is currently very strong against several Asian currencies, including the Japanese yen and Korean won. "This makes California cherries relatively expensive, which could create some challenges with demand," Medeiros commented. However, potential tariff relief in some countries, along with continued GDP growth across parts of Asia, may help create opportunities and provide some optimism.
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Freight rates
California cherries are typically shipped by air to overseas markets, and recently airlines have reduced the number of flights in an effort to maximize space and efficiency. "Freight makes up a significant portion of the total cost, and we are still waiting for airlines to publish their rates," Medeiros said. While acknowledging current market volatility, Medeiros noted that this pattern is not new. Traditionally, rates tend to start at elevated levels early in the season and adjust downward as cherry volumes increase. This dynamic can make it challenging to program business and establish consistent pricing, particularly for retail. "We understand there are always external factors that can impact air freight, especially in today's environment," he said. "However, this has been a consistent pattern year after year. Greater transparency and a more stable approach to pricing—along with earlier visibility—would allow for better planning across the supply chain."
Medeiros added that improved consistency would benefit all parties involved. "When we're able to plan with confidence, it supports stronger programs for growers and customers alike, and ultimately creates better, more sustainable opportunities for the airlines as well."
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Timing of domestic season
Within the domestic market, freight rates have also gone up. "We are seeing an increase up to 50 percent year on year," says Justin Bloss with Rivermaid Trading Company. "It's certainly impactful and plays into the retail pricing equation," he mentioned. Lots of boxes go on a truck, so the increased cost is spread over more units, but it will be crucial for trucks to be full.
While shipping costs are significantly higher compared to last year, the setup for retail is phenomenal. "In view of this season's timing, I've never seen a better setup in terms of promotional opportunities," Bloss shared. Usually, promotions for California cherries start around Memorial Day and this year, the season will be peaking during the loading period leading up to the holiday. In fact, there will already be plenty of fruit available to support Mother's Day. The first cherries from Rivermaid are expected to ship this week. "In terms of timing, it is the year retailers have been asking for - strong, early May volumes to support promotions."
However, California's early start also has a flipside. With the fruit coming off the trees earlier, volume is expected to significantly start decreasing around May 24. Due to a freeze in the next growing region, the Pacific Northwest, there is some frost damage on the region's early lots. As a result, early harvest up north is expected to be impacted, increasing the chances of a supply dip. "We will leverage our Northwest footprint as much as possible to ensure a smooth supply," said Bloss.
U.S. demand
While the state of the economy has forced U.S. consumers to be more mindful of their spending, the opportunity for holiday promotions should help with domestic demand for cherries. Lower prices during promotional periods are expected to have a positive impact on demand. " The majority of consumers will likely get their 'first taste' of the California crop during a promotional period," mentioned Bloss. "Once they taste the quality of this season's crop, we are confident they will come back for more. It's Rivermaid's goal to provide retailers and consumers with the highest quality cherries possible. "We aim to differentiate through consistency and quality, strategically aligning our growers with customers who prioritize those attributes and supporting long-term partnerships across global markets," Medeiros concluded.
For more information:
Chris Medeiros / Justin Bloss
Rivermaid Trading Company
Tel: (+1) 209-210-6829
[email protected]
[email protected]
www.rivermaid.com
