Two of North America's main berry markets - strawberries and blueberries - are in transition. Strawberry production in California has now well and truly left its summer season behind, while blueberries are now arriving from South America.
Strawberry production down
In California, strawberry production has been affected by persistently warm weather. Additionally, labor shortages are contributing to a more challenging harvest, with growers unable to supply the fruit to meet demand. This has resulted in tighter market conditions, with pricing creeping upwards. This is expected to continue for several weeks.
"With the industry firmly entrenched in the fall cycle, overall availability on California strawberries remains light," said Ira Greenstein of Direct Source Marketing. "Pack-outs range from 650k-750k flats per day but we may see those numbers dip again this week. The weather forecast indicates clear skies through the week, but overall temperatures look to be elevated, which could contribute to increased condition issues such as bruising."
"Over the weekend, many growers were oversold with orders pushed, prorated or canceled," he added. "Pricing continues to tick higher with program business ranging from $12-$14 and the spot market trading from $16-$18. Expectations are to see spot market pricing remain elevated through the balance of the deal with the possibility of seeing $20-$22 FOB’s by the first week of October."
Good start to South American blueberry deal
Meanwhile, most of the North American blueberry crop has now run its course, with only a small amount of Northwest fruit remaining in the market. The majority of supply is now coming out of South America and suppliers say quality on the early shipments is excellent.
"The industry has made the full transition over to South American imports with only a few domestic marketers still trying to liquidate remaining volumes of suspect fruit from the Northwest," Greenstein noted. "Overall quality and condition of Peruvian, Argentinean and Uruguayan supplies has been solid with hard fruit arriving and good bloom."
Interestingly, Greenstein said the pint market is elevated as the bulk of early imported arrivals are coming is as 12/6 oz clamshell packs. "Many retailers have been slow to move off of pints. This is keeping the pint market elevated with pricing ranging from $28-$31."
As the weeks go by, the expectation is for South America as well as Mexico to pack increasing volumes. This should encourage more movement and perhaps lower prices once steady inventories are in place. "Marketers are reluctant to book-in program business, and instead are taking their chances on the spot market," Greenstein concluded. "Once arrivals become more consistent and with few promotions in place, we could see importers look to cut deals as fruit begins to pile-up in cold storage."
For more information:
Ira Greenstein
Direct Source Marketing
Ph: +1 (914) 241-4434
ira@directsourcemktg.com
www.directsourcemktg.com