A recent cost of production study and an upcoming province-wide plebiscite are influencing the wild blueberry sector in Prince Edward Island. Benny Nabuurs, president of the PEI Wild Blueberry Growers Association, highlights the study's findings, indicating that current prices are unsustainable. The study reveals an average production cost of 61 cents per pound, while growers have been receiving 40 to 42 cents per pound over the last two seasons.
The association is advocating for a plebiscite among eligible growers to decide on establishing a marketing board with the authority to negotiate prices with major processors like Oxford and Wyman's. The study, supported by provincial funding, analyzed input costs including fertilizer, mowing, spraying, and harvesting on a per-acre basis. The average cost was calculated at $5,436.31 per hectare, translating to approximately 61 cents per pound based on current yields.
Growers have access to a management tool that allows them to input their costs and yields to determine specific production costs. Nabuurs notes that growers with below-average yields face even higher costs per pound. Despite rising input costs, prices paid to growers have remained unchanged. Oxford Frozen Foods offered 40 cents per pound last fall, with Wyman's offering slightly more at around 42 cents. A retroactive bonus from Oxford increased their total to about 50 cents per pound, but this remains below the average production cost.
While processors have not publicly commented on the report, Nabuurs indicates they acknowledge its accuracy. The association's broader strategy aims to steer the sector toward viability by exploring new markets and product lines. Diversifying away from reliance on Oxford and Wyman's is a key aspect of the strategy.
The plebiscite, with registration open until April 30, will determine if growers support granting the board the power to negotiate prices. Public meetings are being held to inform growers about the process. Nabuurs emphasizes that the goal is to negotiate prices reflecting production costs, rather than setting them unilaterally.
Growers express hope for change but are frustrated by low prices and uncertainty. Nabuurs acknowledges pressures faced by processors, emphasizing the need for new markets and products. He warns that without addressing pricing issues, more growers may exit the industry. The association remains committed to progress, regardless of the plebiscite outcome.
Source: Island Farmer
