While Northern Europe is gearing up for the end of the season, growers in South America are looking forward to the start of the harvest. In some European countries, the harvest has stopped earlier because of the warm weather. Also in the northwest of the United States the season has finished earlier than usual. For its part, Chile expects to hit the market earlier this season. Globally, demand for blueberries is on the rise. China is a big market. The country proposed opening the borders to Uruguay. North Korea uses the berries to get foreign currency into the country and asks part of the population to harvest the fruit.
Mexico optimistic about new season
Next month, the season will start for Mexico and prospects are optimistic. A large producer reports that they are focusing more on organic growing, driven by the rising demand for organic products worldwide. In Latin American countries, the season starts in September and although Mexico cannot compete in terms of volume, it can when it comes to quality, according to the grower. Moreover, traders make use of contracts and the country has access to other markets. Although Argentina and Peru also are on the market, a grower explains that Mexico has a good position in some countries because of the agreements signed beforehand.
The domestic market is developing well. Although the berries are relatively unknown, the demand is increasing. In any case, the export markets are more attractive. Russia is an attractive destination for traders. This concerns both the Russian market and the access that Russia gives to many non-EU countries in the region. Additionally, exporters are trying to gain access to South Korea, Thailand and Malaysia, but negotiations are still ongoing.
Uruguay exporting to China
China has opened its borders to blueberries from Uruguay. The agreement has already been signed on paper. In October, a Chinese delegation will be visiting the country; after that, it will be possible to ship the first berries. Uruguay has been growing blueberries since the year 2000, but due to the weather and a shift in varieties, production was brought almost to a halt over the past four years. While in 2012 there were still 492 hectares planted with blueberries, the acreage had dropped to 346 hectares in 2015.
The switch to new varieties was partly motivated by the stiff competition from Chile. The new plantings correspond to varieties that bear fruit early in the season, giving an advantage over to Chile. It is important to be able to market the berries first in August to avoid Chile's pressure in November. The peak in exports now takes place in September and lasts until November.
The berries are also exported to the northern hemisphere. The main markets are the United States (accounting for 60% of the exports), Canada and Europe. Within Europe, the main markets are the Netherlands, Spain, the United Kingdom, Italy and Belgium.
In 2015, the country had 346 hectares. This year, the acreage will increase to 360 hectares. Depending on the weather conditions, the yield per hectare will oscillate between 10,000 and 15,000 kilos. Last year, exports amounted to 1,890 tonnes, which generated 16 million dollars in revenue.
Chile will probably start earlier
At present, there are only some small exports to China. Thanks to the introduction of new varieties, the weather and the use of protected cultivation, the Chilean season has been extended; however, the production peak lies between November and mid-March. The season's prospects this year are good and it is also likely to start earlier than last year.
The demand for blueberries is increasing and not only in traditional markets, like the US, Canada and the EU, but also in new markets. These include Asia, Latin America and some European countries. Major markets include France, Italy, Taiwan, the US, Canada, the UK, Germany, China, South Korea and Japan.
Rapidly growing demand in China
The acreage is spread over the provinces of Shandong, Guizhou and Liaoning. Shandong is by far the largest, with 6,000 hectares and 15,000 tonnes. China as a whole produced 30,000 tonnes in 2015 and expects to grow by 60%. The harvest started recently in Yunnan and Sichuan. The harvest period of the greenhouse production lasts from March to May, while in the open ground it lasts from June to August.
The import of blueberries is also increasing. In 2012, Chile was the first country to export 200 tonnes of blueberries to China. A year later, that volume doubled. Last year, Canada gained also access to the Chinese market, and this year, Uruguay has followed on their steps. Both countries will be in the market from September to October. Import duties are, however, substantial and stand at 47% for Canadian berries.
The increase in the supply is leading to a fall in prices. Since 2011, prices have halved. However, there is a separate market for the top 10% of the berries, sold at prices 30-50% higher than the remaining 90%. The Canadian flown berries cost 250 yuan (33 Euro) per carton in Shanghai. Sea freight from Canada costs 160 yuan (21 Euro) per box. Each box is filled with 12 trays of 125 grams.
Blueberries bring capital into North Korea
Although little is known about what goes on in North Korea, blueberry crops appear to be a way to bring some coveted extra foreign currency into the country. In the northern province of Ryanggang, students, civilians and soldiers are called to harvest the berries. Each year, the harvest is carried out in this way. What is new this year is that only inhabitants of this province are allowed on the fields.
The considerable volumes harvested are exported, mostly to China. In this manner, foreign currency, which North Korea can make good use of, is brought into the country. All pickers are assigned targets to be achieved. Everything they pick over that target can be for their own use. That measure has drawn many people from outside the province, because it means extra money for the already poor population.
However, the government urgently needs foreign currency; therefore, the berry picking this year is better controlled than ever. It is expected that the harvest will still attract many people from outside the province. A kilo of blueberries yields 5 to 6 RMB (> 0.80 Euro)
Australia expects good season
Down under the conditions are favourable. Growers in New South Wales are expecting a good season. The harvest should kick off in September or October.
South Africa expects greater harvest
The harvest has started in the north of the country. The largest part of the first crop remains in the domestic market. The recent rains fell mainly in the south of the country and had no impact on the harvest in the north. Overall, the harvest this season is expected to be greater than last year's. The berries are exported to the UK and Europe. Also, their sights are set on the Middle East and the Far East, but the domestic market still offers opportunities. In Europe, the South African season lies between the European and the Chilean campaigns.
Early end of season in the US
The harvest in the northwest of the United States is almost finished. In the coming weeks, the production flow will fall and prices in the premium market are likely to increase. Due to the high temperatures, the end of the season has taken place earlier than usual. The supply has been running back and will decline even further as the season comes to an end. Due to the low supply, prices are high. The price of blueberries from Oregon and Washington stands between 22 and 28 dollars. The premium quality berries seem to have a market of their own when it comes to pricing.
Blueberries popular in France
Blueberries are enjoying a growing popularity in France. The French season runs from May to September; after that there is fruit from Spain and Poland available. While the berries are performing well in the French market, they are also exported to the UK and Germany.
The Netherlands and Belgium are growing markets
Also in the Netherlands are blueberries doing good. In the first half of this year, supermarket sales have increased by as much as 50%. In Belgium, the market is clearly growing, but despite this, there are also concerns among growers. While traders point out that the supply cannot keep up with the demand, growers expressed concern about the import of blueberries. According to producers, the price appears to be more important than the country of origin, which is why there are also imports while there is still Belgian and Dutch product available. Prices for the Belgian berries are fine. For the premium quality, of which there are only a few hundred kilos available, prices of 10 to 15 Euro are paid. The average price lies between 7 and 8 Euro.
Scotland will start harvesting next week
The harvest in Scotland will start next week, according to a producer from Perthshire. Prospects are good. Growers expect to harvest 200 tonnes, which is twice as much as last year. The good demand in the UK and the rest of the world and an early end of the Polish season are positive factors for the Scottish growers. Also, British supermarkets are demanding more British product. Since the British pound has declined in value after the Brexit referendum, imports have become more expensive.
Poland closes season earlier
The season is nearing its end in Poland. Prices have showed peaks and lows in the domestic market, but have been generally good. The price has ranged between 15 and 26 złoty (3.48 to 6.03 Euro) per kilo. Export prices for destinations within Europe have showed a downward trend and stand currently between 7 and 8 Euro per kilo. In general, prices have been higher this year than in previous seasons. Normally, the campaign lasts from July to late August, but the high temperatures recorded have caused it to finish earlier. In the north of the country, the harvest volume has been greater than last year, but has still been in line with the average harvest figures. Rain was a factor during harvest, although in the south of the country, growers have not been affected by it.
The demand is growing every year. Moreover, the plants are young, so harvest volumes increase every year. Only a small share is 40 years old, the rest was planted in 2007, reports a grower in the south. The old crops consist mostly of Bluecrop blueberries, while the main varieties in the new plantations are the Liberty and Duke. Many growers have planned the planting of these varieties and are also on the look out for late varieties in order to extend the season.
Western Europe, especially the UK, is the main market for Polish blueberries. At the end of the season, the Netherlands and Germany become more important export destinations.
Good season for Italian growers
It's a good year for the soft fruit from Trentino and blueberries are doing especially well. Demand and consumption are nicely balanced with the fruit's increased supply. In the north of Italy, traditional varieties are cultivated, such as the Duke, Brigitta Blue and Liberty. In the south, they are experimenting with new varieties.
The biggest developments can be observed on the consumer side. While the 125 gram containers used to be the most popular, there is now a growing demand for 250 gram packs. Most of the berries are sold in the domestic market, but by the end of the harvest period (September/October), there are opportunities for export to Northern Europe, especially in the UK and Germany.
The wholesale market in Emilia-Romagna has had an excellent year, with a large supply and prices above average, ranging between 12 and 16 Euro per kilo for the first crop, which was harvested between 24 May and mid-July. Good news also arrived from the province of Cuneo, one of the main growing areas in Italy. The harvest has been greater this year after a poor 2014 and an average 2015.
Small harvest in northern Spain
In the far north of the country, in the region of Asturias, small volumes are harvested in small plantations. The peak of the harvest is recorded in March and April in the province of Huelva. The harvest is also currently underway in Portugal. Since northern and Central Europe are currently in production, there is hardly any export of Spanish berries. As the European season comes to an end next month, Spain will start importing from Argentina again. After that, shipments will arrive from Peru and Chile.
The Spanish acreage continues to grow in Huelva. Strawberry growers continue making the switch to more lucrative crops, such as blueberries.
Israel: growing demand, difficulties for cultivation
The cultivation of blueberries is still in its infancy in Israel. A small commercial volume is grown on roughly 12 hectares. The soil and the warm climate in many parts of the country are unsuitable for the cultivation of blueberries; therefore, there are not any large producers in the country. Additionally, consumption is traditionally low.
In the last decade, the market has, however, developed. The Israeli consumer has discovered the 'superfood', leading to increasing demand. The fruit market in recent years shows a growing interest in so-called 'superfoods' and blueberries are piggybacking on this trend. The supply could not keep up with this growing demand, resulting in a high price. For locally-grown berries, prices can reach up to 25 Euro per kilo. Also, frozen blueberries are imported to fill the gaps in the supply. Those berries still cost up to 15 Euro per kilo.
In recent years, investments have been made in the domestic production in order to boost the supply, but there are still some obstacles in the way. Blueberries grow best in acidic soil, with cool weather and little exposure to sun and heat. For Israel, this entails challenges in all three fronts. At present, growers are mostly to be found in the north of the country, at higher elevations, where the conditions are better. The most productive varieties are the Rabbiteye and Highbush. Many growers are investing in the development of new varieties that are better suited to the Israeli climate.
Every week, FreshPlaza and AGF.nl publish an overview of the market situation of a product in a global context. With these articles we aim to provide a view of a global market shrinking due to globalisation. Next week, peppers will be in the spotlight.