Wild Blueberry Price Drop!

Due to the drop in the price for their fruit this year, the Wild Blueberry Producers Association of Nova Scotia have, at their annual meeting, agreed with a motion directing its board to create a working group that will examine the grower price.

The group will also look at any other economic factors affecting the industry’s long-term financial stability. WBPANS Executive Director Dave Sangster said that the directors are considering a strategic plan for the industry and the working group’s conclusions would be included.

Dr. Dave Yarborough pointed out the cause of the price plunge. « There are places growing blueberries (China, California and South America) that have never seen a blueberry. »

Nearly 70% of the world’s blueberries are cultivated in North America, and the University of Maine extension specialist noted that, the cultivated (high bush) crop has increased by 20% in South America over the last decade. The western USA and British Columbia are the main producers in North America.

The milder climate and high-density plantings the southern USA has very productive plantations at a lower cost per pound in weight, and Dr. Yarborough observed that the southern and western states, plus BC, are squeezing the eastern and mid-western growing areas. Chile exports 87-million lbs. of high bush fruit each year, and Argentina another 25-million. Dr. Yarborough said Chilean exports are being sold as frozen berries because the growers there have saturated the fresh market.

South America now has 40,000 high bush acres in production. France, Spain and Portugal are growing high bush berries for the fresh market. While Germany has 5,000 acres, Poland 6,900 acres and the UK 500 acres, he said that the rise in European acreage has now slowed.

BC now has the largest growing area of high bush blueberries: 18,000 acres which produce 75-millions lbs., and almost half of this is for the processing market.
The high prices over the past few years have decreased due to high bush growing expansion, he explained. « The high bush people are really putting more effort on the fresh market. There is a decline of fruit going to processing. They need to do more of this not to compete against wild blueberries. »

China has an advantage in its cheap labour and the they are looking at the high-end nutraceutical market, but they have some problems with quality. Dr. Yarborough thinks more South American berries will be going to the processing market.

Wild production; Quebec averages about 80–million lbs each year; Maine 70-90-million; Nova Scotia 40-million; New Brunswick 33-million and Prince Edward Island 10-million.

In 2008, nearly 900-million lbs of wild and high bush blueberries were harvested worldwide. Dr. Yarborough thought a lot more cultivated berries would enter the market with world acreage expanding from less than 60-million acres in 1995 to around 160-million acres in 2008.

He said that by 2012 he could see the international blueberry production (wild and high bush) could be 1.3-billion lbs. « What we really need to do is get those (wild) berries into the retail market. »

Peter Rideout, Provincial Agriculture Marketing Specialist said that North American blueberry supplies have increased since 1994 (325-million lbs. of high bush and 135-million lbs of wild blueberries) to 2008′s 609-million lbs. of high bush and 255-million lbs. of wild fruit.

In 2009, lower prices saw a strong movement of high bush berries into the fresh market. Rideout said that high bush planting had ceased in western USA and in parts North America.

He added that there is almost no market demand for blueberries in the USA. Although South American high bush expanded rapidly with 6,000 new acres mainly in Chile, crop disease and national economic problems have slowed Argentina’s growth.

The marketing specialist stresses that record high prices (up to $1.05/lb) for wild blueberries in 2006-2007 had lead to the processors looking for cheaper alternatives, such as: sour cherries, apples, strawberries and cranberry juice concentrate. By 2007 wild blueberry exports to Japan, which is the fruit’s best market, were down to a third of the 2005 export level due to the blending and ingredient substitution.

In the short term Peter Rideout did not think that there would be a return to high prices, because the market will remain « price-driven » and blueberries will be facing more competition from other ingredients.

He also added that the crop still has a competitive edge over high bush.  » You are still getting a 25¢ premium per pound over cultivated in a weak market. »
With an expected 1 billion pound crop of the high bush blueberries over the next three to five years, the challenge will be to hold that premium against a lower-cost ingredient, Rideout concluded.

Neri Vautour, a WBANA Canada Executive Director said his organization’s job is not to buy or sell the fruit or, set a price for it, but to promote it and help to stimulate the market demand.

In responding to a grower’s complaint that 2009’s initial field price (35¢/lb.) was not fair, Vautour responded: « What industry hasn’t been in trouble the past two years? I know what growers are receiving is not right; but what cranberry growers are receiving is not right, what pork producer are receiving is not right and what beef producers are receiving is not right. »

Source: atlanticfarmfocus.ca