Mexico: Recovery of the US Market make exports surge
According to data obtained by the Ministry of Agriculture and Rural Development of Mexico, Mexico's agricultural exports grew 5% in March from the same month last year, totaling over USD 2.1 billion. The most important export increase was fresh strawberries, with an almost 70% increase in exports from last year. From January to April, strawberry exports from Mexico grew 24.8% compared to the same period last year, reaching USD 662 million. In terms of volume, strawberry exports were 156,800 tons for this period, an increase of 16.3%. In 2020, Mexico exported USD 850 million in fresh and frozen strawberries, with 97% of those exports destined to the US market, the leading consumer and importer of strawberries.
Mexico’s peak export season is between mid-February and early April, which is why March numbers reflect a bigger increase. However, this year’s increase in Mexican exports is a strong sign of a healthy recovery from the US market demand. In 2019, the US imported USD 870 million of fresh and frozen strawberries from Mexico, accounting for 98% of their total import share. By 2020, there was a 3% decrease in the imported value from the previous year due to a slight reduction in berry demands in the US market over the COVID-19 pandemic. Thus, Mexican exports will be back on a growing track this season and will most likely exceed the 2019 export numbers.
United States: Recovering domestic supply with demand
The Southern California Strawberry Commission has announced that due to better weather conditions in the Santa Maria and Watsonville/Salinas regions, strawberry output for the region will catch up to supply the increasing demand. Most of the Southern California areas, which account for about 85% of total US strawberry production, experienced several adverse weather conditions such as severe rains and strong high winds that have caused significant setbacks in the strawberry harvest of this season. The Santa Maria region has started its peak season with high supply volumes and will continue until mid-June. Growers of this region have announced good quality volumes of strawberries similar to the 2019 harvest season. As for the Watsonville/Salinas growers, they seem to still be dealing with setbacks for the harvest due to not ideal temperatures over the winter and wet and colder temperatures over the spring, causing severe delays in the ripening of the fruit. Supply for this region will have between three or four weeks delays and will have an approximately a 30% decrease in volume compared to last year.
Strawberry growers associations remain positive that all of the supply will meet growing solid demand, especially in the southeast regions like Texas, Florida, and Georgia, where a strong strawberry demand is back after a slight decrease with the pandemic. Prices of strawberries started at a very high level in March due to lower supply. According to the USDA, the strawberry price average was $16 per 8 1lb. tray in late March. However, by the beginning of May, prices had gone down to $7 per 8 1lb. tray due to the imports now coming from Mexico.
European Union
In Europe, the harvest of strawberries is now moving to the northern countries, as Spain closed a very irregular season while other countries began their production. The Netherlands, Belgium, Germany, and England face a slower start to their season.
Spain: Closing a very delayed season
Spain is the second-largest exporter of strawberries that supplies mainly other European countries. However, this season has been full of challenges for strawberry growers in Spain due to unfavorable weather conditions. Snowstorms and frosts that occur throughout December and January delayed the harvest considerably. During the first three months of the harvest season, about 50% of the output was damaged due to heavy rains. For the first three months of the year, there was a greater supply of strawberries than the demand, which pushed the prices up. By March, the production volumes started to recover at the usual levels, but prices in wholesale markets did not recover until mid-April when the production curve started to flatten. Spanish exporters were able to recover as the rest of the European countries delayed their production, causing Spanish strawberries to be in higher demand than usual and increasing shipments at a higher price.
The Netherlands, Germany, and Belgium: Late start of the season
In the Netherlands, outdoor cultivation has started three weeks later than usual due to the cold weather that was prolonged more than expected from the winter. However, greenhouse strawberries reached their peak production with high quality and volumes. Greenhouse production was also extended to cover for the short supply that outdoor cultivation delayed caused so prices could remain stable. For the months of April and May, auction prices were around 2 euros per pound which represented a stable price when demand is barely starting to pick up.
The strawberry season in Belgium had a one-week delay compared with last year. The harvest season was prolonged until late January with low-quality volumes due to the lack of daylight experienced throughout the month. By February, once the flowering started, production continued with large numbers, quality went back to normal, and the market stabilized. There was not much increase in prices as demand also started later in the year. March is when the weather gets better, and consumption starts to peak. By then, however, there was already a fair amount of supply in the market.
There was a bigger delay to the season in Germany due to the extended cold weather that went all through April, causing over four weeks delayed and a very slow start. As in the Netherlands, greenhouse cultivation was on time and arrived earlier at the market and was enough to cover early consumption demand with the spring arrival. Outdoor cultivated strawberries will gradually arrive on the market starting mid-May. Despite the difficult start to the season, a normal harvest is expected across the board, comparable to last year’s volumes. Additionally to domestic production, imported strawberries from Spain, Netherlands, and Belgium are already available, preventing prices from climbing.
South Africa: Gradually moving towards a year-round production
The South African strawberry industry is mainly focused on the domestic market, with some exports to the Middle East. However, it is an industry that is increasingly expanding in terms of production. In both the Western Cape and the Northwest Province, it has been reported that there is an expansion of strawberry productive areas within existing growers. Especially in the Western Cape region, growers are cropping 12 months of the year with a strong effect on the market as they have been able to keep low prices in the off-season. With favorable weather conditions in the key producing regions, this year’s output is expected to increase from last year, which was labeled as an exceptional year for strawberries quality-wise. If so, due to the expansion, South Africa will reach a record production volume where Egyptian strawberry imports will be considerably reduced. In addition, South Africa would be able to explore new markets with high-quality products at a lower price.
Sources:
- Fresh Fruit Portal. "Mexico: Exports increased in March with large rise in strawberries."
- Fresh Plaza. GLOBAL MARKET OVERVIEW STRAWBERRIES
- Opportimes. "Exportaciones de fresa de México crecen 24.8%"
- California Strawberry Comission. Market Data
