1. Weekly News

New Zealand

Weather Challenges Impact Strawberry Production in New Zealand

Strawberry production in Hawke's Bay, New Zealand, has faced significant challenges due to heavy rainfall during the Christmas and New Year period, which caused waterlogged plants and berry rot. Although Dec-24's favorable weather initially suggested a strong yield, the adverse conditions disrupted crop prospects, leading to financial losses for growers. For the 2024 season, production capacity has dropped, with only 60% of the usual plant volume cultivated, resulting in a shortfall of 25 thousand plants. Despite these challenges, growers remain hopeful as new flowers and developing green strawberries signal the potential for recovery with improved weather conditions.

Spain

Huelva's Strawberry Campaign Faces Supply Challenges and Rising Costs

Spain's strawberry campaign in Huelva began with limited early harvests on Dec-24 and is now steadily increasing supply, which allows for exports to European markets. Prices are slightly higher than the previous season, driven by increased production costs, with farmers previously earning an average of USD 5.49 per kilogram (EUR 5.34/kg) at this time of year. Improved water availability in autumn has provided some relief. However, irrigation restrictions remain due to low reservoir levels, and ongoing labor shortages continue to pose significant challenges. Despite these challenges, reduced competition from imports, particularly from Egypt and Morocco, and Huelva's strong reputation for quality are strengthening demand for its strawberries in export markets.

United States

Florida's Strawberry Supply Faces Delays Due to Competition from Mexico

Florida's 2024 strawberry production has been delayed by about two weeks due to flooding caused by Hurricane Milton. Although current supply levels are typical for this time of year, many growers have yet to begin harvesting, with production expected to stabilize by mid-Dec-24. Florida strawberries are facing intense competition from Mexican imports, which are priced significantly lower at USD 8 to 10 per retail unit compared to Florida’s USD 20. Additionally, cold weather in January is anticipated to further slow harvesting, potentially tightening supply and driving up prices following an initial dip caused by the surplus of Mexican strawberries.

2. Weekly Pricing

Weekly Strawberry Pricing Important Exporters (USD/kg)

Yearly Change in Strawberry Pricing Important Exporters(W2 2024 to W2 2025)

Mexico

Strawberry prices in Mexico dropped by 32.66% week-on-week (WoW) to USD 1.67/kg in W2, reflecting a 35.02% month-on-month (MoM) and 30.99% year-on-year (YoY) decrease due to a significant increase in harvest volumes following continued favorable weather, which further alleviated previous supply constraints. This supply surge and the typical post-holiday drop in demand contributed to the price decline. The YoY decrease can be due to the high prices in the same period last year, which were supported by stronger demand during the holiday season and a recovery from earlier oversupply issues.

Italy

In W2, Italy's strawberry prices dropped by 33.51% WoW to USD 6.23/kg, marking a 21.04% MoM decrease due to a significant increase in supply as new harvests from the winter season started to come in, alleviating earlier supply constraints. The market saw a typical post-holiday dip in demand, which contributed to the sharp price decline. However, there was a 3.49% YoY increase due to the recovery from the lower price levels observed in 2024, when a surplus of production led to downward pressure on prices. The YoY increase reflects the market's gradual adjustment and the ongoing recovery from the previous year's challenges.

3. Actionable Recommendations

Manage Strawberry Supply and Demand to Stabilize Prices

Farmers and distributors in Mexico should plan for continued price fluctuations due to increased strawberry harvest volumes. They should focus on optimizing the storage capacity and introducing flexible pricing strategies to accommodate the increased supply and post-holiday demand dip. It’s essential to monitor upcoming harvests closely and adjust shipments to avoid excess stock, while also focusing on strengthening relationships with key buyers to ensure consistent demand even during supply surges. By managing these factors, producers can mitigate price volatility and maintain profitability during the season.

Optimize Strawberry Production and Export Strategy

Farmers and exporters in Spain's Huelva region should focus on managing production costs and supply levels to maximize profitability. With irrigation restrictions and labor shortages, prioritizing efficient water use and exploring solutions for labor shortages, such as automation or better workforce management, will be key. Additionally, strengthening marketing efforts that highlight the region's high-quality strawberries can further increase demand in European markets. By maintaining strong relationships with key buyers and optimizing harvest timing, they can mitigate price fluctuations and boost competitiveness in the market.

Sources: Tridge, Agraria, Agrodiariohuelva, Freshplaza, NZ Herald