W39 2024: Strawberry Weekly Update

Published 2024년 10월 4일
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In W39 in the strawberry landscape, Italy's Nova Siri Genetics is expected to expand its strawberry production for the 2024/25 season. Moreover, it plans to grow around 150 million plants, particularly in Spain, while showcasing new varieties of strawberries at an upcoming event. Spain's strawberry and blueberry exports surged in 2024, with a notable volume and economic value increase, reflecting a broader trend in the fruit export sector. In the UK, a new drone technology initiative aims to enhance strawberry pollination, improving productivity and quality in response to market demands. Meanwhile, a study from the University of Waterloo highlights the risks of climate change to strawberry yields, emphasizing the need for sustainable farming practices to combat rising temperatures and maintain stable production levels. As for weekly pricing, strawberry prices in Mexico dropped as growers adjusted their harvesting activities in response to recent market fluctuations and ongoing weather challenges. In the US, prices declined due to a significant increase in supply and reduced demand, though they remain elevated compared to the previous year due to past weather disruptions. In Italy, strawberry prices slightly stabilized as growers mitigate the effects of adverse weather. Still, they continue to reflect significant increases from previous months and last year due to ongoing supply shortages.

1. Weekly News

Italy

Nova Siri Genetics Expands Strawberry Production in Spain and Poland for 2024/25 Season

Nova Siri Genetics (NSG), an Italian company focused on developing strawberry and berry varieties, is expected to increase its global presence, with Spain remaining its primary market. The company’s success is mainly due to its early strawberry varieties, such as NSG 203-Marimbella®, known for its early production, bright red color, and excellent shelf life; NSG 465-Rossetta®, appreciated for its vibrant color, sweet flavor, and adaptability to Mediterranean climates; and NSG 207-Gioelita®, favored for its balanced sweetness, firmness, and disease resistance. For the 2024/25 season, NSG plans to produce around 150 million strawberry plants, marking a 15% year-on-year (YoY) increase. Of this number, 90 million plants will be grown in Castilla y León, Spain, and distributed to producers in Huelva, Italy, and North Africa. NSG is also developing new varieties and will showcase its innovations at the Fruit Attraction 2024 event in Madrid.

Spain

Spain's Strawberry and Blueberry Exports Surged in 2024

In the first seven months of 2024, Spain's strawberry exports, primarily from the Huelva region, grew by 4%, reaching 251 thousand metric tons (mt). Blueberry exports increased even more, rising 20% YoY to 82.9 thousand mt. Together, these fruits generated USD 849 million (EUR 767 million), representing a 13% YoY economic rise. This growth is part of a broader trend in Spain's fruit export sector, which experienced a 9% YoY increase in volume to 4 mmt. Although vegetable exports also rose by 9% YoY, their export value saw a slight decline.

United Kingdom

Enhancing Strawberry Production in the UK Through Precision Pollination with Drone Technology

A new initiative in the United Kingdom (UK), titled "Precision Pollination for Higher Strawberry Productivity and Quality," is leveraging drone technology to improve pollination in strawberry crops. In collaboration with the UK Agri-Tech Centre, Angus Soft Fruits, and Polybee, this project is funded by Innovate UK and aims to tackle pollination issues in controlled environments, such as polytunnels and glasshouses. Since strawberries contributed USD 504.5 million (GBP 377 million) to the UK's fruit sector in 2022, enhancing pollination is vital for improving yield and quality. The project centers on using drones to assist with pollen movement, aiming to boost Class 1 and premium strawberry production to meet retailer demands while potentially extending the growing season.

United States

Climate Change Poses Risk to US Strawberry Yields

A study from the University of Waterloo indicates that rising temperatures, driven by climate change, could drastically reduce strawberry yields in California, a significant producer in the United States (US). A temperature increase of just 3 degrees farenheit (°F) could result in a 40% YoY drop in production, significantly impacting the market and increasing prices. In 2022, the US strawberry market was valued at over USD 3 billion. The study underscores the importance of adopting sustainable farming practices, such as optimized irrigation and shading, to mitigate heat stress and maintain a stable food supply amid global warming.

2. Weekly Pricing

Weekly Strawberry Pricing Important Exporters (USD/kg)

*All pricing is wholesale

Yearly Change in Strawberry Pricing Important Exporters (W39 2023 to W39 2024)

* All pricing is wholesale * Blank spaces on the graph signify data unavailability stemming from factors like missing data, supply unavailability, or seasonality

Mexico

In Mexico, strawberry prices decreased by 7.67% week-on-week (WoW) to USD 2.65 per kilogram (kg) in W39, reflecting an 11.96% month-on-month (MoM) decline. This is due to continued supply adjustments as growers respond to the recent price drop by moderating their harvesting activities. Despite favorable weather conditions supporting production, the market is still dealing with the lingering effects of drought and unseasonal rainfall, which create uncertainty around long-term supply stability. As demand fluctuates and growers recalibrate their strategies, prices may experience further adjustments in the upcoming weeks.

United States

In W39, strawberry prices in the US reached USD 2.75/kg, a 33.25% for both WoW and MoM decline. This is due to a significant increase in supply as growers capitalized on the favorable weather conditions, leading to a surge in production. Additionally, the market faced reduced demand, likely as consumers adjusted to previous price increases. However, YoY prices increased by 66.67% due to the continued impact of last year's weather-related disruptions, which have created a lingering supply deficit, keeping prices elevated compared to the same period the previous year.

Italy

Strawberry prices in Italy decreased by 1.85% WoW in W39 to USD 14.32/kg due to a slight stabilization in supply as growers managed to mitigate the disruptions caused by recent adverse weather conditions. However, MoM prices increased by 32.47% due to ongoing supply shortages from previous weather-related challenges. YoY prices rose significantly by 119.07% as the market continues to face extreme weather's lasting impact on production levels over the past year.

3. Actionable Recommendations

Enhance Marketing Strategies for Spanish Strawberries and Blueberries

Spanish fruit exporters should implement targeted marketing strategies further to boost strawberry and blueberry sales in international markets, such as the EU, the US, and Asia. This includes developing promotional campaigns highlighting these fruits' quality and health benefits, particularly in high-demand markets. Additionally, exporters should strengthen relationships with key distributors and retailers to ensure better visibility and accessibility of Spanish strawberries and blueberries. By leveraging digital marketing platforms and participating in international trade fairs, exporters can effectively increase their market share and capitalize on the growing demand for soft fruits.

Strengthen Supply Chain Resilience for Italian Strawberries

Italian strawberry growers should enhance their supply chain resilience by investing in advanced agricultural technologies and practices. This includes adopting climate-smart farming techniques to mitigate the impacts of extreme weather and improve production consistency. Collaborating with local agronomists to develop adaptive strategies can help farmers better manage disruptions and maintain stable supply levels. Additionally, implementing efficient logistics and storage solutions will ensure that quality strawberries reach the market promptly, thus supporting price stabilization amidst fluctuating demand.

Adjust Harvesting Strategies for Price Stability

Mexican strawberry growers should continue moderating their harvesting activities to align with fluctuating demand and stabilize prices. By carefully monitoring market trends and adjusting harvest volumes accordingly, growers can better manage supply levels and avoid further price declines. Prioritizing efficient resource use and leveraging favorable weather conditions can also help ensure production stability amid lingering drought and unseasonal rainfall challenges.

Sources: Tridge, Agraria, Blueberries Consulting, Drone Life, Freshplaza, Hortidaily, Scitechdaily

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