W47 2024: Strawberry Weekly Update

Published 2024년 11월 28일
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In W47 in the strawberry landscape, South Australia's strawberry season began with excellent fruit quality despite smaller initial yields. Production is expected to increase as temperatures rise. Egypt's strawberry export season started with high demand and rising prices, driven by reduced cultivation areas and stricter EU regulations. Morocco continues to strengthen its position in the global strawberry market. However, it faces pricing pressures during peak seasons and is advised to focus on quality traits like earliness and flavor to stay competitive. In South Korea, strawberry prices are higher this winter due to seasonal delays caused by prolonged summer heat, with prices expected to stabilize next month. In Peru, concerns over excessive pesticide residues in local strawberries have raised health risks, prompting calls for stricter regulatory oversight to ensure food safety in domestic markets. As for weekly pricing, strawberry prices in Mexico rose due to reduced harvest volumes caused by rainy and cloudy weather coupled with strong export demand. Meanwhile, strawberry prices in the US slightly dropped due to reduced post-holiday demand and some market adjustments, but recovery efforts stabilized supply. Lastly, Italy's strawberry prices declined due to supply stabilization after weather disruptions, although they remained higher YoY due to earlier season challenges and sustained local demand.

1. Weekly News

Australia

Strawberry Season in South Australia Begins with Promising Quality

South Australia's strawberry season started mid-Oct-24, with peak supplies expected from late Nov-24 to early Dec-24. Warm weather has created ideal conditions, yielding early-season strawberries that are large, sweet, and juicy. Although initial harvests have seen smaller yields, the quality and size of the fruit are exceptional. As temperatures rise, production volumes are expected to increase significantly. Strong local demand underscores the appreciation for South Australia's reputation for high-quality strawberries.

Egypt

Egypt's Fresh Strawberry Export Season Begins with Rising Prices and High Demand

Egypt's fresh strawberry export season began on November 15, 2024, with exports to Europe continuing until January 15, 2025 and to Arab countries until March 1, 2025. Strawberry prices have surged by up to 100% compared to last season due to a 25% reduction in cultivation area, rising production costs, and stricter European Union (EU) regulations on plant protection products. Premium varieties like Sweet Sensation, Brilliance, and Felicity remain in high demand despite increased shipping costs, currency exchange challenges, and climate-related impacts. The price hikes reflect efforts to deliver top-quality strawberries that meet international size, taste, and food safety standards.

Morocco

Morocco's Competitive Edge in the Global Strawberry Market

At the 2024 Morocco Berry Conference in Agadir, Morocco's role in the USD 4.5 billion Europe-Mediterranean strawberry market, which holds a 22% share, was highlighted. Despite global strawberry production stabilizing at 9.1 million metric tons (mmt), Morocco has reduced its cultivation area, focusing on high-value crops and modern production techniques. The country primarily exports between October and May, with exports peaking in February and March. However, the sector faces pricing pressures, with rates falling below USD 3.50 per kilogram (kg) during the peak season. Experts recommend advancing harvest timelines and emphasizing primary traits like earliness, flavor, and shelf life to enhance competitiveness and profitability.

South Korea

Rising Strawberry Prices in South Korea Due to Seasonal Delays

Strawberry prices in South Korea this winter are higher than last year, driven by delays in the shipping period caused by prolonged summer heat. Although the strawberry cultivation area has expanded compared to the previous year, global warming has consistently delayed the season by about a week annually since 2021. Major discount stores have initiated competitive winter sales of strawberries, and prices are anticipated to decline next month as supply stabilizes.

Peru

Health Risks Linked to Excessive Pesticides in Peruvian Strawberries

An analysis in Lima and Callao, Peru, found strawberries in local markets exceeding pesticide residue limits by up to 13 times, with hazardous chemicals such as chlorfenapyr, fipronil, and isocloseram detected. These substances pose serious health risks, including carcinogenicity and neurotoxicity. Markets like Minka, San José, and Lobatón were among the violators. While Peru enforces stringent standards for exported strawberries, the domestic market suffers from weak oversight, exposing consumers to unsafe produce. Authorities emphasize the urgent need for improved regulatory measures to enhance food safety in local markets.

2. Weekly Pricing

Weekly Strawberry Pricing Important Exporters (USD/kg)

Yearly Change in Strawberry Pricing Important Exporters (W47 2023 to W47 2024)

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

Mexico

Strawberry prices in Mexico increased by 11.70% week-on-week (WoW) to USD 2.10/kg in W47, reflecting a 32.91% month-on-month (MoM) increase. The price increase is due to reduced harvest volumes caused by rainy and cloudy weather, which disrupted picking and slowed production, leading to tighter supply. Additionally, the stabilization of exports and strong demand helped push prices higher. However, year-on-year (YoY) prices fell by 13.93% due to a high base from the previous year, when weather-related challenges such as excessive rainfall significantly constrained supply and drove up prices.

United States

In the United States (US), strawberry prices dropped slightly by 1.82% WoW to USD 5.93/kg in W47, with a 10.02% YoY decline. This is due to a slight reduction in demand after the peak holiday season and some market adjustments following the strong price surge in the previous weeks. However, prices surged by 16.05% MoM due to continued recovery efforts post-hurricane, supported by resilient strawberry varieties like 'Ember' and 'Encore,' which have supported supply stability and helped meet the ongoing demand.

Italy

Italy's strawberry prices increased by 10.16% WoW to USD 13.88/kg, with prices also surging by 55.78% MoM and 10.33% YoY due to continued strong demand for locally produced strawberries, particularly amid limited local supply following adverse weather conditions in the previous weeks. The disruption in harvest volumes from rainy and cloudy weather and the seasonal transition kept supply tight, while the premium on high-quality Italian strawberries drove price increases. Additionally, despite imports supporting year-round availability, the demand for fresh, locally-grown strawberries during this period further pushed prices higher.

3. Actionable Recommendations

Prioritize Safer Pesticide Usage and Certification for Strawberry Producers

Globally, strawberry producers should adopt safer pesticide practices by integrating pest-specific solutions like biological controls and low-impact chemical alternatives that comply with global safety standards. Recommended pesticide types include neem-based products, insecticidal soaps, and Bacillus thuringiensis (Bt), which are effective yet environmentally friendly. Producers should aim to obtain certifications such as Global Good Agricultural Practices (GAP), Organic Certification, and Rainforest Alliance to enhance product credibility and access premium markets. Regular testing for pesticide residues should be implemented to ensure compliance with Maximum Residue Limits (MRLs) for both domestic and international markets, safeguarding consumer health and meeting export requirements.

Adapt to Delayed Strawberry Seasons with Strategic Pricing and Promotion

Strawberry growers and distributors in South Korea should focus on adjusting pricing strategies and promoting sales during winter to capitalize on the current higher prices before the anticipated decline. Competitive promotions, such as bundle offers or discounts on larger quantities, can help attract more customers while maintaining profitability. Targeted discounts, like offering price reductions for repeat customers or loyalty programs, can further incentivize purchases. As the season stabilizes, stakeholders should plan for targeted sales events around key holidays or special occasions to maintain interest. Additionally, investing in optimized shipping logistics and exploring earlier harvesting techniques will help mitigate the impact of global warming and sustain a steady market presence year-round.

Optimize Strawberry Production in Morocco for Market Competitiveness

Moroccan strawberry producers should focus on advancing harvest timelines and enhancing product quality by prioritizing primary traits such as earliness, flavor, and shelf life to differentiate from competitors. They can mitigate seasonal pricing pressures by employing modern production techniques, such as optimized irrigation systems and controlled environments. To improve market positioning during the peak export season, stakeholders should work on better strategies to manage supply volumes, ensuring steady demand throughout the season. This approach will help strengthen Morocco's competitive edge in the European-Mediterranean market while maintaining profitability despite fluctuating prices.

Sources: Tridge, Italianberry, FreshPlaza, Larepublica, Planasa, South Australian Produce Market Limited, Marvel Farm, Yna

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