W51 Blueberry Update: Global Berry Market Surpasses Bananas with USD 13.7 Billion Revenue, and Ukraine Emerges as a Key Player in UK's Fresh Blueberry Market

Berries Outshine Bananas by Rapid Growth of USD 13.7 Billion Revenue in the Global Market

During the "Berry Market 2023" event, organized by Moldova's Berry Growers’ Association, FAO economists revealed surprising data on the global berry market. In 2022, the berry trade outperformed bananas, bringing in USD 13.7 billion in exports, surpassing bananas. The berry trade exhibited an impressive average annual growth rate of 9.8%, totaling USD 1.2 billion per year, far exceeding the fruit category's overall growth rate of 4.3%, equivalent to USD 4.5 billion annually. This underscores the robust and accelerating nature of the global berry market, presenting substantial opportunities for industry stakeholders.

Ukraine Surges as Top Fresh Blueberry Supplier in Growing UK Market

Ukraine has solidified its position as a key player in the United Kingdom's (UK) fresh blueberry market and is set to remain among the top 10 suppliers by the end of 2023. As per reports, an 11% year-on-year (YoY) increase can be noticed, with Ukraine delivering 390 tons of fresh blueberries to the UK. Despite being the fifth-largest market for Ukrainian exporters, the UK presents untapped potential. To unlock opportunities, consolidation of efforts and standardization of cultivation, processing, and packaging is essential for sustained access to the lucrative UK market, known for its significant blueberry consumption in Europe.

Ukraine's 'Own Orchard' Initiative Spurs Blueberry Growth and Export Dominance

The 'Own Orchard' initiative propels Ukraine's blueberry industry, leading with 73 hectares (ha) of plantations. Subsidies facilitate growth in strawberries, raspberries, and apples, aligning with regional climate and export demand. Strategically emphasizing blueberries and nuts, the Lviv region has benefitted from almost USD 1.67 million (EUR 1.5 million) in subsidies since Jul-22. The program drives cost-effective large-scale cultivation, with 13 farms planting 217 ha of new fruit orchards, contributing to Ukraine's position as a key player in the fresh blueberry market, particularly for EU exports.

Peruvian Blueberry Exports Surge YoY but Face Seasonal Challenges Ahead

Peruvian fresh blueberry exports of 10,123 metric tons (mt) in W49 marked a 16% YoY increase but a 7% decrease from W50, highlighting seasonal irregularities. Despite a YoY rise of 10,123 mt, the delayed start of the season widened the gap compared to the previous year. The United States (US) led as the largest market, receiving 59% of exports, followed by the Netherlands (24%) and the UK (7%). Weekly shipments struggled to surpass 15 thousand tons, indicating a persistently sluggish trend that will impact the upcoming weeks. Cumulative season value emphasized the US, the Netherlands, and China as major buyers, while concerns about a potential blueberry shortage in Peru until 2024 loomed due to the lasting impact of the El Niño weather phenomenon.

Peruvian Blueberry Exports to the US Expected to Decline Seasonally

Ocean freight rates are an important component of pricing on imported goods. According to data, shipping rates for a 40-foot container from Asia to the US West Coast have dropped by over 80% since Apr-22, while rates to the East Coast have fallen by nearly 66%. Many rates are once again at pre-pandemic levels. More importantly, the congestion at key ports has significantly eased, eliminating the weeks or months-long delays that some shippers had experienced from late 2020 to mid-2022, resulting in major condition issues for highly perishable specialty crops stuck onboard in some cases.

One key driver behind these declines is likely to be a reduction in consumer spending over the past two years, resulting in less demand for ocean freight. Blueberry movements from Peru imports through Miami, Philadelphia, and New York ports of entry via boat are expected to decrease seasonally. The movement of blueberries from Mexico crossing through Arizona, California, and Texas is expected to be about the same. Trading was slow at slightly lower prices.

Maine's Wild Blueberry Industry Seeks Tax Relief Amid Rising Costs

With the soaring grower expenses in the US, the Wild Blueberry Commission of Maine requests a one-year hiatus from the USD 0.015 per pound tax imposed on wild blueberries in the state. Applicable to all wild blueberries, the tax is collected by the state and divided between growers and processors. Aiming to support profitability and sustainability, the commission met on December 13 to address concerns about the tax. In 2022, the tax generated USD 1.7 million, with a majority allocated to promotional activities and health research, reflecting the industry's challenges in the face of rising production costs.