Higher Availability of Mexican Raspberries in the US has Prices Decline

Published Mar 30, 2022

Raspberries are seeing steady growth both in demand and supply in the North American region. Over the last few years, increasing demand for berry has encouraged producers to develop new varieties for the fresh export market. To fulfill the US market, Mexico has increased its production with an average annual rate of 23.8% for the last ten years, developing longer shelf life varieties. As a result, it is estimated that the availability of raspberries has increased by 352% over the last decade, with Mexican imports soaring. For this year, Mexican raspberries exports are set to remain strong. However, due to the increase in supply, prices in the US have started to fall compared to last year.

Increased demand for raspberries in the US was corresponded with a significant increase in production, particularly in Mexico, which is the US’s primary supplier. This production increase has also come with adopting new varieties that can have a better performance in the fresh export market. The reason behind this development is that raspberries, when compared to other berries, are more difficult to export fresh as their thin skin gives them a shorter shelf life, which is why raspberries are commonly sold locally and exported as frozen products.

The fresh export market has reacted positively to the introduction of new raspberry varieties and has significantly increased its consumption. Furthermore, these varieties have also been able to significantly increase production with higher yields. According to the Mexcian Berries Association (ANEBERRIES), raspberry production in Mexico has increased at an accelerated average annual rate of 23.8% over the last ten years. In 2021, the production volume amounted to 166K mt, a 13.7% YoY increase compared to 146K mt in 2020.

The increase in production is better represented by the state of Jalisco, which has a production area of 25% but produces 60% of all the exported berries due to increased investment in production technology, resulting in better yield and high-quality berries.

While production in California has decreased slightly over the last few years, booming Mexican production has substantially increased raspberry availability in the US market. According to the US Department of Agriculture, there were about 81.2M pounds of raspberries available in the market in 2010, and by 2019 there were 285.2M pounds available, meanings that there has been a 352% increase in raspberry availability in the market over the last ten years.

Declining Raspberry Prices

Without being able to increase domestic production to supply the market, the US has significantly increased its imports from Mexico. As a result, Mexican exports to the US reached USD 1B in value in 2020, and it is estimated that in 2021 exports have reached USD 1.2B. Despite strong supply during the last two years, prices for raspberries in the US market remained high. However, by the end of Q1-22, both US and Mexican raspberry origins have substantially decreased their price compared to last year’s prices.

By March-22, raspberries of Californian origin recorded a -34.17% YoY decrease in the San Francisco wholesale market. In W3 of March-22, the price was at USD 16.62/kg, while the same week in 2021, the price stood at USD 25.25/kg.

Mexico-origin raspberry prices decreased by -24.71% YoY in the Los Angeles wholesale market. In W4 of March-22, the price stood at USD 15.69/kg, while the same week last year, the price was at USD 20.83/kg.