Mexican Berry Production Increase Drives Export Market Diversification

Published 2020년 1월 22일

The yield of Mexican raspberries and blackberries is off to a good start in the 2019/2020 season with prices similar to those of 2018/2019. The country is looking to diversify its export markets while implementing new technologies to increase productivity.

Berries are one of the biggest agricultural products in Mexico and Mexican berries are well-known for their quality. The country was the 7th largest exporter of berries in 2018 and the berry industry is important for job creation within Mexico. Production and demand in the current 2019/2020 season seem to be optimal for growers and exporters. Exports, however, are largely focused on the North American market, which makes Mexico vulnerable to shifts in buyer demand and oversupply in the United States. Mexico is seeking to utilize new technology measures to increase productivity in the berry industry and diversify its export markets.

Good Production Causes Demand Increase in 2019/2020

While early blackberry production got off to a rough start due to heavy rains in late fall of 2019, this is not expected to affect the overall quality during the 2019/2020 season. Raspberry production was not affected whatsoever as they are grown inside tunnels.

The state of Oaxaca in particular, a state in the South of Mexico, was not affected by the rains and saw favorable climatic conditions for berry production. This led to a subsequent rise in demand for raspberries and blackberries at the start of the 2019/2020 harvest season in December.

Mexican Berries Are Leaders in the North American Market

Raspberries and blackberries are fragile and less widely grown than strawberries and blueberries, which gives successful producers of these berries a competitive edge and higher returns. Mexico is considered to be the leading producer of blackberries, strawberries, and blueberries and is second in exports of raspberries, blackberries, and mulberries. In 2018, 97% of blackberries and 99% of raspberries imported to the US came from Mexico. This is mostly due to how Mexican productions have made it possible for North American buyers to buy the berries any time of the year, even during the winter season.

Mexican Government to Increase Productivity with New Technology Measures

In recent years, the Mexican government has become increasingly interested in not only increasing production in the agricultural sector but also in encouraging small and medium-sized entrepreneurs to become competitive exporters in the global market. As such, the government has actively encouraged the use of innovative technologies in the berry industry.

Enhanced technology measures are currently being utilized in parts of Oaxaca, where raspberry and blackberry farmers are now using potted production systems and drip irrigation, which is expected to double profitability. These techniques have already been implemented across 20K ha in the state of Jalisco, which contributes 60% of the total value of berry exports. The government seeks to replicate this technology on all Oaxaca berry farms and this is expected to create more than 10K jobs within the state in the next five years. Enhanced productivity is expected to strengthen Mexico’s position in the export market, as the recent export volume of raspberries and blackberries has been rising more than 20% early since 2014, and the government is seeking to triple production by 2021.

The increase in productivity is expected to aid in diversifying Mexico’s customer base in the long run. With the US accounting for approximately 94% of Mexico’s total berry exports due to its proximity, active commercialization of its products had always been on the back-burner. This has also made the Mexican berry industry extremely dependent on production conditions in North America. As buyers such as the United Kingdom, the Netherlands, and Italy are also significant importers of the fruit, there are strong incentives for Mexico to turn to the European market.

What Buyers Should Look Out for in 2020

Due to their health benefits, demand for soft fruits including raspberries and blackberries has been rising steadily for the past 10 years, with demand in North America and Europe rising very rapidly. As the berry harvest season in California has ended during the late summer of 2019, buyers can expect Mexican berries to be high in demand. Consequently, raspberry prices during the end of the Californian season rose up temporarily which was fueled by a shortage this past season due to adverse climate conditions. Prices in December were a bit lower than those of 2018, but are expected to stabilize as the Mexican harvest progresses.