W26 2024: Strawberry Weekly Update

Published Jul 5, 2024
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In W26 in the strawberry landscape, Quebec's strawberry industry faces challenges due to a heat wave, affecting yield and taste. Despite this, local farmers highlight the superior taste of Quebec-grown strawberries and promote community support. France's strawberry production increased despite delays, with 76.3 thousand mt produced in May-24. Due to weather adversities, Russian berry prices have surged by 15 to 16% YoY. South Korea's Jeju Special Self-Governing Province plans to establish a high-quality strawberry seedling production system. Wisconsin strawberry farms face weather challenges due to excessive rainfall. As for weekly pricing for strawberries, strawberry prices in Mexico, the US, Italy, and Italy increased significantly due to extreme heat waves, weather disruptions, and climate change. The strawberry prices have surged 78.98% WoW in Mexico, while the US experienced a 50% WoW increase. Lastly, Italy's price surge was 68.75% WoW, primarily due to declining harvest yields.

1. Weekly News

Canada

Quebec's Strawberry Farmers Navigate Challenges Amid Heat Wave

Quebec's strawberry industry is grappling with a severe heat wave that has damaged crops, impacting yield and taste. Farmers near Montreal have noticed a decline in fruit quality, with berries becoming scarcer, less sweet, and sometimes spoiled due to wilting protective foliage exposed to direct sunlight. The adverse weather has also deterred pickers, complicating the harvest process amid reduced volunteer availability. Adding to these challenges, competition from lower-priced California strawberries has intensified pressure on Quebec's producers. Despite these hurdles, local farmers highlight the superior taste of Quebec-grown strawberries and emphasize community support as crucial for overcoming the heat wave's effects. Quebec's agricultural community remains resilient, with farmers diversifying crops and encouraging public participation in the harvest to sustain the industry.

France

Increased Strawberry Production in France Despite Delays

Despite unfavorable spring weather in France delaying strawberry production, the 2023/24 season is expected to end positively. As of May 1, 2024, the Ministry of Agriculture reported 76.3 thousand metric tons (mt) of strawberries, a 5% increase from the 2019 to 2023 average. The production area covers 3.7 thousand hectares (ha), with greenhouse and outdoor cultivation. The key production regions include the Center-West with 505 ha, the South-West with 1.2 thousand ha, Aquitaine with 39% of the total, the South-East with 1.1 thousand ha, and the Rhône-Alpes and Provence-Alpes-Côte d'Azur regions with 23%, alongside other basins with 903 ha.

Russia

Price Surge in Russian Strawberries Amidst Weather Challenges

Russian berry prices, including strawberries, have surged by 15 to 16% year-over-year (YoY) and are currently at USD 6.23 per kilogram (RUB 551/kg). This increase is primarily due to weather adversities such as spring frosts, which significantly reduced harvests, causing up to 90% losses for some farms. Drought conditions in southern regions further exacerbated the situation, with decreased precipitation levels and higher minimum temperatures impacting strawberry yields. The Deputy Chairman assured that while no abrupt price hikes are expected, imports may influence adjustments.

South Korea

Jeju to Establish High-Quality Strawberry Seedling Production System

Led by its Director, the Jeju Special Self-Governing Province Agricultural Research and Extension Services plans to establish its production system to supply high-quality strawberry seedlings to local farms. This initiative follows decreased productivity due to poor-quality imported seedlings. With a 54-ha cultivation area and annual revenue of USD 11.5 million (KRW 15.94 billion), Jeju has been collecting growing points of the 'Seolhyang' variety since Aug-23. The goal is to produce 10 thousand original seedlings by next year and then expand to producing both original and distribution seedlings.

United States

Weather Challenges Hit Wisconsin Strawberry Farms

Central Wisconsin is grappling with unusual weather shifts, transitioning from last year's drought to excessive rainfall this season, significantly impacting berry farms. Owners across the region, including Arnold's Strawberries in Rudolph, report an 80% loss in ripe berries due to continuous rain, contrasting sharply with previous drought conditions. As they navigate day 12 of the picking season, farms like Arnold's sell spoiled berries at discounted rates to local livestock owners to offset losses. The entire region's berry farmers face similar challenges exacerbated by a high water table and persistent rain. Despite these setbacks, farms like Arnold's Strawberries plan to continue allowing picking in their remaining fields for the immediate future.

2. Weekly Pricing

Weekly Strawberry Pricing Important Exporters (USD/kg)

*All pricing is wholesale

Yearly Change in Strawberry Pricing Important Exporters (W26 2023 to W26 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 dramatically by 78.98% week-over-week (WoW) in W26 to USD 2.47/kg, compared to USD 1.38/kg in W25. Moreover, there is a 28.11% month-on-month (MoM) increase and a 37.61% YoY increase. This significant price surge is primarily due to the recent extreme heat waves that have severely impacted strawberry yields, reducing supply. Additionally, the price increase reflects strong domestic and international demand for strawberries during the off-season period. The MoM and YoY increases indicate ongoing supply chain challenges and heightened production costs influenced by climate change, which continue to affect the stability and availability of strawberries in the market.

United States

In W26, strawberry prices in the United States (US) surged by 50% WoW to USD 2.47/kg, compared to USD 1.65/kg in W25, marking the same increase MoM. However, there is a 40% YoY decrease. This WoW and MoM increase is driven by a sudden reduction in supply due to unexpected weather disruptions in major strawberry-growing regions, causing a temporary price spike. Conversely, the significant YoY decrease reflects a much higher price level in the previous year, when adverse weather conditions severely limited supply, leading to inflated prices. The current YoY decrease indicates a more stable production environment this year compared to last, despite the recent short-term supply issues.

Italy

In Italy, strawberry prices surged by 68.75% WoW to USD 7.29/kg in W26, compared to USD 4.32/kg in W25. This dramatic WoW increase is primarily due to a sharp decline in harvest yields from primary strawberry-producing regions. Adverse weather conditions, including unseasonal rainfall and temperature fluctuations, significantly impacted crop quality and reduced overall supply, leading to a sudden price escalation.

3. Actionable Recommendations

Mitigating Weather Challenges in Central Wisconsin Berry Farms

Berry farms in Central Wisconsin, like Arnold's Strawberries in Rudolph, should implement immediate measures to mitigate losses caused by excessive rainfall. Actions include enhancing drainage systems, implementing protective measures against waterlogging, such as raised beds or mulching, and exploring alternative marketing strategies like processing spoiled berries into value-added products. Additionally, collaborating with agricultural experts to adapt cultivation practices for wet conditions and leveraging community support for discounted sales could help sustain operations during this challenging season.

Addressing Price Surges in the Russian Berry Market

Russian berry producers, facing 15 to 16% YoY price increases, should focus on enhancing resilience against weather adversities. Immediate actions include investing in protective measures like frost protection and irrigation systems to mitigate losses from spring frosts and drought conditions. Collaborating with agricultural experts to adopt climate-resilient farming techniques and diversifying sourcing channels can help stabilize prices and ensure consistent supply to meet market demands.

Mitigating Impact of Heat Wave on Quebec's Strawberry Sector

Farmers in Quebec should focus on immediate heat wave protective measures. Prioritize implementing shading and irrigation systems to safeguard crops from excessive heat and maintain fruit quality. Collaborate with local agricultural experts to enhance heat-resistant varieties and sustainable farming practices. Engage with the community to promote Quebec-grown strawberries' superior taste and support local initiatives to strengthen market resilience against competitive pressures.

Sources: Tridge, Freshplaza, USDA, Federcitrus, Montreal CTVnews, Fructidor, Oreanda-news, JejuIlbo, Wsaw

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