W28 2024: Strawberry Weekly Update

Published 2024년 7월 19일

In W28 in the strawberry landscape, Italy's 2023/24 strawberry marketing season ended with high production and high quality, with a 7% YoY decrease in average prices compared to 2023. Moreover, consumers purchased 53.3 thousand tons of strawberries during the campaign, with reduced imports positively influencing retail prices. In Poland, the market is experiencing lower prices due to diminishing fruit quality, ranging between USD 1.27 to 2.55/kg. In Russia, strawberry retail prices have dropped by 8% WoW and 20.4% MoM due to frost impacts. Meanwhile, the Ministry of Agriculture Development in Sri Lanka has launched an innovative strawberry planting project in Nuwara Eliya to boost exports and provide financial and technical assistance to foster regional agricultural growth. As for weekly pricing, strawberry prices in Mexico surged due to drought and water-efficient production methods, causing a 58.54% YoY increase and a 93.07% MoM increase. In the US, concerns over climate change have led to a 4.55% YoY increase and a 91.67% MoM increase in strawberry prices. In Italy, prices slightly decreased to USD 6.48/kg due to the introduction of new strawberry varieties. Prices may stabilize or adjust further based on consumer demand and quality expectations.

1. Weekly News

Italy

Italy's 2023/24 Strawberry Season Sees Abundant Harvest Despite 7% YoY Price Drop

Italy's 2023/24 strawberry marketing season ended in Jun-24 with a successful outcome marked by abundant production and high quality. The mild spring facilitated smooth harvesting, resulting in excellent organoleptic characteristics. Despite a gradual introduction to markets, increased demand boosted sales. Although average prices saw a 7% year-over-year (YoY) decrease compared to 2023, they remained stable overall. Despite higher production costs, consumers purchased 53.3 thousand tons of strawberries during the campaign, with reduced imports influencing retail prices positively.

Poland

Impact of End-of-Season Quality Issues on Strawberry Prices in Poland

As Poland's traditional strawberry growing season ends, the market faces lower prices due to a decline in fruit quality. The remaining batches, predominantly of the Malwina variety and sourced from colder regions, are available in limited supply. Prices currently range between USD 1.27 to 2.55 per kilogram (PLN 5 to 10/kg), with select varieties stabilizing at higher rates of USD 4.59 to (PLN 18 to PLN 22/kg). Strawberry growers attribute the decline in fruit quality to buyer hesitance from smaller fruit sizes and concerns over gray mold infestations.

Russia

Moscow Strawberry Prices Drop 20% MoM Amid Market Adjustments and Frost Impacts

According to the Deputy Chairman of the Board of the Rusprodsoyuz Association, strawberry retail prices in Moscow recently decreased by 8% week-on-week (WoW) and by 20.4% month-on-month (MoM). Despite over 80% of the strawberry market being domestically produced, Turkey is the primary supplier to Russia. The average retail price of strawberries in Russia has surged nearly 20% over the past year due to frost impacts. From May 1 to 22, 2024, Russia's average cost/kg of strawberries was USD 6.66 (RUB 588). The Russian Minister of Agriculture has indicated forthcoming adjustments to strawberry prices in Jun-24.

Sri Lanka

Ministry-Led Strawberry Cultivation Initiative in Nuwara Eliya Signals Sri Lanka's Agricultural Expansion

The Sri Lankan Ministry of Agriculture launched an innovative strawberry planting project in Nuwara Eliya, aimed primarily at boosting exports. The project engages 52 farmers across 40 greenhouses in Blackpool and Nuwara Eliya and receives comprehensive support from the ministry. Participating farmers cover 25% of the greenhouse setup expenses while the ministry fully funds the remaining costs. This government-led initiative marks Sri Lanka's inaugural venture into large-scale strawberry cultivation, emphasizing financial and technical assistance to foster regional agricultural growth.

2. Weekly Pricing

Weekly Strawberry Pricing Important Exporters (USD/kg)

Yearly Change in Strawberry Pricing Important Exporters (W28 2023 to W28 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 continue to surge due to a severe drought affecting agricultural production, particularly strawberries. Significant reductions in supply have been exacerbated by shifting to more water-efficient substrate production methods, and prices have sharply risen. In W28, strawberry prices reached USD 2.67/kg, marking a notable 58.54% WoW increase and a substantial 93.07% MoM increase. This price escalation reflects heightened market demand amid constrained supply, highlighting the impact of environmental challenges on pricing dynamics.

United States

In the United States (US), prices have risen again due to concerns over climate change affecting California's strawberry production. A University of Waterloo study warns of potential 40% yield reductions as temperatures increase, leading to anticipated market shortages. This has heightened worries about supply stability and higher costs. During W28, US strawberry prices surged by 4.55% WoW and 91.67% MoM, reflecting immediate market responses to these climate-related concerns. Stakeholders brace for potential price volatility amid uncertainties about future yields and import dependencies.

Italy

During W28, strawberry prices in Italy saw a slight 4% WoW decrease to USD 6.48/kg. This adjustment could be attributed to initial market reactions as new strawberry varieties are introduced, potentially temporarily increasing overall supply. As the market integrates these innovations, prices may stabilize or adjust further based on consumer demand and the effectiveness of these new varieties in meeting market expectations for quality and value.

3. Actionable Recommendations

Ensure Price Stability for Russian Strawberries

In collaboration with the Ministry of Agriculture, Russian strawberry producers should implement strategic measures to stabilize strawberry prices. This includes enhancing frost protection methods, such as using frost cloths and wind machines to protect crops from cold weather. Increasing domestic production capacity can be achieved by investing in advanced greenhouse technologies and high-yield strawberry varieties. Producers should also conduct regular market analysis to anticipate price fluctuations and adjust production strategies accordingly.

Enhancing Quality and Market Stability for Polish Strawberries

Polish strawberry growers should collaborate with agricultural experts to enhance fruit quality through improved cultivation practices and pest management. They should also focus on optimizing storage and transportation to reduce the impact of gray mold infestations and ensure better preservation of smaller fruit sizes. Additionally, growers should use targeted marketing strategies to educate buyers on the value of different strawberry varieties, stabilizing market prices and increasing consumer confidence.

Maintain Quality and Increase Marketing for Italian Strawberries

Italian strawberry growers and marketers should focus on maintaining high quality and leveraging the successful season's outcomes by implementing targeted marketing campaigns. To attract more consumers, highlight the strawberries' excellent organoleptic characteristics and emphasize the benefits of locally produced fruit. Collaborate with retail partners to create promotional offers and increase store visibility, ensuring stable demand and supporting price stability despite higher production costs.

Sources: Agrotypos, Sad24, Foodmate, TASS, Kvedomosti, Phys, Udgtv, Italiafruit