1. Weekly News

Egypt

Egypt Maintains Strong Presence in Southeast Asian Strawberry Markets

In the 2023/24 season, Egypt remained a leading exporter of fresh strawberries to several Southeast Asian countries despite a slight decrease in shipments compared to the previous season. Egypt secured second place in the overall ranking of suppliers to Malaysia and Singapore. While Egypt led in the 2022/23 season with 1.7 thousand tons, the current season's export to these countries is just over 1.5 thousand tons, still one of the highest in history and two-thirds above the five-year average. Although not the top global importers of fresh strawberries, Singapore and Malaysia represent a potential market of 6 to 7 thousand tons annually. Since the 2018/19 season, Malaysia's imports have driven a 25% increase in these countries, while Singapore's growth has been slower. In contrast, Hong Kong, leading in Southeast Asia's strawberry imports, has cut its import by a third to 5 thousand tons since 2018/19. Singapore and Malaysia have seen volumes exceed 4 thousand and 3 thousand tons, respectively, while Thailand has increased its imports by 50%, reaching 3 thousand tons.

Egypt mainly supplies Malaysia and Singapore from November to March, competing with South Korea, which surpassed Egypt’s exports by the end of 2023/24. Besides Egypt and South Korea, Malaysia and Singapore also import strawberries from Australia (August to November) and the United States (US) (year-round, peaking May to August), with Japan targeting the premium market segment from December to May.

France

Favorable Weather Boosts Strawberry Production in Southwest France

In Jun-24, favorable weather significantly improved strawberry production in France, particularly in the southwest, where most strawberries are cultivated. Production in this region is up 3% year-on-year (YoY), despite a 5% YoY reduction in the cultivation area to 1.2 hectares (ha), of which 843 ha are covered cultivation and 371 ha are outdoor. In contrast, strawberry production in the southeast of France has slightly decreased. In Jun-24, strawberry prices increased by 2% YoY and 11% above the five-year average.

United States

Global Warming Threatens California Strawberry Yields with Potential 40% YoY Drop

Strawberry yields in California could drop by up to 40% YoY due to global warming, leading to shortages and higher prices, as reported by the U-Food Association, which specializes in providing critical insights and data on food and agricultural trends. This report cites data from the University of Waterloo. Vital to California's economy, the strawberry market exceeded USD 3 billion in 2022. To mitigate the effects of climate change, scientists recommend a sustainable agronomic approach, including optimizing irrigation to conserve water, using drip irrigation, scheduling work to avoid peak heat, and implementing shading to reduce heat stress. The University of Waterloo’s team emphasizes the need for adaptation to climate change to ensure a sustainable food supply, highlighting the importance of understanding temperature impacts on crop yields to help governments and farmers develop effective strategies.

Rising Temperatures Threaten US Agriculture Amid Cooling Inflation

As the US experiences cooling inflation, rising temperatures mark one of the hottest summers on record, affecting fruit and vegetable costs. Farmers face increased cultivation costs due to the heat, reversing last year's 1% price decrease as reported by June's Consumer Price Index. An organic farm owner in Fresno, California, and the Willamette Valley in Oregon note that near-record heat waves over 100 degrees have significantly reduced harvestable produce by causing fruit to wither.

Immediate fruit prices remain unaffected due to pre-negotiated contracts, but future prices will reflect higher costs of adapting farming practices, including investments in advanced irrigation systems. Similarly, California strawberry yields could drop by 40% YoY due to temperatures three degrees above historical averages. These findings highlight the urgent need for adaptive strategies in agriculture to mitigate climate change effects on crop yields and pricing.

2. Weekly Pricing

Weekly Strawberry Pricing Important Exporters (USD/kg)

Yearly Change in Strawberry Pricing Important Exporters (W31 2023 to W31 2024)

Mexico

Strawberry prices in Mexico during W31 have increased by 36.13% week-on-week (WoW) to USD 2.22 per kilogram (kg), compared to the previous price of USD 1.63/kg in W30. The price increase is due to adverse agro-climatic conditions in key strawberry-producing regions in Mexico. Accounting for 50% of the agro-climatic disasters, droughts significantly reduced the supply of strawberries, creating upward pressure on prices. In addition, the threat of frost, hail, and floods has exacerbated the situation, leading to higher production costs and further limiting the availability of strawberries in the market. However, the 16.92% month-on-month (MoM) and the 8.41% YoY decrease reflect broader seasonal trends, such as typical production peaks, resulting in oversupply in previous months and fluctuating consumer demand and market adjustments. These factors kept prices lower overall despite the recent short-term spike.

United States

In the US, strawberry prices in W31 remained stable at USD 2.47/kg since last week, with a 21.74% MoM decrease but a 28.57% YoY increase. This week's price stability results from the short-term oversupply observed recently, which temporarily balanced the market. However, this stability is expected to be short-lived, as ongoing record-breaking heat waves in primary strawberry-producing regions like Fresno, California, and the Willamette Valley in Oregon will likely reduce future harvests. Extreme temperatures caused significant crop damage, reducing harvestable produce and increasing cultivation costs. As these factors impact the market, upward pressure on strawberry prices is anticipated in the coming weeks, potentially reversing the recent price declines.

Italy

The wholesale prices of strawberries in Italy continued to decrease in W31, with prices falling to USD 5.40/kg, reflecting a 4.76% WoW decrease, a 16.67% MoM decrease, and a more significant 27.24% YoY decline. The ongoing price reduction is mainly due to the sustained impact of the recently introduced new high-yield, early-harvesting strawberry variety. This variety has led to a continued increase in market supply, contributing to a persistent oversupply situation. Despite some initial adjustments, the market is still experiencing a significant influx of strawberries, which has maintained downward pressure on prices. The 27.24% YoY decrease indicates that the broader trend of increased competition and supply from these new varieties continues to lower prices as the market adapts to the expanded production capacity and higher availability.

3. Actionable Recommendations

Invest in Adaptive Farming Technologies to Mitigate Heat Impact in the US

US farmers and agricultural stakeholders should invest in advanced irrigation systems, such as drip, micro-sprinkler, and heat-resistant crop varieties like Winterstar, Camarosa, and Chandler, to adapt to rising temperatures. This will help mitigate the impact of heat waves on fruit and vegetable yields, stabilize future prices, and reduce cultivation costs.

Enhance Climate-Resilient Practices to Stabilize Strawberry Prices

Mexican strawberry producers should enhance climate-resilient practices by adopting drought-resistant strawberry varieties, such as Albion and San Andreas, and implementing advanced irrigation systems like drip irrigation and soil moisture sensors. These measures will help mitigate the impact of adverse agro-climatic conditions, stabilize production, and prevent significant price fluctuations caused by supply shortages.

Implement Heat-Resilient Strategies to Mitigate Future Price Increases

US strawberry producers should implement heat-resilient strategies, such as adopting heat-tolerant strawberry varieties like Sweet Ann and Monterey and enhancing field shade netting systems. These measures will help reduce crop damage, maintain stable harvest levels, and mitigate the anticipated upward pressure on strawberry prices caused by ongoing heat waves in key producing regions.

Sources: Tridge, Freshplaza, Nieuwe Oogst, AgroPortal.ua, EastFruit, Infobae, Smmp