Market Update For Berries

Santa Maria growers are set to hit peak volumes of Portola variety over the next two weeks, so retailers should be able to take advantage of promotable FOBs. Although quality in Watsonville is declining each week, they will continue to pack fresh fruit until rejections become unbearable. Most norther growers are keeping their fruit west of the Mississippi, to ensure better arrivals. Oxnard growers are starting to scratch some decent numbers as well, which should keep marketers pushing aggressive pricing through the month of October. Temperatures in Watsonville could hit 90 degrees next week, which will certainly impact their quality. We could see a real drop in production up north by the second week of October, which could help Santa Maria growers get there markets back to profitable levels. Some retail programs are still shipping at $14.00 and $16.00 FOB, but the mostly spot market has dipped to $12.00. Look for the spot market to hover at this level for the at least the next two weeks. 

Blueberries

Peruvian blueberry pricing has been extremely elevated for several weeks as a late start to the season has left us with a pretty empty pipeline. Volumes were expected to increase significantly by the second week of October, but an east coast port strike has growers sending fruit to alternative markets. The Peruvian domestic market is also very strong, so growers would surely prefer to supply the local market rather than take the risk that fruit will be compromised entering the US. Exporters are scrambling to book freight on Seaboard, as Penn terminals will continue operating without interruption. Peruvian blueberry volumes are back to normal levels, with some exporters thinking volumes will top that of 2022, but the late start just has FOBs out of whack. Retail pricing is extremely high, ranging from $8.99 to as high as $12.99 for pints. Retail movement has been slowed significantly, so importers need to be very careful not to hold pricing too high. Peak volumes will eventually come, and promotions will need to be put in place to keep the spot market from tanking. Currently pricing ranges from $48.00 to as high as $58.00 for conventions pints, with Organics trading from $52.00 to $62.00. It’s just unrealistic to expect these prices to hold, but if a strike interrupts arrivals, the spot market might not move.