Market Update For Berries

A couple a warms day last week gave Santa Maria growers a jump start to their fall season. Daily pack outs of Portola variety are trending in the right direction, and we could see substantially better volumes over the next two weeks. Northern growers continue to pack a mixed bag, with labor having to drop more ripe fruit in the fields to ensure good arrivals. Volumes will continue to decline in Watsonville over the next few weeks, but Santa Maria should be able to pick up the slack. The extended weather forecast looks very good, with daily temps in the low 70s and evening temps in the mid-50s. This should be great for berry solidity and retail shelf life. We should expect to see FOBs range from $16.00 to $18.00 with some retail programs locked in at $14.00 FOB. The berry category is not being heavily promoted right now, so if volumes pick up and demand doesn’t, look for some marketers to make deals to stay fresh.

Blueberries

Last season we saw historically high blueberry FOBs as El Niño impacted Peruvian volumes by more than 30%. This season is starting out with similar highs. Another effect of last season’s El Niño was a delay in pruning. The result will be another late start with peak volumes not expected to reach the U.S. East Coast until the middle of October. With BC and domestic quality on the decline, there is greater pressure for Peruvian fruit. The spot market has a wide range, with quality and COO being the determining factors. Currently, pints from British Columbia range from $32.00 to $36.00, with limited retail interest. Peruvian pints range from $48.00 to $52.00, and we can expect to see these extremely high FOBs through the balance of the month. Look for the first arrivals of organics from Peru by the end of September.