November 26, 2008
Berries produced in the United States have enjoyed unprecedented sales on the world market recently, says an executive with an international bank involved in food and agribusiness, but that growth might be slowed if the value of the U.S. dollar continues to rise.
“The low dollar, combined with increased demand for berries, has given U.S. farmers a special opportunity to expand their exports,” says Marieke de Rijke, assistant vice-president of food and agribusiness research for the Rabobank banking group of the Netherlands. “Overseas demand has grown and continues to grow, particularly for raspberries and blueberries.”
But she cautions the strengthening of the dollar is not a good sign for further export of berries.
“I don’t know how sustainable our exports will be in the environment of a stronger dollar,” she says. “It will be even more important to stand out by quality.”
There has certainly been plenty of good news for berry growers lately:
• Japan has increasingly become a marketplace for blueberries.
• Canada remains the top export target for strawberries, accounting for more than 80 percent of the exports, and Mexico takes 12 percent. But demand for strawberries may be leveling off.
• In markets where domestic blueberry production can’t keep up with demand, such as northern Europe or Asia, there are new opportunities for U.S. berry farmers.
Providing a backstop for all this is the domestic market, says de Rijke. “The U.S. consumer appetite for blueberries has most likely not been fulfilled, which creates additional domestic growth opportunities.”
Promotion of the health benefits of berries in foreign markets has pushed demand up beyond U.S. borders.
“Over the past several years, demand for all U.S. berry varieties has grown significantly due to increased consumer awareness of their health benefits,” says de Rijke.
In the short-term, demand for blueberries and raspberries is expected to continue growing, she says. “They are the type of fruit today’s consumer is looking for: Convenient, healthy and available year-round,” she points out. “In the medium to longer-term, however, demand for berries — strawberries in particular — are expected to grow at a more gradual pace.”
In the United States:
• Fresh blueberry consumption is up 65 percent.
• Fresh raspberry consumption is up nearly 300 percent.
• Fresh strawberry demand is up 45 percent from 2001 to 2006.