By Shermain Hardesty, Director of the UC Small Farm Program
Blueberries have become an important specialty crop alternative for many growers in California. As new producers continue to enter the blueberry market, an examination of trends and opportunities may help California producers better strategize for success.
Although they have been cultivated in California for the commercial market only since the mid 1990s, blueberries were long an important native crop to the indigenous peoples of North America. Hybrid plantings were first established in New Jersey in the early 1900s. The industry expanded significantly during the 1930s when several improved varieties were introduced in North Carolina and Washington. By 2006, less than a quarter of the nation’s commercial blueberry production was from wild plants.
The value of U.S. blueberry production increased five-fold between 1993 and 2006 to $558 million, while cultivated acreage increased by 45 percent. Michigan is still the leading blueberry state, producing slightly less than a quarter of the nation’s total crop in 2006. Per capita consumption of blueberries among U.S. consumers rose from 0.4 pounds in 1990 (0.1 pounds fresh, 0.3 pounds processed) to 0.8 pounds in 2005 (0.4 pounds each of fresh and processed).
Both convenience and health factors have contributed to the growing demand for blueberries. Blueberries more recently have been labeled a “superfood” for their high amounts of anthocyanins, which give blueberries their color. These antioxidants may help prevent heart and urinary tract diseases and stop memory loss. Blueberries are also considered to have anti-inflammatory properties. A cup of blueberries contains 14 mg of Vitamin C and 0.8 mg of Vitamin E.
Blueberry production statistics for California have been reported only since 2005. Reported harvested acreage rose from 2,000 acres in 2005 to 2,300 in 2006. The California Blueberry Association estimates planted acreage to be 4,500 to 5,000 acres. A recent article in the Los Angeles Times reported that blueberry acreage in Ventura County is expected to double to more than 600 acres over the next year. Since a stand of blueberries takes five years to reach full production, these numbers suggest California farmers’ recent investments in blueberry acreage will yield a considerable increase in market supply in the coming years.
In 2006, California’s blueberry growers earned $33 million for their crop. Although almost half of the nation’s blueberry production is processed, all of California’s production is marketed fresh. Prices paid to growers averaged $3.28 per pound in 2006, compared to $4.46 per pound in 2005 when production was about 10 percent lower. The prices reported in Market News by USDA’s Agricultural Market Service (http://marketnews.usda.gov/portal/fv) for the San Francisco terminal market fluctuated significantly, as indicated in figure 1 for California’s 2007 crop.
Coastal growers market their blueberries from February through June and are able to capture the highest prices for most of their marketing season. As production in the San Joaquin Valley peaks during the summer, prices drop significantly; in 2007, the reported prices at the San Francisco terminal market fell to a low of $2.89 per pound ($13 for a flat of 12 6-ounce packages) by the first full week in June. Prices then rose to $4 per pound by the end of July as California’s season ended.
After California’s 2007 season ended, the price per pound increased, as the blueberries were sold in smaller and smaller packages. Terminal market prices for blueberries from Oregon and British Columbia ranged between $2 and $3 per pound for 1-pint packages during August. They rose into the $4-$5 per pound range for 6-ounce packages during September. By mid-October, they had increased to over $15 per pound for 4.4-ounce packages as supplies tapered off.
Expected increases in blueberry production in California could pressure prices further downward, unless demand grows significantly. Even producers of organic blueberries have expressed concern about product flooding the market and pushing prices downward.
Yet opportunities still exist for market growth, in terms of demand. Many consumers in California are still not familiar with blueberries. Export market opportunities, particularly in Asia, are being developed. The California Blueberry Association was formed in 2005 in an effort to provide a unified voice for growers and enable growers to exchange information on cultural practices and market windows.
Producers may benefit by pursuing further collaboration, such as coordinating the flow of their berries into the market, rather than depressing prices by competing against each other. Growers have made significant investments to establish their plantings, and they need to monitor and manage market conditions carefully.