Following last year's dramatically lower supply of berries from Peru, the effects of El Niño are still being felt this year. "Interestingly, the affected areas this year seem to contrast with those of last year. Last year, the northern region of Lambayeque, where we cultivate, was hit hardest. This year, the production areas of Piura, Lima, and Ica are the most severely affected, while La Libertad is also lagging," explains Stefan Spanjaard from Agrovision Europe. "Our export figures clearly illustrate these regional differences. Our exports from Northern Peru have increased by 80% this year, while exports from other regions are lower than last year."
"Many assumed that once El Niño passed, supply would quickly recover, but nature has shown us otherwise. Our technical managers indicated that the aftereffects were to be expected, although it's always challenging to predict how they will manifest. The differences between day and night temperatures remain extremely low in the most affected areas, which gives Lambayeque a distinct advantage. Particularly the Ventura variety seems to be ripening more slowly. It wouldn't surprise me if forecasts for the coming weeks are revised downward again and some of the planned volume fails to materialize," Stefan notes.
"The berry crop in South Africa has also faced significant challenges. Both the Western Cape and Limpopo regions are not producing the expected volumes. This has put pressure on the United Kingdom and several European retailers that are typically focused on South African products," Stefan continues. "As a result, market prices remain high. Day prices, in particular, are historically and absurdly high. For the premium Sekoya varieties arriving in Europe, prices range from €15 to €16 per kilogram. Standard varieties are also priced very high. In our recent store visits, we frequently observed empty shelves. However, our available volume continues to grow. As demand rises, we are focused on optimizing the distribution of our berries to ensure consistent availability for our partners. We are actively working to increase our supply in response to higher demand."
"For retailers, this situation requires adaptation. Many supermarkets that usually carry all pack sizes—from 150 to 500 grams—are now reverting to smaller packs. A 500-gram pack is very appealing for families, but if it costs €10 to €12, that becomes less attractive. Across the entire industry, particularly in retail, there is a growing search for redefinition. After all, last year was already quite turbulent for the berry sector, especially during this period leading up to the arrival of Moroccan berries. In my opinion, this redefinition will focus on partnerships, supply chain efficiencies, and brand introductions."
"At Agrovision, we have been promoting our own brand, Fruitist, in North America since our inception. We firmly believe that this allows us to operate from a position of strength and associate the brand with a high degree of supply chain efficiency," says Stefan. "One drawback in Europe remains the small packaging of berries, resulting in additional costs throughout the supply chain. All our berries sold in North America are packed in Peru and Mexico. With our brand, we can optimize the supply chain while maintaining flexibility, which will also play a significant role in the European market."
In addition to numerous blueberry projects worldwide, Agrovision has expanded its raspberry projects in Morocco and Mexico. Furthermore, tests are underway in several other countries to evaluate the development of varieties under the Pinkstar label. "This year, we have also launched a large blueberry cultivation project in Egypt. We expect to see our first berries in January, and the prospects look promising," Stefan concludes.
Agrovision is an exhibitor at the Fruit Attraction in Madrid: Hall 9 - stand 14
For more information:
Stefan Spanjaard
Agrovision Europe
+31 (0)6 558 133 36
[email protected]
www.agrovisioncorp.com