After a tough few months, blueberry volume from Peru is increasing. “El Nino played a huge factor. In just our programs, we lost a significant amount of the fruit that we would typically see in the October early November window,” says Michael Giordano of Consalo Family Farms.
On top of that, adding to the struggle to get fruit was the fact that better markets in Asia and Europe also attracted the shipments that would have typically gone to the U.S.
Giordano says the market is starting to slightly adjust and come down a little bit. There are still shortages out there but there are greener pastures ahead.
However, the volume to North America is starting to change now. “The volumes from Peru have improved. It’s not a dramatic increase, but it doesn’t seem to be that spot that we were in a few weeks ago where nobody had any fruit,” Giordano says. “The market is starting to slightly adjust and come down a little bit. There are still shortages out there but there are greener pastures ahead.”
In the meantime, Argentina has been shipping fruit. “It’s been a lifesaver in keeping continuity in our supply chain,” says Giordano. Consalo Family Farms’ first shipments of Argentinian fruit arrived in the middle of October and those shipments will finish up in a few weeks. “Argentina has a shorter season but it really helps fill the gaps on the Peruvian and Chilean fruit that wasn’t coming here.”
Overlapping regions
There will now be a bit of an overlap of the Peruvian and Chilean blueberry seasons. “Peruvian fruit is really strong and with their exceptional growing regions, we can use Peru all the way through the Chilean season, albeit in lighter volumes,” Giordano says. That said, Peruvian fruit is likely to stop arriving in February or March.
In the meantime, very small volumes are already arriving from Chile. Strengthened supply will start in the second week of December up until the holidays.
Michael Giordano with his dad Nick, who also works for the company.
Mexico is also shipping blueberries. “However where we are in the Northeast, it doesn’t usually find its way up here with the cost of freight from Texas and Arizona making it not as competitive price-wise as the Peruvian fruit that comes right to our doorstep in Philadelphia,” says Giordano. Instead, Mexican fruit largely stays in the Southeast and the Southwest regions.
As for demand, it’s been strong. “Even with more availability of fruit, the demand is still there,” adds Giordano.
Pricing to soften
On pricing, there’s approximately a $15-$20 increase on pricing right now compared to last year at this time. “The FOB costs in the Northeast on a pint of blueberries is anywhere from $48-$52. This time last year, that was in the low to mid $30s,” Giordano says.
On pricing, there’s approximately a $15-$20 increase on pricing right now compared to last year at this time.
While typically at this time of year, there’s a very tight market with a sharp decline in demand and pricing as Chilean imports ramp up and Peru hits its peak, this year that decline is still anticipated though not as quick and rampant as in the past. “It’ll be a steady decline with the market on a pint of blueberries here in the Northeast evening out around the high $20s/low $30s,” says Giordano.
All of this has put a spotlight on how the weather changes impact the imported blueberry market in North America. “It’s not only affecting us now but this was an event that could affect us for the next one, two or three years,” Giordano says. “It’ll be interesting to see how this weather event really changes the entire marketplace for blueberries for this time of year in the future.”
For more information:
Michael Giordano
The Fresh Wave Fruit and Produce ®
Consalo Family Farms ®
Tel: +1 (856) 794-1408
[email protected]
www.consalofamilyfarms.com