The cross-over to the Spanish season has caused more than its fair share of problems since the beginning of the year, with shortfalls pushing up the price of the most popular berry lines, strawberries and raspberries. The problem has been compounded by fears that UK consumers will turn away from the soft-fruit offer, often perceived as a treat, as they continue to monitor and cut their spending.
The situation has left importers considering alternative sources and hoping that programmes can get back on schedule as quickly as possible in the next few weeks.
The supply-demand equation has been difficult to square following a series of frosts in Spain, which has left the soft-fruit sector struggling to find enough fruit, while quality took a hit. “It has been a real struggle,” says one insider. “It has been cold and wet in Iberia, which has delayed the season - in previous years, we have started in January but this year, we are just getting going now and supplies are still being hit by rain.
“It looked as if it was starting to pick up in the last week or so, but then it became overcast and started to rain again. At the same time, temperatures dropped and this may well slow up production again.”
The poor weather delayed the strawberry season by nearly four weeks, but the exchange rate has made it harder for suppliers to fill gaps in the market, with the weak sterling making it more expensive for UK suppliers to source from overseas and producers finding other markets more attractive. “It has been a difficult buying market because there is pressure on sterling,” says one supplier. “It has been a better option for some European growers to sell fruit closer to home. We have been trying to pay the right prices and get as much volume in as possible, but it has not been easy.
“We have been heavily reliant on strawberries from the Middle East, including Israel, Egypt and Jordan, for which the airfreight alone carries its own costs. But from mid-February, we started to negotiate harder when more supplies came on stream.”
The quality of the fruit has been variable, with the weather taking its toll on a number of berry lines. Spanish strawberries and raspberries have been the worst affected.
The arrivals from alternative sources including Israel, Egypt and Jordan have been decent this year, but supplies are starting to look tired on the shelf next to new-season Spanish arrivals.
Retails have only just started to drop, much later than is normally the case. However, sales have remained stable, despite the availability issues and higher prices. A shift in pack sizes from larger to smaller formats has continued to take hold, with more 227g packs in the fresh produce aisles.
But the market is still very short of both strawberries and raspberries. TNS data for the last 12 weeks shows that strawberries have plummeted 25 per cent in volume and 13 per cent in value, while raspberry volumes have dropped by a massive 40 per cent and value is down 28 per cent.
Anecdotally, growers and suppliers fear the situation could be worse than this.
The raspberry sub-sector has been the worst hit by the weather, with some writing it off as a “complete disaster”, not seen for a long time. “I have never known raspberries to be so short,” says one importer. “We have had weeks when just one or two pallets have arrived, following two cold snaps in Spain, while South American growers have struggled to fill the gap.
“It has been off the scale,” he continues. “Any volume has been going to the highest bidder and there have been no offers on raspberries, that I know of, which is a change from last year, as promotions had already begun at this time.”
The retail price for raspberries is hovering around £3 for 125g, but the supply situation started to improve this week, with volumes expected to increase five-fold in the coming weeks.
The blueberry job, in contrast, has been described as a “godsend” that has helped offset some of the stress caused by strawberry and raspberry supply. The superfruit has been the clear soft-fruit winner over the last three months, with plenty of product from Argentina and Chile.
The market was flooded before Christmas and this enabled fairly strong promotions over the festive period and into January, when fruit started arriving by sea. The issue now, it seems, is that most of the fruit has been sold rather than stored, so the market will be facing a gap in supply, especially as Florida is still a few weeks away.
The blackberry sub-category has enjoyed consistent supply and demand, no doubt gaining from the lack of raspberries on the market. Mexico has provided the backbone of supplies, while commercial volumes from Guatemala have been on the up.
Fears that UK multiples will attempt to drive down the retail price of berries in a bid to drive sales have taken hold. “It is a swings and roundabouts situation,” explains one insider. “We have been trying to work together to get through this because we are in it for the long haul. If we can get some consistent weather in Spain, we will all be more optimistic,” he adds.
So far, it is still too early to tell when the UK season will start but there is less planted area of both maincrop and everbearer strawberries, which are together expected to be down around 15 per cent.
URUGUAY STILL SINGING THE BLUES
Uruguayan blueberry exports doubled in 2008 during the winter season, from October to the end of December, says Marta Bentancur, international co-ordinator at exporter association Upefruy.
The UK is one important destination for us and more than 30 per cent of total exports are earmarked for this country. The major multiples, we have found, are eager to increase their programmes with our fruit for the coming season. Our total exports reached 1,150 tonnes last year and, despite climatic adversities, we were able to distribute good quality across the market.
A significant increase in volume is expected in Uruguay for the coming years and this will be a challenge for us. To be able to grow as high-quality and responsible suppliers, we are leading some core strategic priorities.
On the field side, Uproa, the Uruguayan growers’ association, is leading the implementation of extension programmes to reach every grower and exporter to improve quality and safety, as well as consolidating groups engaged with responsible supply.
Both institutions, Uproa and Upefruy, have been successfully piloting the whole value chain, encouraging the whole sector to be proactive and bringing together all stakeholders - private and public - including the political support to the sector.
There is a special focus on how to lengthen the season through a more equilibrated supply calendar and an improved variety mix.
Qualified certification programmes ensure good agricultural practices in the field, through GlobalGAP or specific retailer’s protocols, while we have British Retail Consortium (BRC) accreditation and HACCP for packing facilities. Safety, social and environmental compliance with national law are within our main priorities.
We feel very proud to say our blueberry sector is highly consolidated and this is particularly impressive for our customers.
We strongly believe that working together under a unique framework will let us adjust more easily to the new global scenario and be able to develop closer partnerships with customers in Europe and the US.
Under a public-private project, we are also developing promotional programmes in the principal international events, such as the Produce Marketing Association event in the US and Fruit Logistica in Europe.
We also pursue collaboration with other fresh suppliers in the region and work on regional promotional campaigns in the UK, under the Blueberries from the South banner, along with Chile and Argentina.
Our exporters are also working hard to improve their supply distribution chain through a more cost-efficient process, in order to be able to be more competitive under higher production and transportation costs.
In the end, our overall commitment is to become a long-term, sustainable and reliable supplier, creating a quality identification for our berries grown under a strict fulfilment of quality and safety criteria, under strict national legal frameworks and those in the markets targeted.
We feel confident that next season will bring even better opportunities for blueberries from Uruguay, the small but reliable country in South America.
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