The number of soft-fruit producers fighting to supply the UK market is growing and many more are eager to enter the fray. More traditional suppliers such as Spain, Holland and Belgium are facing ever-stronger competition from the new kids on the block such as Poland and Morocco.
However, according to recent statistics, there could be room for everyone. “The UK berry market is still growing rapidly and is far from mature,” says Nick Marston of KG Fruits. “Latest TNS figures for the UK market show year on year growth for the period ending 27 March 2005. Strawberry demand has increased 13.7 per cent, raspberries have shown a 28.7 per cent growth, and blueberries 128 per cent growth.
“With all the positive health attributes of berries, added to the fact that they are both convenient and really tasty to eat, I forecast growth in UK berry consumption for years to come,” he says.
According to Marston, the UK’s own rising production during its May to October season has meant that some suppliers have reduced the volumes imported from other countries during that time. Countries which have been affected include Holland, Belgium, and to a lesser extent North America.
During the December to February period, Israel and Egypt supply the bulk of volume. “The main change is that in that period increasing demand and supply has meant that we can sell large (400g) packs alongside the traditional small pack which has increased winter berry sales considerably,” Marston notes.
Moroccan and Spanish strawberries normally follow Israel and Egypt and enter the market in February.
While some producers are increasing their strawberry plantings, many are also diversifying into raspberries which has inevitably altered the category’s supply picture.
According to Marston, North America has become a significant raspberry supplier on the back of the UK season in May/June and also in the period from late August through to October. “This supply has come almost entirely from Driscoll’s, and the market has grown rapidly as a result of the excellent eating quality of this fruit,” Marston claims, adding that Driscoll’s Mexican production has also helped to erode Chilean market share during November through to February.
In recent years, early Spanish raspberry production has also increased considerably. Spain’s weather problems this year however meant that some importers have had to make alternative arrangements. In May, Spain’s meterological institute declared an extreme drought, after the country endured its driest spring for 60 years.
This was on top of frost damage which hit Spain earlier in the season. According to insiders, thousands of berry crops were affected in the Huelva region, with some plantings unlikely to ever recover.
There have already been repercussions for producers this season, with one major airline carrier forced to airfreight millions of raspberry cartons in order to meet demand. And popular opinion within the industry is that Spain will continue to lead the way during its peak period, but through no fault of its own cannot be relied upon to consistently provide fruit at the extended shoulders of its season, despite significant investment into achieving this in recent times.
With Spain taking a significant battering this season, more east European producers are eager and willing to take up the export challenge. New associations are springing up and one that will definitely be one to watch is Fresh Fruit Poland Group (FFPG).
This group consists of 20 Polish summer fruit producers which have merged to form one of Europe’s largest fruit marketing companies. According to the new firm, it will market approximately 80 per cent of the country’s strawberry exports and a whopping 90 per cent of blueberry shipments.
But it’s not only European producers that are likely to make gains. In the past, soft-fruit producers in Australia and South America were simply located too far away to ship such delicate fruits as berries to the UK without the potential risk of sustaining heavy losses.
However, with the advent of new technology, most notably controlled atmosphere, and with airlines paying more attention to the needs of fresh produce suppliers, companies are beginning to realise that it pays to make the extra effort to ship to the UK.
With the emphasis increasingly on new and exciting products, one firm that’s keen to supply the UK market is Chilean company Novaceae Ltda. The company focuses on novel fruit products and is targeting a niche market.
“Our portfolio encompasses Goldenberries which are available from January through to June, and Moorta which are marketed around from the December to March period,” says Francisco Gajardo, ceo.
Goldenberries are the fruit of Physalis peruviana, which are known in the UK as Groundcherries, says Gajardo, who believes Chilean berries have more flavour and aroma than its competitors, thanks to the country’s unique environmental conditions.
Furthermore, Gajardo notes that there has been a shift in the way the UK is being supplied with berries. “I think that the trend among retailers is to have less but larger suppliers, which can not only provide strawberries, but also blueberries, cranberries and other types of berries,” he claims, adding that because of costs, there is also an interesting shift away from brokers and traders to producers.
How one operates in the berry market depends entirely on the product on offer, Gajardo says. “Producers who offer a well known fruit such as blueberries want to keep costs down and therefore may join an association or enter into an alliance in order to achieve economy of scale.”
“However, if you focus on exclusive and unique products, you behave a lot more like a boutique,” he continues. “You don’t look for volume, but for brand recognition, because your cost structure is completely different,” he says.
If Goldenberries attract just half the attention that blueberries have in recent years, producers are guaranteed a strong following. The little blue fruit is one of the industry’s star performers, racking up considerable sales in a relatively short space of time.
Producers are taking advantage of the growing popularity and Florida-based berry producer SunnyRidge Farms is one of many firms keen to increase its presence in the UK. Similarly to other US berry producers, SunnyRidge enjoys alliances with a number of growers in South America.
SunnyRidge began shipping Florida blueberries in early April this year but in the future hopes to extend its window by offering supplies in mid March.
According to the firm’s Keith Mixon, shipments to the UK have increased significantly for a variety of reasons including the production of better quality fruit, new health benefits being discovered and favourable media coverage.
He is optimistic about future sales in a range of areas including Europe and Asia. “As long as our industry continues to supply healthy, great tasting berries that are easy to eat and great looking we will have a great future,” he says.
Observers believe that while there will always be an interest in new products, demand for more conventional berries remains strong.
Given the increasing competition, what are established producers doing to guarantee their positions? Far from being squeezed out of the market, Marston believes that traditional suppliers are actually increasing their presence.
“KG has a large share of UK production and our critical mass means we can offer the best service to retailers and growers at the lowest supply chain cost,” Marston says, adding that the company’s size means it can also invest in research and development and offer agronomic support to its growers at a level its competitors cannot match.
“Far from “hanging on” to market share, we are building year-round market share aggressively,” Marston claims. “We have sought to ally ourselves with the best producers around the world and offer a seamless year round supply of all berries from the best growers.”
Many agree that the UK is a more discerning customer compared to other countries in Europe. “The supply chain is very well developed and this means higher specifications in terms of quality and selection, food safety, traceability, due diligence and also packaging,” Marston says.
“It also means there are fewer retailers to sell to but each one has considerable buying clout. All this has made the UK market a tough one to supply for overseas producers compared with some others.”
While certain suppliers may come and go, with some in favour one year and others becoming popular the next, it remains clear that UK consumers are willing to pay premiums for great quality berries. That’s good news not only for those already active in the market but also for producers waiting patiently in the wings.
MIXED RESPONSE TO ORGANICS
More US producers are investing in their organic berry operations but while some believe demand will rise in the UK, others say it could be a long time before they make any dent in sales.
Multinational breeder and producer Driscoll’s produces organic strawberries and raspberries on a year-round basis in North America and Mexico. “Driscoll’s is rapidly developing its organic production and we expect to see improving volumes, availability and values over the next few years,” says Nick Marston at UK partner KG Fruits.
The Kent-based supermarket supplier imports organic strawberries from Driscoll’s during the summer to supplement UK organic production, in addition to the autumn-early winter period before Egyptian and Spanish berries enter the fray. Organic raspberries are imported throughout the summer and autumn periods.
“The varieties produced are from Driscoll’s own breeding programmes and offer super-flavoured organic berries,” Marston claims.
However, another leading US producer believes it’s too risky to ship organic berries to the UK. “The shelf life of organic berries is about five days and air freighting to the UK is too expensive,” said an exporter who declined to be named. “We are increasing our organic berry production in Watsonville but we don’t have any plans to send to the UK.”
Keith Mixon of Florida-based blueberry producer SunnyRidge Farms agrees, arguing that organics continue to be a challenge for berry producers.
“Most of the issues we have are with postharvest fruit rots which limit our shelf life,” he notes.
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