European blueberries provide the backbone to the summer market, and UK plantings are growing of the popular soft fruit. This season, the market is forecasting stronger pricing than last year, following a slow start to Spanish supply and lower volumes from some of the main producing countries on the continent. However, sendings from Spain and Portugal are now in full flow, France is coming into its own this month, the Netherlands and Germany are set to hit the market in July and Poland will come in from mid-July to September, while the UK feeds its own from late May to October.
So what is in store for this summer? And how will the market for blueberries shape up with more volumes coming on stream?
The latest Kantar Worldpanel figures for the 52 weeks to 16 May show that blueberries are performing ahead of the soft fruit market, with sales up 21 per cent and volumes up by a quarter year on year, compared to just five per cent and eight per cent respectively on all berries.
Nick Marston, managing director of Berry Gardens, maintains that pricing this year is higher than it was last season and the sector is holding out for further improvement, which will mark a turnaround on last season when returns slumped to their lowest levels at the peak of production. “Pricing is a little higher than it was last year,” he says. “In 2009, the year ended up being a poor season for growers supplying northern Europe in the summer period. The prospect of measurably lower Polish and German production means that European growers are expecting 2010 pricing to return to the levels of 2008 or even higher, given increased consumption.”
But on the whole, European blueberry production is rising across the continent, with growers planting more but attempting to flatten volumes going to market and extend the season.
“The UK and Italy have increasing production from new plantings, but these are relatively small players in the overall market and all the production is aimed at their domestic markets,” says Marston. “Of the large producers, the Netherlands expects to be static year on year and both Germany and Poland (the largest producers in northern Europe) expect less fruit than last year following less favourable spring weather than in 2009. We can therefore expect stronger pricing than last year, especially at the Polish peak in late July, when prices last year were very low.”
However, others stress that there is more potential in the blueberry market, especially in the long term. Many are concerned that while prices have increased this year, more sustainable returns will be needed to secure the future of the category.
Michael Aagaard, director at Dutch firm Fruit World Breda BV, insists that returns have not been as strong as expected, even though supply is playing out better following a delayed start. “Prices have been relatively low in the main season,” he says. “This affects returns for growers. And consumption of blueberries in the rest of Europe is far behind that of the UK. If this doesn’t change, it might be a problem to realise fairreturns for growers in the coming years.”
The UK is one of the strongest markets for blueberries and one that is continuing to hold its own. New plantings will mean a bigger British blueberry offer this year and in the future. In fact, the shape of the European blueberry market as a whole is changing and Poland has become a key source for the UK, as the main source of volume from mid-July to September. The increased availability has triggered an increase in UK consumption, as a result of longer promotional pricing periods and an extended summer season, as Polish blueberries are stored in some volume. But it is the future of home-grown fruit that has UK soft fruit circles talking.
“Home-produced blueberries in England and Scotland are an exciting development,” says Marston. “The UK’s temperate climate and the fact that blueberries have been planted from early sites in the south to the upper end of Scotland means a very long season, from late May to late October. The plantings are new and are all of the latest varieties so fruit eating quality and berry size will be good. This will represent an exciting offer for consumers who like to buy British produce and local fruit, or who seek a more premium product.”
The rise of UK-grown berries has not gone unrecognised by growers and exporters on the continent. Rafael Laguillo Candau from Spanish firm Euroberry Marketing SA admits that the UK has become a better market for blueberries than European players originally gave it credit for. “It has been surprising to see that the UK market, which we thought had almost reached its consumption peak, has surpassed our expectations,” he says. “Now we still have to see where it stops.
“Sales across Europe are growing at a normal rate, however, as the markets mature, it is becoming more difficult for small growers to reach their customers without the help of a bigger actor. To increase movement, the actions are focused mainly in developing new markets.”
Across the category, some of the major players both in the UK and across the continent are working hard to reinforce the perception of the fruit as a so-called superfruit and improve their overall offer in order to grow sales in the long term.
Next week, Fruit World Breda is set to announce the results of a research project on the health benefits of blueberries, in partnership with the University of Wageningen. “With these results, we hope to make a big step towards increased consumption of blueberries inour part of Europe,” says Aagaard.
This kind of work is being backed by the ongoing development of new varieties that are bigger and have a better texture, taste and a longer shelf life. At the same time, new sources are coming on stream and increasing competition. Morocco may be a source to watch out for in the future, for example, as a competitor with Spain on early fruit.
So where next for the European blueberry sector? This season, there will be a shorter market in the coming weeks as the Spanish season draws to a close and even though France is on time, the Netherlands and then Poland and Germany will be one week later than last year. Once these countries start in volume, supply will increase and prices reduce, but the sector expects prices to remain above 2009 levels.
But fast forward a few years, and insiders believe that blueberries have every chance of overtaking raspberries as the number two soft fruit in the UK on a year-round basis.
“Continued new plantings on a considerable scale and increased storage means that blueberries will be sold in larger packs, for longer periods and at lower average prices in future,” says Marston. “However, better quality from improving varieties, newer plantations and better storage will continue to drive consumption and we expect the blueberry market to continue to expand to take up the increasing production.”
BLUEBERRIES TO GAIN FROM POWER OF THREE
As larger volumes of UK blueberries come to market this year, there should be plenty to excite consumers, according to Rupert Hargreaves, managing director of Hargreaves Plants.
Three varieties from Michigan State University, for which Hargreaves Plants hold the propagation rights for the UK, will be more widely available to the consumer. Draper, Liberty and Aurora each fill a different seasonal slot, so offer improvements compared to dated varieties such as Bluecrop and Elliot, Hargreaves says.
Draper is a mid-season variety with larger fruit than Bluecrop, lighter in colour, with a firm and crisp texture. The variety is easy to pick, with approximately 85 per cent of the fruit coming from two harvests - an obvious advantage to Bluecrop for all concerned in production.
Liberty is slightly later, with a longer picking window. The fruit isbigger and deep, sky blue in colour. The variety is rapidly becoming the number one variety for flavour, compared to previous Northern High Bush selections. “We believe that Libertyis becoming one of the most sought-after varieties and will continue in this trend over the next 10 years”.
Aurora crops later and is a welcome replacement to Elliot due to its superior flavour and fruit size, which is around 25 per cent bigger. Consumers are becoming more discerning when buying blueberries and in a rapidly expanding market, varieties must compete by improving on quality and to ward off the perception that they are unwanted or outdated.
These three varieties will undoubtedly take the UK blueberry market forward by offering growers and consumers an improved product in an expanding market. “I believe that there is still a huge opportunity for more growers to join this exciting and growing market,” says Hargreaves. “Recent climatic events have, once again, demonstrated the importance of growing more home-grown fruit - especially when the economics and consumer trends make this a viable crop.”
