News
Trade4go
Oct 18th, 2024
Original content
As Egypt's strawberry season approaches Nov-24, the industry faces climate and economic challenges expected to reduce fresh strawberry production volumes by 25%. This decrease stems from poor-quality plants and climate change impacts. However, Egypt exported 257 thousand tons of frozen strawberries last season, compared to just 43 thousand tons of fresh strawberries. Frozen strawberry prices rose by an average of 50%, encouraging producers to shift focus toward this more lucrative segment. Despite the challenges, strong global demand is expected to help stabilize and grow Egypt's frozen strawberry sector.
A government-approved project in Ambegaon taluka, India, aims to empower 258 tribal farmers by introducing strawberry cultivation, backed by USD 146,050 (INR 1.27 crore) in funding. Initiated by the Pune District Agriculture Superintendent, this initiative falls under the Integrated Tribal Project and focuses on Scheduled Tribe farmers. Each farmer will receive USD 556.83 (INR 46,800), with the government covering 85% of the costs. The project promises to enhance living standards, providing farmers with saplings, planting materials, drip irrigation systems, and ongoing support from the Agriculture Department. Given the favorable climatic conditions in Ambegaon and Bhimashankar, this initiative is expected to create a sustainable income source for the tribal community. A report assessing the project's impact will be submitted to the government by the Tribal Commissioner.
The 2023/24 strawberry season in Huelva, Spain, ended with a total production of 221,412 tons, down 9% year-on-year (YoY) due to water restrictions and heat waves. Despite this, export value increased by 8%, reaching over USD 668.82 million (EUR 616 million) by May-24. Raspberries saw a 15% decline in production, while blueberries recorded a 10% increase. Germany and the United Kingdom (UK) remain key markets, with the UK surpassing France for strawberry imports.
The Summer Berry Company has launched the first year-round commercial strawberry production in the UK, supplying major supermarkets like Tesco, Sainsbury's, and Marks & Spencer this winter. This marks the first time British-grown strawberries will be available from November to March, including during Christmas and New Year. Traditionally reliant on imports during winter, the UK market is shifting with LED lighting and a new combined heat and power plant at the company's farm in West Sussex. Cibus Fund, which acquired the company in 2019, has invested USD 7.8 million (GBP 6 million) in this innovative technology.
Researchers from the University of Essex are developing innovative strawberry-picking robots to combat labor shortages in the agricultural sector. These cost-effective prototypes, priced at USD 12,993.93 (GBP 10,000) compared to existing robots at USD 115,438.50 (GBP 150,000), can harvest a strawberry in just 2.5 seconds, and then weigh it and package it efficiently. Funded by a USD 1.33 million (GBP 1.02 million) grant from the Department for Environment, Food and Rural Affairs, the project aims to enhance food security and reduce labor-intensive tasks in crop picking. The robots could also be adapted for other crops, including onions, tomatoes, and lettuce.
Global warming significantly impacts agriculture, with a study from the University of Waterloo highlighting how a 1.6°C temperature increase could reduce strawberry yields by 40%. The fruit’s sensitivity to temperature fluctuations makes it particularly vulnerable, potentially raising prices and making strawberries a luxury item. Farmers, especially in key regions like California, United States (US), are already investing in advanced irrigation and technology to mitigate these effects. Sustainable practices such as precision agriculture and agroecology are crucial in maintaining food security amidst the growing threat of climate change.
In Sep-24, US inflation decreased to 2.4%, the lowest level since Feb-21, offering relief to households and reducing pressure on the Federal Reserve for interest rate hikes. This trend could enhance consumer purchasing power and potentially lead to rate cuts. However, strawberry prices have surged YoY, driven by transportation costs, supply chain disruptions, and labor shortages affecting seasonal harvests. California remains the dominant producer, accounting for 90% of US strawberries, while Florida contributes 8% during its season from November to April.
_16.42.47.png)
Strawberry prices in Mexico have recently declined notably, with W41 reporting a price of USD 2.13 per kilogram (kg). This figure indicates significant decreases of 22.26% week-on-week (WoW) and 25.78% month-on-month (MoM). This drop follows a period of elevated prices, which peaked at USD 2.87/kg in W38, driven by lingering impacts of drought and unseasonal rainfall that introduced uncertainty regarding long-term supply stability. As weather conditions have improved and stabilized, the market has begun to adjust, resulting in lower prices. However, YoY prices remain high, increasing by 7.04%, suggesting that the current season's supply is still constrained compared to the previous year due to earlier weather challenges.
Strawberry prices in the US have recently experienced a WoW decline of 10.18%, with W41 reporting a price of USD 2.47/kg. This decline also corresponds to a MoM drop of 40.05%. These price reductions are attributed to market adjustments following elevated prices driven by supply shortages caused by extreme weather conditions in key strawberry-growing regions. Prices peaked in W37 at USD 4.40/kg before declining as supply stabilized. However, YoY prices remain significantly high, reflecting an increase of 49.70%. This rise is due to ongoing supply constraints this season and escalating inflation in the US, raising production and input costs, further impacting market dynamics.
Strawberry pricing in Italy has been notably high recently, peaking at USD 14.59/kg in W38. This price surge can be attributed to supply constraints caused by unfavorable weather conditions. However, as the summer heat subsided, supply began to recover, leading to a subsequent price decline, reflected in the WoW decrease of 8.66% and the MoM drop of 30.64%. Despite these reductions, YoY prices remain elevated, with a significant increase of 42.54% compared to last season, indicating that supply challenges continue to linger. Prices are anticipated to decline further in the coming weeks as supply stabilizes and pricing trends return to more normal levels.
Investing in climate-controlled cultivation methods, such as greenhouses and vertical farms, is essential to address climate-related challenges faced by countries like Egypt, Italy, Spain, Mexico, and the US. These techniques allow for regulated environments that protect strawberries from extreme weather, enhance crop quality, and ensure year-round production. By utilizing intelligent agriculture technologies like Internet-of-Things (IoT) sensors, growers can optimize conditions and resource usage, resulting in better fruit quality and reduced water consumption. This approach mitigates the impacts of adverse weather and stabilizes supply and pricing, ultimately leading to increased profitability and greater agricultural resilience in a changing climate.
Diversifying into frozen strawberry production offers a strategic advantage for producers, particularly in response to the rising global demand for convenient and long-lasting products. This transition helps mitigate challenges related to fresh strawberry supply, such as climate-related disruptions and fluctuating prices, ensuring a more stable revenue stream. Frozen strawberries boast extended shelf life, reduced waste, and the ability to capture peak flavor and nutrition at harvest, enhancing product quality. Additionally, as shown in Egypt, they command higher prices than fresh strawberries, especially in off-peak seasons, increasing profitability. Producers can access new international markets by establishing strong export channels for frozen strawberries, aligning with consumer preferences and bolstering the sustainability of strawberry farming amid climate challenges.
Sources: Tridge, Agri Maroc, Agro Times UA, BBC, Diario AS, Diario Efecto, El Imparcial, Revista Mercados, The Bridge Cronicle
Read more relevant content
Recommended suppliers for you
What to read next
