Too much of a good thing?
By Dan Woolley
March 08, 2010
What producer would not want sky-high prices for their commodity? But the current state of the blueberry industry shows sometimes prices can be too good.
In the last few years blueberry growers enjoyed great returns, but those high prices prompted a massive expansion in production that could keep their industry in a long-term price slump.
Here, in Nova Scotia, we’ve had a major expansion of low-bush, wild blueberry acreage.
But elsewhere, it is the high bush or cultivated blueberry with growers in traditional North American and European growing areas increasing production.
There has also been a host of new entrants in places which, until recently, have never seen a blueberry – in California, Argentina, Chile and China. Chile now exports 87 million pounds of high bush blueberries annually. Argentina ships another 25 million pounds to global markets, while China is rapidly ramping up production, taking advantage of its cheap labour.
Price plunge
Production of wild and cultivated blueberries has nearly doubled in the last 15 years. High prices – which hit $1.05 per pound for wild blueberries in 2007 – also affected consumption.
Processors started looking for cheaper alternatives by using more sour cherries, apples, strawberries and cranberries. Between 2005 and 2007, wild blueberry exports to Japan – the fruit’s best market – fell by one-third.
Wild blueberries still command a premium over high bush; but with prices at 35 cents per pound, growers are recovering only half their cost of production.
It’s a familiar story of boom and bust and what is amazing blueberry acreage is still growing, although at a much slower rate.
Growers are hoping for the return of good times. They will, eventually, but when they do, maybe people will belatedly realize they can end again.
For CBC commentary, I’m Dan Woolley, a freelance farm writer in Truro, Nova Scotia.
