Blueberry market gets trickier as other areas produce more

By Jim Offner
The Packer - June 2004

Grand Junction, Michi - Michigan has long enjoyed its reputation as the top blueberry producing state, and nothing appears to be standing in the way of the state maintaining that status as the 2004 deal approaches.

"We had a good winter" said Kirk McCreary, executive vice president and general manager of MBG Marketing/Michigan Blueberry Growers Association. "We didn't have any major occurrences one way or another." A cold snap did some light damage, he said. "We've gotten through that and had reasonably good pollination days." The state's blueberry crop appears to be on schedule for a late June or early July harvest, MeCreary said.

Florida and Gerogia production was winding down in late May, as the deal made its way to northern growing areas. Bluebery prices from eastern North Carolina June 14 were about the same as last year. Flats of 12 12-pint cups with lids in the medium-large sizes were $14, according to US Department of Agriculture. In late July 2003, Michigan flats or 12 1-pint cups of large varieties started the season priced at mostly $12-14. Michigan averages 17,000 to 18,000 acres of blueberry production, McCreary said, adding that acreage has remained stable over recent years. While competition from other regions has grown in recent years, a chief concern to Michigan's 450 growers is the quality of their own crop, McCreary said. And, he added, they expect a normal season. "Right now, we expect an average crop, about 60 to 65 million pounds, probably a little closer to 60 million", he said. "We have a lot of urbanization in the Holland area, and ever year, we probably lose 200-300 acres to developers" he said. "Fortunately, we've had new plantings down here, so the state has pretty well maintained the status quo over the last few years."

The Michigan deal generally begins in late June, as it should this year, with some early varieties and peaks in July and August, McCreary said. "Then we have quite an extensive controlled atmosphere storage programme" he said. "We extend our season through September and into October. Its basically a July-August deal, when you look at it. Then you have Oregon, which is kind of an August deal."

Competition: There also is a relative newcomer in the field of competitors, McCreary said. "British Colombia looks to be coming on really strong," McCreary said. "The expansion is pretty amazing there. They're just on a planting binge out there. So that's going to change the complexity of the industry."

British Columbia's season will compete against Michigan, McCreary said. "They start in late July or early August, so they have a very strong supply during August, which we still have large amounts then, too. So there's some overlap.

Product from Bristish Columbia is travelling east into Michigan markets like Chicago, Boston and New York, he said. New Jersey remains perhaps, Michigans chief competitor, But, McCreary said, if things go as hoped, New Jersey shouldn't be as much a factor as it could be. "They're the big dogs from early June to early July, so that has a real impact on market conditions," McCreary said. Some problems with the state's main variety, the jersey, forced some cutbacks, which likely would show up in this season's yields, he said. But the jersey goes mostly into the processing markets. However, New Jersey's late varieties look good, he said.

MBG Marketing has about 350 member growers form various regions in the US, all of whom take advantage of production in Michigan and northern Indianna. MBG handles all marketing programmes for its members. We probably have 80-90 members in Georgia and 30-35 in Florida. We also have a marketing agreement with a grower group in North Carolina and another in Mississippi. Working with growers in other regions serves to facilitate coordination of production in various regions, he said. No growing region controls its own window anymore. Everybody is kind of encroaching in everybody else's window. From the producer's standpoint, some of the pricing advantages you had by being the only game in town are getting pretty blurred right now. Chile has also been an increasing presence, he noted.