Blueberry Marketing Guide
Native to North America, blueberries have health benefits including the ability to improve heart health, eyesight and memory; provide anti-aging properties; and prevent cancer. U.S. blueberry growers primarily harvest cultivated blueberries from highbush varieties or wild blueberries from lowbush blueberries. During 2012, total U.S. blueberry production exceeded 550 million pounds, and more than 80 percent was cultivated production. Major blueberry-producing states are Maine, Michigan, Oregon, Washington and Georgia.
Over time, U.S. blueberry consumption per capita has increased, especially in the fresh berry category. Fresh blueberry consumption averages 1.3 pounds per capita, and frozen berry intake averages 0.45 pounds per capita. Blueberry consumers tend to be young, upscale, white and well-educated. Health benefits tend to trigger blueberry purchases, but consumers also note that they like the taste.
Marketing Channels
In Missouri, the strongest immediate blueberry marketing channel opportunities are u-pick farms, on-farm markets and farmers’ markets. To operate a u-pick farm, or a pick-your-own farm, farm location and access to a population center are important factors to consider. Also, u-pick prices tend to be higher than wholesale prices, but operating a u-pick farm requires promotional investments and involves other operational costs.
Other marketing options include marketing wholesale, which may include outreach to restaurants or grocery stores; participating in blueberry grower cooperatives or marketing associations; or selling to processors. To serve local restaurants, grocery stores or wholesalers, growers must consistently have high-quality berries available when the buyer needs shipments. Wholesale markets may mandate specific packaging and shipping standards, and these buyers tend to have volume requirements for their suppliers.
Berries
Blueberries can be classified as fresh berries or processed berries. Processed berries may take shape as frozen, dried, juiced or pureed blueberries. Other processed blueberry ingredients include canned berries, fruit fillings, fiber, essence and fruit bits or chips. Of total U.S. production, nearly half are sold fresh, and nearly half are frozen. Fresh use accounts for about 60 percent of cultivated production, and nearly all wild blueberries are processed.
When selling fresh berries, growers may package the berries in plastic clam shells, cello packs or cartons. During the off-season, the U.S. imports blueberries from South America. Such imports provide U.S. consumers with year-round blueberry access.
Individually quick frozen, or IQF, is one freezing strategy. The IQF process freezes each berry individually to maintain fruit identity. Other berry freezing alternatives are case-frozen berries used in baked goods and flash-frozen berries used in toppings, syrups and fillings.
Blueberry price depends on whether the blueberries are cultivated or wild and whether growers sell the berries into the fresh or processed market. Growers harvesting cultivated blueberries can estimate blueberry price to average an estimated $2.19 per pound for fresh berries and $0.92 per pound for processed berries. Wild berry prices are an estimated $2.25 per pound for fresh berries and $0.75 per pound for processed berries. Prices tend to be highest at u-pick farms and more volatile when selling to wholesalers or processors.
Value-Added Products
Because Missouri’s climate limits blueberry production to a finite time period, blueberry growers can extend their marketing opportunities throughout the year by producing and selling value-added products. Possible value-added blueberry products include jam, cooking sauce, baked goods, dried fruit, fresh juice, frozen juice, vinegar, wine, bakery mixes, beverages, yogurt, supplements, salsa, ice cream, toppings and savory foods. New product launches tend to be most common in the bakery, snacks and dairy categories; however, new categories gaining popularity include juices, pet foods and natural cosmetics.
Exports
Of total fresh blueberry production, the U.S. tends to export between one-quarter and one-third of production. As a share of processed blueberry production, frozen exports represent between 8 percent and 16 percent of production. Countries recognized as significant fresh U.S. blueberry importers are Canada, Japan, Hong Kong, South Korea and the United Kingdom. Countries that import frozen U.S. blueberries tend to be Canada, Japan, South Korea, Mexico, Hong Kong, Australia, the United Kingdom and China. Recently, Japan, South Korea and China have emerged as significant frozen blueberry growth markets.
Organic
Organic blueberry production is a niche market. U.S. organic blueberry production represents just 3 percent of all blueberry output but more than one-third of U.S. organic berry production. Although it’s a small market, the USDA Economic Research Service projects that the organic blueberry market will grow. In 2011, organic blueberry prices averaged $2.89 per pound, which was a premium price relative to conventional berries.
Sources
Fuqua, Ben, Patrick Byers, Martin Kaps, Laszlo Kovacs, and Dan Waldstein. 2005. Growing Blueberries in Missouri . State Fruit Experiment Station, Missouri State University. Mountain Grove, MO 65711.
Wild Blueberry Association of North America. n.d. Wild Blueberries . Website. Wild Blueberry Association of North America. Old Town, Maine 04468.
Economic Research Service. 2013. U.S. Blueberry Industry . USDA Economics, Statistics and Market Information System. Albert R. Mann Library, Cornell University. Ithica, NY 14853.
Perez, Agnes, and Kristy Plattner. 2013. Organic Fruit and Berries . Fruit and Tree Nuts Outlook: Commodity Highlight. USDA Economic Research Service. Washington, DC 20024.
U.S. Highbush Blueberry Council. 2014. Little Blue Dynamos . Website. Foslom, CA 95630.
Small and Part-time Farming Project. 2001. Highbush Blueberry Production . Pennsylvania State University. University Park, PA 16802.
Bratsch, Anthony, and Jeremy Pattison. 2009. Specialty Crop Profile: Blueberries . Virginia Cooperative Extension. Virginia Polytechnic Institute and State University. Blacksburg, VA 24061.