Elderberry Marketing Guide
The elderberry is a vigorous shrub native to many areas of the Midwest. Elderberries contain anthocyanins, which give them their dark color. These and other compounds found in elderberries may act as antioxidants, boost immune system function, encourage heart health, possess anti-viral properties, reduce stress and manage cold and flu symptoms.
The elderberry industry features many farms that maintain small-scale elderberry orchards. In a few cases, industry players have grown into larger scale operations. For small-scale producers to operate successfully, they’re encouraged to identify potential buyers, partner with such organizations and grow elderberries on contract.
Vertical integration is common within the elderberry industry as single entities control multiple value chain stages, which may include raising plants, growing berries, producing value-added products and retailing final products. Elderberry cooperatives are also relatively popular. For example, River Hills Harvest is an elderberry cooperative that began in Missouri and now engages producers throughout the Midwest.
Recently, elderberry supplies have been short, which presents an opportunity for entering the elderberry industry or expanding current elderberry businesses, and a University of Missouri study found that the elderberry industry has the potential to grow further. The U.S. elderberry crop is small relative to Europe’s. Domestically, producers maintain an estimated 420 elderberry acres compared with 30,000 acres maintained in Europe. Value-added processors may source some elderberry supply from Europe, or the Pacific Northwest – specifically, Oregon – has been a major elderberry production location. Individuals who harvest wild elderberries and sell them are other elderberry market participants.
To participate in the elderberry marketplace, growers should consider local market opportunities and markets that have a wider geographic scope on a regional or national basis. Reflecting a widespread food industry trend, consumers tend to favor locally produced elderberry products relative to imported products.
Plant Material
As elderberry interest accelerates, the industry will require more berries to sell and process. To provide the elderberry plants needed to meet this berry demand, producers may sell elderberry seeds, cuttings or potted plants to other producers interested in establishing an elderberry orchard or those who would like to increase their crop size. Elderberry producers are just one possible elderberry plant market opportunity. Others include landowners, wholesalers, retailers and groups interested in land restoration, reclamation or reforestation.
Berries
After harvest, producers may sell fresh berries, or they can freeze the berries to sell later. Possible berry buyers include chefs, wineries, juice manufacturers and dietary supplement manufacturers, though nutraceutical manufacturers tend to prefer European berries. Producers may sell directly to consumers at farmers markets or through online channels.
Berry prices tend to depend on whether the seller markets berries on the stem or berries that have been de-stemmed and to whom the seller is making a sale. For fresh berries sold to a winery, prices may range from $0.50 per pound for berries on the stem to $5 per pound for de-stemmed berries. Prices may be as high as $11 per pound for berries sold to dietary supplement manufacturers. As typical rules of thumb, producers may anticipate $1 per pound for fresh elderberry clusters and $2 per pound for de-stemmed berries. European berries tend to be less expensive – prices range from $0.20 per pound to $0.35 per pound for unstemmed berries – so U.S. producers face price competition from European producers.
Value-Added Products
Possible elderberry uses are diverse. They may be processed into wines, juices, jellies, jams, natural food colorings, concentrates, extracts, syrup, vinegar, salad dressings or cordial. They could also be an ingredient in pies, carbonated beverages, dietary supplements, fudge, barbecue sauces and yogurts. Of these, elderberry juice, jelly and wine tend to be most common. When dried, elderberries can be ingredients in energy bars or fruit mixes.
Not only do the berries themselves have potential in value-added products, but the flowers also have possible applications. For example, they can flavor wine or water beverages, or they may be used in teas and soap products. Alternatively, they may be included in pancake, muffin and waffle batters.
To fulfill demand for value-added products, growers have the option to grow more elderberries themselves; import elderberries; or source elderberries locally, which may sometimes be more expensive.
Sources
Byers, Patrick L., Andrew L. Thomas, Mihaela M. Cernusca, Larry D. Godsey, and Michael A. Gold. 2012. Growing and Marketing Elderberries in Missouri. AF1016.
Byers, Patrick. n.d. Elderberry Update. University of Missouri Extension, Columbia, MO.
Minnesota Elderberry Cooperative and Cooperative Development Services. 2013. Assessing Market Opportunities and Commercial Applications. Cooperative Development Services, St. Paul, MN.
Cernusca, Mihaela, Michael Gold, and Larry Godsey. 2011. Elderberry Market Research. The Center for Agroforestry, University of Missouri, Columbia, MO.