The South African blueberry season is currently underway. A prolonged and wet winter, particularly in the Western Cape, has led to a delayed harvest, creating uncertainties around yield projections. According to Brent Walsh, CEO of Berries ZA, forecasting has been a challenging task due to unpredictability surrounding the delayed ripening. 

“If we look at our northern territories where blueberries are produced, we do have a shortage because they've now closed off their season. We're looking at about an average of around 15% shortage on production in our northern territories. But we are yet to see the final yields that are coming out of the Western Cape where the majority of our production sits,” Walsh said.

Despite the challenges, there is optimism about the quality of the produce, with projections hinting at a reduction from the initial 25,000-tonne export estimate.

South Africa Export Volume History | Cultivated Conventional

Source: USDA Market News via Agronometrics.

(Agronometrics users can view this chart with live updates here)

A significant trend shaping the current season is the global shortage of blueberries, notably from Peru. This scarcity has resulted in heightened demand, driving prices upward.

“The price points that we have been getting on the sales and marketing fronts in terms of the programs that we've signed up for have been very satisfactory and this is a direct result of the shortage in the market from Peru not being able to service its markets as expected,” Walsh said.

The prevailing trend extends beyond Peru, encompassing Chile, which is anticipated to witness a 13% reduction in blueberry production. Despite the projected decrease in volumes, local growers are poised to benefit financially from the favorable market conditions.

South Africa Fresh Export Price History | Cultivated Conventional

Source: USDA Market News via Agronometrics.

(Agronometrics users can view this chart with live updates here)

“We've seen a much higher percentage of air freight coming out of South Africa. So, that's also taken a little bit of pressure off the sea-freight logistics. Up to two weeks ago, we saw a 50-50 split between sea freight and air freight, which is quite significant given the time of the season, because normally the sea freight far outweighs air freight," Walsh said.

"That's specifically because the pricing that was received in the market was able to accommodate the option request space for air freight and to get the berries to market that much quicker, which is beneficial for everybody in terms of freshness to market, quick turnaround and good quality on arrival.”

The Cape Town Container Terminal (CTCT) has successfully alleviated a substantial portion of its backlog, enabling the berthing of vessels immediately upon arrival, with only one vessel held at anchor. A presentation by Western Cape Finance MEC Mireille Wenger last week revealed that vessels were experiencing delays of between 12 and 14 days, and some vessels were bypassing the port due to its underperformance. However, as of November 28, the backlog had been cleared, according to managing executive Andiswa Dlanga of Western Cape Transnet Port Terminals. 

Demand in local and export markets

The demand for blueberries, raspberries and blackberries continues to rise steadily in the South African market. Blueberries, in particular, have seen a notable 10-20% increase in consumption across different retail levels. Favorable local pricing has enabled the industry to comfortably supply both local and export markets, contributing to the financial success of local growers during this season.

South Africa is currently engaged in proactive efforts to establish market access to the Indian market, with advanced negotiations underway. Similarly, engagement with Canada is in progress. The East Asian market, specifically China, emerges as an appealing prospect for South Africa.

Dialogues with Chinese retailers and importers underscore a notable enthusiasm for blueberries originating from South Africa. This heightened interest positions the country favorably in the dynamic and burgeoning market of East Asia, reflecting a potential for significant market penetration and growth.

As the South African blueberry season unfolds, the industry faces challenges with resilience and strategic foresight. The delayed harvest and global market trends have not deterred the industry's commitment to delivering quality produce. While uncertainties persist, the South African blueberry industry remains poised for success in the global market, adapting to challenges and capitalizing on emerging opportunities.