ST.
LOUIS, November 1, 2012 - Following a recent growth trend, sales of U.S. fresh
berries will continue to expand by seven percent per year over the next three
years, according to a report released today by Rabobank’s Food and Agribusiness
Research and Advisory (FAR) group. Despite an upward sales momentum, the report
finds that berry growers and grower-shippers will be challenged to maintain
profitability due to a number of factors.
The
report, titled “The U.S. Fresh Berry Boom – Who Will Profit from the Growth?”
cites escalating production costs, resource constraints, import competition and
the sheer market power of retailers as reasons why producer margins will
continue to face pressure.
“While
the near-term outlook for U.S. fresh berry sales looks good, producers are
likely to continue to experience rising costs and constrained resources,” said
Karen Halliburton Barber, assistant vice president and senior agricultural
analyst with FAR and the author of the report. “Successful players in the
coming years will embrace growing demand with greater production efficiencies
and innovation,
The report concludes that given the likelihood of
increased pressures on profit margins, industry
consolidation is likely among less efficient U.S. berry producers. Smaller independent growers can however seek to create strategic
production partnerships and niche market opportunities in an attempt to stay
economically viable.
The
most successful producers are keeping up with growing consumer demand while
controlling costs through gains in efficiency and productivity. This has been
possible because of breakthroughs in new varieties, which have increased
yields, extended growing seasons, and resulted in improved product flavor and
shelf life. New technology solutions and crop protection alternatives are also
emerging, together with opportunities for growers to
manage production risks through greater geographical diversification.
A
full copy of the report is available to the media by contacting Lisa Verbeck at
Rabo AgriFinance or Sarah Kolell at AdFarm.
#30
For more news: go to www.Agri-Pulse.com