Strawberry Trade Situation in Selected Countries

 

Canada–Fresh Strawberries

 

Strawberry production in 1999/2000 ( April 2000 to March 2001) is forecast at 27,000 tons, a slight increase from the 26,548 tons produced the previous year. Overall, Canada’s production of fresh strawberries has remained flat in recent years, reflecting a combination of reduced planted area and weather-related production difficulties.

 

During 1999/2000, Canada is expected to import 45,000 tons of fresh strawberries, 96 percent of which will originate in the United States. Imports from Mexico, although still small, are expected to increase 218 percent between April 1995 and March 2001.

 

Under the North American Free Trade Agreement (NAFTA), fresh strawberries from the United States and Mexico enter Canada duty-free. The Canada/Chile Free Trade Agreement provides free access for fresh strawberries from Chile. Canada chose not to apply any seasonal tariffs on fresh strawberries from any origin in 1999.

 

Over the short term, prospects for increased strawberry consumption in Canada are favorable. The adverse publicity surrounding the cyclosporan scare of the mid-1990s appears to have faded, contributing to increased fresh strawberry purchases among consumers. In addition, real disposable incomes in Canada are expected to rise over the next few years, which may help offset the perception by the average consumer that fresh strawberries are expensive.

 

Canada–Frozen Strawberries

 

Production of frozen strawberries is estimated at 3,000 tons during 1999/2000, up 3 percent from the previous year. Domestic production however, constitutes only about 16 percent of frozen strawberry consumption. With demand increasing at a greater pace than production, it is expected that imports will rise 4 percent to 17,000 tons during 1999/2000, while exports will decline 17 percent to 550 tons. In 1998/99, Canadian imports of frozen strawberries grew 56 percent over a 3 year period reflecting the increase usage of frozen strawberries as a food manufacturing ingredient.

 

Under NAFTA all import duties on U.S. frozen strawberries including any seasonal duties were reduced to zero on January 1, 1998. Frozen strawberries from Mexico and Chile face a duty of 2.6 Canadian cents/kg and 3.5 Canadian cents/kg, respectively. Tariffs on frozen strawberries from Mexico and Chile will be phased out by 2002.

 

Mexico–Fresh Strawberries

 

Mexico’s fresh strawberry production in 1999/2000 (August 1999 to July 2000) is forecast at 140,000 tons, up 4 percent from the previous year as a result of greater area under cultivation. According to growers in Michoacan, and Guanajuato, excellent strawberry prices during 1998/99 encouraged them to plant more for 1999/2000. Frosts during the first flowering in December 1999, however, reduced yields and quality. Given the weather conditions in Michoacan and Guanajuato thus far, yields during 1999/2000 are expected to average 18.9 ton/Ha, down 6 percent from the previous year.

 

Fresh strawberry exports are forecast at 42,000 tons for 1999/2000, a 6-percent-decrease from the previous year. A frost in December 1999 reduced the quality of the strawberry crop resulting in less supply for export purposes. In addition, demand from international markets is expected to be slightly lower because of higher production in the United States. Imports of fresh strawberries are expected to increase 5 percent to 4,200 tons as better purchasing power among Mexican consumers fuel greater demand.

 

Mexico–Frozen Strawberries

 

Frozen strawberry production in 1999/2000 is forecast at 54,000 tons, down 13 percent from the previous year. Low international prices for frozen strawberries are driving a shift towards the domestic fresh market. The fresh market is expected to grow 55 percent in 1999/2000 compared to 5 percent for the domestic frozen market.

 

Exports of frozen strawberries are forecast to decline 17 percent to 43,000 tons in 1999/2000 as a result of low international prices and lower demand. Frozen strawberry exports in 1998/99 were revised upward to 51,600 tons, due to higher demand and excellent international prices. Frozen strawberry imports are still not significant within the Mexican market.

 

Under NAFTA, the 2000 import tariff rate on frozen strawberries is 4.2 percent. Mexico charges a 20 percent duty on imports from non-NAFTA countries.

 

Poland–Fresh Strawberries

 

Poland’s fresh strawberry production (January 2000 to December 2000) increased by 12 percent to 200,000 tons in 1999/2000, compared with the previous year. Despite the low quality berries produced in 1998/99, strawberry production was profitable for Polish farmers for a second year in a row, resulting in this year’s 12-percent-increase in production.

 

Exports of fresh strawberries are estimated to rise 29 percent to 15,900 tons in 1999/2000, since many Polish farmers have increased production of table varieties which attract higher prices and could increase the profitability of their operations. The majority of Polish strawberries were exported to Germany and Austria in 1998/99 Limited quantities of imported fresh strawberries, mostly from Spain and Italy, are available during the off-season, mostly in supermarkets and vegetable stands in larger cities.

 

Poland–Frozen Strawberries

 

Sixty to seventy percent of strawberry production is sold as a frozen product. In 1999/2000, production of frozen strawberries is forecast at 106,000, up 9 percent from the previous year. Frozen strawberry production for 1998/99 has been revised down to 97,000 tons, as a result of poor strawberry quality that led to unusually large waste.

 

Consumption of frozen strawberries is only about .2 kg per capita. Poles prefer purchasing fresh product during the harvest season as well as consuming products processed at home. Consequently, the majority of Poland’s frozen strawberry production is exported. In 1999/2000 exports are estimated at 99,000 tons, up 38 percent from the previous year. Poland continues to be the largest supplier of frozen strawberries to the European Union (EU), with Germany as the largest market.

 

Japan–Fresh Strawberries

 

Strawberry production for 1999/2000 (October 1999 to September 2000) is expected to remain unchanged at 180,000 tons. Almost all of Japan’s strawberries are produced in hot houses, with production from December through June. Peak harvesting occurs from January through April.

 

Imports of fresh strawberries are estimated at 5,000 tons in 1999/2000, up 6 percent from last year. The United States remains the largest supplier of fresh strawberries to the Japanese market. However, market share has fallen from 94 percent in 1997/98 to 86 percent in 1998/99 as a result of greater import competition from South Korea and New Zealand.

 

Traditionally, U.S. fresh strawberries have largely been consumed by Japan’s confectionery industry as cake decorations. Lately, Japanese retailers have increased marketing of U.S. fresh berries for home consumption for use in salad mixes, cut fruit mixes, fruit juices, etc. Japan’s hotels and restaurants are also developing new menus in seafood and Italian cuisine with U.S. fresh strawberries.

 

Japan–Frozen Strawberries

 

Japan’s production of frozen strawberries is very small, with off-grade fresh strawberries usually diverted to the processing sector.

 

Imports account for virtually all of the frozen strawberries consumed in Japan. In 1999/2000, imports of frozen strawberries are estimated to remain at 30,000 tons, unchanged from the previous year. The United States remains the largest supplier of frozen strawberries to the Japanese market but has lots market share which dropped from 48 percent in 1997/98 to 44 percent in 1998/99 as a result of greater import competition from China, South Korea and Mexico. The majority if U.S. frozen strawberries have gone to Japan’s jam manufacturing sector, while some are also starting to show up in such value-added products as fruit juices, pastries, strawberry smoothies and strawberry yogurt.

 

Spain–Fresh Strawberries

 

After reaching a record 370,000 tons in 1998/99, production is forecast to decline to 345,000 tons in 1999/2000 (January 2000 to December 2000) as a result of adverse weather. The industry is concerned with declining reservoir levels from the lack of precipitation in the Huelva, Andalucia area, where most of the strawberry cultivation occurs. Other concerns include the threat of imports from North Africa, particularly Morocco, and the shortage of available labor during harvest time.

 

As a result of the smaller production, exports of fresh strawberries are forecast to reach 220,000 tons in 1999/2000, down 7 percent compared to the previous year. Other EU countries continue to be the primary market. Germany, France and the United Kingdom are the leading destinations for Spain’s fresh strawberries. Imports, which continue to be minimal, are mainly used by processors during Spain’s non-producing season. Few, if any opportunities exist for U.S. strawberry exporters.

 

Spain–Frozen Strawberries

 

In 1999/2000 production of frozen strawberries fell by 13 percent to reach 39,000 tons, as a result of the expected decline in strawberry production. Most of Spain’s strawberry production is for the fresh market with only about 15 percent of strawberry production destined for processing.

 

Exports are also expected to decline in 1999/2000 after the record 30,694 tons achieved in 1998/99. Frozen strawberry exports are forecast to fall by 12 percent to 27,000 tons. The majority of frozen strawberry exports are destined for other EU countries.

 

Italy

 

As a result of favorable weather, fresh strawberry production in Italy is expected to reach 120,000 tons in 1999/2000 (January 2000 to December 2000), up 9 percent from the small crop in 1997/98. The long-term production trend however, remains negative as the area under cultivation continues to decline. In 1999/2000, planted area is estimated to be down 3 percent from the previous year. Increasing labor costs and less profitability are some of the reasons farmers have started switching to other crops.

 

Exports of fresh strawberries are expected to rise 6 percent to 50,000 tons because of the large 1999/2000 crop. However, Italy continues to face strong competition from Spain in major European markets. During 1998/99, fresh strawberry exports fell 12 percent to 47,000 tons. Major markets include Germany, Austria, and Switzerland. Imports, mainly from Spain, continue to increase in 1999 mostly as a result of decreased domestic supplies.

 

In 1999/2000 frozen strawberry production is forecast to rise by 30 percent to 13,000 tons, mostly as a result of the larger strawberry crop. Trade in frozen strawberries remains marginal in 1999/2000, with imports falling 17 percent to 7,000 tons and exports reaching 4,000 tons.

 

United States

 

Strawberry production (January 2000 to December 2000) is forecast at 885,000 tons in 1999/2000, up 8 percent from the previous year due to favorable weather conditions and increased acreage. According to the National Agricultural Statistical Service (NASS), harvested acreage in California and Florida, the two largest strawberry producing states, is up 12 and 15 percent, respectively, compared to last year. As a result of the large strawberry crop expected in 1999/2000, frozen strawberry production is also forecast up 7 percent to reach 265,000 tons.

 

With greater production, fresh strawberry exports will continue to rise, reaching 60,000 tons in 1999/2000, a 6-percent increase compared to the previous year. During 1998/99, fresh strawberry exports increased by 14 percent to 56,368 tons compared to 1997/98. Canada, Japan and Mexico were the three largest markets for fresh U.S. strawberry exports in 1998/99. Fresh strawberry imports rose dramatically to 43,000 tons in 1998/99 as a result of strong domestic demand, but imports are expected to decline somewhat in 1999/2000 due to the larger strawberry crop.

 

Exports of frozen strawberries are also expected to rise 11 percent to 28,000 tons. In 1998/99 exports of frozen strawberries reached 25,209 tons, down 7 percent from 1997/98. The largest markets for frozen U.S. strawberries in 1998/99 were Japan, Canada and Australia. At the same time, imports of frozen strawberries rose 113 percent to a record 40,721 tons in 1998/99. Frozen strawberry imports relieved the pressure on stocks caused by several years of weather-reduced crops and strong international demand. Stocks returned to more normal levels by the end of 1998/99 and frozen strawberry imports are expected to decline in 1999/2000.

 

(The FAS Attache Report search engine contains reports on fresh and frozen strawberry industries for 6 countries, including Spain, Italy, and Mexico. For information on production and trade, contact Karina Ramos at 202-720-6877. For information on marketing contact Elizabeth Mello at 202-690-6057).

Last modified: Thursday, April 06, 2000