California Fruit and Vegetable

Category: Berries

  • U.S. Blueberry Growers Form New Alliance to Seek Import Remedies

    Blueberry growers across America today established a new coalition, the American Blueberry Growers Alliance, to seek relief from rising imports that are harming their businesses. The Alliance will provide information and support to an ongoing U.S. International Trade Commission (ITC) investigation into the serious injury caused by increased imports of fresh, chilled and frozen blueberries under Section 201 of the Trade Act of 1974.

    Blueberry imports are sourced from several countries in the Western Hemisphere. Imports rose by more than 60 percent between 2015 and 2019. Imports from Peru and Mexico have increased by 1,258 and 268 percent during that same period, respectively, driving blueberry prices down by double digits, which has had a devastating impact on the domestic blueberry industry.

    Alliance members are asking for bipartisan support from the U.S. government and Congress to use existing trade laws to remedy the injury to U.S. growers, support hard-working blueberry farmers, and preserve and enhance a U.S.-grown blueberry supply. The Alliance is also warning that in addition to injuring domestic businesses and livelihoods, rising imports expose American consumers to products from countries with poor food safety protocols.

    “We have been telling Washington about unfair trade practices for years,” said Jerome Crosby, CEO of Pineneedle Farms in Georgia and head of the Alliance’s steering committee. “Our family farms continue to be harmed by a flood of blueberry imports. We need relief and for our leaders to stand with American growers.”

    “Many family farms have become a casualty of rising imports and are being forced out of commercial production as other countries increase production to deliberately target the U.S. market,” said Brittany Lee, executive director of the Florida Blueberry Growers Association. “If something is not done, we will lose the blueberry industry in the United States.”

    The Alliance includes blueberry growers in Georgia, Florida, Michigan and California.

    The Alliance recently received support from a coalition of 32 members of the U.S. House of Representatives. In a letter to the U.S. International Trade Commission, the congressional members said: “The significant surge of imports of blueberries in recent years, the timing of such imports during U.S. harvest periods, the extremely low pricing of the imports, and the targeting of the U.S. blueberry market by foreign exporters has had a devastating impact on the blueberry industry…As the Commission develops the evidentiary record in this case, it will be clear that imports are a substantial cause of serious injury to farmers. We urge the Commission to promptly make an affirmative determination in this regard.”

    The ITC plans to hold hearings in early 2021 and then deliver a report on blueberry injury and remedies to the White House. Under Section 203, the President then determines what action to take. To support this investigation, Alliance members are providing data and evidence on how blueberry imports are impacting their production, pricing and marketing activities, especially during the critical U.S. spring and summer harvesting seasons.

    For more information, please visit americanblueberrygrowers.com.

  • Clarification on Impact of EU Retaliatory Tariffs on Blueberries

    On Nov. 10, the European Union (EU) imposed an additional retaliatory tariff of 25% on a range of U.S. agricultural products, including fresh blueberries (HS 0810.40.50) and frozen blueberries (those imported under tariff lines HS 0811.90.50 Vacinnium myrtillus and HS 0811.90.70 Vacinnium myrtilloides and Vaccinium angustifolium). This development will take the total EU tariff on U.S. fresh blueberries to 28.2%, and on those frozen lines listed to 25%.

    While both HS codes may be used to describe a “common blueberry,” the HS 0811.90.50 Vacinnium myrtillus is most commonly used to classify bilberries and whortleberries, and the HS 0811.90.70 Vacinnium myrtilloides is most commonly used to classify velvetleaf huckleberry, velvetleaf blueberry, Canadian blueberry and sourtop blueberry. Vaccinium angustifolium is commonly known as the wild lowbush blueberry.

    It’s important to note that the other main frozen blueberry tariff lines, HS 0811.90.19.90, HS 0811.90.39.90, and HS 0811.90.95.70, are not included in the EU action. Additionally, the final EU tariff list did not include dried blueberries. This adjustment may reflect the reduced retaliatory amount sanctioned by the World Trade Organization (WTO). It was originally anticipated that the EU would sanction up to $11 billion in retaliation against the U.S. The final amount was instead $4 billion.

    NABC emphasizes that other frozen tariff lines may be available that are not subject to the EU retaliatory tariff. Other lines applicable to frozen blueberries may include the following, some of which are still subject to high EU MFN tariff rates:

    As background, in October 2019, the Trump administration imposed tariffs on EU products following a successful ruling at the WTO against illegal EU subsidies to Airbus. This October, the WTO authorized the EU to impose similar tariffs on U.S. goods following the EU’s successful ruling at the WTO against illegal U.S. subsidies to Boeing. The EU did not immediately implement tariffs and indicated that it would wait until after the election to act. Now that the election is over, the European Commission is proceeding with the implementation of retaliatory tariffs.

    NABC received confirmation that the UK will impose the retaliatory duties as part of this EU action as long as the U.S. duties on Airbus remain in place. However, it should be stressed that the EU and UK are keen to reach a resolution on this issue.

    For more information, please contact NABC Vice President Alicia Adler at aadler@nabcblues.org.

  • New Blackberries: Eclipse, Galaxy, and Twilight

    The best of eastern and western blackberry genetics have been melded to create Eclipse, Galaxy and Twilight, three new blackberry varieties released by the Agricultural Research Service (ARS).

    ARS’ Horticultural Crops Research Laboratory in Corvallis, Oregon, working in cooperation with the Oregon State University Agricultural Experiment Station, has blended the desirable traits of eastern erect-cane blackberries and western trailing blackberries into new varieties with thornless semi-erect canes to fill new niches in the fresh berry market.

    Eclipse was the first of the three varieties from these crosses to move from the test fields to final selection. Its name was changed from ORUS 2816-4 to Eclipse to commemorate the total solar eclipse visible in Corvallis in 2017.

    One of Eclipse’s parents, Triple Crown, known for highest marks in productivity, vigor and flavor, ripens in late summer. Eclipse inherited the same triple high scores, but it ripens earlier, filling a hole in the fresh market harvest season between when trailing varieties ripen and when Triple Crown ripens.

    “Eclipse inherited Triple Crown’s outstanding flavor, beloved for its sweet, fruity taste, with hints of root beer and spice. But what Eclipse has that Triple Crown doesn’t is a firmer skin that gives you a good pop when you bite down. Firmer skin also means the berries handle and ship better and don’t leak, which is always an attractive feature for the fresh market,” said biological technician Mary Peterson, who works in the blackberry breeding program.

    The second blackberry release, Galaxy, also has Triple Crown as a parent and inherited similar traits, with the firmer skin of Eclipse. But it produces a few days earlier than Eclipse. Galaxy’s berries are slightly larger than those of Eclipse with dark-colored fruit.

    “People who’ve tasted Galaxy have detected hints of blueberry, mint and grape,” Peterson said.

    The third release was named following the same sky theme, and the specific name Twilight was selected because it ripens last of the three varieties, 4-5 days after Eclipse, Peterson explained.

    With an ancestry seven-eighths eastern U.S. blackberry and one-eighth western blackberry, Twilight is higher yielding than Eclipse. Tasters have remarked on its complex, deep blackberry jam flavor, with floral and honey notes, but the berries are perhaps not quite as sweet.

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in agricultural research results in $20 of economic impact.

  • Blueberry Councils Appoint Two New Hires

    Beginning September 28, 2020, the U.S. Highbush Blueberry Council (USHBC) and North American Blueberry Council (NABC) appointed Jennifer Sparks, a longtime marketing professional for the floral industry, as vice president, marketing and communications.

    Jennifer Sparks

    In her new role as part of the USHBC/NABC executive team, Sparks will manage various advertising agencies and marketing partners, and oversee all aspects of the marketing strategic plan, including branding, merchandising, promotions, advertising, public/media relations, market research and consumer affairs to spotlight the health benefits of blueberries and increase consumption. She will lead the implementation of brand-driven internal and external communications across a range of categories: consumer, retailer, food service and industry relations. She will work with a diverse group of industry stakeholders – growers, handlers, importers and retailers – across two continents.

    Sparks brings more than two decades of association management and industry promotion experience, most notably 17 years as vice president of marketing for the Society of American Florists (SAF). There, she spearheaded the floral industry’s public education and media relations campaigns, experiential marketing initiatives, influencer programs, digital content and collateral materials. The SAF program developed strategies, messaging and key tactics inspired by consumer insights and groundbreaking university research to promote the emotional health and well-being benefits of flowers. Sparks also served as the industry spokesperson and trained others in media relations best practices.

    Sparks holds a master’s degree in public relations/corporate communications with a specialty in crisis management from Boston University, and a bachelor’s degree in journalism from Radford University in Virginia.

    “We’re thrilled to have Jennifer on board to help direct our marketing and demand-driving efforts,” shared NABC/USHBC President Kasey Cronquist. “She brings a depth of experience and leadership that gives me great confidence in where our blueberry industry can go from here.”

    A self-proclaimed blueberry enthusiast since childhood, Sparks says, “I am grateful for the opportunity to join such a dynamic team to help build brand recognition, enhance thought leadership, amplify the value proposition and promote the amazing benefits of blueberries.”

    Sparks shared more of her experience and thoughts on the new direction for 2021 in a recent episode of USHBC’s “The Business of Blueberries” podcast.

    Adam Winland Joins NABC and USHBC as Financial Controller

    Adam Winland has been hired as the financial controller for the North American Blueberry Council (NABC) and the U.S. Highbush Blueberry Council (USHBC), a newly created position that will oversee the councils’ day-to-day accounting and provide strategic financial direction.

    Adam Winland

    Winland brings 15 years of financial management experience to the councils. He most recently spent four years as controller for Ideal Dental Management Partners based in West Sacramento, California. He managed the finances of multiple dental offices and was involved in the acquisitions and sales of dental practices.

    He previously spent two years as assistant controller for Easter Seals Bay Area based in Pleasant Hill, California, and six years as vice president of accounting and finance for TKG International, a real estate investment firm based in Livermore, California. At TKG, he was involved in the management of the company’s 100-acre vineyard and helped it transition to organic growing practices and become certified by California Certified Organic Farmers.

    He is a native of Michigan and a 2004 graduate of Eastern Michigan University with a master’s degree in accounting and a bachelor’s degree in accounting information systems, with a minor in economics.

    Winland will be part of the councils’ executive team and manage an annual budget exceeding $13 million. He will oversee accounting, investments, cash flow management, and short- and long-range financial projections. He will also ensure the accuracy of NABC/USHBC accounting data and financial records, produce annual budgets and financial reports, and oversee financial and regulatory audits. He’ll head up administrative services, which includes human resources, benefits, policies and procedures, and operations.

    “We’re excited to have Adam bring his knowledge and expertise to the team,” said Kasey Cronquist, president of NABC and USHBC. “His prior experience in ag and finance make him a perfect fit as we look to grow our program alongside the growing demand for blueberries.”

    “I’m thrilled to be part of these organizations and I look forward to helping NABC and USHBC achieve their respective visions,” Winland said. “Coming back to my ag roots is an absolute pleasure, and I’m happy to contribute to the success and sustainability of the councils.”

    About the U.S. Highbush Blueberry Council
    Established in 2000, The U.S. Highbush Blueberry Council (USHBC) is a federal agriculture research and promotion program with independent oversight from the United States Department of Agriculture (USDA). USHBC represents blueberry growers and packers in North and South America who market their blueberries in the United States and overseas, and works to promote the growth and well-being of the entire blueberry industry. USHBC was established by blueberry growers and currently has 2,500 growers, packers and importers. USHBC is committed to providing blueberries that are grown, harvested, packed and shipped in clean, safe environments. Learn more at ushbc.org.

    About the North American Blueberry Council
    Since 1965, the North American Blueberry Council (NABC) has been the voice of the blueberry industry in the U.S. and Canada. NABC’s members represent approximately 70% of the North American highbush blueberry crop. NABC was instrumental in the establishment of the U.S. Highbush Blueberry Council (USHABC), a federal agriculture research and promotion program with independent oversight from the United States Department of Agriculture (USDA). Learn more at nabcblues.org.

  • New Study Reveals Blueberry Growers Strengthen U.S. Economy by the Billions

    Growers of U.S. highbush blueberries generate more than $4.7 billion in annual economic impact, translating to more than $12.7 million flowing into the U.S. economy every day of the year.

    “The U.S. highbush blueberry industry – including 12,739 blueberry farms – is a powerful financial force,” said Kasey Cronquist, president of the U.S. Highbush Blueberry Council (USHBC). “Behind every farm are growers who not only tend a truly remarkable superfruit, but also stimulate business activity, create thousands of jobs and contribute mightily to the economy.”

    In addition to the $4.7 billion in total economic impact, which includes several factors related to increased business activity as a result of growing blueberries, a new economic impact study commissioned by the USHBC further reveals:

    • Jobs: U.S. highbush blueberry growers alone create and sustain more than 44,535
      full-time equivalent jobs each year. These jobs are a result of the business activities of growers and the multiplier effect their purchases generate in a variety of farming and nonfarming sectors.It is important to note that this substantial job number does not include the jobs supported by blueberry processors or handlers. We would see even higher numbers if the full blueberry supply chain was considered, but for the purposes of this study, we focused exclusively on the economic impact of highbush blueberry growers, said Cronquist.
    • Labor Income: Nearly $1.8 billion in labor income is generated by the business activities of growers – equating to more than $4.9 million each day. These are dollars going to wages and salaries for new employment, as well as expanded incomes to those already in the labor force for activities such as overtime pay. These dollars are then diffused throughout the U.S. economy as the funds are spent on crucial goods and services such as food, housing, transportation and health care, Cronquist added.

     

    • Indirect Business Taxes: Each year, more than $145 million in indirect business taxes, not including income taxes, are generated by U.S. highbush blueberry growers. These collective indirect business taxes translate to nearly $400,000 per day. To put this in context, the annual tax revenue generated from U.S. highbush blueberry growers is more than the 2019 U.S. Department of Homeland Security’s Operations and Support budget ($129 million) or the 2019 U.S. Department of Energy’s Cyber Security, Energy Security and Emergency Resources budget ($96 million).

    “It is clear that blueberry growers play a significant role in strengthening the economic climate of the United States,” said Cronquist. “Their activities are diffused throughout the economy, touching nearly every aspect of life throughout the country.”

    U.S. Highbush Blueberry Growers Stimulate Major Economic Impact in Key Growing States

    In addition to the dramatic national economic influence of highbush blueberry growers, contributions are also significant at the state level in terms of financial influx and jobs created. A breakout of the grower impact in the top eight highbush blueberry states is included here:

     

    State Economic Impact
    (Millions/Annual)    		 Jobs Created
    (Full-time Equivalent/Annual)
    Michigan $530.4 6,600
    Georgia $521.8 4,140
    California $458.6 4,240
    Washington $464.4 4,450
    Oregon $353.5 3,505
    Florida $295.3 2,540
    New Jersey $149.3 1,885
    North Carolina $125.9 990

     

    About the U.S. Highbush Blueberry Council
    Established in 2000, the U.S. Highbush Blueberry Council (USHBC) is a federal agriculture research and promotion program with independent oversight from the United States Department of Agriculture (USDA). USHBC represents blueberry growers and packers in North and South America who market their blueberries in the United States and overseas and works to promote the growth and well-being of the entire blueberry industry. USHBC was established by blueberry growers and currently has 2,500 growers, packers and importers. USHBC is committed to providing blueberries that are grown, harvested, packed and shipped in clean, safe environments. Learn more at ushbc.org.

  • Ouachita Blackberry Receives Outstanding Fruit Cultivar Award

    Ouachita blackberry, a 2003 thornless variety from the University of Arkansas System Division of Agriculture, received the Outstanding Fruit Cultivar Award from the Fruit Breeding Professional Interest Group of the American Society of Horticultural Science.

    The Outstanding Fruit Cultivar Award recognizes noteworthy achievements in fruit breeding and highlights a modern fruit introduction that has a significant impact on the industry.

    Division of Agriculture fruit breeder John Clark shows Ouachita blackberries. The Fruit Breeding Professional Interest Group of the American Society of Horticultural Science presented the 2003 release from the Arkansas Agricultural Experiment Station their 2020 Outstanding Fruit Cultivar Award. (Photo courtesy of John R. Clark)

    The award was presented July 24 during the ASHS Fruit Breeding Professional Interest Group meeting, which was held virtually this year. The award has been presented since 1987 to noteworthy cultivars, according to information on the ASHS website.

    Top Seller

    “Ouachita has been the most important variety from our fruit breeding program,” said John Clark, Distinguished Professor of Horticulture for the Division of Agriculture, and fruit breeder for the Arkansas Agricultural Experiment Station, the division’s research arm.

    Clark said almost 5 million plants have been propagated and sold, based on reports from licensed propagators, who sell the plants to nurseries and commercial fruit farms. An earlier award winner, Navaho, had nearly 2 million plants sold.

    “Plant sales are the strongest reflection of its importance,” Clark said.

    Sales are a good indicator of popularity with growers and consumers, but Ouachita made significant impacts in other ways, particularly because of its good storage and shipping qualities.

    Expanding the Market

    “Ouachita contributed substantially to the establishment of a commercial shipping market blackberry industry in the eastern U.S., especially in the South, in the years following its release in 2003,” Clark said. “It has also been planted in other regions of the U.S., including western, midwestern and northeastern states.”

    “The idea of a shipping industry based largely on southern U.S. production developed because of an increase in imported Mexican blackberries in the 1990s to early 2000s,” Clark said. “Shippers wanted to continue marketing blackberries after the Mexican production season ended in late May.”

    Ouachita proved to be adapted to widely different growing conditions, allowing its use in many different states.

    The first major plantings of Ouachita began in southern Georgia and central Arkansas, Clark said, and expanded to North Carolina, the Midwest and other states as the shipping industry grew. Advances in production technologies, particularly the rotating cross-arm trellis, allowed expansion of blackberry production into regions where the new technologies allowed growers to protect the plants from winter cold in the upper Midwest.

    Ouachita has also been planted in western states, particularly in California, he said.

    This expansion of the U.S. blackberry shipping markets was possible because of Ouachita’s potential for long-distance shipping, Clark said. “The specific traits of importance were retention of berry firmness, low leakage of berries, and reduced reversion (reddening of drupelets after harvest) compared to other cultivar choices at the time,” he said.

    “Ouachita has also been very popular with local-market growers,” Clark said. “This is a substantial use for this variety, especially in Arkansas.”

    Another part of Ouachita’s appeal to growers is its proven resistance to double blossom/rosette, a devastating disease that once made commercial blackberry production virtually prohibitive in the South, Clark said.

    In its 17th year of production, Ouachita continues to be popular with growers, Clark said. Its third-strongest year for sales was the 2018-2019 planting season.

    Ouachita has also been licensed for sale in Japan, several South American countries, Australia, South Africa and Europe, bolstering the Division of Agriculture’s boast that its blackberries are grown on every continent but Antarctica.

    Fruitful Program

    The Division of Agriculture fruit breeding program has released 15 floricane-fruiting blackberry varieties and five primocane-fruiting varieties since the program’s inception in 1964. Clark said he and colleague Margaret Worthington, assistant professor and fruit breeder, continue to breed for improvements in sweetness, flavor and storage and shipping qualities.

    Worthington is leading genetic research to develop innovations in plant form, shape and size that may offer advantages to growers, Clark said.

    The latest variety from the blackberry breeding program was Ponca, released late last year and just entering the markets now, Clark said. “Ponca has superior flavor traits and good storage and shipping qualities,” Clark said.

    He describes Ponca’s unique qualities in a video: https://youtu.be/DJKLtYYBpIs

    Ouachita is the second blackberry and third fruit from the Arkansas fruit breeding program to receive the award, Clark said. The first Arkansas blackberry to receive the award was Navaho, released in 1989. Cardinal strawberry, released by the division in 1974, also received the ASHS award.

    To learn more about the Division of Agriculture Research, visit the Arkansas Agricultural Experiment Station website. Follow us on Twitter at @ArkAgResearch and Instagram at ArkAgResearch. — By Fred Miller, University of Arkansas

    About the Division of Agriculture

    The University of Arkansas System Division of Agriculture’s mission is to strengthen agriculture, communities, and families by connecting trusted research to the adoption of best practices. Through the Agricultural Experiment Station and the Cooperative Extension Service, the Division of Agriculture conducts research and extension work within the nation’s historic land grant education system.

    The Division of Agriculture is one of 20 entities within the University of Arkansas System. It has offices in all 75 counties in Arkansas and faculty on five system campuses.

    The University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services without regard to race, color, sex, gender identity, sexual orientation, national origin, religion, age, disability, marital or veteran status, genetic information, or any other legally protected status, and is an Affirmative Action/Equal Opportunity Employer.

  • USDA Outlines Opportunities for US Fresh Blueberries in China

    U.S. fresh blueberries was one of several U.S. agricultural products that received new or expanded access under the U.S.-China Economic and Trade Agreement, which was signed on January 15, 2020. This report briefly outlines the market conditions, access regulations, and market entry recommendations for U.S. blueberry exporters. Since consumers have become much more familiar with blueberries recently, exporters are encouraged to take note of consumer expectations for size, color, and brix content. Smaller packages of about 125g are considered the most convenient to purchase, and appropriately sized, for Chinese consumers. 

    Product Description and Access Overview

    Blueberries are not a traditionally consumed fruit in China, however a higher standard of living and an increased awareness of the health benefits from consuming fruit, have led more consumers to seek out new fruits, such as blueberries. Consumers tend to consume blueberries fresh, however they are also consumed in dried snack foods, such as a snack mixture of other dried fruits and tree nuts, or as a standalone snack product. Blueberries are also increasingly being processed into purees and other concentrates for use in processed dairy products, beverages, and yogurts. Chile and Peru are the largest fresh blueberry exporters to China. Fresh blueberries for direct consumption are cultivated based on their brix level (sugar content) and skin composition. Chinese consumers tend to prefer larger blueberries with relatively higher brix levels; a good appearance, firm texture, and longer shelf-life.

    According to a May 21, 2020 U.S. Department of Agriculture, Animal Plant Health Inspection Service (APHIS) announcement, APHIS and China’s General Administration of Customs (GACC) signed a work plan in May 2020 outlining measures U.S. producers must undertake to export blueberries to China. Fresh blueberries from Florida, Georgia, Indiana, Louisiana, Michigan, Mississippi, New Jersey, and North Carolina may be exported to China after treatment. In addition, blueberries from California, Washington, and Oregon to China may be exported “using a systems approach.”

    Domestic Market Overview

    More than 70 percent of domestically produced blueberries in China are consumed fresh. Until 2011, blueberries were traditionally supplied to high-end markets due to lower domestic production and limited imports. As consumer awareness increased and domestic production grew, prices became more affordable for the middle-class. June and July are the peak harvest season for domestic blueberries. Retail prices of domestic blueberries were about $4.00/kg in June and July 2019 and reached a low of $2.00/kg in late July 2019.

    In 2012, China opened its market to imported blueberries from several countries, including Chile, Mexico, Uruguay, Canada, and Peru. Chile and Peru account for over 99 percent of the import market due to free trade agreements and opposite harvest seasons. Blueberries from these two countries are not assessed tariffs compared to the 30 percent most-favored nation (MFN) rate. All other exporters pay the MFN import tariff rate. The peak import sales season is January and February, because these months are the off-season for domestic production and there is strong demand for fresh fruit during China’s Spring Festival holiday period.

    Competitors to U.S. Fresh Blueberries in China

    Chile and Peru are the leading blueberry exporters to China. Because South American producers have a different harvest season for fresh blueberries, Chinese domestic blueberries primarily compete directly with U.S. blueberries due to having similar harvest seasons. In September and October, domestic blueberries are nearing the end of the season and quality drops sharply, while South American blueberry quality is also at the low end. Blueberries are also now being exported from British Colombia, Canada, but production is low and cannot satisfy market demand. The future market is moving toward higher quality imported blueberries with stable supply and a sweet taste.

    Growing blueberry consumption is driving expanded domestic cultivation with production increasing from 14,000 tons in 2012 to 180,000 in 2018. Shandong, Guizhou. and Liaoning provinces are the primary producing areas. Industry experts forecast domestic production could exceed one million tons by 2026, surpassing North America as the world’s top producer. Large fruit producers, including Driscoll’s, Costa, Hortifruit, and SA Berry Fruit have made considerable investments in China to cultivate blueberries and other berry fruits. Domestic producers have begun to invest in different varieties which offer improved aroma and a balance of sweet and tart flavors.

    Regulations

    Producers are expected to adhere to GACC’s phytosanitary import requirements. According to GACC’s May 13, 2020, Number 64, announcement, blueberries must come from packing houses or shippers registered and approved by USDA APHIS. All shipments must be accompanied by a phytosanitary certificate issued by USDA APHIS. Fresh blueberries from California, Florida, Georgia, Indiana, Louisiana, Michigan, Mississippi, New Jersey, North Carolina, Oregon, and Washington are eligible to export to China. All exports, except those from California, Oregon, and Washington will need to be fumigated prior to export to China. Specific import regulations are subject to change. Exporters are encouraged to check with their Chinese importer, and USDA APHIS by reviewing their Phytosanitary Export Database (PExD) to confirm the most current import-export regulations.

    Distribution Channels

    Guangzhou and Shanghai are the predominant fresh fruit import destinations as they have the most efficient customs processes, are situated on popular ocean freight routes, and have well established domestic transport networks. Fresh fruit imports have traditionally been handled by importers and regional distributors, however large retail chains with advanced logistics and transport efficiencies are increasingly seeking to source directly from exporters and importers to eliminate distributor networks. Retail outlets typically use free tastings, gift boxes, colorful displays, and nutritional information to expand sales of fresh fruits.

    Fresh blueberry exporters should also pay attention to how e-commerce platforms are gaining market share and changing the traditional importer-distributor-retailer network. Beginning in 2014, e-commerce platforms started focusing on offering fresh food to consumers. E-commerce fresh product sales grew 42 percent, exceeding $2.9 billion in 2018. Major platforms, such as Tmall, JD, and MissFresh enjoy first- mover advantages on traffic and sales, but there are many other niche platforms, such as Benlai and Chunbo that focus less on volume and more on brand recognition and an improved customer experience. E-commerce contacts reported that the industry has been reluctant to directly import fresh berries due to logistical challenges and cost, although some have air shipped orders to fill the gap when the domestic harvest season ends and South American blueberries have not yet arrived by ocean freight. Most platforms still choose to work with importers or distributors to ensure that products are fresh and reduce their risk for loss of these highly perishable products. Contacts also reported that blueberries, if not cautiously handled in delivery, can result in a very high customer complaint rate, therefore they only seek to source products with a firm texture.

    Industry Outreach and Market Entry Recommendations

    Trade Shows

    Asia Fruit Logistica is the largest Asian fruit industry show. This year, it will be held in Singapore, September 16 to 18, 2020 (it is usually held in Hong Kong, however the organizers moved it to Singapore due to COVID-19). Each year the China Chamber of Commerce of Import & Export of Foodstuffs, Native Produce & Animal By-products (CFNA) organizes the International Fruit Conference, which focuses mainly on the China market. In 2020, it is expected to be held sometime in in September to December, pending COVID-19 developments. For more information about the conference, please contact chinafruit@cccfna.org.cn.

    Major Chinese Trade/Industry Associations

    China’s Chamber of Commerce of Import and Export of Foodstuffs, Native Produce ,and Animal By- Products (CFNA) is the primary food trade industry association in China. It was established in 1988 under the Ministry of Commerce and with a membership exceeding 6,500 companies. CFNA organizes fruit industry conferences and activities and publishes industry data. They also serve as the primary facilitator between the Chinese government (e.g., GACC) and importers. The key CFNA contact for fresh products is Mr. Lu Kun, lukun@cccfna.org.cn.

    The China Agricultural Wholesale Markets Association (CAWA) is a national association established in 1968 under the Ministry of Commerce. In China, more than 70 percent of agricultural products are distributed through wholesale markets. CAWA has China’s largest 300 wholesale markets as its members, and the largest five wholesale markets in each province. CAWA organizes conferences and national/regional trade shows. The key CAWA contact is Ms. Wang Lijuan at wanglijuan@cawa.org.cn or international@cawa.org.cn.

    Market Entry Recommendations

    Attractive size, packaging, and sweet flavored varieties will help U.S. products gain market share in China. To meet market demand, Chile and Peru have been able to provide appropriately sized blueberries, setting the standard for consumer expectations. U.S. blueberries are expected to be in highest demand after June when Chinese production drops and South American products have not yet arrived in the market. In China, blueberries are generally graded into three levels; 12 to 14 millimeters (mm), 14 to 16 mm, and 16 mm or more. Products are typically sold in 125 gram (g) packages. These smaller packages are convenient to purchase and appropriately sized for smaller Chinese families. Exporters may also highlight the size and high sugar content on the package (and to importers during sale discussions). Importers are expected to seek U.S. varieties which are over 12 degrees brix and larger than 16 mm.

    While this report focused on fresh blueberries, food processors are also seeking dried and frozen berry imports for use in dairy beverages, bakery products, and snack foods. Please refer to most recent USDA FAS GAIN China Food Processing Ingredient Report for more information about opportunities for frozen and processed blueberries.

    Additional Considerations

    According to the April 28, 2016 Foreign Non-governmental Organization (FNGO) Management Law, China requires all FNGOs, including agricultural trade and marketing associations, to register before undertaking certain marketing activities (e.g., public gatherings, promotions, trainings, conferences). The requirements include securing a Chinese sponsor organization, and registering a permanent office or filing for a temporary activity permit. This process typically takes up to six months to complete. Certain activities may exempt from this law, and it does not apply to for-profit businesses and governmental organizations. For more information about the Law, see the USDA GAIN report China’s Foreign NGO Management Law: A Review for U.S. Agricultural Trade Associations. — By Christopher Bielecki, USDA Foreign Ag Service

    For more information about this report, please contact:

    Agricultural Trade Office in Beijing

    U.S. Embassy in Beijing
    Phone: (86-10) 8531-3950
    atobeijing@fas.usda.gov

     

  • Blackberries Added to Coronavirus Food Assistance Program

    Today, U.S. Secretary of Agriculture Sonny Perdue announced an initial list of additional commodities that have been added to the Coronavirus Food Assistance Program (CFAP), and that the U.S. Department of Agriculture (USDA) made other adjustments to the program based on comments received from agricultural producers and organizations and review of market data. Producers will be able to submit applications that include these commodities on Monday, July 13, 2020.  USDA’s Farm Service Agency (FSA) is accepting through Aug. 28, 2020, applications for CFAP, which helps offset price declines and additional marketing costs because of the coronavirus pandemic. USDA expects additional eligible commodities to be announced in the coming weeks.

    “During this time of national crisis, President Trump and USDA have stood with our farmers, ranchers, and all citizens to make sure they are taken care of,” said Secretary Perdue. “When we announced this program earlier this year, we asked for public input and received a good response. After reviewing the comments received and analyzing our USDA Market News data, we are adding new commodities, as well as making updates to the program for existing eligible commodities. This is an example of government working for the people – we asked for input and we updated the program based on the comments we received.”

    USDA collected comments and supporting data for consideration of additional commodities through June 22, 2020.

    Changes to CFAP include:

    • Adding the following commodities: alfalfa sprouts, anise, arugula, basil, bean sprouts, beets, blackberries, Brussels sprouts, celeriac (celery root), chives, cilantro, coconuts, collard greens, dandelion greens, greens (others not listed separately), guava, kale greens, lettuce – including Boston, green leaf, Lolla Rossa, oak leaf green, oak leaf red and red leaf – marjoram, mint, mustard, okra, oregano, parsnips, passion fruit, peas (green), pineapple, pistachios, radicchio, rosemary, sage, savory, sorrel, fresh sugarcane, Swiss chard, thyme and turnip top greens.
    • Expanding for seven currently eligible commodities – apples, blueberries, garlic, potatoes, raspberries, tangerines and taro – CARES Act funding for sales losses because USDA found these commodities had a 5 percent or greater price decline between mid-January and mid-April as a result of the COVID-19 pandemic. Originally, these commodities were only eligible for marketing adjustments.
    • Determining that peaches and rhubarb no longer qualify for payment under the CARES Act sales loss category.
    • Correcting payment rates for apples, artichokes, asparagus, blueberries, cantaloupes, cucumbers, garlic, kiwifruit, mushrooms, papaya, peaches, potatoes, raspberries, rhubarb, tangerines and taro.

    Additional details can be found in the Federal Register in the Notice of Funding Availability (NOFA) and Final Rule Correction and at www.farmers.gov/cfap.

    Producers have several options for applying to the CFAP program:

    • Using an online portal, accessible at farmers.gov/cfap, allows producers with secure USDA login credentials—known as eAuthentication—to certify eligible commodities online, digitally sign applications and submit directly to the local USDA Service Center.  New commodities will be available in the system on July 13, 2020.
    • Completing the application form using our CFAP Application Generator and Payment Calculator found at farmers.gov/cfap. This Excel workbook allows customers to input information specific to their operation to determine estimated payments and populate the application form, which can be printed, then signed and submitted to their local USDA Service Center.  An updated version with the new commodities will be available on the website on July 13, 2020.
    • Downloading the AD-3114 application form from farmers.gov/cfap and manually completing the form to submit to the local USDA Service Center by mail, electronically or by hand delivery to an office drop box. In some limited cases, the office may be open for in-person business by appointment. Visit farmers.gov/coronavirus/service-center-status to check the status of your local office.

    USDA Service Centers can also work with producers to complete and securely transmit digitally signed applications through two commercially available tools: Box and OneSpan. Producers who are interested in digitally signing their applications should notify their local service centers when calling to discuss the CFAP application process. You can learn more about these solutions at farmers.gov/mydocs.

    Getting Help from FSA

    New customers seeking one-on-one support with the CFAP application process can call 877-508-8364 to speak directly with a USDA employee ready to offer general assistance. This is a recommended first step before a producer engages the team at the FSA county office at their local USDA Service Center.

    All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap. For existing FSA customers, these documents are likely already on file.

    All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only. All Service Center visitors wishing to conduct business with FSA, Natural Resources Conservation Service or any other Service Center agency should call ahead and schedule an appointment. Service Centers that are open for appointments will pre-screen visitors based on health concerns or recent travel, and visitors must adhere to social distancing guidelines. Visitors may also be required to wear a face covering during their appointment. Field work will continue with appropriate social distancing. Our program delivery staff will be in the office, and they will be working with our producers in office, by phone and using online tools. More information can be found at farmers.gov/coronavirus.  

  • Philippine Market Opens to US Fresh Blueberries

    On May 24, 2020, the Philippines will formally open its market to U.S. fresh highbush blueberries. Since the United States is the only country with official access to the Philippine market, U.S. suppliers are poised to take advantage of the opportunity to supply the Philippine retail and food service sectors. Traders estimate sales of U.S. fresh blueberries could reach $500,000 this season, with greater potential in the years to come.

    The Philippine Department of Agriculture’s (DA) regulation allowing complete market access for U.S. fresh blueberries will take effect on May 24, 2020, making the United States the only country with formal market access. U.S. suppliers and Philippine importers now have much stronger incentive to cultivate trade relationships to supply the expanding food retail sector, and eventually the food service sector once COVID-19 community quarantine measures are eased.

    In the past, DA had allowed limited and intermittent importation of fresh blueberries specifically for hotels, restaurants, and high-end supermarkets. Sales over the past five years (2015 to 2019) averaged $150,000 each year (roughly 20 metric tons). With formal market access in place for the entire Philippine market, multiple trade contacts forecast U.S. sales could reach $500,000 this season and exceed $1,000,000 in succeeding years if there is a concerted marketing effort to increase consumer awareness on the availability, quality, and health benefits of U.S. fresh blueberries.

    Like all fresh fruit importation, a licensed importer must secure a Sanitary and Phytosanitary Import Clearance (SPSIC) from the DA’s Bureau of Plant Industry. Products must not load for export before their issuance, must be shipped within 20 days following their issuance, and must arrive in the Philippines within 60 days from the must ship-out date.

    The full import requirements are outlined in the Administrative Circular, which can be found here: https://law.upd.edu.ph/wp-content/uploads/2020/05/DA-AC-No-05-Series-of-2020.pdf.

    Tariff Rates

    The Most Favored Nation (MFN) tariff rate for blueberries is seven percent and subject to 12 percent Value Added Tax or VAT.

    Competition

    Aside from the United States being the only approved country to source fresh imported blueberries, the Philippines has only very limited local production. Consistently supplying the multitude of hotels, restaurants, supermarkets, and other retail outlets with quality product remains a challenge for Philippine growers due to limited production area and the lack of adequate post-harvest facilities and cold chain infrastructure.

    Further Information and Assistance

    USDA-FAS at the U.S. Embassy in the Philippines is ready to help exporters of U.S. agricultural products achieve their objectives in the Philippines. Contact us at AgManila@fas.usda.gov

  • Berry People Expands to Support Steady Growth

    Berry People (www.berrypeople.com), a year-round, full-line shipper of branded organic and conventional strawberries, raspberries, blueberries, blackberries, and avocados has created new positions within its organization, added team members, and moved operations to a larger central CA office to accommodate the growth, with team members temporarily working from home until the mitigation of COVID-19 matters.

    Jerald Downs – President

    “We are thankful to be an essential part of the nation’s food supply chain, allowing us to support the people in our Berry People community, including our growers, employees, customers and consumers,” said Jerald Downs, president, speaking of the worldwide effects of COVID-19. “We’re assessing the short and long-term effects of the pandemic, and taking measures to manage business risk, while also ensuring the safety of our field labor, consumers, and everyone in between. Our cloud-based and mobile work environment allow us to continue the quality of service that our buyers and growers expect, and we are effectively managing our supply-chain to support the market’s demands.”

    These business moves are consistent with the company’s long-term strategic plan for continual expansion since launching in 2017. Recent key hires include the addition of an ERP-process analyst, financial controller and regional supply managers. “These specialized roles improve functional efficiency, optimize deployment of resources, tighten risk management, and deepen relationships with growers and suppliers,” said Michael Osumi, VP Supply-Operations.

    “Strong core values and a clear company vision support our intentional organization and job design, so our valued team members convey a unified brand promise to our service providers and customers,” said Downs. “These characteristics support our ‘unity in diversity’ philosophy, leaning into each other’s strengths towards a common goal. Our growth and building balance sheet also enable us to increase our investment activity in technology, genetics, and packaging innovation, which supports our long-term growth and profitability.”

    Damon Barkdull – Sr. Commodity-Sales Manager

    “As we approach our third full year in business, our customers can increasingly rely on us for substantially increased volume coverage, and improved continuity across the entire berry and avocado categories, materially reducing the seasonal gaps that are common with young companies like ours,” added Damon Barkdull, senior commodity-sales manager. ”

    With strong business results and overwhelmingly positive customer feedback to date, we never stop looking for better ways to anticipate needs and shorten response times.”Berry People and its alliance partners have operations in California, Mexico, Chile, and Peru. The company offers year-round availability of organic and conventional strawberries, raspberries, blueberries, blackberries and avocados through the Berry People and Avo People brands.”As we build financial strength, we plan to build our ‘social balance sheet’ as well, increasing our position in and commitment to both the marketplace, and to the communities we work in,” said Downs. “We look forward to giving back to the stakeholders that have embraced our organization, appreciating the fact that we’re a company whose growth is driven fundamentally by trust.”

    Michael Osumi – VP Supply-Operations

    Berry People’s short-term plans include the significant expansion of its summer organic strawberry program and a substantially increased position in the Peruvian avocado and blueberry industries.

    About Berry People:

    Berry People is a year-round, full-line shipper of branded organic and conventional strawberries, blueberries, raspberries, blackberries and avocados, and owner of the Berry People and Avo People brands. Headquartered in Hollister, California, the company’s ownership and key alliance partners hold important production assets in California, Mexico, Chile and Peru. All product is graded and allocated by pallet, and all growers are fully compliant with USDA and FDA regulations on food safety and organic practices. Berry People operates with a strong company ethos along its entire supply chain that emphasizes complementarity, stewardship and empathy. For more information, visit www.berrypeople.com, or www.avopeople.com.