Fresh Berries Move Into New Markets

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This presentation summarizes the export opportunities for fresh U.S. blueberries and strawberries globally.

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Fresh Berries Move Into New Markets

  1. 1. Joe Barsi, VP Business DevelopmentApril 2011Fresh berries move into new marketsGlobal Berry Congress 2011 © 2011 California Giant
  2. 2. Agenda Background What the export berry numbers tell us What the export berry numbers don’t tell us Export Opportunities & Challenges SummaryPage 2 © 2011 California Giant
  3. 3. Introduction Watsonville, CA native Worked in the produce industry for 18 years Worked for California Giant Berry Farms for 6 years Help develop global berry Joe Barsi supply VP Business Development California Giant Berry Farms jbarsi@calgiant.com twitter.com/BerryGiant http://berrygiant.wordpress.comPage 3 © 2011 California Giant
  4. 4. California Giant Berry Farms One of the largest berry Vertically Integrated companies in the U.S. – Market Full Line of Berries – Founded in 1970 – Plant Nursery – Privately held by four owners – Berry Grower- Packer - Shipper – Market ~25 million cases per year – Sales & MarketingPage 4 © 2011 California Giant
  5. 5. What the numbers tell us Statistics TrendsPage 5 © 2011 California Giant
  6. 6. North America is the dominate exporter of berries worldwide Fresh Blueberries, 2010Page 6 © 2011 California Giant
  7. 7. U.S. berry exports continue to grow Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10. Blueberry Data Source: United States Export Statistics, Commodity: 0810400028Page 7 © 2011 California Giant
  8. 8. Top Markets for Fresh U.S. berries show strong volume increases Average Annual Growth Country Export ($k) since 2008 Canada $353,904 17% Japan $30,100 85% Mexico $17,943 -67% United Kingdom $7,949 -79% Hong Kong $3,470 241% France $1,926 55% United Arab Emirates $1,570 180% Taiwan $1,327 99% Australia $1,124 -88% South Korea $661 37% Saudi Arabia $652 15% Singapore $514 460% Bahamas $513 24% Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10. Blueberry Data Source: United States Export Statistics, Commodity: 0810400028Page 8 © 2011 California Giant
  9. 9. Asia is the fastest growing region outside of North America Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10. Blueberry Data Source: United States Export Statistics, Commodity: 0810400028Page 9 © 2011 California Giant
  10. 10. The Strawberry MarketPage 10 © 2011 California Giant
  11. 11. U.S. Strawberry Exports are steadily increasing Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.Page 11 © 2011 California Giant
  12. 12. Canada is the largest market for fresh U.S. strawberries Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.Page 12 © 2011 California Giant
  13. 13. Fresh Strawberry Exports since 2008 Canada United Arab Up ~15% Emirates Hong Kong Up ~180% Up ~270% Japan ~50% UK Taiwan down Up ~110% Mexico down Australia downPage 13 © 2011 California Giant
  14. 14. The Blueberry MarketPage 14 © 2011 California Giant
  15. 15. Fresh U.S. blueberry exports increased 32% but revenue softened Blueberry Data Source: United States Export Statistics, Commodity: 0810400028Page 15 © 2011 California Giant
  16. 16. Canada is the largest market for fresh U.S. blueberries too Top Export Markets for Fresh U.S. Blueberries (Ave Annual Exports $k) United Kingdom 5% Japan 5% Hong Kong Others 1% Canada 2% 87% Blueberry Data Source: United States Export Statistics, Commodity: 0810400028Page 16 © 2011 California Giant
  17. 17. Fresh Blueberry Exports since 2008 Canada Up ~30% Hong Kong Japan Up ~150% Up ~100% UK Singapore down Up ~680% Mexico Taiwan Up ~500% Up ~56% Australia down Blueberry Data Source: United States Export Statistics, Commodity: 0810400028Page 17 © 2011 California Giant
  18. 18. What the numbers don’t tell us Statistics TrendsPage 18 © 2011 California Giant
  19. 19. Improving standards of living Global growth of middle class in emerging economies – BRIC Increase in discretionary income in emerging markets Cultural traditions focused on health & beauty Awareness of nutritional value of blueberries has grown worldwidePage 19 © 2011 California Giant
  20. 20. New berry-related products are being introduced around the globe Blueberry products Blueberry data source: Thomas J. Payne Market DevelopmentPage 20 © 2011 California Giant
  21. 21. Pet Food ProductsPage 21 © 2011 California Giant
  22. 22. Opportunities & ChallengesPage 22 © 2011 California Giant
  23. 23. China: Net Importer? Hong Kong is the gateway USDA indicates Strawberries on the list for approval ~24 months Blueberry transshipments through Hong Kong, Macau and Japan Demand is highest in large coastal cities Increase in freezer shipments Western Retailers: Wal*Mart & Carrefour, TescoPage 23 © 2011 California Giant
  24. 24. India is “red hot” despite stats… USHBC & Thomas J. Payne M.D. Oregon, B.C. & California are all shipping Duty Free Shipments through Sri Lanka & BangladeshPage 24 © 2011 California Giant
  25. 25. Challenges Natural disasters Pests GovernmentPage 25 © 2011 California Giant
  26. 26. Strawberry Exports to Mexico down 40,000  Quantity lbs. (000) Value ($000s) 35,000  $29,218  30,000  25,000  $22,021  20,000  $17,046  Lb. or $(000) 15,000  $12,747  $11,437  10,000  26,550  20,430  35,921  15,675  11,735  5,000  0  2006 2007 2008 2009 2010 Source: USDA Census Bureau DataPage 26 © 2011 California Giant
  27. 27. Strawberry exports to Japan 30,000  Quantity ‐ lbs. (000) Value ($000s) 25,000  $26,136  $24,411  $23,261  $22,025  $21,173  20,000  Lb. or $(000) 15,000  10,000  8,750  8,152  7,995  10,853  12,361  5,000  0  2006 2007 2008 2009 2010Page 27 Source: USDA Census Bureau Data © 2011 California Giant
  28. 28. Strawberries Country Opportunities Challenges Mexico 2nd Largest Export Market NAFTA Trucking Dispute Middle East Surpassed France as 5th largest market Logistics Hong Kong Gateway to China Grey market Japan Established and growing market Natural Disaster Australia Pre-Clearance Program SWD & Angular Leaf SpotPage 28 © 2011 California Giant
  29. 29. Blueberries Country Opportunities Challenges India Population/Fresh promotions/Positive Media Distribution & Cold Chain China Increased demand/Retailers & Distribution Phytosanitary restrictions South Korea Increase in freezer shipments/50% chance Phytosanitary restrictions “Overseas Chinese" Taiwan Growing fresh imports/Retail Promotions controlledPage 29 © 2011 California Giant
  30. 30. Summary Berry production is increasing worldwide Consumers in existing & new markets are discovering berries Berry demand is increasing globally, especially in Asia Companies need to be flexible and opportunistic to capitalize on export opportunities“Technology and social networks are driving equality globally — creating a more informed customer than ever — and it’s all happening at light speed,” Lee Scott, Former CEO of Wal*Mart StoresPage 30 © 2011 California Giant
  31. 31. Thank You www.calgiant.com www.facebook/calgiant.com @californiagiantPage 31 © 2011 California Giant

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