Consumer demand for California strawberries is running high this season, said Jeff Cardinale, director of communications for the Watsonville-based California Strawberry Commission.
Volume for the season as of June 8 was 99.7 million trays, according to the commission. Last year's volume to date was 75.2 million trays.
“Size, color and taste are all exceptional,” Cardinale said.
He called on retailers to continue to promote and provide ample shelf space for California strawberries.
Early pricing was down a bit from last year because of the higher volume.
Fob prices for trays of eight 1-pound containers out of California's Salinas/Watsonville growing region were mostly $8 in early June and $6 to $8 out of Oxnard, Calif. At the same time in 2023, prices were mostly $8 out of Oxnard and $10 to $11 out of Salinas/Watsonville.
Strawberry season was “cruising along as normal” at Oxnard-based Bobalu Berries, said Anthony Gallino, vice president of sales.
Chill hours were great during the late fall and winter, he said.
“We've had some record weeks due to perfect conditions,” he said. “We'll continue to have solid volume through the Fourth of July.”
Strawberries are a must-have for holidays, and he said the company already had some Fourth of July ads set up.
Salinas-based Naturipe Farms will have excellent supplies of strawberries, and quality will be at its peak for the Fourth of July, said Jerry Moran, vice president of sales.
“This is a perfect time for large displays at retailers to support promotions,” he said. “Multiple-pack-size promotions will ensure all consumers are in the mix.”
Strawberry volume will be up at Naturipe Farms compared to last year.
California's growing regions experienced significant rainfall during the winter and spring, but the precipitation has not had a substantial impact on the crops, Moran, said.
The Fourth of July is an exceptional time to promote berries, agreed Michelle Deleissegues, vice president of marketing for Irvine, Calif.-based Gem-Pack Berries.
“Beautiful red and blue berries make all the ‘red, white and blue' desserts and salads delicious, nutritious and festive,” she said.
Paul Kawamura, Gem-Pack's chief sales officer, said the company's strawberries are looking good.
“Currently, the quality and flavor is beautiful out of the northern districts,” he said. “Sweetness keeps improving as the days get longer, and size has been large so far.”
The company recently launched a new, consumer-oriented website — gem-packberries.com — “that synthesizes the merging of Well-Pict, Red Blossom and Gem-Pack,” Deleissegues said.
Coping with inflation
Strawberry grower-shippers continue to contend with the effects of inflation and rising prices.
The rising cost of labor has made the biggest impact at Bobalu Berries, Gallino said. But costs have risen across the board.
“The cost of growing berries is in the high $30,000 or low $40,000 range per acre,” he said. It was in the high $20,000 range five years ago.
The greatest challenge at Gem-Pack Berries has been rising production costs coupled with retailer price pressure, Kawamura said.
“While some retailers are being amazing partners helping us navigate a challenging market, other retailers have been taking advantage of the depressed market conditions at the expense of the field and growers,” he said.
Primary challenges at Naturipe Farms this summer are similar to those of retailers and consumers, Moran said: “Rising costs across multiple fronts.”
“We're contending with increased expenses for grower inputs and equipment, coupled with a notable uptick in labor costs due to increased demand and availability constraints,” he said.
But the rising cost of strawberries hasn't deterred consumer purchases.
“Consumers are steadfast in their demand for high-quality produce like berries,” Moran said. “Our research indicates that health-conscious consumers prioritize nutritious options, making berries a sought-after choice due to their abundant antioxidants and exceptional taste.”
Gem-Pack's Deleissegues agreed.
“Consumer demand has continued to grow, and the berry category sales have been vigorous,” she said.