The cranberry crop is coming along nicely, it is expected to be of a similar size to last year. Demand for cranberries has risen by 7.6% in the last year. This is +8% domestic & +6.7% internationally. The international sales growth is for SDCs, there has been a dip in demand for concentrate.
With increased demand for SDCs and the Fruit Dâ€™Or fire taking their line out of production, the main issue all season has been capacity. We are seeing increased lead-times for product, demand is pushing pricing up.
There is as ever mounting pressure from growers for better return on their fruit. With increased global demand and stable production, we expect increased pricing for the new crop season. Currency volatility in Europe will continue to impact price.
The biggest problem in the cranberry industry is the ever increasing surplus of concentrate. Sales have dropped and more SDC production creates ever more concentrate. International sales of concentrate are down 1.1%. Inventory on concentrate is up 15% from last year.
The blueberry crop is not fully harvested, the Michigan crop is down but that should be balanced by a better crop in British Columbia. Overall we expect a similar size to last year. Pricing has come down a little in the last week or so and we would advise looking at requirements. Again a weak sterling will lead to firmer prices.
The cherry market remains stable.