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This presentation summarizes the export opportunities for fresh U.S. blueberries and strawberries globally.
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© 2011 California Giant
Fresh berries move into new marketsGlobal Berry Congress 2011
Joe Barsi, VP Business DevelopmentApril 2011
© 2011 California GiantPage 2
Agenda
Background
What the export berry numbers tell us
What the export berry numbers don’t tell us
Export Opportunities & Challenges
Summary
© 2011 California GiantPage 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 supply Joe Barsi
VP Business Development
California Giant Berry Farms
twitter.com/BerryGiant
http://berrygiant.wordpress.com
© 2011 California GiantPage 4
California Giant Berry Farms
One of the largest berry companies in the U.S.
– Founded in 1970– Privately held by four owners– Market ~25 million cases per year
Vertically Integrated– Market Full Line of Berries– Plant Nursery– Berry Grower- Packer - Shipper– Sales & Marketing
© 2011 California GiantPage 5
What the numbers tell us
Statistics
Trends
© 2011 California GiantPage 6
North America is the dominate exporter of berries worldwide
Fresh Blueberries, 2010
© 2011 California GiantPage 7
U.S. berry exportscontinue 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: 0810400028
© 2011 California GiantPage 8
Top Markets for Fresh U.S. berries show strong volume increases
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: 0810400028
CountryAverage Annual
Export ($k)Growth
since 2008Canada $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%
© 2011 California GiantPage 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: 0810400028
© 2011 California GiantPage 10
The Strawberry Market
© 2011 California GiantPage 11
Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.
U.S. Strawberry Exportsare steadily increasing
© 2011 California GiantPage 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.
© 2011 California GiantPage 13
Fresh Strawberry Exportssince 2008
United Arab EmiratesUp ~180%
UKdown
Hong KongUp ~270%
TaiwanUp ~110%
Australiadown
CanadaUp ~15%
Mexicodown
Japan ~50%
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The Blueberry Market
© 2011 California GiantPage 15
Fresh U.S. blueberry exports increased 32% but revenue softened
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
© 2011 California GiantPage 16
Canada is the largest market for fresh U.S. blueberries too
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
Canada87%
United Kingdom5%
Japan5%
Hong Kong1%Others
2%
Top Export Markets for Fresh U.S. Blueberries(Ave Annual Exports $k)
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Fresh Blueberry Exportssince 2008
JapanUp ~100%
UKdown
Hong KongUp ~150%
SingaporeUp ~680%
CanadaUp ~30%
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
MexicoUp ~500%
Australiadown
TaiwanUp ~56%
© 2011 California GiantPage 18
What the numbersdon’t tell us
Statistics
Trends
© 2011 California GiantPage 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 worldwide
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New berry-related products are being introduced around the globe
Blueberry products
Blueberry data source: Thomas J. Payne Market Development
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Pet Food Products
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Opportunities & Challenges
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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, Tesco
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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 & Bangladesh
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Challenges
Natural disasters
Pests
Government
© 2011 California GiantPage 26
Strawberry Exports to Mexico down
26,550 20,430 35,921 15,675 11,735
$22,021
$17,046
$29,218
$12,747 $11,437
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2006 2007 2008 2009 2010
Lb. o
r $(0
00)
Quantity lbs. (000)Value ($000s)
Source: USDA Census Bureau Data
© 2011 California GiantPage 27
Strawberry exports to Japan
8,750 8,152 7,995 10,853 12,361
$23,261
$21,173 $22,025
$24,411 $26,136
0
5,000
10,000
15,000
20,000
25,000
30,000
2006 2007 2008 2009 2010
Lb. o
r $(00
0)
Quantity ‐ lbs. (000)
Value ($000s)
Source: USDA Census Bureau Data
© 2011 California GiantPage 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 Spot
© 2011 California GiantPage 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
Taiwan Growing fresh imports/Retail Promotions“Overseas Chinese" controlled
© 2011 California GiantPage 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 Stores
© 2011 California GiantPage 31
Thank You
www.calgiant.comwww.facebook/calgiant.com@californiagiant