It may not be easy succeeding at berry production in Asia, but as the Asiafruit Knowledge Centre heard, big rewards await for those that achieve it
The vast consumer base in Asia offers substantial opportunities to suppliers both exporting to and growing domestically on the continent.
That view was outlined by a panel of experts at the Asiafruit Knowledge Centre in Hong Kong, featuring Jae Chun, vice president and general manager of Driscoll’s Asia-Pacific, Costa Group’s general manager of international horticulture George Jessett, and John Early, global sales director at Fruitist.
Driscoll’s has been operating strategically in Asia for 13 years, and now sells some 45,000 tonnes of berries, nearly all of which are produced in China. Costa’s work includes a new project in Laos and counter-seasonal supply into China and wider Asian markets, whereas Fruitist entered Asia three years ago and has 400ha of low-chill varieties in China.
While Asia might previously have been seen as a market of high returns, Chun noted that the price of blueberries has changed dramatically in the last couple of years to a more moderately-priced fruit. However, he views that as an opportunity rather than a problem for growers: “It would encourage more consumption,” he said.
“I believe that with the prices of blueberries today in the Chinese market, which cascades into the Asian market, it’s a price that will not get consumers to think twice about wanting to consume them. So when I see these types of prices, although the margins are far more moderate, you’re focused on delighting consumers and having a brand that means something to them.”
Indeed, with the majority of the fruit sold and consumed in China unbranded, there could be further routes for brands to take a share. “That’s where we see our growth [in blueberries], because we don’t have to educate consumers,” Chun said. “We just have to come up with a better berry with a brand that consumers believe in and can trust. If we can do that, we see that market opportunity to be huge.”
Early agreed, adding that there are further avenues for growth in other, second-tier cities where people are still getting to know the fruit.
Chun explained that Driscoll’s discovered how to best produce raspberries and blackberries year-round in China’s Yunnan province over 10 years of trial and error. Blueberries can also be produced nine months of the year with different varieties and elevations.
“That’s exciting for us because now we can offer an even fresher berry to consumers at a point in time where most of the berries that are coming into the market are from Peru,” he noted. “That’s a really long way in boats, whereas the berries we are offering is maybe three days from market. It’s a totally different consumer experience.”
The wider market
A further long-term opportunity for berries lies in India, where a huge consumer market is available for businesses that can overcome issues around location and climate.
Fruitist has started planting in India through a joint venture, and Early outlined the contrasting state of affairs in the country. “It’s one of the fastest-growing economies in the world, with low consumption and a fast-growing middle class,” he said.
“It’s amazing what they’ll pay for even a bad box of blueberries. But the growing side is extremely complex, both culturally and from a climate standpoint. I think we’re going to continue to grow at a very slow pace for that reason, and I still think India will probably never be able to produce as much as it will consume. Everyone I talk to pretty much has the same problems and whoever can eventually crack the code will have a huge opportunity.”
Looking beyond production in Asia, Africa is seen as an up-and-coming supplier to China, with countries such as Zimbabwe and Zambia making shipments. “Africa is something we’ve identified as a potential opportunity with market access opening up, particularly around that supply period of June through to September and October,” Jessett said.
“It’ll be predicated on the ability to produce high-quality fruit. With logistics and the cost of production it won’t necessarily be the cheapest; it’s going to have to play in the premium space. Executing on the quality of fruit, productivity, and managing the logistics is going to be a key feature, but we’re excited by that.”
Jessett also observed that superior genetics are going to be a key factor in competitiveness and success going forward. However, in view of the recent proliferation of breeding programmes, he predicted a degree of rationalisation in the sector.
Costa itself launched its BluGenix breeding programme earlier this year as an evolution of its existing work, and expanded into new areas such as the north of Queensland that support low-latitude adaptive varieties. The plan is two release two commercially relevant varieties year-on-year, he revealed.
Overall, the panellists agreed that despite challenges such as private equity investors pulling back from the market, there are still solid opportunities for the best operators. Speaking about blueberries specifically, Early said he’s still bullish for the market globally, stressing that with the right genetics and vertical integration, well-run players will continue to attract interest.
“With the growth in blueberries, there are still some headwinds like tariffs, but we’re still seeing huge upside growth globally, and particularly in Asia. I don’t really see any slowdown,” he said.
