The future of wild blueberry marketing is in adding value

by Dan Woolley Dr. Rémy Lambert, an economics professor at Laval University in Quebec City, told attendees at the Wild Blueberry Producers Association of Nova Scotia (WBPANS) annual general meeting in Truro on Nov. 14 that both the world supply and demand for blueberries is increasing. Lambert said that it’s at the intersection of supply and demand that the price point for cultivated and wild blueberries is set, and therein lies the challenge to adding value in the blueberry industry. He said world blueberry production “has exploded” and that it “appears the supply might outstrip the demand.”     However, he added that the number of countries importing blueberries has also significantly increased from 21 in 2000 to 50 in 2016.  Lambert said cultivated blueberries are grown around the world so they’re on store shelves every month of the year – although the international supply adjusts to consumer demand.  Wild blueberry prices are starting to increase as the inventory of frozen berries has declined, said Lambert, adding that cultivated blueberries lead the price in international markets. “We have to differentiate more and more wild blueberries from cultivated,” he said, adding, “Quebec producers are wondering if they should go organic.”  Lambert discussed the importance of adding value, explaining that 37 cents of every food dollar goes to the food service sector, 15 cents to food processors, 12 cents to retailers, and nine cents to the wholesalers. He said growers have to look into adding value at their farm gate by getting closer to consumers, highlighting the fruit’s health benefits, publishing wild blueberry product recipes, selling the fruit at farm stands and to local restaurants, highlighting the health benefits of the fruit, and offering processed products such as jams, jellies, juices, and chocolate-coated blueberries.  “You have to differentiate the right way,” said Lambert. “You can go for economies of scale by growing big or you could sub-contract marketing by selling the product to a large company which would market it as a private label.”  Lambert said an individual grower has to determine if adding value is right for them.  If so, the next step is establishing a value chain strategy, emphasizing product innovation and a strong relationship with processors, retailers, and consumers. “We have to share information with the consumers,” said Lambert. “We have to consult with each other. There has to be transparency and trust by everyone in the value chain. Tomorrow’s winner in blueberries will likely have a different business model. Mergers and acquisitions and collaboration are the ways to enhance market position.”  Lambert also said wild blueberry growers need to determine if they can improve efficiency, if they should review their business ties, if they have room for consolidation in their sector, if they’re cost competitive, if they should consider a regional, provincial, or even a national strategy, and how they can differentiate wild blueberries from high-bush blueberries. “The future is value-added, either at the farm gate or in the sector, recognizing we are a unique resource,” he concluded. “The resource is the base that binds the stakeholders in the value chain. We have to recognize the contributions of each stakeholder in the value chain.”  The cause of adding value to Nova Scotia wild blueberries received a significant boost on Nov. 5 when provincial Agriculture Minister Keith Colwell announced $650,000 over three years for wild blueberry research and development projects, including improved packaging. Colwell also announced $280,000 over two years to help fund the annual Wild Blueberry Solutions Challenge, which “encourages continuous development of value-added blueberry products.” The challenge is a joint venture of the WBPANS and the provincial agriculture department.