by Hayley Boriss, Junior Specialist; Henrich Brunke, Assistant Specialist; and Marcia Kreith, Program Analyst, Agricultural Issues Center, University of California, agissues@ucdavis.edu.
Updated May 2008 by Malinda Geisler, content specialist, AgMRC, Iowa State University.
Overview
Strawberries are the fourth highest ranked U.S. fruit in terms of value of production behind grapes, oranges, and apples. The U.S. strawberry industry is mostly located in the southern and coastal areas in California, because strawberry production is best suited to moderate climates with warm days and low humidity. Florida and Oregon are the second and third largest producing states respectively. Notably, all of Florida’s production is for the fresh market, and it is the major producer of the winter strawberries in the United States.
April and May are the peak shipping months for strawberries, but because of Florida’s winter production, U.S. strawberries are marketed year-round. In addition, the adoption of new varieties and integrated production practices, including the annual replanting of nursery-grown transplants to minimize disease, enables the California industry’s longer marketing season from January through November.
Demand
Over the last two decades, strawberries have experienced one of the highest rates of consumption growth of all fruit and vegetables. Strawberries are the fifth highest consumed fresh fruit in the United States, behind bananas, apples, oranges and grapes. Expanded domestic supply and increased availability, as the industry transitioned from seasonal to year-round production, stimulated consumption. New information on health benefits of strawberry consumption because of their antioxidants, folate, potassium, vitamin C and fiber content also stimulated their consumption.
Per capita consumption of strawberries totaled 7.7 pounds in 2005. Of that total, fresh strawberry consumption accounted for 5.8 pounds per capita. Consumption of frozen strawberries accounted for 1.8 pounds.
Marketing
Increasingly, a substantial portion of the California fresh strawberry harvest is presold through an option called a precommitment between shippers and retailers. This enables retailers to commit to newspaper advertisements prior to the harvest. Typically, the contracts set a maximum price but are not legally binding and allow renegotiation for price at time of delivery. The extreme perishability gives retailers an edge.
With the exception of Florida, the eastern U.S. strawberry industry primarily consists of small family farms that turn to alternative marketing channels such as you-pick operations, roadside stands and farmers' markets.
Production
The United States is the world's largest producer of strawberries and most of the production is consumed domestically. An increasing amount of strawberries are being produced destined for fresh-market uses. Fresh-market production in 2007 accounted for 81 percent of total production.
With the increase in production of fresh-market strawberries, the value of production increased as well. The total value of U.S. strawberry production in 2007 was $1.7 billion. Fresh-market strawberry production alone totaled $1.6 billion, while the value of processing strawberries was $130 million. California production in 2007 was valued at $1.3 billion. Florida’s contribution, mainly of winter strawberries, accounted for $329 million.
Exports
U.S. strawberry trade mainly takes place in North America with the majority of U.S. exports going to Canada and the majority of U.S. imports entering from Mexico. The United States exported 108,798 metric tons (MT) of fresh strawberries in 2007 valued at $276 million. The leading export destination for fresh strawberries was Canada with 90,380 MT valued at $226 millon, followed by Mexico with 9,307 MT valued at $17 million. Japan purchased 3,725 MT of fresh strawberries valued at $21 million.
The United States exported 14,467 MT of frozen strawberries in 2007 valued at $24 million. Canada was the leading buyer with 8,050 MT valued at $13.5 million. Japan purchaed 4,341 MT of frozen strawberries valued at $7.7 million.
Imports
The United States imported 71,517 MT of fresh strawberries valued at nearly $132 million in 2007. Nearly all of the fresh strawberry imports originated from Mexico. The United States imported 82,694 MT of frozen strawberries valued at nearly $105 million. Mexico accounted for 51,569 MT of frozen strawberry imports valued at $63 million followed by Argentina and Chile.
Prices
Grower prices for U.S. strawberries have been variable over the years. However, prices for processing strawberries are generally lower than those of the fresh market. In 2007, fresh-market prices for strawberries were $79.60 per hundredweight while processing strawberries were valued at $27.70 per hundredweight. Typically, prices follow a seasonal trend, with lowest prices seen from April to June, during peak production, and peak prices in January and February when domestic supplies are lowest.
Current Issues
The widespread practice of using methyl bromide as a preplant soil fumigant against weeds, nematodes and pathogens for strawberry production and in strawberry nurseries continued to be allowed in 2006 under critical use exemptions to the Montreal Protocol on Substances that Deplete the Ozone Layer (and the U.S. Clean Air Act Amendments of 1990 which implements the Montreal Protocol.) Except for critical use exemptions, methyl bromide production and net imports were totally phased out in 2005.
Based on lack of technical or economically feasible alternatives, in 2006, the U.S. Department of State submitted its fourth annual nomination, this time for 2008, for methyl bromide critical use exemptions to the Ozone Secretariat of the United Nations Environment Programme for review and authorization.
Created March 2006 and updated May 2008.