We are excited to give you a brief overview on harvest status and a market update on our specialty fruit, the cranberry.
As you may have heard, the 2019 conventional cranberry harvest in North America experienced very low yields, resulting in a sharp decline in inventory for the third consecutive year. Inventories are down 17% from last year and the CMC (Cranberry Marketing Committee) anticipates that the industry will have the lowest cranberry inventory since 2010. This situation is likely to be rather tricky for a number of dried fruit processors who will have to fall back quickly on fruit from the 2020 harvest to meet customer demand.
At Fruit d’Or we have a good amount of inventory, which should position us well to meet customer needs. The same goes for organic cranberries: we're in a healthy position to supply both the growing demand and meet emerging needs.
Spring’s arrival in Quebec
We had a long winter here in Quebec. It came early, with the cold lasting until mid-April. We had sufficient snow cover and our plants weren't affected. One thing’s for sure: they love the cold! Despite spring having arrived a little later than usual, plant growth appears to be on track and we seem to be at a fairly normal growth stage for this time of the year. At the end of June, when the plants are in bloom, our team of agronomists will be able to make a preliminary assessment of the volume we’ll harvest. We’ll keep you posted! Pollination, a key factor in determining the quantity of fruit the plants will produce, also takes place at this time.
Over the past few months, we've seen a rise in the price of conventional dried cranberries while the price of organic dried cranberries has remained steady. We don’t foresee any short-term fluctuations in either area. However, in the medium term, we do expect a slight increase for conventional dried cranberries, further narrowing the gap between the price of organic and conventional dried cranberries. Fruit d'Or is currently able to support any plans you have to increase your volume or launch new products with its range of organic dried cranberries.
As a result of the pandemic, consumers are seeking products that’ll help improve their health.
Over the past three years, more than 4,000 new cranberry-based products were launched annually worldwide.
Source: Innova, (All countries, all product categories)
COVID-19 has had an unprecedented impact on consumer purchasing behaviour and a tremendous impact on the sales growth of organic products as well as other products known for their health benefits. According to a study done in the U.S. by the Organic Trade Association, organic food product sales grew 4.6% in 2019, compared to a 2% overall food-sales increase. But since this spring and with the advent of the pandemic, the demand for organic products has skyrocketed.
Source: Organic Trade Association, 2020
As a result, we can already see that cranberries have become very popular with consumers. There's no better time than now to confirm your supply of both organic and conventional products.
Our team of agronomists is growing
We've just added a third agronomist to our team. Fruit d’Or is constantly developing new tools and processes to optimize agricultural practices for our producers. The team conducts three to four new research projects every year to improve farming practices, in addition to continuously monitoring our fields and those of our partner producers.
We’re working very hard to remain a leader in sustainable development and to ensure the future of our fields. Do you have a new organic product in mind? We can help you! Fruit d'Or has an R&D team available to you—one that understands your needs and can help you make speedy progress on your project. This particular preharvest period is the best time to secure your supply.
On behalf of the entire team at Fruit d'Or, we wish you your most successful summer yet.
Anne Létourneau Vice-President of Sales, Ingredients Division
It’s the simple everyday things that make our berries so tender, tasty, healthy and give them the perfect texture. Each parcel of land we farm with care and respect. Each weed we pull by hand. Each extra day we wait to ensure crops are harvested at peak ripeness. Each minute saved between field and freezer. Each berry perfectly preserved. Each unwanted substance detected and eliminated. And each delicious bite our customers enjoy.