From uncertain to conclusive

September 23, 2021

We’re pleased to share an overview of the crop and cranberry market situation for the 2021 season.

In Quebec

The start of the season was characterized by a very early spring interspersed with rather intense freezing nights. As early as May, some farms suffered irreparable damage, thus seriously impacting the 2021 yield. Fortunately, these were only a few isolated cases, because the majority of our producers are expecting harvests ranging from good to very good. Indeed, following a spring with many ups and downs, pollination conditions were good and the fruiting period had regular rain. Subsequently, a drought accompanied by hot weather allowed the fruits to gain a lot of weight quickly. The water reserves of our producers allowed them to meet the needs of the plants, even in times of drought. Recently, we have noticed that the reddening of the fruits is going well. Once again this year, we should obtain beautifully coloured fruits. If we include farms that suffered serious damage in the spring, the harvest will be right on average, for both organic and conventional farms.

In the United States

The expected harvest in Wisconsin, the largest producing region, is not very encouraging. As in Quebec, this region also suffered partial damage in the spring. In addition, for reasons that are more or less clear, the variety of cranberry that is mainly cultivated here, the Stevens, does not promise very good yields, which will affect the average yield negatively. In fact, forecasts for this producing state aren’t any higher than the last two years, which were also below average. For Massachusetts, however, the news is good. The climate was generally good this summer; the region didn’t suffer from a lack of water unlike the previous year. However, since the year 2020 was arid, the plants were not in an optimal state of health to enter the 2021 season. That being said, the harvest should be slightly higher than in 2020. Lastly, it should be mentioned that Hurricane Ida may have caused some losses given the very high amounts of rain received in the fields. We will have an idea of the real impact once the fruits are harvested.

Impact on the Markets

Of the three main producing regions in Canada and the United States (Quebec, Wisconsin and Massachusetts), none are expecting a major harvest. Industry inventories have declined over the course of 2020-2021 and, given the average harvests ahead, inventories are expected to continue to weaken in 2021-2022. In recent years, the North American cranberry industry had the equivalent of a year of production in inventory. Last August, the Cranberry Marketing Committee (CMC) reported that the inventory level is now around 4 months of production.

The combination of these factors along with the increase in all other elements involved in dried fruit production (see below) create conditions that will support upward pressure on prices, which risk rising over the next few weeks. We recommend that you confirm your orders now.

Organic and conventional cranberries and wild blueberries.

• Dried fruits
• Puree
• Juices & concentrates
• Powder, seeds and seed extract
• Seed oil and much more.

* Source: August 2021, Cranberry News, Cranberry Marketing Committee (CMC)

In terms of the supply of raw materials necessary for processing cranberries, we are facing a year marked by sharp cost increases, mainly due to an imbalance of supply and demand and an increase in transportation costs. As you know, the price of the ingredients that make up our products, namely sugar, apple juice, oil, etc., is under upward pressure. The entire global supply chain is under strain, and this is reflected in, among other things, increased prices.

It is therefore essential for Fruit d´Or to ensure the good continuity of operations, while striving to mitigate the effects of the average supply and rising prices of raw materials.