Strawberries in the Global Spotlight: Navigating Economic Growth and Climate Challenges in a Thriving Industry.

Strawberries, with their vibrant allure and universal appeal, are more than just a treat for the senses—they are a linchpin in a thriving global industry that blends agriculture, trade, and innovation. From the fertile lands of Egypt to the sun-soaked fields of California, strawberries not only bring joy to millions but also serve as a significant contributor to the global economy. Their role extends from fresh consumption to a myriad of value-added products that enrich industries and fuel innovation worldwide.

Globally, the strawberry industry is valued at over $22 billion, and its economic impact stretches far beyond the farm. In addition to fresh sales, strawberries drive substantial revenue through products like jams, frozen desserts, smoothies, and cosmetics. The industry also supports employment for millions, from laborers in the fields to scientists in laboratories developing new strawberry-derived formulations for health and beauty products.

Egypt has emerged as a shining star in the global strawberry market. Known for its ideal climate, high-quality production, and strategic export capabilities, Egypt ranks among the top strawberry-exporting countries. Leveraging its geographical proximity to key markets in Europe and the Middle East, Egypt supplies fresh and frozen strawberries that meet stringent international standards. This has enabled the country to become a preferred supplier for some of the world’s largest food companies.

Other leading players in strawberry production include China, which contributes over 40% of global output, and the United States, particularly California, which combines advanced farming techniques with robust supply chains. Meanwhile, Spain and Mexico excel in exports, delivering fresh strawberries to consumers worldwide year-round. Together with Egypt, these nations shape the landscape of the strawberry industry and ensure a steady global supply of this versatile fruit.

In addition to its economic significance, the strawberry industry is a hub of innovation. From sustainable farming methods in Europe to high-tech cold storage facilities in Egypt, the sector is constantly evolving to meet changing consumer demands for quality, sustainability, and health benefits. As global markets grow increasingly interconnected, strawberries exemplify how agriculture can act as a bridge between nations, cultures, and economies.

In this edition, we’ll delve into the pivotal role of strawberries in the global economy, their diverse applications across industries, and the contributions of leading producers—including Egypt—as a rising powerhouse in strawberry exports. Get ready to uncover how this humble berry weaves a rich tapestry of economic and cultural significance around the globe.

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Netherlands: Stable Strawberry Market with Balanced Supply and Demand

In the Netherlands, the typical October surge in strawberry supply has not materialized this year, leading to a well-balanced market where supply meets demand effectively. This equilibrium has resulted in stable prices, with day rates hovering around €5-6 per kilogram. Packaged greenhouse strawberries are retailing at approximately €7.50 per kilogram in the Netherlands, and around €13.50 per kilogram in the UK.

Several factors have contributed to this balance. Following disappointing prices at the start of last autumn, growers delayed planting this year. Additionally, cold weather prompted an earlier cessation of tunnel-grown strawberry production compared to the previous year. However, warmer conditions in September and early October extended the growing season for tunnel-grown strawberries in both the Netherlands and the UK, a significant export market.

The quality of the strawberries remains high, with good brix levels, although sufficient daylight is necessary to maintain these sugar levels. Concerns have been raised that a reduction in daylight, coupled with high night temperatures, could negatively impact quality.

Unlike previous years, there has been an absence of aggressive promotions during this period, contributing to the stability in pricing. However, there is an anticipation of increased volumes becoming available in the coming weeks, which may influence market dynamics.

Overall, the Dutch strawberry market is experiencing a period of stability, with supply and demand in harmony, leading to favorable conditions for both growers and consumers.

Belgium's Strawberry Market: From Peak Prices to Stable Growth

In September 2024, Belgium's strawberry market experienced unprecedented price surges, with median prices reaching approximately €9.85 per kilogram; this spike was primarily due to limited volumes, as noted by industry experts.

As October progressed, the market saw a modest increase in strawberry volumes, leading to a stabilization of prices. Currently, auction prices range between €5 and €6 per kilogram, a level considered favorable by traders. Even smaller-sized strawberries are commanding good prices, indicating robust demand.

Looking ahead, volumes are expected to rise further; however, significant price declines are not anticipated. The sustained demand from both domestic and European markets suggests that the Belgian strawberry sector is poised for a strong finish to the year. Growers plan to continue production until the end of December, capitalizing on the current market conditions.

In summary, after a period of exceptionally high prices, Belgium's strawberry market has transitioned to a more balanced state. The combination of increased volumes and steady demand has resulted in stable pricing, benefiting both producers and consumers as the year concludes.

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?Huelva's Strawberry Sector Faces Challenges Amidst Water Scarcity and Illegal Cultivation

In October 2024, Huelva initiated the planting of approximately 360 to 370 million strawberry plants, averaging about 9 million daily throughout the month. This extensive planting phase is expected to generate around 10,000 jobs, underscoring the region's pivotal role in Europe's strawberry supply during the winter and spring seasons.

However, the sector is grappling with significant challenges due to ongoing drought conditions and illegal cultivation practices. The lack of substantial rainfall has led to a 25% reduction in water allocations for irrigation, with potential increases to 50% if the drought persists into spring. These restrictions have previously forced some plantations to cease production prematurely, notably in May of the previous season.

Compounding these issues is the prevalence of unauthorized farming activities. According to WWF, approximately 1,180 hectares of greenhouses in Huelva operate outside legal land use regulations, accounting for about 9% of Andalusia's berry production. These illicit operations are projected to produce around 30,000 tons of berries, including strawberries, which are expected to enter European markets this winter. Such practices not only undermine legal growers but also exacerbate environmental concerns, particularly the depletion of water resources in the Do?ana National Park.

Despite these adversities, the 2023/24 season concluded with a 2% increase in volume and a 10% rise in value for Andalusia strawberry exports, based on data from December to July. Looking ahead, the cultivated area for strawberries is projected to remain stable, with a possible slight decrease.

Huelva's prominence in the European strawberry market is notable, particularly from February to April, when it serves as the primary supplier. During this period, Morocco's production peaks, primarily targeting the processing industry, allowing Huelva to dominate the fresh strawberry market in Europe.

The sector is advocating for the implementation of planned hydrological infrastructures to mitigate the impact of water scarcity. The construction of these infrastructures, as outlined in the province's hydrological plans, could potentially increase water resources by 111%, offering a sustainable solution to the ongoing challenges faced by Huelva's strawberry industry.

France's Strawberry Market Faces Seasonal Decline in Demand

As the French strawberry season concludes, the market is experiencing its customary autumnal slowdown. Domestic strawberries are still available, complemented by imports from Spain and Belgium. However, consumer interest has waned, leading to relatively low prices. This trend aligns with historical patterns observed during this period.

Despite a few days of sunny weather, demand has not seen a significant boost. Post-summer, French consumers typically shift their preferences towards seasonal produce, contributing to the current market dynamics. This seasonal transition impacts the strawberry market annually, resulting in decreased demand and pricing during the autumn months.

In March 2024, France experienced a 9% increase in strawberry prices, reflecting the complex interplay of regional weather conditions, supply chain dynamics, and growing consumer demand for premium varieties.

Overall, the French strawberry market is exhibiting predictable seasonal patterns, with demand and prices declining as consumers turn to other seasonal fruits and vegetables. This cyclical behavior underscores the importance of strategic planning for producers and retailers to navigate the fluctuations inherent in the fresh produce market.

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Germany's Strawberry Market Faces Declining Production and Rising Imports

In 2024, Germany's strawberry industry is confronting significant challenges, including reduced domestic production and increased reliance on imports. The Federal Statistical Office (Destatis) estimates that the outdoor strawberry harvest will yield approximately 70,000 tons, marking the lowest output since 1995. This represents a 24% decrease from the already diminished 2023 harvest of 92,700 tons and a 34% decline compared to the average annual harvest of 106,600 tons between 2018 and 2023.

Several factors contribute to this downturn. The acreage dedicated to open-field strawberry cultivation has contracted by 13% year-over-year, now encompassing around 8,100 hectares. Additionally, adverse weather conditions, notably heavy and prolonged rainfall, have led to crop failures in various regions.

To satisfy domestic demand, Germany has increasingly turned to imports, bringing in approximately 114,010 tons of strawberries in the previous year, primarily from Spain and Greece. This trend underscores the growing gap between domestic production and consumption.

The shortfall in fresh strawberry production has also influenced the frozen strawberry market. Germany stands as Europe's largest importer of frozen berries, including strawberries, with imports totaling 213,000 tons in 2022. Although there was an average annual decline of 3.7% between 2018 and 2022, the demand for frozen berries remains substantial, driven by consumer preferences for healthy, convenient food options.

Market prices have responded to these dynamics. Currently, domestic strawberries command prices around €8.57 per kilogram, a significant increase from €4.43 per kilogram in the previous year. This price surge reflects the scarcity of local produce and the heightened costs associated with imports.

In summary, Germany's strawberry market is navigating a period of contraction in domestic production, increased import dependence, and rising prices. These developments highlight the need for strategic adjustments within the industry to address both environmental challenges and shifting market demands.

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Italy's Strawberry Market: Autumn Harvest and Market Dynamics

Italy's strawberry industry is experiencing a dynamic period, marked by a successful autumn harvest and evolving market trends.

In the Marche region, growers cultivating over 26,000 soilless strawberry plants have reported favorable outcomes. From late September to early October, producer prices peaked at €10 per kilogram, later stabilizing between €7 and €8 per kilogram by mid-October. The harvest, which commenced on September 28, is expected to continue until mid-November, weather permitting. The majority of this produce is supplied to local wholesalers, who distribute to specialized retailers. Maintaining a recognizable regional brand has been instrumental in fostering customer loyalty.

In southern Italy, the planting of fresh strawberry seedlings is underway, anticipated to conclude by year's end. Notably, the area dedicated to strawberry cultivation is expected to expand compared to the previous season, with increased plantings in regions such as Basilicata and Campania. The current plant material, sourced mainly from Spain and Poland, exhibits promising quality. Favorable weather conditions have further supported optimal development and rooting of the seedlings.

Consumer engagement with strawberries remains robust. Data from GfK | YouGov indicates that as of August 2024, 69% of Italian households purchased strawberries at least once in the preceding 12 months. The purchase frequency remains steady at nearly seven times annually, with peak buying occurring between March and May. Expenditure per purchase has risen, reflecting the general increase in fast-moving consumer goods prices.

The Italian strawberry market has experienced modest growth. In 2023, the market value rose to $377 million, a 3.3% increase from the previous year. Despite this uptick, overall consumption has seen a slight decline over the past decade, with the market peaking at $498 million in earlier years. Production value mirrored this trend, reaching $377 million in 2023.

In terms of production volume, Italy is projected to produce approximately 122,000 metric tons of strawberries by 2026, down from 127,300 metric tons in 2021. This represents an average annual decrease of 0.8% since 1966.

Italy's strawberry sector continues to demonstrate resilience and adaptability, with growers and consumers alike contributing to the market's sustained vitality. The combination of successful harvests, expansion in cultivation areas, and steady consumer demand underscores the dynamic nature of Italy's strawberry industry.

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Greece's Strawberry Sector Anticipates Robust Second-Half Harvest

Greece's strawberry industry is poised for a substantial yield in the latter half of the season, particularly with the Victory variety leading production.

Since its introduction in 2016, the Victory strawberry has become predominant in Greek cultivation, now accounting for approximately 75-80% of the total strawberry farming area, which spans about 2,100 to 2,200 hectares. This variety is favored for its early yield and consistent production throughout the season. Its resilience and extended post-harvest shelf life make it suitable for reaching distant markets without compromising quality.

The current planting season for Victory strawberries commenced on October 5, with no significant delays reported. If adverse weather conditions are avoided, Greece anticipates a larger strawberry crop during the Victory harvest period compared to the previous year. The demand for both bare-root and tray-grown Victory plants has risen, indicating growers' confidence in this variety's performance.

The expansion of Victory cultivation aligns with Greece's strategy to enhance its presence in the European strawberry market. Greek strawberries are among the earliest harvested in Europe, beginning in November, with significant volumes entering the market from March onwards. This early availability positions Greece favorably to meet European demand before other major producers, such as Spain, commence their seasons.

The strawberry sector plays a vital role in Greece's agricultural economy, contributing to both employment and export revenues. The increasing cultivation area and anticipated bumper crops suggest a positive economic trajectory for the industry. However, challenges such as labor shortages during peak harvest times remain a concern for producers.

Greece's strategic focus on the Victory strawberry variety and the expansion of cultivation areas underscore the country's commitment to strengthening its position in the European strawberry market. With favorable climatic conditions and increased grower investment, the Greek strawberry industry is set to achieve significant growth in the upcoming season.

Egypt's Strawberry Industry Faces Climatic and Economic Challenges

As Egypt's strawberry season commences in November, the industry confronts significant climatic and economic challenges impacting production and export dynamics.

Recent years have seen increased temperatures, heat waves, and unpredictable rainfall patterns, adversely affecting strawberry cultivation. These climatic variations have led to reduced yields and compromised fruit quality, posing substantial challenges to growers.

Economic constraints, including rising production costs and difficulties in sourcing quality plants, have further complicated the situation. Notably, there has been a significant shift from fresh to frozen strawberry production. One grower estimates a 25% reduction in fresh strawberry acreage compared to the previous season, with these areas now dedicated to cultivating strawberries for the frozen sector. This transition is attributed to both plant quality issues and the favorable prices achieved by frozen strawberries in the last season.

Despite these challenges, Egypt maintains a strong presence in the global strawberry market. In the six-month period from September 2023 to February 2024, the country exported approximately 45,000 tons of strawberries, valued at $129 million. These exports accounted for 2% of Egypt's total agricultural exports by volume and 6% by value.

Furthermore, Egypt holds a significant position in the frozen strawberry market, commanding a 20% share of the global market. In 2024, the country exported around 120,000 metric tons of frozen strawberries, marking a 15% increase from the previous year, with total export value rising to $180 million from $156 million in 2023. Key markets for these exports include Germany, the United Kingdom, and the Netherlands.

Looking ahead, Egypt's strawberry production is forecasted to increase consistently from 2024 to 2028, starting at 400.62 thousand metric tons in 2024 and reaching 432.16 thousand metric tons by 2028. This represents a compound annual growth rate (CAGR) of approximately 1.92% over the five-year period.

However, to sustain and enhance its competitiveness in the global market, the Egyptian strawberry industry must address the ongoing climatic and economic challenges. Implementing adaptive agricultural practices, investing in resilient plant varieties, and optimizing resource management will be crucial steps toward ensuring the sector's long-term viability and success.

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North America's Strawberry Industry Faces Climatic Challenges

The North American strawberry sector is contending with significant climatic disruptions, notably in California and Florida, affecting both production and market dynamics.

California's Heat wave Impact

In late September to early October 2024, California's central regions, including Salinas-Watsonville, Santa Maria, and Oxnard, experienced an unseasonal heatwave. Temperatures soared, with Salinas recording highs up to 39.4°C (102.9°F) during this period. This extreme heat adversely affected strawberry crops, leading to smaller, less robust berries and raising quality concerns among producers and consumers.

Florida's Agricultural Losses from Hurricane Milton

In October 2024, Hurricane Milton made landfall in Florida as a Category 3 storm, causing substantial damage to the state's agricultural sector. The hurricane impacted over 5.7 million acres of agricultural land, with estimated losses ranging from $190.4 million to $642.7 million. The strawberry industry, among others, faced significant setbacks due to delayed plantings and damaged infrastructure.

Market Implications

These climatic events have led to a weakened strawberry market in North America. In California, the heat wave resulted in an abundant supply of lower-quality strawberries, affecting demand and pricing. Similarly, in Florida, the hurricane-induced delays in planting are expected to disrupt the production schedule, potentially affecting the value of future harvests.

The recent climatic challenges in California and Florida underscore the vulnerability of North America's strawberry industry to extreme weather events. Producers are urged to adopt resilient agricultural practices and invest in infrastructure to mitigate the impacts of such disruptions on future production cycles.

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South Africa's Strawberry Industry Faces Market Saturation and Price Declines

South Africa's primary strawberry season is concluding, with production tapering off as temperatures rise. The Southern and Western Cape regions are expected to continue limited production into the summer months.

In recent years, the industry has experienced significant growth, doubling in size over the past four years, primarily driven by export demand. Approximately 90% of these exports are destined for the United Arab Emirates and Saudi Arabia.

However, this rapid expansion has led to market saturation, particularly in the domestic market. An influx of new entrants, some underestimating the labor-intensive nature of strawberry cultivation, has resulted in increased production volumes. When these producers are unable to meet export quality standards, their produce floods the local market, driving prices down. At peak supply, 250g punnets were sold for as low as R3 to R4 (approximately 0.15 to 0.20 euros), significantly below the breakeven point for farmers.

In October 2023, strawberry punnets sold at the Johannesburg and Tshwane markets achieved an average price 24% higher than the previous month. Despite this increase, traders noted that prices were still 15% to 30% lower compared to the previous year, indicating ongoing market sensitivity.

The domestic market's sensitivity underscores the need for strategic planning within the industry. Producers are advised to carefully assess market demand, both domestically and internationally, and to maintain high-quality standards to meet export requirements. Additionally, understanding the complexities of strawberry cultivation is crucial to ensure sustainable operations and to prevent further market oversaturation.

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Conclusion: A Dynamic Industry in a Changing World

The global strawberry industry is a testament to the resilience and innovation of agriculture in the face of diverse challenges. From the sunlit fields of California to the technologically advanced greenhouses of the Netherlands, the world’s strawberry-producing nations are not only responding to consumer demand but also pushing the boundaries of sustainable farming and economic impact.

Each region showcases its unique strengths and struggles. Egypt leverages its geographical advantage to dominate frozen exports, while Greece capitalizes on its Victory variety to maintain a stronghold in the European market. Spain continues to navigate water scarcity and legal land-use challenges to sustain its leadership in Europe. Meanwhile, countries like Germany and France face declining production and seasonal dips in demand, highlighting the critical role of imports and market adjustments.

The industry is also deeply intertwined with climatic realities. From California’s heatwaves to Florida’s hurricane disruptions and South Africa’s market saturation, strawberry producers are increasingly adapting to unpredictable weather patterns and shifting economic pressures. These challenges underline the need for innovative solutions, including sustainable farming practices, advanced logistics, and strategic market planning.

Despite these hurdles, the global strawberry industry continues to thrive, underscoring its vital role in the global economy. Its value-added applications, from fresh produce to cosmetics and frozen products, ensure that strawberries remain indispensable across multiple sectors. As countries refine their strategies to address climatic and economic factors, the industry is poised for sustainable growth, driven by the universal love for this vibrant, sweet fruit.

The story of strawberries is one of perseverance and opportunity—where agriculture meets innovation, and local efforts contribute to global success. By addressing the challenges and capitalizing on opportunities, the industry can continue to flourish, delivering sweetness to tables and value to economies worldwide.

Best Regards

Mostafa Adel

+201142717700

[email protected]

mmagroup.co