|
|
 |
Wild Blueberry Fact Sheet
Lowbush Blueberry Production and Marketing
in Nova Scotia
A Situation Report - 1994
INTRODUCTION
SECTION I - PRODUCTION
Producers and Acreage
Production Figures
Production Areas
Production Methods
Production and Harvesting Costs
SECTION II - MARKETING
The Marketing System
Prices Paid to growers
Processing
Processing Costs
Marketing Costs
Fresh Markets
The lowbush blueberry has developed from humble beginnings into
one of the most important horticultural crops in Nova Scotia.
The large scale commercial development of today had its beginnings
in the late forties and early fifties. Since then, the industry
has steadily expanded. Lowbush blueberries are the No.1 fruit
crop in the province in terms of total acreage, export sales,
and total value to the province's economy.
In 1953, provincial production was 1,125,000 pounds with a
farm value of $152,000. The five-year average production from
1986 to 1990 was 19,313,661 pounds with a farm value of $10,043,103
and a total to the province's economy of over $30,000,000. In
1990 and 1991, Nova Scotia produced almost 28,000,000 lbs of
lowbush blueberries, and in 1992 33,000,000 lbs. were produced
with a farm gate value of $16,500,000 and a total value to the
economy in excess of $45,000,000. The 1993 crop was 30,300,000
lbs.
There are over 1,000 producers in the province and about 28,000
acres in production. Most growers operate their fields on a
two-year pruning cycle, with about half of their total acreage
in crop each year. Acreage per grower varies from as low as
one acre to well over a thousand acres for a few large producers.
Thus, annual production per grower can vary anywhere from a
low of a few hundred pounds to a high of 2,000,000 pounds or
more.
The table below gives annual lowbush blueberry production
figures in Nova Scotia for the past thirty-eight years. The
table on the following page gives five-year production figures.
Annual Lowbush Blueberry Production Figures for Nova Scotia
(lbs.) (lbs.)
Year Production Year Production
1956 4,020,000 1974 7,557,000
1957 4,800,000 1975 9,928,632
1958 3,000,000 1976 6,842,349
1959 5,200,000 1977 8,202,370
1960 5,400,000 1978 11,618,207
1961 5,700,000 1979 10,723,011
1962 7,400,000 1980 8,348,407
1963 7,000,000 1981 12,866,140
1964 5,100,000 1982 14,113,780
1965 7,000,000 1983 19,502,395
1966 7,600,000 1984 15,107,326
1967 11,500,000 1985 18,950,760
1968 2,100,000 1986 16,212,357
1969 8,882,000 1987 13,525,056
1970 8,200,000 1988 22,005,048
1971 7,100,000 1989 16,831,560
1972 9,897,000 1990 27,994,286
1973 10,075,000 1991 27,940,676
1992 33,007,621
1993 30,307,975
Average Production Figures - Nova Scotia (1961 to 1993)
Period Average Annual Production
1961 - 1965 6,440,000 lbs.
1966 - 1970 7,656,400 lbs.
1971 - 1975 8,911,526 lbs.
1976 - 1980 9,146,868 lbs.
1981 - 1985 16,108,080 lbs.
1986 - 1990 19,313,661 lbs.
1991 - 1993 30,418,757 lbs.
The overall steady increase in production over the past thirty
years has been due to a strong production base of privately owned
land; continuous research and promotion of improved cultural practices
by government; aggressive and innovative industry entrepreneurs;
ample modern processing facilities; a strong and active producers'
association and steadily expanding markets.
Years of unusually high production have been mainly due to
a particularly favorable growing season with an abundance of
native pollinators and a good supply of moisture at critical
times during the growing season. The one year of exceptionally
low production (1968) was due to a very late spring frost combined
with a prolonged summer drought.
For the purpose of presenting a more accurate picture of lowbush
blueberry production in Nova Scotia, the province may be divided
into five production areas:
1) Cumberland County 2) Central Nova Scotia - includes counties
of Halifax, Colchester and Hants 3) Eastern Nova Scotia - includes
counties of Guysborough, Antigonish and Pictou 4) Western Nova
Scotia - includes counties of Kings, Yarmouth, Digby, Lunenburg,
Queens, Shelburne and Annapolis 5) Island of Cape Breton Each
production area has specific conditions or factors that have
a bearing on blueberry production, yields and losses.
About 75 percent of our present production comes from Cumberland
County. Although there is still undeveloped acreage which could
be brought into production in this county, increased production
here will result mainly from improved cultural practices. Yields
are generally higher than other areas of the province. This
is because development of large acreages took place first in
this county, and many fields have been continually improved
by a good cultural program over a long period of time. Also,
the central part of this county has nearly ideal soil and climatic
conditions for good blueberry production.
The central region has developed steadily during the past
several years. This area has good climatic conditions and a
good natural acreage base. Production from this region should
continue to increase as more fields are developed and existing
acreage is gradually improved.
A continued increase in the development and improvement of
acreage in eastern Nova Scotia has also occurred during the
past several years. Most fields in Pictou and Antigonish counties
and the northern part of Guysborough County have very few weed
problems and climatic factors appear favorable for development.
Production potential on the large tracts of barren land in the
southern and coastal areas of Guysborough County is not great
because of climatic factors (i.e. short growing season, severe
winterkill) and extremely rough terrain. Only a few of these
fields are burned on a regular basis, and usually this is the
only cultural practice followed. These fields are rough and
rocky and, in most cases, they are owned by the province (Crown
lands). With no private ownership and severe production constraints,
there is lack of individual initiative to develop fields for
higher production.
In the western part of the province (from Hants County westward),
blueberry acreage has been developed mainly in Annapolis, Queens,
Lunenburg and Yarmouth counties. There are over 1,000 acres
presently in production and many more potential acres which
could be developed. This area has the natural advantage of a
longer growing season. However, fields have historically been
plagued with rocky rough terrain and more weed problems than
in other areas of the province. With the introduction of new
and improved methods of weed control and land improvement, there
is a growing interest in developing new acreage in these counties.
Cape Breton Island has historically never produced satisfactory
commercial yields. For years, this was attributed mainly to
lack of sufficient heat units during the growing season in coastal
areas where commercial development has been attempted. Several
inland locations on the island are currently being developed
for commercial blueberry production. It now appears that some
of these areas have good potential, and that lack of a proper
long-term cultural and management program may have been the
limiting factor in past commercial development attempts.
Growing a commercial crop of lowbush blueberries has developed
into a fairly complex operation. A grower with any significant
acreage is involved with various production activities from
early spring until late fall. While this booklet is not intended
as a production manual, a brief description of the seasonal
activities of the blueberry grower is presented here to give
a capsule picture of the production methods used with this crop.
PRUNING
Pruning lowbush blueberries is done by flail mowing or burning
in either the fall or early spring. Pruning gets rid of old growth
and promotes the growth of vigorous new shoots which will produce
a high yielding crop the following year. Usually, one-half of
the total acreage is pruned each year. Burning is usually done
with oil or gas burning machines. A few growers spread hay or
straw in the fall and burn fields in the spring without the use
of a machine. Flail mowing is cheaper than burning and is rapidly
increasing in popularity as a pruning method on level ground.
The blueberry plant produces only vegetative shoots the first
season following pruning. The second year, blossoms and fruit
are produced.
INSECT AND DISEASE CONTROL
At various times during both the sprout (first) and cropping (second)
years of growth, sprays may need to be applied to control insect
and disease pests. These materials are usually applied with ground
spraying equipment, such as boom or mist blower sprayers.
WEED CONTROL
Because of the semi-cultivated condition of blueberry fields,
weed control is a continuous problem. The weed control program
for most fields involves an overall pre-emergent spray in the
spring of the sprout year followed by spot spraying to control
escape weeds. Some spot treating of weeds may also be done following
harvest during the crop year. Bush type weeds are cut and treated
with herbicides while softer weeds are sprayed with back sprayers
or tractor-mounted boom sprayers.
POLLINATION
Lowbush blueberry flowers must be insect pollinated. In order
to ensure an adequate pollinating force, many growers place colonies
of honeybees in their fields during the bloom period (three weeks
during June). The hives of bees are usually removed once the bloom
period is over.
HARVESTING
Harvesting on crop fields begins in mid August. Berries are harvested
either by hand raking or the use of mechanical harvesters. Harvesting
with hand rakes involves organizing one or more picking crews
to rake the berries which are then delivered to a collecting station
or processing plant. Fields are divided into picking lanes with
one raker assigned to each lane. Field supervisors, truckers,
field weighers, stringers, etc. must be hired for large operations.
If only a small acreage is involved, the grower may perform most
of these duties himself. Harvesting usually lasts from one to
four or five weeks depending on weather conditions and the acreage
to be harvested.
In 1984, the first commercially successful mechanical harvesters
were used on about 20 farms. There are now over 250 of these
machines in use. A harvester can pick up to six ton of berries
per day in high-yielding fields. However, their use is restricted
to fields that are quite smooth and relatively free of weed
growth. Harvesting costs with the machine average about half
the cost of harvesting with a raking crew. In 1993, it is estimated
that 50 to 60 percent of the provincial crop was machine harvested.
It is anticipated that mechanical harvesters will be used on
more acreage each year.
OTHER
Besides these essential operations, many growers are involved
in clearing new land for production and improvement of existing
fields through fertilizing, drainage, constructing firebreaks,
land leveling, etc.
The cost of producing and harvesting a pound of blueberries
varies greatly from one grower to another depending on the program
he follows, the yield per acre he obtains from his field, and
whether his land can be mowed and mechanically harvested. As
the yield per acre increases, the unit costs decreases accordingly.
Most growers feel their cost for production and harvesting using
traditional burning and hand harvesting is somewhere between
35 and 40 cents per pound.
The tables given on the following pages outline costs for
a complete production program. Tables I and II give typical
costs when the plants are pruned by burning and hand harvested.
Comparable costs for pruning by flail mowing and mechanical
harvesting are given in Tables III and IV. By using these figures,
a grower can obtain estimates of the cost of producing and harvesting
a pound of blueberries and make a comparison of costs as they
are affected by different yields. These figures are considered
by extension workers to be realistic even though costs do vary
considerably among different growers.
Table I - PRODUCTION AND HARVESTING COSTS USING BURNING AND HAND HARVESTING
Production Cost Per Acre Harvesting and Handling Costs
Pruning (Burning) $ 130.00 Harvesting & Supervision $.15 to $.20/lb
Fertilization 30.00 Equipment & Transportation $.02/lb
Insect Control 20.00
Disease Control 40.00 TOTAL $.17 to $.22/lb
Weed Control 70.00
Pollination 70.00
Taxes, Machinery,
& Other Overhead Costs 40.00
TOTAL $ 400.00
Table II - VARIABILITY OF TOTAL PRODUCTION AND
HARVESTING COSTS PER POUND DUE TO YIELD VARIATIONS
(Based on Table I Cost Figures)
Yield Production Cost Handling Costs* Total Cost
1,000 lbs/acre 40.0 cents/lb ($400 per acre) 22 cents/lb 62.0 cents/lb
1,250 lbs/acre 32.0 cents/lb ($400 per acre) 21 cents/lb 53.0 cents/lb
1,500 lbs/acre 26.6 cents/lb ($400 per acre) 20 cents/lb 46.6 cents/lb
1,750 lbs/acre 22.8 cents/lb ($400 per acre) 19 cents/lb 41.8 cents/lb
2,000 lbs/acre 20.0 cents/lb ($400 per acre) 18 cents/lb 38.0 cents/lb
2,250 lbs/acre 17.7 cents/lb ($400 per acre) 17 cents/lb 34.7 cents/lb
2,500 lbs/acre 16.0 cents/lb ($400 per acre) 17 cents/lb 33.0 cents/lb
2,750 lbs/acre 14.5 cents/lb ($400 per acre) 17 cents/lb 31.5 cents/lb
3,000 lbs/acre 13.3 cents/lb ($400 per acre) 17 cents/lb 30.3 cents/lb
* Harvesting and handling costs have been varied from 22 cents to 17 cents
to reflect the influence of good yields in lowering harvesting rates.
Table III - PRODUCTION AND HARVESTING COSTS
USING FLAIL MOWING AND MECHANICAL HARVESTING
Production Cost Per Acre Harvesting and Handling Costs
Pruning $ 35.00 TOTAL 10 to 12 cents/lb
Fertilization 30.00
Insect Control 30.00
Disease Control 60.00
Weed Control 70.00
Pollination 70.00
Taxes, Machinery,
& Other Overhead Costs$ 40.00
TOTAL $335.00
Table IV - VARIABILITY OF TOTAL PRODUCTION AND
HARVESTING COSTS PER POUND DUE TO YIELD VARIATIONS
(Based on Table III Cost Figures)
Harvesting and
Yield Production Cost Handling Costs* Total Cost
1,000 lbs/acre 33.5 cents/lb ($335 per acre) 12 cents/lb 45.5 cents/lb
1,250 lbs/acre 26.8 cents/lb ($335 per acre) 12 cents/lb 38.8 cents/lb
1,500 lbs/acre 22.3 cents/lb ($335 per acre) 11 cents/lb 33.3 cents/lb
1,750 lbs/acre 19.1 cents/lb ($335 per acre) 11 cents/lb 30.1 cents/lb
2,000 lbs/acre 16.7 cents/lb ($335 per acre) 10 cents/lb 26.7 cents/lb
2,250 lbs/acre 14.8 cents/lb ($335 per acre) 10 cents/lb 24.8 cents/lb
2,500 lbs/acre 13.4 cents/lb ($335 per acre) 10 cents/lb 23.4 cents/lb
2,750 lbs/acre 12.1 cents/lb ($335 per acre) 10 cents/lb 22.1 cents/lb
3,000 lbs/acre 11.1 cents/lb ($335 per acre) 10 cents/lb 21.1 cents/lb
*Harvesting and handling costs have been varied from 12 cents to 10 cents
to reflect the influence of good yields in lowering harvesting rates
Production costs vary considerably from grower to grower, depending
on the condition of his fields, his location and his management
program. The harvesting and handling cost per pound for hand raking
varies with labor availability, yield per acre and field conditions.
Mechanical harvesting costs will also vary depending on yield
and field conditions. growers with low yielding or poorly managed
fields must pay higher harvesting costs than those with weed free,
high yielding fields. Because of the great variations between
growers' costs, it is difficult to determine meaningful average
production and harvesting costs for growing lowbush blueberries.
Each operation must be assessed on the basis of its production,
location, yield, management plan and the variable cost factors
mentioned on the preceding page.
The form below could be used by all growers in order to determine
their own production and harvesting costs.
Production Cost Per Acre
Pruning $
Weed Control $
Disease Control $
Insect Control $
Pollination $
Fertilization $
Taxes $
Machinery & Equipment $
Miscellaneous $
TOTAL $ _________Per Acre
Harvesting Costs (Cents Per Pound)
Picking ______________cents
Supervision ______________cents
Supplies & Equipment ______________cents
Transportation ______________cents
TOTAL ______________cents Per Pound
The production cost per pound is calculated by dividing the yield
per acre into the production cost per acre. By adding this cost
to the harvesting cost, the total production and harvesting cost
per pound is obtained. This can then be compared to the market
price for berries to determine profit or loss per pound of berries
produced (see form on next page).
Total Production and Harvesting Cost Per Pound
Production Cost Per Pound Cents
Harvesting Cost Per Pound Cents
Total Cost of Production and Harvesting Per Pound Cents
Profit or Loss
Market Value of Blueberries Cents per pound
Cost Production & Harvesting Cents Per Pound
Profit or Loss Cents Per Pound
The bulk of Nova Scotia's annual lowbush blueberry crop is
sold to processors and frozen for eventual resale to blueberry
product manufacturers. A well defined marketing system has evolved
for getting the crop from the field to the end user. To help
in describing this system, there are several terms which should
be defined.
- A grower is a person who grows and harvests blueberries.
He may or may not be a buyer or processor.
- A buyer is a person who buys blueberries from the grower
and sells to the processor. He is usually, but not necessarily,
a grower himself.
- A processor is a person who buys blueberries from the buyer
or directly from the grower. He processes (freezes) these
berries at this plant. They are then either resold immediately
or stored and held for future sales. Some processors are also
large growers.
- A manufacturer is a person who buys blueberries (mostly
frozen but sometimes fresh) for use in the manufacturing of
blueberry pies, tarts, muffins, etc., or other manufactured
products.
The buyer, or middleman as he is sometimes called, is an important
link in the marketing chain and has done a lot to develop the
blueberry industry in Nova Scotia. He has helped to create a ready
market for many small growers and has also provided them with
a great many necessary custom services. There are approximately
30 buyers in the province of Nova Scotia at present (1991). Most
of these buyers are also large growers.
Most buyers supply the necessary harvesting and marketing
equipment, such as rakes, pails and field cleaners, to growers.
Sometimes, they provide picking crews (paid for by growers)
to harvest the crop. Boxes for harvesting and transporting the
berries are provided by the processor Most buyers and processors
own burners and flail mowers and will custom-prune fields. Many
buyers and processors also provide services such as weed control
work, spraying and fertilizing, hives for pollination, etc.
on a custom basis. All of this, of course, means that each grower
does not have to invest a lot of money in supplies and equipment.
Most buyers have collecting points or receiving stations set
up where they receive the blueberries. At these stations, the
berries are weighed, cleaned and then shipped to a processing
plant. All of the Nova Scotia production does not go through
buyers. A considerable amount is grown by, or sold directly
to, the processor, and some blueberries are sold fresh on the
retail consumer market.
In 1993, 73 percent of Nova Scotia's production was processed
by Nova Scotia processors, and about 26 percent was shipped
fresh by buyers to processing plants outside Nova Scotia (mostly
in the state of Maine). Local fresh sales accounted for less
than 1 percent of total production.
Up until 1972, approximately 70 percent of the total Nova
Scotia processed pack was usually sold to United States manufacturers,
while the other 30 percent was sold to manufacturers in Canada.
Beginning in 1972, increasing amounts of Nova Scotia berries
were sold to European countries such as West Germany, Sweden,
Norway and the Netherlands. From 1977 to 1982, over 60 percent
of each year's crop was sold in Europe. Small quantities were
sold in Japan in the late 1970's and this market increased steadily
for about five years. Since then, there has been a leveling
off of demand. Shipments to European markets declined substantially
from 1983 to 1985 because of the strength of the Canadian dollar
in relation to most European currencies. More favorable currency
exchange rates returned in 1986 and have resulted in a revival
of European sales since that time. In most cases, shipments
of overseas markets are made by refrigerated containers through
the ports of Halifax or St. John.
Prices paid to the grower over the last thirty-four years
are given as follows:
YEAR AVERAGE PRICE (cents/lb) YEAR AVERAGE PRICE (cents/lb)
1956 10.5 1974 18.5
1957 12.0 1975 26.5
1958 12.5 1976 32
1959 10.5 1977 62
1960 10.0 1978 50
1961 9.0 1979 38
1962 8.5 1980 45
1963 12.0 1981 48
1964 15.0 1982 60
1965 24.0 1983 40
1966 16.0 1984 30
1967 7.0 1985 25
1968 17.0 1986 45
1969 15.0 1987 60
1970 21.0 1988 60
1971 16.0 1989 60
1972 24.0 1990 42
1973 28.0 1991 55
1992 50
1993 25
Prices over this period have fluctuated greatly from a low in
1967 of 7 cents to a high in 1977 of 62 cents.
The average price per pound received by growers in the 1950's
was 11.8 cents; in the 1960's; this rose to 13.4 cents per pound.
During the 1970's, the grower price averaged 31.6 cents per
pound; and over the ten year period from 1983 to 1992, the average
grower price was 46.7 cents per pound. The average price over
the five year period from 1988 to 1992 was 53.4 cents per pound.
The price for the 1993 crop dropped dramatically to .25 cents
per lb. due to an inventory carryover, increased competition
from highbush blueberries, and a general down turn in the economy.
Beginning in the mid 1970's, a steadily increasing market
demand was stimulated through promotional efforts in Europe
and Japan by Nova Scotia's growers and processors, and promotion
booth in North American and overseas markets by the North American
Blueberry Council and the Wild Blueberry Association of North
America. New markets in European countries and Japan lessened
Nova Scotia's dependence on the U.S. market, and resulted in
good prices to growers from 1975 to 1983. The lower prices in
1984 and 1985 resulted from inventory buildup from three successive
high production years in most blueberry production areas of
the world in 1983, 1984 and 1985. There is a continuing job
to be done in selling blueberries in new market areas to cope
with the rapid production increases which have occurred in both
the highbush and lowbush industries in recent years.
There are two processing companies in Nova Scotia which freeze
blueberries for resale to the manufacturer.
1) Cobi Foods Ltd. Port Williams, Kings County, Nova Scotia
2) Oxford Frozen Foods Limited Oxford, Cumberland County, Nova Scotia and
Halfway River, Cumberland County, Nova Scotia
Both companies have Individual Quick Freeze (I.Q.F.) facilities
in their plants and have access to adequate storage facilities
to handle the amount of berries they process.
An explanation of costs involved in processing and marketing
lowbush blueberries is given below. Various costing systems
are used by different processors but it is generally agreed
that total processing costs, excluding transportation, duty
and brokerage charges, will run between 40 and 50 cents per
pound. Transportation costs vary with production destination.
Duty and brokerage charges are a percent of the selling price,
and vary with it.
To illustrate the relationship of processing and marketing
costs to finished product, consider the following example. If
a processor pays 55 cents per pound for blueberries delivered
to his plant, and his total processing and marketing costs based
on the cost given above are 45 cents; then that processor must
receive at least $1 per pound for the finished frozen product.
This would simply cover costs and not allow for transportation,
duty and a margin of profit. A brief explanation of some of
the processing and marketing costs is presented below to give
an indication of various items which make up the total cost
picture.
SHRINKAGE
This item refers to the loss in weight due to dirt, small berries
and other foreign material which is removed as the berries go
through the cleaning and processing lines. The amount of shrinkage
is variable but will usually run somewhere between 10 and 15 percent.
DIRECT COSTS
- Labour (handling and inspection product as it moves from
field or collecting station through the processing line and
into cold storage)
- Storage
- Containers
- Electricity
- Taxes, Dues, Etc.
- Short Term Interest
OVERHEAD
This item includes all equipment and facilities, maintenance and
repairs, insurance, company administration, interest on financing,
depreciation, etc.
DUTY AND BROKERAGE CHARGES
These are a necessary part of the marketing process. They are
calculated as a percentage of the selling price and vary with
it. Duty does not apply to berries sold on the Canadian or U.S.
market, but berries shipped to overseas markets may be subject
to import duties as set by the importing country.
TRANSPORTATION CHARGES
These charges vary with the destination of the product but will
generally run between ten and twenty cents per pound for overseas
destinations.
FOREIGN EXCHANGE
The strength of the Canadian dollar relative to the currency of
the purchasing country is a cost which fluctuates on a continuing
basis and can be an important factor in determining the price
received for berries sold outside of Canada.
A small percentage of the annual lowbush blueberry crop is
sold each year on the fresh market. There are about a dozen
commercial operations marketing fresh fruit in Nova Scotia.
About 280,000 pounds were sold fresh in 1993. The fruit is packaged
in either 10-pound boxes, 5-pound boxes or pint or quart containers.
Sales are mostly to retail store chains or fruit stands. Some
packers work with service clubs or other groups who sell 10
or 5-pound boxes of fresh blueberries as a fund-raising project.
Selling berries on the fresh market requires more labour and
special materials and equipment to do a proper job. There is,
however, a good opportunity for development of substantial sales
if a producer is willing to expend some time and effort to set
up an efficient operation, develop a marketing system and put
out a high quality product.
Prepared by: Jack Sibley, Horticulturist, Plant Industry
Branch,
Nova Scotia Department of Agriculture and Marketing
Truro, Nova Scotia
JDS/kh
January 1994
This page and all contents Crown copyright © 1997, Province
of Nova Scotia, all rights reserved.
|
|
