Cranberry Supplies Trounce Demand Sending Price Down | Global AgInvesting

Cranberry Supplies Trounce Demand Sending Price Down

Cranberry Supplies Trounce Demand Sending Price Down

After industry expansion in the 1990’s and a string of bumper crops the U.S. market is flooded with cranberries.  Currently there are enough cranberries in the marketplace to supply all of the next year even if not another berry was grown. Independent cranberry growers who are not members of Ocean Spray Co-op, are earning less than half the cost of production,receiving $10 per barrel (100 pounds) at a cost of production of $25 per barrel.  Growers that belong to the Massachusetts-based Ocean Spray Co-Op receive better-than-market prices based on the value of the Ocean Spray brand and its product line, especially its craisins sweetened dried cranberries.  Aside from the years of bumper crops produced in the U.S., growth in Canada has been unprecedented.  Within 20 years Canada went from producing zero cranberries to becoming the third largest producer after Wisconsin and Massachusetts.   In response to this situation growers are working to open new markets for their products.  International markets are looking promising but the U.S. market has room for growth as well. The average U.S. household purchases only one 64 ounce bottle of cranberry juice per year. If marketing campaigns could convince consumers to buy just one more per year, the market could double in size.

 

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