A pinch of data sprinkled over your “stellar merger”… spicy stuff

Guest article by Diego Castagnasso, a fresh produce and blueberry industry expert. Loud, opinionated, INFORMED! Diego, writes DC’s B-Side’s newsletter as he speaks and speaks as he writes. You can subscribe, under your own peril, to his newsletter here or visit his less fun (for now) website Drip Consulting.

We are only a few hours away from the end of week 38.

Two years ago this was a historic week due to the massive Peruvian blueberry peak with around 20.000 tons exported in a week.

But this week 38 of 2024 has its own historic event in the Berry Galaxy, we witness a “stellar merger” of Agroberries and Berry World Group creating the 2nd largest company in the sector.

I will make it easy for you…

First an update on the blueberry market, the usual…

Then, some more ideas about what the new born STAR brings to our berry Universe.

If none of it interests you… Bye-bye and see you next week or in person at Fruit Attraction!

So what do we have here…

Week 37 showed a 30% increase compared to 2023 but was still 90% shy of week 38 in 2022.

Peru Fresh Blueberry Exports By History | Cultivated Conventional

But how is the forecasting going?

Forecasts missed the mark by only -2%; probably the organic has something to do with it.

Prices are still high all over the globe although Europe seems to have found the top around CIFs of U$12/14 kg for conventional fruit in sizes of 12mm+.

Probably that is why the USA and UK are getting proportionally more of the 2024 Peruvian fruit than Europe and China.

Yes, I am giving you prices… enjoy

So how does it look in graphs…

Peru Fresh Blueberry Exports By Partner | Cultivated Conventional

Peru Fresh Blueberry Exports By Partner | Cultivated Conventional

And now for the main course…

So if you are in the berry business you might have had a glance at the news about Agroberries buying the last shares of Berry World Group (BWG) 

….and if you, really, like to read you might also come across another article telling the world that Mastronardi was doing exactly  the same with the joint venture they had with Berry World (Mastronardi BerryWorld® America)

So why is this relevant…?

These kinds of mergers and acquisitions change the landscape of the market so I like to follow them and write or post about them.

In Agroberrie’s case, we have…

Size…creates the second largest berry company in the world, with an annual output of 150,000 tonnes, over 3,000ha of own production, and has associated growers in 30 countries.”

They now have control of two of the major genetics programs in blueberries: Sekoya and MBO’s Eureka.

Strategic partner with a sizeable wallet “Continental Grain Company (Conti), Agroberries’s biggest investor, has increased its investment and commitment to the company in connection with this transaction.”

And more questions…

What would be their next move?

How are they going to work with the other big players within the same genetic programs like Family Tree Farm in the MBO world or North Bay in Sekoya?

Will they favor one program over the other or would they go for a third one?

How would retailers react?

Are they thinking this is good or a bit dangerous for them?

What new alliances would this generate to counterbalance the scales?

As always these things keep me thinking, for days, about how the ripples will affect all the corners of the markets.

Why?
Because if someone schedules a CALL

Have a Great Week!!!

And remember, if you liked what you read, send it to a friend, if not unsubscribe…

PS: Fruit Attraction is coming and I’ll be there so if you want to meet in person just check my schedule and ask for a meet.

Written by Diego Castagnasso