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Contribution of Health
Attributes, Research
Investment and Innovation to
Developments in the Blueberry
Industry
a
Agriculture and Agri-Food Canada, Pacific AgriFood Research Centre , Summerland, British
Columbia , BC , Canada , VOH120
b
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ABSTRACT. This paper examines how the United States and Canadian
highbush and lowbush blueberry industries have changed over the last
two decades. Production increases have been driven by a combination of
changing consumer preferences for healthy foods and the development
of new cultivars that have opened new production regions, expanded
fresh market opportunities, and created new food products. Canada has
found it advantageous and economical to invest its research effort in the
development of the lowbush blueberry, exploiting its health protective
properties. The United States has concentrated its research effort on
highbush cultivars to lengthen the harvest window and promote diversification opportunities in the Southern United States. Highbush production expansion in the Pacific Northwest has relied very little on new
cultivar development and improvements in yield but more on increases
in cultivated area. [Article copies available for a fee from The Haworth Document Delivery Service: 1-800-HAWORTH. E-mail address: <docdelivery@
haworthpress.com> Website: <http://www.HaworthPress.com> 2005 by
The Haworth Press, Inc. All rights reserved.]
Richard Carew is affiliated with Agriculture and Agri-Food Canada, Pacific AgriFood Research Centre, Summerland, British Columbia, BC, Canada VOH120.
Wojciech J. Florkowski and S. He are affiliated with the University of Georgia,
Department of Agricultural and Applied Economics, Griffin, GA 30223.
Address correspondence to: Richard Carew at the above address (E-mail: carewr@
agr.gc.ca).
International Journal of Fruit Science, Vol. 5(4) 2005
Available online at http://www.haworthpress.com/web/IJFS
2005 by The Haworth Press, Inc. All rights reserved.
doi:10.1300/J492v05n04_10
95
96
KEYWORDS. Canada, U.S., blueberry, health attributes, research effort, production trends
INTRODUCTION
Blueberries are one of the horticultural crops grown in both Canada
and the United States whose economic importance has rapidly increased since the late 1990s. According to the U.S. Department of Agriculture, blueberries are considered healthy food since they are high in fiber,
potassium, and vitamin C, and contain important phytonutrients that
may help prevent diseases and improve vision (Warner, 2004). Blueberries are one of the top ten foods listed by Perry (2004) as important for
the maintenance of human health. The combination of health benefits,
increased consumption, stronger prices, and the recent introduction of
northern and southern highbush cultivars have augmented the expansion of the blueberry industry (Sjulin, 2003).
The blueberry plant is native to North America with several species
grown in Canada and the United States. Most of the blueberry production
in Canada is lowbush blueberries (Vaccinium angustifolium), while
highbush (Vaccincum corymbosum) and rabbiteye (V. ashei Reade) are the
dominant species in the United States. The public R&D system in Canada
devotes the majority of its research effort to improving native lowbush
blueberry stands and determining the nutritional and health attributes of
naturally occurring phenolic compounds. Plant patenting of low-chill
southern highbush cultivars and the development of exclusive license arrangements for specific regions of the United States have emerged as a
strategic intellectual property activity undertaken by U.S. Land Grant Universities to optimize their returns on investment in plant breeding.
Since 1998, significant increases in blueberry production have occurred in both Canada and the United States. Production expansion in
North America has been associated with greater increases in yield in the
United States and harvested area expansion in Canada. Whether production expansion has been driven by the development of improved
cultivars is difficult to quantify. The combination of innovation advances in freezing technology and product convenience have helped to
shape market demand in the 1990s. Increases in blueberry consumption
may have resulted from publicity about the health benefits (e.g., antioxidant activity) and the creation of new products. This paper describes
how increases in blueberry production and expanded consumption have
evolved in both Canada and the United States, and analyzes whether in-
97
98
99
area expansion particularly in the southern United States. U.S. blueberry yields were similar to Canadas in the 1980s but subsequently
have increased since 1990. U.S. blueberry yields increased by about
90% from 4t/ha per year in 1991-93 to 7t/ha in 2001-03. Sjulin (2003)
reported significant yield increases in New Jersey, Oregon, and North
Carolina over the past 25 years. Canadian average blueberry yields
were 2t/ha per year in 1991-93 compared with 3t/ha in 2001-03.
It is apparent from Figure 1 that, while U.S. average yields have increased over the last two decades, British Columbia and Washington
State yields have been stagnant. This may be attributed to the exhaustion of the genetic yield potential of older cultivars (e.g., Bluecrop)
that comprise the majority of production in the Pacific Northwest
TABLE 1. Canadian and U.S. fresh blueberry production and harvested Area,
1980-2003.
Year
Canadian
Production
(000Mt)
Canadian
Harvested Area
(000Ha)
US
Production
(000Mt)
US
Harvested Area
(000Ha)
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
13.6
18.0
23.2
22.5
17.1
22.4
16.6
29.8
31.8
27.5
36.1
35.9
39.0
39.7
40.6
43.0
49.1
43.9
34.6
66.5
60.6
67.7
64.9
78.6
5.4
6.2
8.2
7.8
5.9
7.7
6.6
10.3
9.7
14.1
13.7
15.1
18.2
19.5
17.9
18.3
19.9
20.0
20.0
22.5
23.9
25.0
24.0
23.3
46.4
53.1
55.2
61.0
54.5
67.3
68.8
66.9
69.1
70.0
79.9
69.9
51.3
77.2
63.8
74.0
58.7
77.1
69.4
110.9
134.4
121.7
115.3
123.3
14.8
16.0
19.7
21.7
21.0
22.4
22.1
22.2
21.6
22.3
26.4
24.8
13.6
14.8
15.0
15.4
15.3
15.7
14.1
15.9
16.3
16.1
16.6
16.3
Sources: (1) Statistics Canada, Fruit and Vegetable Production. (2) Catalogue No. 22-003-XIB, various
years; FAO, FAOSTAT Database.
100
(Himelrick and Dozier, 1994). In the Pacific Northwest, Oregon has attained the highest average blueberry yields at 10t/ha per year over the
1980-2003 period with individual yields in British Columbia and Washingtons averaging roughly 7t/ha. Higher density plantings, trellising to
improve machine harvest efficiency, and raised beds are common cultural practices in Oregon and Washington State, with a greater emphasis
on fertility management in British Columbia (Strik, 2005).
In the United States, blueberry acreage has expanded in the southern
states, which produce the southern highbush and rabbiteye cultivars.
For example, Mississippi blueberry acreage increased from 32 ha in
1981 to 595 ha in 1994 (Muhammad and Allen, 2000). In Georgia, the
number of blueberry plants in commercial plantings have more than
doubled between 1991 and 2002 (Hubbard et al., 1992; Florkowski,
2004). In Florida, with the development of cultivars requiring a low
number of chilling hours, land availability is the only major impediment
constraining blueberry industry expansion. Consequently, the southern
counties of Georgia have become an attractive location for new blueberry production sites. New expansion in the southern states is likely
to continue as a result of improvements in the marketing infrastructure,
especially assembly points providing sorting, grading, and shipping services to growers.
101
Apart from the southern states, there has been substantive expansion
of blueberry production in the Pacific Northwest (Figure 2). British Columbias blueberry production expansion started in the early 1990s and
has been greater than Washingtons. The annual volume of highbush
blueberry production in British Columbia exceeded 23,000 t in 2003
(B.C. Blueberry Council, 2004) compared with roughly 6,000 t in
Washington State. The average annual production increases over the
1980-2003 period for British Columbia, Oregon, and Washington were
15.8%, 10.9%, and 8.7%, respectively. Most of British Columbia and
Washington production growth expansion were due mainly to harvested area increases.
Blueberry prices were higher in the early 2000s than in the early
1990s. Prices of wild blueberries have been consistently higher than
those of cultivated blueberries. A review of April prices, i.e., the month
when a new blueberry season begins, for frozen wild and cultivated
blueberries indicates that the price difference typically ranges from
10 cents to 15 cents per pound (when sold in 30 pound boxes). Recently,
U.S. prices of wild blueberries declined relative to cultivated blueber-
102
ries, and 2002, 2003, and 2004 prices paid for cultivated blueberries
were 15 cents, 10 cents, and 0.3 cents higher than for wild blueberries.
Blueberry prices tend to vary depending on the predominant product
channel (fresh vs. processed) used, the nature of cultivars grown, climatic conditions affecting quality, and marketing options (e.g., cooperatives, local retail markets, direct marketing, pick-your-own) available to
growers. Fresh blueberry prices adjusted for inflation were relatively
higher in Washington and Oregon than in British Columbia (Figure 3).
Several hypotheses can be advanced for the price differences between
Canada and the United States including quality differences, the predominant product (fresh vs. processed) marketed, transportation costs to
major markets and the larger farm sizes in Washington and Oregon that
allow for scale efficiencies to be achieved.
Fresh blueberry prices tend to be higher than those sold for processing. At the beginning of the harvest season, fresh blueberry prices tend
to be highest and gradually decrease as the supply of fresh berries inFIGURE 3. Canada, BC, Washington, and Oregon blueberry prices.
103
creases and the supply sources move from Florida to Georgia to the
mid-Atlantic states and Michigan. For example, in Georgia, the price
per pound received by blueberry growers for fresh fruit ranged from
$0.80 to $1.20 per pound over the 1999-2001 period compared with
$0.25 to $0.80 per pound for processed blueberries. The pick-your-own
prices are comparable with the fresh market prices and farmers have
gained primarily from savings associated with lower harvesting and
packaging costs. A number of growers have taken advantage of selling
their crop through cooperatives (e.g., Michigan Blueberry Growers).
DEMAND AND CHANGING CONSUMER PREFERENCES
Fresh blueberries are a seasonal product with per capita consumption
being relatively higher in the early 2000s than in the early 1990s. In
2002, more cultivated fresh blueberries and frozen wild ones were
marketed through U.S. supermarkets (Bliss, 2002). This reflects the
successful marketing programs retail establishments have mounted
coupled with product convenience. Fresh blueberries require little handling and preparation, and are enjoyed by consumers when eaten alone
or used with other food products such as cereals. Increase in demand for
blueberries also indicates consumer preferences for the distinct qualities of this fruit, which have been promoted because its antioxidant
properties purportedly help to maintain health and possibly prevent
some diseases (Kay and Holub, 2002; Roy et al., 2002). Studies have
also shown the consumption of blueberries may reverse age-induced
deficits in motor learning and memory (Bickford et al., 2000). Because
of these antioxidants and other beneficial compounds, blueberries are
identified by consumers as a functional food, making them a more
attractive product.
Despite the slight differences in the definition by which per capita
consumption is measured in both Canada and the United States, the demand for fresh and frozen blueberries is higher in Canada than in the
United States. Canadas definition of per capita disappearance does not
adjust for retail, household, cooking, and plate loss. The average Canadian and U.S. fresh blueberry per capita consumption was 0.34 kg and
0.11 kg, respectively, over the 1980-2002 period. For frozen blueberries, it was 0.25 kg and 0.14 kg, respectively. In general, Canadian and
U.S. domestic consumption of fresh and frozen blueberries has increased over the years in response to promotional campaigns extolling
their nutritional benefits and the growing array of products available in
104
retail stores. In the United States, the increase in frozen product consumption may have benefitted from innovations in freezing technology,
such as the use of individually quick frozen (IQF), and the increased domestic supplies of frozen blueberries resulting from large production
increases in Maine and the Pacific Northwest (USDA, 2003a).
Demand for blueberries is limited not only to fresh or frozen berries,
but to manufactured breakfast cereal products as well. Product development efforts have examined the use of blueberries as ingredients in other
foods. For example, ice cream, yogurt, and other dairy flavored with
blueberries is widely available in retail stores. Breakfast cereals colored
with lowbush blueberry concentrate have been shown to have a wide appeal by consumers (Camire et al., 2002). Blueberry product development
has also focused on products appealing to populations in other parts of the
world and, potentially, to ethnic minorities in North America (Yoshimura
et al., 2002). The expansion of the range of products using blueberries as
ingredients will increase utilized production and should bolster consumption. Despite a steady increase in blueberry production, the quantity demanded may continue to grow at a comparable pace despite very little
change in real blueberry prices in the foreseeable future.
Large retail establishments have adopted programs to strengthen the
demand for blueberries. The promotion of fresh blueberry sales has become a part of marketing programs organized jointly by major retailers
and state organizations in the United States to enhance the demand for
local produce. This was evident in 2004, with a joint effort between
Wal-Mart stores and a Mississippi blueberry packer to promote the
sales of blueberries by extolling their health attributes. Access to distribution channels and mass marketing media are a real option for blueberries because they are easy to handle compared with many other fruits.
The ease of handling lowers the risk of loss due to shrink and damage,
while packaging them in clamshell and other containers facilitates
in-store display and transportation over long distances.
CANADA AND U.S. BLUEBERRY TRADE PATTERNS
Canada and the United States are net exporters and net importers of
fresh blueberries, respectively. For the 2001-03 period, Canadas net exports of fresh blueberries to the world totaled 12 million in U.S. dollars
per year, up from a net import position of 1 million per year in 1980-82
(Table 2). The expansion of Canadas net exports of fresh blueberries has
been due to a combination of high export prices and increased export vol-
105
umes. Over the 1980-2003 period, Canadas blue- berry export volumes
increased at an average annual growth rate of 14.8 percent per year.
Canada is net exporter of fresh and processed blueberries to the
United States. Figure 4 shows Canadas fresh and processed blueberry
trade with the United States. In 2001-03, the net value of Canadas fresh
blueberry trade with the United States totaled $14 million in U.S. dollars versus $33 million for processed blueberries. Though Canada ships
the majority of its fresh blueberry exports to the U.S. market, it tends to
ship its processed blueberries to a larger number of other export market
destinations. The majority of Canadas fresh blueberry exports to the
United States are cultivated blueberries while most of its fresh blueberry imports are wild blueberries. In 2003, 29.9% of Canadas fresh
cultivated blueberry exports went to California, 22.1% to Florida,
12.6% to Washington, and 9.4% to Oregon.
TABLE 2. Canadian fresh blueberry exports and imports, 1980-2003.
Year
Cdn Exports
(Mt)
Cdn Exports
(US$000)
Cdn Imports
(Mt)
Cdn Imports
(US$000)
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2,092
2,176
4,237
3,589
3,688
4,673
4,275
7,823
10,901
5,061
7,381
9,218
9,006
7,693
8,317
8,577
7,084
6,585
7,451
12,843
13,730
18,412
15,691
18,143
1,774
2,043
4,798
4,074
2,526
3,346
3,554
8,219
14,484
7,594
7,656
10,482
12,745
7,763
9,226
10,999
10,826
10,489
13,793
21,577
26,251
30,131
32,558
38,023
2,189
3,181
4,472
5,314
3,815
3,341
5,110
4,369
5,333
3,263
5,230
4,162
5,955
7,785
7,210
3,423
2,309
2,630
2,194
9,659
20,191
19,086
17,225
20,081
2,552
4,133
5,741
6,821
4,600
4,363
6,086
5,813
6,827
6,252
9,786
7,839
10,394
10,038
9,016
6,376
5,389
5,818
4,380
10,611
20,527
19,661
20,277
26,239
Sources: (1) FAO, FAOSTAT Database. (2) Statistics Canada, Trade Statistics.
106
FIGURE 4. Canada fresh and frozen blueberry trade with the United States.
107
US Exports
(Mt)
US Exports
(US$000)
US Imports
(Mt)
US Imports
(US$000)
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
3,592
5,244
7,526
7,674
4,123
4,151
8,364
10,517
4,829
5,283
18,757
13,061
6,586
8,633
8,045
4,103
3,458
3,390
3,124
10,712
19,818
18,647
16,587
19,775
2,636
5,049
6,394
6,931
3,528
4,010
4,619
6,245
7,604
2,881
12,742
9,919
13,775
13,061
12,435
9,148
9,393
9,531
8,828
16,524
25,640
23,760
25,859
31,057
2,004
2,072
4,195
3,809
4,076
5,385
4,799
7,669
11,640
6,251
7,641
9,452
9,262
7,951
8,679
8,830
8,061
7,831
8,733
14,510
16,773
22,305
21,099
23,208
1,789
2,047
5,054
4,616
3,736
5,242
6,155
10,116
16,486
9,219
9,442
12,294
13,919
8,627
10,721
13,210
14,414
15,290
19,296
29,224
38,945
49,745
59,083
69,337
Sources: (1) FAO, FAOSTAT Database. (2) USDA, Foreign Agricultural Service (Http://www.fas.usda.gov/
ustrdscripts/USReport.exe).
108
Activity
1998
Federal Non-Fed.
2000
2003
Federal Non-Fed. Federal Non-Fed.
1.7
(1.26)
1.7
(1.26)
2.05
(2.1)
5.41
(4.62)
1.27
(0.05)
1.0
(0.0)
0.2
(0.3)
0.5
(0.25)
2.97
(0.6)
2.18
(1.26)
1.7
(1.26)
1.11
(0.05)
1.6
(0.25)
0.5
(0.0)
2.18
(1.26)
1.68
(1.26)
0.61
(0.05)
1.0
(0.0)
3.8
(2.52)
3.21
(0.3)
3.86
(2.52)
1.61
(0.05)
109
Activity
1998
USDA
Non-Fed.
2000
USDA Non-Fed.
254
(0.5)
1547
(4.1)
1079
(2.9)
68
(0.0)
64
(0.0)
37
(0.0)
3049
(7.5)
142
(0.4)
1611
(4.9)
1133
(2.5)
175
(0.0)
87
(0.0)
21
(0.0)
3169
(7.8)
2003
USDA Non-Fed.
($000)
Soil, water mgmt. and
environment quality
Plant breeding
Pest and disease
mgmt.
Food processing
(e.g., food quality)
Engineering
Market economics
Total
184
(0.4)
1127
(5.1)
713
(1.3)
194
(1.1)
95
(0.6)
35
(0.4)
2348
(8.9)
150
(1.1)
1217
(5.0)
533
(3.0)
218
(1.1)
91
(0.4)
87
(0.6)
2296
(11.4)
143
(1.7)
1727
(18.4)
1401
(11.0)
198
(0.0)
35
(0.0)
19
(0.0)
3523
(31.0)
167
(0.6)
1542
(5.1)
1003
(4.3)
262
(1.6)
96
(0.5)
16
(0.3)
3086
(12.3)
Source: USDA, CRIS. CSREES (Data provided by Dennis Unglesbee. August 20, 2004).
Notes: Data in parentheses refer to scientist years. This is defined as an investigation leader who spends
portion of his/her time supervising scientists. Generally, the individual holds the rank of assistant professor
or greater. Other research categories such as technical years are not reported because of accuracy
reasons.
110
1981-1985 1986-1990
1991-1995
1996-2000
2001-2003
Number of
patents1
6
3
5
2
16
1
2
2
1
date have not patented any of their released cultivars, in the last couple
of years they have required licenses for propagation (P. Lyrene, personal communication). In Canada, plant breeders rights is the preferred
method of protection. The three blueberry cultivar releases from the
Michigan State breeding program were the only ones that were granted
plant breedersrights in Canada (Canadian Food Inspection Agency,
2004). Plant Breeders Rights allow the breeder (or marketing agent)
the opportunity to be the sole marketer of planting material and to have
the ability to set royalty payments.
To optimize investment from their three varietal releases, Michigan
State University has exclusively licensed its cultivars to two companies
(one in Oregon and the other in South America) (Warren, 2003). Revenues earned from plant patents and licensing schemes have supported
breeding programs at U.S. land-grant universities since state-supported
R&D funds have become scarce. Breeding programs of perennial crops
are expensive because of the lengthy period needed to develop and test a
cultivar. Modern breeding techniques in biotechnology will accelerate
111
the transfer of complex traits over a shorter time horizon but involve extensive costs in terms of equipment and biotechnology skills.
Blueberry research in the United States has focused on optimizing production practices and developing cultivar attributes that will allow for improvements in fruit quality and shipments over longer distances. This
research effort has required more strategic priority setting since blueberries vary widely in terms of yields, maturity, winter hardiness, machine
harvest ability, berry size, storage, flavor, firmness, the ratio of soluble
solids concentration to titratable acidity, and anthocyanin content. Extensive research has been conducted on new and existing cultivars of
highbush blueberry to determine how management practices such as
fertilization, weed control, and pruning could improve fruit quality and
augment the phenolic and anthocyanin content (Dozier et al., 1991;
Perkins-Veazie et al., 1995; Magee, 1999; NeSmith et al., 2002). Storage
is an important attribute because the majority of blueberries destined for
fresh consumption require storing and long distance shipping before they
reach their final destination. The storage period of fresh blueberries can
be extended by the use of controlled atmosphere (CA) and ozone (Jun et
al., 2001) although the economic feasibility of some of these methods has
to be evaluated. If health attributes of blueberry consumption are to be
used in promoting this fruit, exploring genetic, storage, and processing
methods to bolster antioxidant capacity is a relevant research topic (Kalt
et al., 2001a; Scibisz and Mitek, 2001). Differences in antioxidant capacity between low- and highbush cultivars (Kalt et al., 2001b) may be exploited for marketing purposes.
Blueberry research in the United States and Canada has studied
new food production processes including the postharvest handling of
blueberries to understand cooling effects and storage (Jackson et al.,
1999) with modeling changes in blueberries to predict firmness and
mass loss (Tetteh et al., 2004). Postharvest handling of blueberries is
highly integrated and assures a consistent high quality, but consumers, fruit handlers and retail outlets fruit managers require continuing
training in the proper handling of fresh product. It is the competition
from other fresh fruits and vegetables that require us to develop
better blueberry postharvest handling techniques, especially, when
there is a growing body of evidence that indicates improper handling
may lower the content of substances classifying blueberries as a
functional food.
112
113
panded into regions of the United States, which until recently, were only
of marginal importance for commercial production (e.g., Mississippi).
Postharvest research efforts have extended beyond the traditional focus
on taste and appearance, and have included studying the health benefits
of antioxidants and other naturally occurring phenolic compounds.
Blueberry production is concentrated in several areas in Canada and
the United States. Canadian provinces bordering the Pacific and Atlantic Oceans lead the countrys blueberry production. In the United States,
the traditional producers in the Northwest, Michigan, and New Jersey,
have been joined by Georgia, Florida and other southeastern states as
supplier sources for fresh and processed blueberries. Maine has been a
supplier of lowbush blueberries.
Canadian blueberry production expansion has relied on harvested
area increases rather than on improvements in yield and cultivar development. Since the bulk of U.S. production is the highbush species, plant
breeders in the United States have focused their attention on cultivar development to expand the harvest window and promote diversification
opportunities in the southern United States. Consequently, yield gains
in the United States have been largest in states producing southern
highbush blueberries. Blueberry cultivars grown in various regions are
often different because of varied climatic and soil conditions and disease pressure. The most pronounced cultural differences are between
northern and southern states or provinces, and between cultivars grown
east and west of the Mississippi River. These differences are likely to
continue because breeding efforts have concentrated in developing new
cultivars suitable to regional growing conditions, e.g., low chill
cultivars for areas in the southeastern United States.
Research effort in new processing methods especially in the United
States has enabled the industry to supply a variety of food products
containing blueberries and thereby expanded the demand opportunities
for fresh and processed blueberries. These developments combined
with expanded harvest opportunities have contributed to increased trade
in blueberries between Canada and the United States. Most of Canadas
fresh blueberries are shipped to the United States. The trade between the
two jurisdictions is complementary in that Canadas shipments are primarily cultivated berries, while its imports consists mostly of wild blueberries. Such an exchange indicates the different marketing channels
used by importers and exporters. Further development of these two
markets will allow the blueberry industry to segment consumers and
possibly increase revenues.
114
115
116
Kay, C. D., B. J. Holub. 2002. The effect of wild blueberry (Vaccinium angustifolium)
consumption on postprandial serum antioxidant status in human subjects. British
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