Analysis and General Vision of the Raspberry in North America

2005 Chile Export Association Berries Seminar Santiago, Chile June 21-22, 2005 Presented by John Shelford President Global Berry Farms

Outline
Fresh Raspberries Recent Production History Changing Production Origins Growth
Outline

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NA Processed Raspberries
North American Red Raspberries Production
120 100 Pounds (Millions 80 60 40 20 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year Processed Fresh

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NA Processed Raspberries
North American Processed Red Raspberries Production
120 100 Pounds (Milliions 80 60 40 20 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Years

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California Raspberry Production

Acres 2004 2003 2002 2001 2000 1999
Source: USDA

Yield 20,800 20,500 12,200 10,900 10,800 11,6000

Total 66,560,000 61,500,000 29,280,000 25,070,000 21,600,000 20,880,000

3,200 3,000 2,400 2,300 2,000 1,800

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Fresh Raspberries Weekly Shipments

Raspberry US Industry Supply in Cases Source: USDA National Berry Report
Thousands
Cases 600

500

400

300

200

100

44 45 46 47 48 49 50 51 52

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
Weeks 2002-2003 Industry 2003-2004 Total Industry 2004-2005 Industry

Weekly FOB Price

Raspberry US Industry Average Price Per Case Source: USDA National Berry Report
$35

$30

$25 Price per Case

$20

$15

$10

$5

$50 52 26 44 16 18 20 22 12 14 30 32 34 36 40 46 48 24 10 28 38 42 2 4 6 8

Weeks 2003 2004 2005

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Market Share
Raspberry Weeks 44-52,1-20 Analysis Past 3 Seasons -- Source: USDA WITH SUPPLY SHARE by ORIGIN %
Millions 7

Growth: 18% Growth: 15%

35% 40% 48% 24% 19% 33% 37%

2004 California Mexico Chile

Cases

23%

42%
2005

0 2003

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Berry Category in Supermarkets

National Berry Dollar Sales - Conventional & Organic Combined by Berry Type (average per week per store)
$1,327 $1,297 $1,120 $914 $846

$343 $310 $242 $175

$395

$89

$165 $123 $147 $165 $28 $39 $47

$64

$84

Strawberries

Blueberries 2000 2001 2002

Raspberries 2003 2004

Blackberries

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Berry Category in Supermarkets

National Berry Category Dollar Share Conventional & Organic Combined by Berry Type (average per week per store)

73.3%69.0% 69.7% 68.8% 66.7%

19.0% 18.0% 18.3% 15.2%

20.3%

7.7%

9.3% 9.0% 8.7% 8.5% 3.4% 2.4% 2.9% 2.9%

4.3%

Strawberries

Blueberries 2000 2001 2002

Raspberries 2003 2004

Blackberries

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Berry Category in Supermarkets

National Berry Category Contribution to Total Produce Dollars Conventional & Organic Combined by Berry Type (average per week per store)
6.0% 5.7% 5.2% 4.4% 3.2% 4.5% 4.0% 3.6% 3.1% 4.0%

0.7% 0.3% 0.1% 0.1%

0.8% 0.4% 0.1% 0.0%

1.0% 0.5% 0.2% 0.0%

1.0% 0.5% 0.2% 0.0%

1.2% 0.5% 0.3% 0.0%

2000 Total Berry Category

2001 Strawberries Blueberries

2002 Raspberries

2003 Blackberries

2004 Specialty & Other Berries

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Raspberry Demand
Good and increasing Retail excellent! Great for special occasions,

every day demand increasing

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Raspberry Demand
Demand drivers
Improved quality Flavor Consistency in appearance Availability

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Food Service

Demand is second to strawberries Raspberries add value to menus Restaurant luxury perception

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Challenges
Fresh Market Growers
Variety development for appearance, taste, size, and productivity Development of competitive varieties that are economically viable

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Challenges
Chilean Growers
Transportation cost Mexico and California supplies growth will continue Climate modification technology advancing in Mexico and California

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Summary
All raspberries growers for North American markets must aggressively develop varieties delivering superior fruit and competitive yields to meet the challenge of the market leader. There is great opportunity for the successful achievement of this challenge.

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When Are Raspberries Not Just Raspberries?

When they dont disappoint When they are consistent When they increase consumption When consumers ask for them by name When consumers switch stores to get those berries When they build store loyalty When price does not matter When competitor retail ads dont drive the business When shrink is in single digits When they come with no rejections and 99.9% service levels!

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