Strawberry Industry Survey 2001
The Oregon Strawberry Commission has just completed a survey of twelve processors to track growth and development and to ascertain important areas of the industry that would benefit from proposed promotional efforts. Production numbers noted are based on approximate figures supplied by the respondents and reflect a general amount rather than the exact number of pounds of berries processed. All numbers listed are approximate amounts, and  primarily reflect general industry trends. This survey will give the industry tools to understand where processed strawberries are going in the food manufacturing and food service sectors. Questions were also posed as to ideas regarding how each company would propose to best promote Oregon strawberries. The Survey was completed February 2001.

In 1999 of the companies surveyed: 

  • 6 processed 0-3 million pounds
  • 3 processed 3-5 million pounds
  • 3 processed over 5 million pounds



In 2000, of the companies surveyed:

  •  7 processed 0-3 million pounds
  •  2 processed 3-5 million pounds
  •  3 processed over 5 million pounds


This shows a net loss of between 3 and 5 million pounds of strawberries processed in this one-year period.

Of the pounds processed the following percentages were Totems:

  • 5 companies processed 100% Totems for a total of approximately 10,908,000 pounds
  • 2 companies processed 95%-99% Totems for a total of approximately 9,146,000 pounds
  • 3 companies processed 85%-94% Totems for a total of approximately 8,512,000 pounds
  • 1 company processed less than 50% Totems for a total of approximately 68,500 pounds 
  • 1 company did not have figures for this item


Total amount of Totem strawberries processed over the 1999-2000 period was approximately 28,635,000 pounds.

Of the total pack processed by all companies, the processing is broken down in approximation as follows:
 

46% 4+1 sliced 16,277,000 pounds
26% IQF 9,005,000 pounds
10% Puree 3,463,000 pounds
5% 6 ½ pounds 1,732,000 pounds
4% 4+1 whole 1,385,000 pounds
3% Juice 1,039,000 pounds
3% straight pack  1,039,000 pounds
1% Concentrate 346,000 pounds
1% 7+3 346,000 pounds

The top three packs processed at all plants were:

  •  4+1 sliced with all 12 companies surveyed producing
  •  IQF with 8 companies producing
  •  Puree with 7 companies producing


The remaining categories are as follows:

  •  4+1 whole with 3 companies producing
  •  6 ½ pounders with 2 companies producing
  •  Straight Pack with 2 companies producing
  •  Concentrate with 1 company producing


Of the 4+1 pack either sliced or whole (17,663,000 pounds) produced at all facilities the distribution in approximate numbers is as follows:

  •  57% went to food manufacturing  10,068,000 pounds
  •  28% went to food service     4,946,000 pounds
  •  8% went to retail      1,413,000 pounds
  •  7% went to export      1,236,000 pounds
*All companies surveyed produced 4+1 pack


 

Of the Puree and Concentrate produced (approximately 3,809,000 pounds of berries) the distribution is as follows:

  •  74% went to food manufacturing, 2,819,000 pounds
  •  25% went to food service, 952,000 pounds
  •  1% went to export, 38,000 pounds
*9 out of the 12 companies surveyed produced this pack

Of the Juice Pack produced ( approximately 1,039,000 pounds of berries) the distribution between domestic and export is:

  •  100% went to domestic distribution 1,039,000 pounds
  •  None went to export
* 4 out of 12 companies surveyed produced this product.
 

Of the 6 ½ pounders produced (approximately 1,732,000 pounds of berries):

  •  100% went to food service   1,732,000 pounds
*2 of the 12 companies surveyed produced this pack
 

Of the IQF berries produced (approximately 9,005,000 pounds of berries):

  •  51% went to food manufacturing  4,592,000 pounds
  •  25% went to food service   2,251,000 pounds
  •  12% went to export    1,081,000 pounds
  •  12% went to retail    1,081,000 pounds
* 6 of the 12 companies surveyed produced this pack.

Of the Straight Pack produced (approximately1.040,000 pounds):

  •  50% went to retail    520,000 pounds
  •  50% went to food manufacturing  520,000 pounds
* 2 of the 12 companies surveyed produced this pack.

Of the fruit that goes to food manufacturing (approximately 17,999,000 pounds)

  •  66% went to Dairy Industry  11,879,000 pounds
  •  21% went to producing preserves    3,780,000 pounds
  •  13% went to the Bakery Industry    2,340,000 pounds
* 9 of the 12 companies surveyed sent fruit to food manufacturers. 2 of the companies not sending lost track of where fruit went, 1 did not send product.

Of the fruit that goes to the Dairy Industry ( approximately11,879,000 pounds):

  •  83% went to ice cream  9,860,000 pounds
  •  17% went to yogurt   2,019,000 pounds
*8 of the 12 companies surveyed provided fruit to the dairy industry. 2 companies could not track if fruit went to the dairy industry and 2 did not send fruit.

Of the fruit that goes to Food Service (approximately 9,879,000 pounds):

  •  71% went to toppings and sauce  7,015,000 pounds
  •  13% went to pies    1,284,000 pounds
  •  13% went to baked goods   1,284,000 pounds
  •   3 % went to smoothies      296,000 pounds
* 3 of the twelve companies surveyed provided fruit to the food service industry
 

Of the fruit that goes to export  (approximately 2,356,000 pounds):

  • 90% goes to Japan  2,120,000 pounds
  • 10% goes to other countries including Canada, Australia, New Zealand 236,000 pounds
* 7 of the twelve companies surveyed exported fruit.

Universally the biggest obstacle to selling Oregon Strawberries is the price. Oregon berries cost more to produce in comparison to strawberries from California, Mexico, China, Poland and Spain. In a global marketplace, Oregon’s higher minimum wage drives the price beyond competitors. Other reasons cited include lowered  production due to fewer acres being available because of increases in housing construction on former prime farmland.

When asked to designate where they would spend a $50,000 promotional budget survey respondents replied.

  • Media --------------------------1
  • Consumers --------------------4 
  • Export market ----------------2
  • Food manufacturing market 3
  • Dairy market ------------------1
  • Trade shows ------------------2
  • Food service ------------------ 1
Several respondents chose one or more categories. One or two other respondents felt that this was not enough money to make any impact in the area of promotions, or that it is too late to make any difference in the decline of the industry.

When asked for suggestions regarding opportunity in the area of promotions respondents replied with many varied suggestions:
 

  • There have been no new domestic buyers coming forward in the last five years so the only hope appears to be the export market.
  • Consumers must be educated regarding the superior flavor and texture of Oregon strawberries
  • Stress to consumers that quality is worth a higher price.
  • Need to have more money to do anything meaningful, especially in the media which is the way to attract consumer attention ( for example: Washington Apples)
  • Need products to stress that they use premium quality ingredients. Have the manufacturer put “ Made with Premium Oregon Berries” on the label.
  • Promotion at trade shows is the best way to promote product for the least amount of money. Some good shows include Food-Ex, IFT show, Natural Products Expo, Las Vegas Bar Show, National Restaurant Association Show. To stand out at these shows we must have a unique sample to offer that will draw people in to the booth; we must strive to “think outside of the box”.
  • Combine forces with other commodity commissions in creating joint promotional efforts such as the rum industry joining with the cherry commissions for bar drinks. Perhaps approach the dairy industry or poultry industry to do joint promotions.
  • We need more photographic and graphic depictions of Oregon strawberries in order to stress that “you get what you see”
  • We need to promote the potential of Oregon Strawberries as an ingredient product.
  • Northwest strawberries could make inroads into the ice cream and yogurt market due to higher quality color, flavor and texture, which is necessary for this product
Thank you, to all the respondents who took the time to share information and ideas with us. We appreciate your consideration and hope that the information compiled here will help chart future promotional efforts for Oregon Strawberries. 
 



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