| 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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