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BLUEBERRY ECONOMICS: THE COSTS OF ESTABLISHING AND PRODUCING CONVENTIONAL MARKET, HAND-AND MACHINEHARVESTED BLUEBERRIES IN THE WILLAMETTE VALLEY

Summary

The production of blueberries in the Willamette Valley, Oregon, has increased nearly 700% from 1,950 acres in 1995 to 15,200 acres in 2021. The volume of fruit produced in the Willamette Valley over ten years is shown in Figure 1, with a 78% increase from 2013-2023 consisting of approximately 55% processed fruit over the past five years. The relationship of blueberry prices per pound to total production in the Willamette Valley is also illustrated in Figure 1. The grower's price for fresh and processed blueberries has varied yearly, often related to supply and demand for the fruit. Processed fruit prices have oscillated between $0.40 to $0.80 per pound from 2013 to 2023, while fresh prices peaked in 2018, followed by a sharp decline, then stabilized near $1.60 from 2021-2023. It is essential to understand that returns for blueberries are variable from year to year and to plan for this when developing your own budget for a farm. This study estimates the typical returns and costs to establish to a well-managed 20-acre blueberry planting in the Willamette Valley using two harvesting methods: hand and machine harvest. Blueberries are an expensive crop to produce. Profit and loss depend greatly on yield, price received by the grower, and labor costs. Of total cash costs, labor is 62 percent to hand harvest blueberries and 43 percent to machine harvest. The yield for a mature farm will vary depending on the cultivar or variety of blueberry grown, soil type, and management practices. The number of years to reach full production may also vary by farm, with poorer performing farms taking longer than the 7 years in this analysis. This cost of establishment and production study provides growers a tool for economic management and decision-making. This study is a product of cooperative input from selected growers, field representatives, researchers, and farm suppliers. Careful budget planning is key to managing these fluctuations and ensuring the financial stability of your business. Therefore, growers are encouraged to substitute their costs to g