Thursday, December 4, 2014

Cranberry production is out of control....

The supply of Cranberrys is almost double the amount the global market commands.  Bet you did not know that.  I didn't.

Here is an article and a short PPT I put together using supply and demand analysis to illustrate what is going on and the role govenments could play in this scenario.

The US govt is not buying all the surplus in the presentation below, but collectively governments in Cranberry producing countries could do so.

Feds buying surplus cranberries

The federal government’s decision to spend $55 million on cranberries may dent a global glut, support prices and speed up payments to growers. 
The purchase, however, won’t address production continuing to outpace demand, a step the U.S. Department of Agriculture declined to take this year.
“We have a very serious problem,” Long Beach Peninsula cranberry grower Malcolm McPhail said. “You don’t want anyone to have a crop failure. But you’d like to see average crops to keep things in perspective.”
U.S. and Canadian cranberry farmers produced this year a crop expected to be nearly as big as last year’s record harvest of 12 million barrels.
Between this year’s cranberries and fruit still unsold from 2013, the global cranberry supply stands at 16 million barrels (1.6 billion pounds). Demand over the next year is expected to be about 8.2 million barrels, according to the U.S. Cranberry Marketing Committee.

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