Growers adopt high-input strategies as Michigan blueberry costs rise

Michigan blueberry production costs reached over $10,000 per acre in 2024, with nearly equal revenues and costs. This, a recent study by  Michigan State University stated, has resulted in a breakeven situation for the average grower. Management expenses, estimated at $240 per acre, are included as labor costs and represent income for growers who manage their fields directly.

With this, many growers are adopting high-input strategies, the research said. This includes improved varieties, increased mulch use at planting, foliar feeding, and drip irrigation, to boost yields and profitability, reflecting a trend toward maximizing quality and production efficiency.

The breakdown of production costs shows that 29% are attributed to annual inputs such as pruning, fertilizing, and crop protection. Harvesting and packing account for approximately 56% of total costs, while operating interest, land control, and establishment expenses make up 15%. Field establishment costs for planting and nonbearing years are estimated at $23,956 per acre.

Fixed costs, such as covering machinery, land, and packing shed overhead, constitute at least 12% of total costs, though most expenses are variable and sensitive to input fluctuations. Rising labor costs, driven by higher wages, make up about 42% of total production costs.

The industry is shifting toward increased production for the fresh market, with growers selecting cultivars and techniques aimed at this segment. Machine harvesting for fresh blueberries is on the rise, now used in up to 20% of harvests. Although up to 75% of blueberries may be destined for fresh markets, weather conditions and sorting processes divert many to processing or freezing, resulting in an industry split of approximately 54% fresh and 46% processed.

03.07.2025

Source: Freshfruitportal.com