Investors’ acquisitions of companies linked to the blueberry business have become a growing trend worldwide. Driven by high global demand and sustained growth in consumption of this fruit, the industry has attracted the interest of sovereign wealth funds, pension funds, private equity, and family offices.
Examples of this phenomenon include the increase in PSP Investments’ stake in Hortifrut, a Canadian pension fund, to over 60%; and the case of ADQ, Abu Dhabi’s sovereign wealth fund, owner of Unifrutti, which acquired 100% of Bomarea and Verfrut through this company.
This reality is well known to Daniel Serdio, Group M&A Senior Manager at Unifrutti (ADQ). Over the past three years, the executive has led strategic acquisitions such as Verfrut, Bomarea, AvoAmerica, and the recent purchase of Safco Peru, in addition to the purchase of agricultural assets in categories such as blueberries, table grapes, citrus fruits, and other fruits globally.
From Abu Dhabi, United Arab Emirates, Serdio spoke with Blueberries News about the main trends shaping the global blueberry industry: expanding consumption, new varieties, consolidation, and challenges.
Blueberries every day of the year
The industrial engineer from the Pontifical Catholic University of Chile (PUC) explained that the first major trend is strong growth in demand. “Consumption in the United States and Europe continues to rise, and China continues to grow significantly. This has forced global production to increase. Consumers want blueberries 52 weeks a year, which requires production in different regions of the world to supply retailers and consumers,” he said.
The second key trend is varietal replacement. Older varieties such as Biloxi and Ventura have been replaced because they fetch lower prices due to lower quality attributes, including transportability, firmness, and brix, among others. In recent years, new varieties such as Sekoya and Mágica have emerged, offering better fruit quality, which is what consumers demand today. These new varieties fetch prices between US$1 and US$3 per kilo above traditional varieties, driving structural change in the industry,” he said.
The third major trend is the sustained increase in institutional investment in the sector. “There is a very attractive investment profile for blueberries, which has attracted the interest of sovereign wealth funds, pension funds, and private equity globally. This has accelerated investment and production growth,” explained Serdio.
The executive highlighted that today there are different types of investors: sovereign wealth funds, private equity, family offices, and private investors, creating an increasingly sophisticated ecosystem.
Why does blueberry attract so much capital?
Being recognized worldwide as a healthy fruit has been key to positioning blueberries as one of the leading crops on the market. “It is a fruit that consumers really like, healthy and versatile. The healthy and snacking trend has consolidated it. It is not a fad, it is here to stay,” he said.
From an investor’s perspective, margins and returns are extremely attractive, with high profitability that allows the industry to compete with others. “In addition, investing in fruit goes hand in hand with investing in land, which provides protection and stability,” added Serdio.
Another key feature, he explained, is the growing importance of investing in agricultural land over the last few decades. “The price per hectare has grown steadily and is not highly correlated with global financial markets. It allows for long-term thinking, with predictable demand: people will still be consuming fruit in 20 or 30 years. In addition, the industry is still fragmented, which opens up opportunities for growth and consolidation.”
Premium varieties and returns per hectare
Regarding varietal selection, Serdio was emphatic: “The important thing is to access premium varieties that are market leaders, along with commercial agreements that enable their development. These varieties achieve better prices and higher yields per hectare, which translates into higher returns.”
He emphasized that for producers seeking to attract capital or sell their operation in the future, the recommendation is clear: “Have the right varieties in the right place. Choose areas with access to water, labor availability, technical equipment, and a well-structured operation. That makes all the difference,” he said.
Key regions and the importance of 52-week coverage
Regarding the regions that are most attractive for new investments, Serdio explained that the goal is to cover annual supply. “A single country cannot supply 52 weeks. For example, Peru covers July to January, but then you need Chile, Mexico, and the United States to supply the US market. For Europe or China, other countries also come into play,” he explained.
According to the executive, access to water is one of the most critical factors when evaluating new investments, along with location and varietal adaptation.
More capital, greater competition, and industry consolidation
Another consequence of the influx of capital is increased competitiveness in the sector. For Serdio, this is a key issue: “These funds bring professionalism, better governance and planning standards. They also accelerate varietal replacement in a capital-intensive industry. This has intensified competition for strategic assets: land with water, varieties, labor, and technical talent.”
To that end, Serdio anticipated further consolidation in the sector. “Small and medium-sized producers are likely to face difficulties, leading to consolidation through acquisitions or development. We will also see the emergence of regional and global platforms, something that did not exist with this force 10 years ago.”
Business challenges and opportunities
Among the main challenges for the blueberry industry are pressure on prices and access to premium varieties.
According to the executive, “as supply grows, it can exceed demand in certain windows, affecting prices, especially for older varieties that are less in demand.” Another major challenge is access to premium varieties, many of which are protected by clubs or patents, as well as competition for land and water.
In terms of short-term growth opportunities for the sector, Daniel Serdio highlighted varietal replacement, growth in emerging countries, and advances in mechanization. “In the next 3 to 5 years, we will see greater mechanized production, which will significantly reduce costs and make investment more attractive in regions with more expensive labor, such as the United States,” he concluded.
