The physical geography of Berry is defined by its fertile soils and temperate coastal climate, both of which significantly support the area's agricultural productivity. The Shoalhaven River system and Broughton Creek provide essential water resources for irrigation, sustaining local dairy farms and vineyards. Over time, processes of erosion and sedimentation from the nearby Illawarra escarpment have enriched the alluvial soils, enhancing their fertility. These processes were further amplified as European settlers cleared native vegetation for farmland, contributing to the transformation of the landscape. The escarpment also serves as a natural barrier that shapes local weather patterns, providing shelter and moderating temperatures, which collectively contribute to Berry's mild climate—ideal for various agricultural pursuits.

The underlying geology of Berry, primarily composed of sandstone and shale, influences the topography and soil composition in the area. This geological foundation contributes to the fertility of the land, particularly in the valleys where alluvial deposits occur. The interaction between the geological features and the climate allows for diverse ecosystems to thrive, which include both agricultural and natural landscapes. The regional geology also plays a role in water drainage patterns, influencing agricultural practices and land use.

Human activity has profoundly shaped Berry's landscape. Before European settlement, the local Aboriginal people managed the environment using fire-stick farming and controlled clearing practices, maintaining the landscape’s biodiversity and supporting sustainable resource use. European settlement in the 19th century, however, brought significant changes, including extensive land clearing for red cedar logging and dairy farming, both of which drastically altered the region’s natural environment. While dairy farming became the backbone of Berry's economy, the agricultural techniques further increased productivity but raised concerns around environmental sustainability and biodiversity loss. More recently, tourism has gained economic importance, leading to an influx of new residents and visitors, and creating development pressures that continue to reshape Berry’s landscape and ecosystem. 

Berry's economic transition has evolved from an agriculture-based economy to a tourism-focused identity. Initially thriving on dairy farms and vineyards, the town began to attract visitors due to urbanisation in nearby cities. The completion of the Berry bypass redirected traffic away from the town centre, challenging local businesses reliant on pass-through customers. In response, Berry adapted by leveraging its historical and cultural assets, promoting heritage buildings, local markets, and food festivals. This shift required businesses to innovate and diversify, creating a balanced economy that blends its agricultural roots with a vibrant tourism sector, demonstrating how the town has successfully navigated changing geographic dynamics. 

Environmental changes, such as climate change and land use alterations, have started to impact Berry’s ecological balance. Changes in rainfall patterns, increased temperatures, and extreme weather events pose challenges to agricultural practices and local ecosystems. Efforts are underway to address these changes through sustainable practices, such as regenerative agriculture, which aims to restore soil health and biodiversity while maintaining productivity.

The interplay of human processes also includes efforts to preserve Berry’s cultural and historical heritage. Local initiatives focus on maintaining the town's historical architecture and promoting cultural events that celebrate its agricultural roots. This commitment to heritage preservation not only enhances community identity but also supports tourism. The impact of heritage tourism is evident in Berry, where visitors are drawn to its historic charm and local festivals, reinforcing the importance of cultural identity in economic sustainability.