1. Weekly News

Global

Global Avocado Market to Expand by USD 5.67 Billion by 2027

The global avocado market is expected to grow by USD 5.67 billion from 2023 to 2027, with an annual growth rate of 6.58%. North America is leading this growth, contributing 34% of the total. A growing focus on health drives this increase, as does the introduction of new avocado products and varieties and the significant avocado production in the United States (US), especially in California. The rising demand for avocados is driven by their well-known health benefits and popularity among health-conscious consumers, especially millennials. Furthermore, advanced data management systems that better understand consumer preferences and market trends support the market's growth.

Australia

Avocados Australia Enters Indian Market in 2024

Australian company Avocados Australia has ventured into the Indian market. Avocados Australia's entry into the Indian market will be officially held at the Australian High Commission, followed by study tours in major Indian cities. The company aims to distinguish itself in the Indian market through high-quality service, availability, and market support. Retail promotions are also planned to raise awareness about the health benefits, versatility, and handling of Australian avocados in India. This entry aligns with Australia's global strategy to expand its avocado industry, with a projected production increase to 170 thousand metric tons (mt) by 2026.

Brazil

Brazil Responds to Rising Avocado Consumption with Expanded Plantations

Brazil is expanding its plantations to meet increasing domestic and international demand. Between 2016 and 2020, avocado production increased by 50%, despite weather challenges. The Southeast region remains the primary growing area, while other states like Ceará also grow harvests. Avocado production requires high fruit quality, certification, and effective marketing and communication strategies to meet increasing demand.

Mexico

Mexico's Avocado Production to Rise by 5% YoY in 2024

Avocado production in Mexico is expected to increase by 5% YoY in 2024 due to full production of new orchards. Despite avocado’s declining export value in 2023, the industry has grown over the past decade, driven by domestic consumption and export demand. However, deforestation concerns have been raised. The United States (US) focuses on increasing sales by highlighting avocados' cultural and economic importance while addressing climate change and pricing for domestic and imported fruits.

Peru

Peruvian Avocado Exports Experiences 8% YoY Increase in Q1-24

Peru's avocado exports saw impressive growth in Q1-24, with a 35% YoY increase in volume to over 105 thousand tons and a 46% YoY rise in value to USD 233 million. The average price of avocados also rose by 8% to USD 2.22/kg. The Netherlands, Spain, and China were the top three importing countries, accounting for 39%, 22%, and 15% of the total exports, respectively. These countries led in volume, with the Netherlands importing 41.1 thousand tons, Spain 22.3 thousand tons, and China 14.4 thousand tons, which also showed significant growth in value.

2. Weekly Pricing

Weekly Avocado Pricing Important Exporters (USD/kg)

Yearly Change in Avocado Pricing Important Exporters (W19 2023 to W19 2024)

Mexico

The price of avocados in Mexico is steadily increasing due to climate change impacting avocado growth. This has led to decreased productivity and higher production costs. The prices rose by 11.21% WoW to USD 3.08/kg in W19 from USD 2.77/kg in W18. Moreover, there's also been a 24.72% MoM increase and a 4.57% YoY increase.

Peru

In W19, the price of avocados in Peru dropped by 6.12% WoW to USD 0.75/kg, continuing the downward trend of the previous weeks. This decrease is mainly due to a larger supply of Hass avocados from Peru, which are ready for sale in the US. Additionally, steady supplies from Peru, California, and Mexico ensure a stable market in the US throughout the summer.

Spain

Avocado prices stood at USD 2.60/kg in W19, marking a 12.44% WoW increase compared to USD 2.31/kg in W18. Moreover, there is a slight decrease in monthly pricing, showing a 2.73% MoM decrease. The price rise is due to severe heat waves and extreme weather conditions caused by climate change, which have negatively impacted crop yields in major avocado-producing regions such as Mexico and Spain. The need for increased irrigation to counteract these conditions has raised production costs, further contributing to higher market prices. Despite these challenges, the slight monthly decrease suggests a temporary fluctuation, possibly due to short-term market adjustments or variations in supply.

Chile

Chile's avocado prices increased by 2.12% WoW in W19, reaching USD 3.45/kg. Avocado production in Chile has been impacted by recent fungal diseases, exacerbated by prolonged drought conditions, which have affected avocado trees. This has reduced the overall supply of avocados available for sale. Additionally, shifts in consumer demand or export trends may have further influenced prices.

Colombia

The price of Colombian avocados increased by 3.03% WoW to USD 2.18/kg in W19. This rise is attributed to a combination of factors affecting Colombia´s avocado industry over the past year, including increased domestic demand and weather conditions, such as the impact of El Niño. Despite these challenges, Colombian avocado exports have increased, demonstrating the industry's resilience and importance to the country's economy. Additionally, there is a 12.58% MoM decrease and a 118% YoY increase in avocado prices, highlighting significant fluctuations and growth over different periods.

3. Other Outstanding Price Anomalies

Brazil's Fresh Avocado Prices Soared by 58% YoY in W19 Amid Increased Demand

In W19 of 2024, the wholesale price of fresh avocados in Brazil surged by 58% YoY, reaching USD 0.69/kg, a substantial increase from USD 0.44/kg in the same period in 2023. Additionally, there was a MoM increase of 25.45% from USD 0.55/kg. The prices remained relatively stable from Jan-24 to Feb-24, but a slight upward trend began from Mar-24 to May-24.

The prices of avocados have slightly increased due to several factors contributing to increased demand and limited supply. One significant factor is the rapid growth of Brazil's avocado industry, where growers are experiencing rising demand from local buyers and international markets such as the Netherlands and Argentina.

The avocado crop acreage in Brazil has also increased significantly, growing by 86% over a decade to 7.7 thousand hectares (ha), according to the nation's Ministry of Agriculture. This increase includes a mix of avocado varieties such as Hass, Breda, Fortuna, and Quintal. While Hass avocados are experiencing notable international demand, varieties like Quintal enjoy strong local demand in Brazil. These factors have led to a slight increase in avocado prices due to the growing demand and limited supply.

4. Actionable Recommendations

Strengthening Colombia's Avocado Industry Resilience

Given the rising prices and increased local demand for avocados in Colombia, stakeholders should prioritize investments in infrastructure and technology to improve production efficiency and meet growing market needs. Addressing weather-related challenges such as El Niño through climate-resilient farming practices will also be crucial. Additionally, expanding export markets and enhancing supply chain management can further boost the industry's resilience and economic contribution. By implementing these strategies, Colombian stakeholders can ensure sustainable growth and capitalize on the increasing demand for avocados.

Mitigate Environmental Impact in Mexico

To mitigate the environmental impact of avocado production in Mexico, particularly regarding water usage and deforestation, stakeholders should adopt sustainable farming practices. To maintain ecological balance and ensure long-term sustainability, implement water-efficient irrigation systems, enforce regulations against illegal plantations, and support reforestation efforts.

Capitalize on Export Growth in Peru

Given the surge in Peruvian avocado exports, stakeholders should focus on enhancing production capabilities and exploring new markets. To maintain the quality of exported avocados, invest in infrastructure improvements, such as modern storage facilities and transportation networks. Additionally, engage in trade negotiations to reduce barriers and open up new opportunities for Peruvian avocados in emerging markets.