Weekly Product Updates

W31: Avocado Update

Fresh Avocado
Peru
Published Aug 8, 2023
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In W31 in the avocado landscape, avocado consumption has surged globally, particularly the Hass variety, due to health-conscious trends and its versatility. Between 2012 and 2022, global avocado production grew at an average annual rate of about 7%, reaching approximately 8.4 million metric tons (mt) in 2022. Despite positive trends, the avocado industry faced challenges in 2022 and 2023 due to climatic events, inflation, conflicts, and logistics disruptions, impacting markets and consumption. The industry anticipates growth in both production and demand, driven by Latin America and the Caribbean.

The rise of Asian and Middle Eastern markets is expected as logistical conditions improve. Hawaii's contribution to global production has declined, with South Africa, Australia, Kenya, and China taking the lead. Increased competition and market dynamics present challenges, but growth remains promising. Mexico, Peru, Colombia, and Chile are key players with varying export trends, responding to market demands and quality standards. In Chile, water deficits and increased competition have led to a drop in avocado exports, resulting in local market prioritization. Despite challenges, the country anticipates a 19% rise in shipments for the 2023/2024 season, exceeding 105 thousand tons. Sustainability and traceability are becoming paramount as the industry expands, with adherence to stricter regulations driving long-term viability and growth.

Furthermore, Mexico has emerged as one of the top three global producers of fruits and vegetables in 2023, with avocados and blackberries leading the way. The Ministry of Agriculture and Rural Development attributed this achievement to the collective efforts of producers and support from public initiatives, research, innovation, and technology. In 2022, Mexico produced 2.54 million mt of avocados, contributing to a production value of USD 3.72 billion (MXN 63.45 billion) and spanning an area of 252 thousand planted hectares (ha). Michoacán emerged as the leading state, responsible for 73.1% of national avocado production, followed by Jalisco and the State of Mexico. In addition, Mexico achieved a record avocado export to the United States (US), sending 1.13 million metric tons (mt) in 2023, surpassing the previous 12-month record. Avocados from Mexico (AFM) attributed this success to effective marketing strategies. Jalisco, a growing exporter, is boosting US shipments, while Michoacán's crop remains stable. AFM plans an extensive summer promotion despite typical lower volumes, aiming to increase avocado consumption.

In 2023, Peruvian Hass avocado exports are projected to reach 577 thousand tons, a slight increase of 2.5% compared to 2022. However, this volume is lower than initially estimated due to climatic events affecting fruit size and growth. President of the Peruvian Association of Hass Avocado Producers and Exporters (ProHass) highlighted the challenges posed by weather anomalies and emphasized the need for agronomic procedures to ensure optimal production in the face of changing conditions. Despite this, there are ongoing efforts to offer technical support and training to small-scale producers to sustain their production levels. Additionally, new investments in Peruvian avocado cultivation have slowed down due to various factors impacting growth in the industry. Peruvian fresh avocado shipments remain robust despite nearing the end of the season. In W31, shipments increased 19%, totaling 29.05 thousand tons, compared to the previous year. Peru has exported 567.45 thousand tons, marking a remarkable 22% growth over the 2022/23 season.

Lastly, the World Avocado Organization (WAO) has launched a promotional campaign for Hass avocados in India. The campaign has led to a significant increase in avocado consumption in India. 

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