Opinion

W37: Avocado Update

Published Sep 22, 2023
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W37: Avocado Update

In W37 in the avocado landscape, the Mexican municipalities of Ahualulco de Mercado and San Juanito Escobedo in Jalisco have obtained health certification to export avocados to various countries, including the United States (US). A total of 17 municipalities in Jalisco are now eligible to export avocados to the US market. Over the past two years, the avocado industry in Jalisco has grown by approximately 40%, with an estimated annual production of nearly 94 thousand tons. The quality of Jalisco avocados has attracted interest from foreign markets, including Chile and Malaysia, which are exploring imports.

In Jul-22, the first shipment of avocados from Jalisco to the US started, and the state currently has 8.40 thousand hectares (ha) certified for export to the US out of a total of 26 thousand ha with export-quality avocados. In addition, the Association of Mexican Avocado Producers and Packers and Exporters (APEAM) has achieved record avocado export sales to the US in 2023, with continued growth expectations. In 2023, avocado exports to the US are projected to exceed 1.19 billion tons due to increasing demand, particularly during events like the Super Bowl and Cinco de Mayo.

The new General Director of the Colombia Avocado Board aims to promote Colombian Hass avocados in the global market, focusing on the US. Colombia is emerging as a significant avocado supplier globally.The goal is to enhance its presence further, particularly in the US market where the Colombian avocado industry is experiencing robust growth, with weekly shipments ranging from 1 to 2 million pounds (lb). The Colombian avocado industry is expected to continue its expansion, with volumes forecasted to surpass the previous year's total.

The Hass Avocado Producers Association of Peru (ProHass) provided an overview of the country's avocado campaign, citing several challenges. Unfavorable weather conditions, including the impact of Cyclone Yaku, temperature fluctuations, and increased rainfall, affected avocado production and quality. While production is forecasted to increase by 2% compared to the previous year, the campaign faced difficulties in the US due to Mexican avocados.

In Europe, a significant export destination for Peruvian avocados, challenges arose as fruit ripening times increased and external blemishes appeared, mainly due to prolonged rains. In contrast, the Chilean market saw growth of approximately 4% in Peruvian avocado exports. China experienced substantial growth in Peruvian avocado imports, leading to increased volume and price fluctuations. ProHass remains committed to promoting Peruvian avocados in emerging markets like China and actively participating in initiatives by the World Avocado Organization (WAO) to expand consumption in markets like Italy and India.

Furthermore, Peruvian avocado exports have shown an 8.82% year-on-year (YoY) increase from January 1 to August 28, 2023, with 572.58 million kilograms (kg) exported during this period. The season's peak was noted in May and June, with monthly exports surpassing the same months in 2022, except for August, which saw a decline. The rise in both volume and value of exports is due to improved international market prices, with sales expected to reach USD 1 billion, a level previously achieved in 2021. Exports by region include La Libertad (2.41% growth to 182.99 million kg), Lambayeque (28.52% increase to 141.47 million kg), and Lima (15.37% rise to 143.44 million kg). Projections suggest that Peruvian avocado exports will reach 650 thousand tons by year-end, representing an 11% increase from 2022's 584 thousand tons.

Lastly, the Chilean Avocado Guild Association has estimated a production of 150 million kg for the 2023/24 avocado season, similar to the previous season. Around 90 thousand tons are forecasted to be exported, representing 60% of total production. The domestic market is expected to maintain strong demand, and up to 40% of the fruit may remain in Chile, depending on market dynamics. Chilean Hass avocados will continue to target key markets, including Europe, the US, China, and Argentina. While the US market has faced increased competition from Mexican avocados, Europe offers growth opportunities due to its demand for certifications and sustainability practices. The industry is exploring collaborations with academic institutions to further enhance sustainability and innovation in avocado cultivation and production.

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