Weekly Product Updates

W44: Avocado Update

Fresh Avocado
Netherlands
Published Nov 10, 2023
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In W44 in the avocado landscape, the Colombian Hass avocado harvest started on Sep-23 and is expected to run until the W15 of 2024. So far in 2023, the country exported 125 thousand tons of Hass avocados, with a further 20 thousand tons anticipated by year-end, marking a 30% increase over the same period in 2022. Colombia is now the world's third-largest Hass avocado producer, driven by innovative and environmentally sustainable practices. The country's unique tropical climate enables year-round avocado production in over a dozen regions. The export of avocados has propelled Colombia's international presence, with major markets including the Netherlands, the United States (US), the United Kingdom (UK), Spain, and Belgium. However, the industry faces challenges related to crop diseases and pests, which require ecologically sustainable solutions and stringent quality control measures.

Mexico's agricultural and agro-industrial trade balance reported a surplus of USD 5.9 billion from Jan 23 to Aug-23, a 15.89% year-on-year (YoY) increase. This surplus marks the ninth consecutive year of surplus in August, driven by a 4.5% growth in exports, reaching a record USD 35.5 billion. The agri-food export industry thrived, with avocado exports growing by 33% YoY. Mexico ranks as the ninth largest agri-food exporter globally, and the agri-food sector is forecasted to reach USD 53 billion in 2023, with fruits and vegetables, such as avocados, playing a significant role.

In Mexico, avocado prices are slightly rising as the harvest shortens due to dry conditions and increased exports. South Africa's avocado prices have rebounded, aided by Chinese market access. In Chile, prices spiked when Peruvian avocados were scarce and have since decreased due to more local supply and export delays. In November, prices are expected to fluctuate in response to local demand and export patterns.

In Aug-23, Peru's national avocado production decreased by 6.9% year-on-year (YoY), with 45.04 thousand tons. Unfavorable weather conditions were the primary cause of this reduction. La Libertad and Lima were significantly affected, with 32.8% and 18.5% YoY drop, respectively, although they still contributed 49.2% of the total avocado production. Some regions, such as Apurímac, Moquegua, Ayacucho, and Arequipa, also experienced production declines. However, notable growth in avocado production was experienced in Pasco, Ica, Huánuco, and Lambayeque.

Furthermore, producers in Peru's Huancavelica region have achieved the certification of 16.33 thousand tons of Hass avocados, marking a 22% increase in export volume compared to the previous 2022/23 campaign. The National Agrarian Health Service (Senasa) certified 1.33 thousand hectares (ha) of avocado palms in various provinces, primarily Castrovirreyna, Tayacaja, Huaytará, and Churcampa. The certified avocados were exported to destinations such as China, the European Union (EU), South Korea, Japan, the US, Argentina, and Chile. Senasa works on various fronts, including phytosanitary surveillance and certification of production sites, to ensure the quality and safety of exports. The 2024 campaign is expected to see a 15% YoY increase in avocado production in Huancavelica.

Peru's avocado exports increased by 16.7% in the first eight months of 2023 compared to the same period in 2022, reaching USD 949 million. The Netherlands was the largest importer, purchasing USD 306 million worth of avocados from Peru during this period. Other destinations included Spain with USD 180 million, the US with USD 127 million, and Chile with USD 91 million. Despite a cadmium contamination alert earlier in 2023, the Netherlands maintained its position as the top importer of Peruvian avocados. The country primarily serves as a re-export hub for avocados within Europe, with only around 9% of imports consumed domestically.

Lastly, in the Netherlands, Hass avocado prices from Kenya and Colombia remained stable in the Rotterdam wholesale market during W42. The price for Kenyan Hass avocados 18>24 stayed at USD 13.88 per 4-kilogram box (EUR 13/4kg box), while the price for Kenyan 26/28/30 (10kg box) remained at USD 25.62/10kg box (EUR 24/10kg box). Colombian Hass avocados 18>24 (4kg box) also held steady at USD 16.02/4kg box (EUR 15/4kg box), and Colombian avocados 26/28 (10kg box) decreased from USD 30.96 to USD 29.90/10kg box (EUR 29 to EUR 28/10kg box).

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