1. Weekly News

Chile

Chile's Avocado Consumption Reaches Record Levels

In 2024, Chileans consumed a record 8.6 kilograms (kg) of avocado per capita, making Chile the world’s second-largest consumer after Mexico. This growth is fueled by increased domestic availability, with nearly 50% of national production remaining in the country, up from 30% in previous years. Starting at USD 176/kg in wholesale markets, stable prices have further supported demand. Avocado remains a staple in Chilean cuisine, commonly featured in meals, salads, sushi, and soups. Economically, the sector generates approximately USD 700 million annually, reinforcing Chile’s strong position in the global avocado market.

Mexico

Mexican Avocado Industry Faces Uncertainty Over US Tariffs

The temporary suspension of the 25% tariff on Mexican avocado exports to the United States (US) has provided short-term relief, but uncertainty remains over its long-term status. Briefly enforced in Mar-25, the tariff disrupted shipments as producers paused exports due to pricing concerns. Previously, US export prices were USD 0.50 to 0.74 (MXN 10 to 15) higher than domestic prices, but the tariff significantly reduced profit margins. As exporters seek alternative markets in Europe and the Middle East, logistical challenges persist. With a US review of the tariff decision scheduled for Apr-25, the Mexican avocado industry faces ongoing volatility, affecting producers and consumers.

Mexico’s Avocado Industry Faces Trade Uncertainty Amid Tariff Confusion

Mexico's avocado industry remains exempt from tariffs under the US-Mexico-Canada Agreement (USMCA), but recent uncertainty over a briefly imposed 25% tariff on agricultural products caused a sharp decline in exports to the US, with border trade dropping by up to 90% before the measure was suspended. Some exporters who paid the tariff are now seeking refunds, highlighting the disruption's financial impact. In response to the ongoing volatility, the sector is expanding its export reach to Europe, Japan, South Korea, the United Arab Emirates (UAE), and Canada. With Mexico supplying 91% of avocados consumed in the US, any future trade restrictions could have significant economic consequences for both countries.

Morocco

Morocco’s Avocado Season Sees Minimal Impact from Storm

Morocco’s avocado industry has largely withstood the recent strong winds and heavy rains affecting the northern region from Tangier to Rabat, with only minor losses of up to 10% reported in coastal areas near Larache. Around 15 to 20% of the crop remains on trees due to a delayed harvest, as growers anticipate better prices. The late arrival of Peruvian avocados has driven demand, pushing prices 20 to 30% higher than at the start of the season. Additionally, strong local demand, particularly ahead of Ramadan, is further supporting market stability.

Paraguay

Paraguay's Avocado Industry Expands with Strong Growth Potential

Paraguay's avocado industry is experiencing rapid growth, with annual production increasing by 25% over the past three years, reaching approximately 7.5 thousand tons. Cultivation is concentrated in Itapúa (45%), Alto Paraná (35%), and Cordillera (20%), driven by favorable climatic conditions, high yields, and rising domestic and international demand. The industry generates around USD 13 million annually, offering 40% profitability for established producers. Future expansion will rely on adopting new technologies and improving cultivation methods to enhance yields and quality, positioning Paraguay as an emerging player in the global avocado market.

2. Weekly Pricing

Weekly Avocado Pricing Important Exporters (USD/kg)

Yearly Change in Avocado Pricing Important Exporters (W11 2024 to W11 2025)

Mexico

Mexico's avocado prices increased by 3.40% week-on-week (WoW) in W11 to USD 3.04/kg, with a 50.50% year-on-year (YoY) surge. This price rise is due to uncertainty surrounding the potential implementation of a 25% tariff on Mexican avocado exports to the US. Although the tariff was temporarily suspended on March 6, 2025 after a brief enforcement period, concerns about its possible reinstatement have led producers and exporters to pause shipments to the US, tightening supply and driving up prices. However, month-on-month (MoM) prices dropped by 1.62%, reflecting the market's initial adjustment to the temporary suspension of the tariff and exporters' efforts to explore alternative markets in Europe, Japan, South Korea, the UAE, and Canada. These diversification efforts aim to mitigate the impact of potential US trade restrictions but have introduced logistical challenges and increased competition, contributing to the slight MoM price decline. The Mexican avocado industry remains vigilant as the US government plans to review the tariff decision on April 2, 2025, leaving the market in a state of uncertainty that continues to influence pricing dynamics

Peru

In W11, avocado prices in Peru dropped by 6.19% WoW to USD 1.06/kg, showing a 7.02% MoM decrease and a 4.50% YoY drop. The price decline is due to an increase in avocado production, with Sep-24 figures showing an 8.4% YoY rise, totaling 31.7 thousand tons. Regions like Ica and Lima contributed significantly to this growth, accounting for 52% of the national output. However, despite the increased production, the YoY price drop is relatively modest, indicating that strong international demand, particularly from markets such as the Netherlands and Spain, has helped stabilize prices. This sustained demand has prevented a more significant price decline despite the higher production levels.

Spain

Spain's avocado prices increased by 3.24% WoW to USD 2.23/kg in W11, with a 7.21% MoM rise. This increase was primarily driven by strong demand in European markets, particularly in France and Germany, where consumption remains robust. The ongoing Lamb Hass harvest in regions like the Valencian Community has ensured stable domestic availability, while advancements in post-harvest handling and export logistics have supported price resilience. However, YoY prices dropped by 18.61% due to expanded production from maturing orchards, increased output from key suppliers such as Peru and Colombia, and favorable weather conditions enhancing yields, leading to a more abundant market supply.

Chile

In W11, avocado prices in Chile increased by 5.59% WoW to USD 3.59/kg, with no MoM change. The price rise was driven by strong international demand from European markets such as the Netherlands, the United Kingdom (UK), and Spain. Additionally, improved post-harvest handling and export logistics have supported stable pricing. However, YoY prices fell by 20.40% due to a significant 33.3% rise in production, reaching 200 thousand metric tons (mt) in the 2024/25 season, and a 29.8% increase in exports, which has expanded supply and exerted downward pressure on prices compared to the previous year.

3. Actionable Recommendations

Expand Domestic Sales Through Value-Added Products

Avocado producers and retailers in Chile should capitalize on high domestic consumption by introducing value-added products like guacamole, avocado-based spreads, and ready-to-eat snack packs. Partnering with food service providers and supermarkets to offer convenient packaging and meal-ready options can further boost sales. Expanding promotions in high-traffic retail locations and leveraging digital marketing can enhance consumer engagement and drive continued demand.

Optimize Harvest Timing to Maximize Returns

Moroccan avocado growers should strategically time their harvests to align with peak market demand and price surges. Delaying picking when market conditions favor higher prices can boost profitability, but it’s crucial to monitor fruit quality and weather risks. Partnering with exporters and wholesalers to secure flexible contracts can help balance supply and demand while ensuring optimal pricing.

Sources: Tridge, Apeamex, Chilean Avocado Committee, Freshplaza, Freshfruitportal, Megacadena