Weekly Product Updates

W41: Avocado Update

Fresh Avocado
Published Oct 20, 2023

In W41 in the avocado landscape, global avocado exports faced a 3.1% decline in 2022, totaling 2.5 million metric tons (mmt) due to adverse weather conditions in Mexico, the primary supplier. Mexico, accounting for 55 to 60% of global avocado exports, saw a 16.2% drop in exports to 1.2 mmt in 2022, impacted by a destructive storm and prolonged drought. Nevertheless, the United States (US) maintained a strong demand for Mexican avocados.

Meanwhile, Peru continued its growth with a 4.7% increase in avocado exports, making it the world's second-largest supplier. Kenya also emerged as a key avocado exporter, with an 8.6% export surge. Chile and South Africa also experienced growth in avocado exports. In addition, global avocado imports fell by 7% to 2.4 mmt in 2022, primarily due to shortages from Mexico, with the US and the European Union being significant importers.

Colombia's Hass avocado harvest began in Sep-23 and is expected to continue until Apr-24, marking a year of significant growth for the industry. In 2023, Colombia exported 125 thousand tons of Hass avocados, with another 20 thousand tons expected to be shipped by year-end, representing a nearly 30% increase from 2022. Sustainability is a focus for the industry, including practices such as directed pollination, gender equity, and promoting Hass consumption in Colombia. The upcoming season aims to capitalize on global avocado shortages by maintaining high-quality standards and expanding into emerging markets.

As the 2023 Peruvian avocado campaign approaches its end, it is forecasted to reach approximately 700 thousand tons in shipments. During W40, avocado shipments totaled 1.31 thousand tons, slightly lower than the campaign's weekly average but still 22% higher than the same period in 2022. Notably, only six purchasing countries participated in these shipments, with Spain (46%), the Netherlands (26%), and the United Kingdom (14%) being the primary destinations. Notably, shipments to the US, a major market, were not recorded in W40. Peruvian avocado shipments continue to be exported by sea from the Callao Port Terminal.

Furthermore, the Peruvian Hass avocado production for 2023 is forecasted to stagnate due to the El Niño impacting weather conditions. The initial projection indicated growth of up to 13%, but on Sep-23, it was adjusted to no growth. Issues related to weather have led to problems with the campaign. Peru, the world's second-largest Hass avocado producer, faces emerging competition from countries such as Colombia, Ecuador, Guatemala, Brazil, Kenya, Israel, South Africa, Spain, and China, which are expanding Hass avocado production. This oversupply has negatively affected producers, particularly smaller ones. Peru has 60.13 thousand hectares (ha) of Hass avocado, exporting 95% globally, primarily to the US and Europe.

The Ancash region, Peru, took the lead in producing and exporting organic avocados, accounting for 82% of the national production, totaling 5.01 thousand tons, and generating an export value of USD 11.05 million as of Sep-23. Following Ancash, Lambayeque is the second-largest organic avocado exporter with 611 tons, succeeded by La Libertad (358 tons), Tumbes (72 tons), Cajamarca (48 tons), and Ica (5 tons). Despite a slight national drop in organic avocado exports compared to 2022, this crop remains favorable to producers due to its income-generating potential and growing consumption. In the past years, Ancash has consistently led in organic avocado exports. The primary destinations for Peruvian avocado exports include the Netherlands, Spain, Chile, the US, the UK, and Japan.

Lastly, on September 30, the Department of Agriculture-Bureau of Plant Industry of the Philippines launched the export of fresh Hass avocados with a ceremonial send-off in Davao City. The initial shipment of 3.04 thousand boxes, valued at approximately USD 48 thousand, was set to arrive in South Korea on October 8, marking a significant market access achievement. This development signals the start of a promising trade relationship between the Philippines and South Korea. 

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