1. Weekly News

Chile

Chile's Avocado Industry Focuses on Sustainability and Market Growth at Global Summit

Chile's avocado industry is adapting to global shifts, including the rise of emerging supplier countries, expanding markets, and increasing local consumption. The Global Avocado Summit 2024 was held on November 21, 2024 at the Casino Monticello Events Center to address these changes. Organized by the Chilean Avocado Committee and the Yentzen Group, the event brought together farmers, exporters, and marketers to assess the sector's current state, explore new market opportunities, and refine commercial and marketing strategies. The summit highlighted Chile's commitment to sustainability, aiming to boost the competitiveness of its avocado industry while promoting environmental responsibility.

Colombia

Colombia's Hass Avocado Exports Surged in 2024

Colombia's Hass avocado exports continue to drive significant economic growth, with the fruit now the second-largest income generator in the country. Data from the National Tax and Customs Directorate (DIAN) reveals that between Jan-24 and Sep-24, Colombia exported 102.3 thousand tons of Hass avocados, a 15.77% year-on-year (YoY) increase. This surge in export volume contributed to a 42.36% YoY revenue increase reaching USD 218.6 million. Notably, there was a strong rebound in Colombia's avocado exports in Sep-24, with shipments of 11.9 thousand tons and revenues of over USD 26.8 million, marking the third-highest monthly earnings of the year. This performance shows the growing importance of Hass avocado exports to Colombia's economy.

Georgia

Georgia's Avocado Imports and Exports Surge in 2024

In the first ten months of 2024, Georgia imported 1.4 thousand tons of avocados valued at USD 3.4 million, marking a 12.2% YoY volume increase compared to 2023. The Netherlands emerged as the top supplier, accounting for 591 tons worth USD 2 million, followed by Türkiye, the United Arab Emirates (UAE), Kenya, and Peru. Meanwhile, Georgia also exported 259.6 tons of avocados to Armenia, generating USD 635 thousand. These trade dynamics highlight Georgia's growing role as an importer and exporter in the avocado market.

Mexico

Mexican Avocado Challenges Lead to Guatemalan Market Expansion

The Mexican avocado industry faced significant challenges this season due to high temperatures and water shortages, resulting in reduced yields and higher prices. Many Mexican growers prioritized exports to the United States (US) over Europe, prompting companies like Aztec Fruits to shift focus to Guatemalan avocados. Initiated after years of preparation, Guatemalan exports to Europe have been well-received for their quality and flavor despite smaller volumes than competitors like Colombia. However, Guatemala’s upcoming access to the US market may redirect its exports due to higher profitability, complicating efforts to expand in Europe. Despite these hindrances, companies remain committed to balancing European and US demand while anticipating a more robust Mexican avocado season next year.

South Africa

South African Avocados Make Strong Debut in Chinese Market in 2024

In 2024, South African avocados made a significant entry into the Chinese market, marking a milestone for the industry. The China International Import Expo (CIIE) showcased the avocados sold directly to consumers and promoted via e-commerce platforms such as Taobao Tmall during the "Double 11" online event. Renowned for their creamy texture and unique buttery or nutty flavors, South African avocados thrive in the country's dry climate and extended production season from late March to September. Previously focused on Europe and the Middle East, South Africa's avocado exports are projected to reach 88 thousand tons by the end of 2024. The rising local demand for avocados and new access to China positions South Africa as a primary player in the global avocado market.

2. Weekly Pricing

Weekly Avocado Pricing Important Exporters (USD/kg)

Yearly Change in Avocado Pricing Important Exporters (W47 2023 to W47 2024)

Mexico

Mexico's avocado prices declined by 8.24% week-on-week (WoW) to USD 2.56 per kilogram (kg) in W47, with a 9.54% month-on-month (MoM) decline and a 7.91% YoY decrease. This decline is due to improved market availability following an uptick in harvest volumes as the season progresses, alleviating some supply constraints caused by earlier heat and water shortages. Additionally, weaker demand in specific export markets has contributed to downward price adjustments as buyers adapt to higher prices from prior weeks. Despite the decline, growers are optimistic about next year's season, anticipating improved yields and better market dynamics.

Peru

Avocado prices in Peru decreased slightly by 0.87% WoW to USD 1.14/kg in W47, with a more significant decrease of 38.71% YoY due to increased competition from Mexico in key export markets, particularly the US, which has led to price pressures. This competition, combined with ongoing concerns over cadmium levels and logistical challenges, has continued to impact Peru's ability to secure premium pricing. However, there is a slight increase of 1.79% MoM due to steady European demand for high-quality avocados, supported by favorable growing conditions and optimized harvests as Peru transitions into preparations for the next season.

Spain

In Spain, avocado prices fell by 9.68% WoW to USD 1.68/kg in W47, with a 25% MoM decrease and a 20% YoY decline. The price decline was due to a persistent market oversupply, particularly from early-season green-skinned varieties, combined with increased availability of imported avocados competing for market share. Local production also faced challenges from ongoing water shortages, which have affected both yield quality and volume, further pressuring prices in an already saturated market.

Chile

Avocado prices in Chile increased by 2.59% WoW to USD 3.57/kg in W47, a rise of 7.53% MoM and 1.71% YoY due to sustained export demand, particularly from European markets and limited regional supply. The Chilean avocado industry's focus on sustainability and market growth further supported the upward trend. This event emphasized strategies to enhance market competitiveness and environmental responsibility, which have bolstered the sector's reputation and demand. Additionally, reduced availability from other regional suppliers and stable domestic production contributed to the price increase.

3. Actionable Recommendations

Adapt Export Strategy to Secure European Market Share

Mexican avocado exporters should diversify their focus by strengthening their European market strategy, especially when shifting demand to the US. By collaborating with European distributors and emphasizing the unique qualities of Mexican avocados, exporters can maintain and grow their market share in Europe. Additionally, exporters must keep a close watch on the Guatemalan entry into the US market and adjust their supply chain flexibility to capitalize on any changes in international demand, ensuring that they remain competitive in both regions.

Strengthen e-commerce Strategy to Capitalize on Chinese Market Growth

South African avocado exporters should enhance their e-commerce and digital marketing strategies to boost their presence in the growing Chinese market. They can increase brand awareness and sales by leveraging platforms like Taobao Tmall and targeting Chinese consumers directly. Exporters should also collaborate with local retailers and influencers to build consumer trust and further solidify South Africa’s position as a competitive player in both the Chinese and global avocado markets.

Sources: Tridge, Agraria, Aztec Fruits, Corpora's, Eastfruit, Foodmate, Portaldelcampo