The avocado market is experiencing significant fluctuations in prices and production across various regions. This volatility is driven by weather impacts, increased cultivation in certain areas, and shifting demand, particularly from China. Here’s a comprehensive overview of the current state of the avocado market.
European Union
In the European Union, the average wholesale price of avocados fell by 11% month-on-month to €280 ($298) per 100 kg in May. This price drop comes amid a surge in EU27 imports from Peru, which increased by 106% month-on-month to 40,300 metric tons in April. The influx of Peruvian avocados has had a notable impact on market dynamics, contributing to the price decline.
Peru
Peru is facing a challenging year for avocado production. Volumes are projected to decrease by 15% year-on-year due to the impacts of El Niño, which has particularly affected coastal production areas. This reduction in supply is expected to slow down long-term export growth as margins become increasingly squeezed.
Kenya
Kenya is becoming an important player in the EU avocado market, with shipments to EU27 states reaching 9,400 metric tons in April. Despite experiencing heavy rains, the overall impact on fruit quality has been minimal, allowing Kenya to maintain its export momentum.
Brazil
Brazil is emerging as a significant supplier to the EU, with exports rising sharply. Avocado cultivation in Brazil expanded to 16,400 hectares by 2020 and continues to grow, positioning the country as a key competitor in the global market.
Colombia
Colombia has launched the “Avocadoes from Colombia” brand to highlight its sustainable farming practices. The country has shown strong export performance, shipping 27,000 metric tons to the Netherlands and seeing significant growth in the UK and US markets.
United States
In the United States, California’s avocado crop estimate has risen to over 250 million pounds, marking a 20% increase. However, the temporary suspension of Mexican avocado inspections led to price fluctuations, with Mexican Hass avocado prices peaking at $72 per two-layered-carton in Los Angeles.
Asia
The Asian market presents a mixed picture. Japan’s imports decreased by 21% year-on-year, while China’s demand grew by 1% year-on-year to 21,000 metric tons. India saw a significant import growth of 132% year-on-year, exceeding 2,000 metric tons.
Rabobank Forecast
According to Rabobank, Latin America is set to lead global avocado exports, with Mexico, Peru, and Colombia being major players by 2026. Despite facing challenges, the global avocado industry is poised for growth, with sustainability and efficiency becoming increasingly critical.
World Avocado Organisation (WAO) Contest
The World Avocado Organisation recently contested a report criticizing the environmental impact of avocado production. The WAO emphasized sustainable practices and challenged claims about the water and carbon footprints of avocado farming.
The avocado market is navigating through a period of volatility, influenced by environmental factors and evolving global demand. Key regions are adapting to these changes, which have significant implications for supply chains and pricing. Despite the challenges, the industry’s growth trajectory remains positive, driven by innovation and sustainable practices. As the market continues to evolve, stakeholders must stay informed and adapt to the shifting landscape to capitalize on emerging opportunities.
If you’re sourcing for avocados, give us a call today. With over 40 years globally sourcing fruits and vegetables, we’ve nurtured strong partnerships with dependable farms and suppliers to ensure you get the best quality crops. Contact us now to secure your supply!
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