Avocado movement maintained momentum post-Cinco de Mayo
From
| 23 May 2023
Overview of avocados in the U.S. market, complemented by charts from Agronometrics. Original published on May 22, 2023.
Supplies of avocados in the U.S. remain plentiful. “This year the supply is very different,” said Juan Monsalve, category manager of avocados for LGS Specialty Sales. “Last year, Mexico was coming to the end of the season with very little fruit so there was a struggle to have all programs covered. However, there was also more Peruvian fruit on the market at that time of year.” Meanwhile this year Mexico has more volume so the late start in Peru looks to complement the Mexican crop and allows Peru to take advantage of the good European market. Along with these regions, California is also producing and there is some volume from Colombia.
While many crops across North America are reporting later starts in 2023, Mexico’s avocado season is on time this year. Sears notes that there is a lot of volume that could potentially overlap with the start of the new season at the end of June. “Peru is late to start because of the rain in the growing regions which slowed down the normal process of fruit maturing as there is a required dry matter to be imported to the U.S.,” says Monsalve. “Peru will have the capacity to go longer than in prior years but it will all depend on the market and how the volume is on Mexican fruit at the start of the season.”
Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)
Fruit size and quality
On sizing, there is a good spread on the size curve. “While Mexico is heavier on larger sizes as we are on the tail end of their season, California volume is gearing more towards smaller sizes. Eating profile on the Mexican fruit is really good right now but the fruit has a very short shelf life due to its high oil content,” says Monsalve.
Meanwhile, demand was strong for avocados during the recent Cinco de Mayo, a high avocado-consumption holiday, and that momentum has continued in the 10 days that followed. “Avocados are still a growing commodity and as more awareness of the benefits of this fruit arises, more and more people will look to making it part of their everyday diet,” says Monsalve.
As for pricing, it is at an all-time low this year due to that high volume from Mexico. “In the last couple of weeks we are seeing some pressure from growers to get field prices higher in Mexico,” says Monsalve, adding that looking ahead, it expects to have plenty of fruit and be able to promote during the summer months.
The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.
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