Calavo expecting steady supplies and pricing of Mexican avocados

From The Produce News | 12 November 2022

Overview of avocados from Mexico in the U.S. market, complemented by charts from Agronometrics. Original published on November 8, 2022. 

With two packinghouses in Mexico in the cities of Uruapan and Jalisco, Calavo has been harvesting, packing and exporting avocados for 25 years to the United States, Asia and Europe.

avocado volumes by origi 22

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

“The industry has grown tremendously over the years,” said Peter Shore, vice president of product management for the Santa Paula, CA-based company, citing the fact that 2.6 billion Mexican avocados will be imported into the U.S. this year. “Calavo has been a leader in the avocado industry since 1924.”

The 2021-2022 avocado season experienced demand exceeding supplies from January through June, causing prices to elevate through that period.

avocado volumes by histo 31

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

“We have very good supplies through May of 2023, so we’re expecting steady supplies and steady pricing for the next six months,” Shore said. “Timing is now through late spring. Avocados will be promotable with good supplies.”

One of the reasons is that the state of Jalisco is now allowed to export Hass avocados to the U.S., which Calavo has been shipping product elsewhere internationally since 2017.

“Our transition to ship to the U.S. was seamless while maintaining our international business,” Shore said. “The upcoming season from growing areas in Michoacan and Jalisco will come with excellent, promotable volume through late spring.”

Plus, the new crop is looking great with sizing from the field, and all sizes are available at this time both conventional and organic. Historically, over the next few weeks, there is a large volume of avocados sold in a short amount of time, with only the Super Bowl season seeing sales increase faster.

Supermarkets normally don’t need a lot of help selling avocados this time of year, but that doesn’t mean they shouldn’t be doing some things to better get the word out about what’s available.

Retailers have been doing their part in helping the category see historic rises, promoting avocados around sporting events such as football and World Cup soccer, which comes in November and December. Holidays are also a great time to promote with Thanksgiving, Christmas and New Year’s becoming big avocado days.

“Retailers continue to increase sales volumes with multiple displays of avocados per store,” Shore said. “Offering different sizes — jumbo, large or small, typically two sizes, all helps, as well as bagged fruit, large and small bags. Organic is also a great way to offer more to consumers, in bulk whole fruit sales and bags.”

The biggest opportunity Calavo sees in the year ahead will be an extended period of promotable volume and pricing.

“This is for retail and foodservice customers,” Shore said. “U.S. consumers are eager to consume more avocados and like incorporating them into breakfast, lunch and dinner.”

Calavo is excited for what’s ahead with new structures in all segments and new executive leadership.

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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