“We’re consistently growing avocado supply to meet demand”
From
| 3 November 2023
Overview of avocados in the U.S. market, complemented by charts from Agronometrics. Original published on November 1, 2023.
With avocado consumption in North America continuing to grow, the produce industry has witnessed an expansion in avocado capacity in recent years. This includes acreage development, diversification of growing regions, as well as expansion of packing and distribution facilities in an effort to bring supplies more in line with demand. An example of a company strengthening its presence in the avocado segment is Oppy. Back in 2020, the company acquired a 65 percent stake in Eco Farms to build out its presence in the avocado category.
Together, the two companies offer organic and conventional avocados from Mexico, California, Chile, Colombia, and Peru. More recently, in May 2022, Avoworks joined Oppy and Eco Farms. With Avoworks representing growers and packers from Michoacán, Mexico, the partnership is focused on offering smoother supplies from Mexico and building US sales. “These partnerships offer us the capacity to grow and pack significant volumes for the market with reliable supply,” says Category Director of Citrus and Avocados Rodrigo Lopez with Oppy.
Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)
While avocado supplies have been inconsistent in 2023 due to weather events, Director of Sales and Strategy for Eco Farms and Sales Executive Mark Smith mentions the three companies together have good availability in a range of sizes. There has been a lot of rain recently, especially through Michoacán, that was hit by three tropical storms. “Nevertheless, availability on 60s and smaller is excellent, with larger sizes available as well.” Mexico is now entering its peak season with strong supplies expected until spring. In addition to Mexico, some product is sourced from Chile this time of year.
Larger consumer base
The overall demand for avocados and avocado products continues to increase in the US. “In the past, avocado consumption was mainly driven by “super users”, people who consume avocados daily. However, in recent years we have witnessed a growing number of people experimenting with avocados and incorporating them into their diets,” Lopez commented. This trend has expanded the consumer base and Oppy anticipates further growth in future. To support the consumption of avocados in diets in a convenient way, Oppy recently introduced two value-added products: Frozen avocado blend and halves. The blend is a purée with sea salt and lime along with hand-scooped avocado halves with the skin and pit removed. These products will be available in the market by the end of 2023.
Another innovation that shows the commitment to avocados is the launch of a compostable avocado pack. It is certified for both backyard compost and industrial compost. “We have the global certifications for both, which is very unique,” says Garland Perkins with Oppy. The netting and label are made with cellulose from sustainably sourced beechwood that can decompose in the backyard or landfill in as little as 12 weeks. The new avocado pack is available for the company’s conventional avocados from Mexico. While supplies are a bit more limited at first, eventually this pack will become the standard for all avocados the company brings to market.
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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