Avobook report week 16: California ramps up its avocado harvest and redefines the competition
Last week 26,861 tons were harvested and 23,200 tons were exported to the United States. Today another 3,000 tons will be sent to the USA and the rest to different markets, with Canada always being the most important after the USA.
This week, the supply of orchards listed for export to the USA decreased significantly, by approximately 4,000 hectares. This is putting downward pressure on prices and increasing competition for the fruit. The local market has strengthened, and our challenge is to see how we can translate that strength into market share. California has begun its harvest more heavily, reaching around 4,000 tons and capturing a large share of the California market, although it appears that its size range is leaning more towards fruit in the 1960s and smaller.
April will have a sufficient supply from Mexico, but the reduction in volume and the number of hands handling the remaining harvest will be felt. We are at 85% of the estimated volume for this harvest, and the weather conditions may put some pressure on harvesting earlier than expected due to the heat and lack of water.
We will have to analyze the market in Mexico week by week, but the projection is that in June there may be a shortage of Mexican supply. The question is whether other origins will be able to replace Mexico's supply or if we will have a market with very high prices as has happened in some past seasons.
I wish you all a wonderful week.
Antonio Villaseñor Zurita Mexico
antoniovz@aztecavo.com.mx