The avocado market in Europe: an uncertain future
Spain
The situation for avocados in Europe in week 24 is uncertain. After a May with over 1,000 containers per week arriving in Europe, the market faces a potential oversupply of Peruvian avocados in the coming months. The question is, how much Peruvian avocado will reach Europe, and how long can the market sustain this level of supply without collapsing to historic lows?
The price drop has been more gradual than expected. In my humble opinion, this is possibly due to the distribution of sizes that have arrived so far, a much more even split than usual, which prevents the market from becoming saturated as quickly, unlike the distribution of sizes we are now seeing, which is very concentrated in 10-12-14. However, with the information coming from Peru and the calculations of what remains to be shipped and the remaining weeks, the outlook is not encouraging.
From a commercial standpoint, year after year we encounter a fundamental problem in the avocado market: the lack of professionalism among some operators who hold fruit without a clear destination, hoping for favorable market conditions and the arrival of suitable sales opportunities. The complex issue is that when the market is tough, this fruit is sold at very low prices, distorting the market. Even when the fruit sells, rumored prices rise again, and many buyers stick with that final price, assuming the market will remain at those levels permanently.
The positive note is that the quality of this year's avocados is excellent. Ripening is progressing smoothly, with minimal loss and great flavor. This is a significant advantage for avocado growers and distributors.
Carlos Ocaña Spain