California Avocado Market Update
USA
Last week's harvest totaled over 15 million pounds, exceeding initial projections. However, higher retail prices have slowed consumer demand. With Memorial Day weekend approaching, growers and retailers are optimistic that promotional pricing and holiday-related sales will help revitalize the market.
With Peru and Colombia reaching record import levels, there are plenty of options for buyers this time of year, unlike last year when the market was slightly better but prices weren't as favorable for California producers. Although a large portion of the imports are going to the East Coast, this is still impacting the overall market with such high inventory levels for an extended period.
It appears there is a surplus of size 60 avocados on the market, which has put downward pressure on prices, from nearly $2.00 per pound to around $1.50.
- Average FOB price (Hass, size 48): $2.06/lb (decrease of $0.08 from last week)
- Estimated harvest for this week: 13.6 million pounds
Producer's Corner:
The warm, dry conditions in Southern California are ideal for harvesting operations, but they pose challenges for irrigation management. Growers in Ventura and San Diego counties are encouraged to closely monitor water use, as reservoir levels remain below normal.
Industry highlights:
- Memorial Day promotions: Retailers are launching special avocado deals, hoping to boost consumer purchases after a period of reduced sales due to higher prices.
- Demand for organic avocados: Sales of organic avocados remain strong, driven by dedicated consumer bases, particularly in the Pacific Northwest and Northern California markets.
See you all next week!
Gary Clevenger Freska Produce International, LLC gary@freskaproduce.com
