California's avocado harvest is increasing and stocks are growing amid slower retail demand
USA
The avocado industry in California is experiencing a significant increase in supply, with growers harvesting an impressive 12.1 million pounds of fruit last week alone. This aggressive pace has brought total stocks to over 18 million pounds, presenting both opportunities and challenges for the state's growers.
The rapid increase in volume is the result of favorable harvesting conditions and a strategic push by growers to bring the fruit to market early in the season. However, while the harvest has gained momentum, retail demand has slowed, creating a mismatch between supply and demand.
Industry analysts cite a variety of factors behind the drop in demand, including cooler-than-expected spring weather in major U.S. markets and a shift in consumer behavior after Easter. Some retailers are also adjusting their avocado promotions as they prepare for the summer stone fruit season.
Despite the current sluggish demand, marketers are optimistic about a sales rebound as Cinco de Mayo approaches. The popular holiday, synonymous with guacamole, tacos, and avocado-rich dishes, represents a significant promotional opportunity for retailers. Many are already preparing in-store and digital campaigns to highlight avocados, with aggressive pricing expected to help clear inventory.
This inventory level is manageable, but it requires swift action. Cinco de Mayo comes at the perfect time to help us sell the fruit and meaningfully re-engage consumers.
California's avocado season typically peaks in late spring and early summer, and while current volumes are high, overall harvest forecasts remain in line with seasonal expectations. Mexico will be entering the holiday season, with some packing plants closing from Wednesday through Sunday in observance of Easter. If Cinco de Mayo promotions are successful, combined with lower volumes from Mexico, growers and shippers expect the current surge in supply to be absorbed quickly.
Gary Clevenger Freska Produce International, LLC gary@freskaproduce.com