Week 19 and we're getting caught in the rain wherever we are.
Colombia
This week we have traveled through several regions of the country, and our sources in the field, logistics and colleagues in the industry agree on the same thing: there is rain everywhere.
As always, we approach this column from a commercial, logistical, and technical perspective. Winter is making its presence felt strongly and bringing with it numerous consequences. For example, during the harvest, picking should not be done in the rain, and even after it stops, it's necessary to wait a reasonable amount of time before resuming. Transport between the farm and the processing plant is complicated by landslides, and the same occurs on the stretch from the plant to the port.
In packing plants, which are gradually increasing their volumes, defects such as lenticel damage are becoming more pronounced, along with other internal damage that will directly impact the fruit's ripening stage. Forecasts from producers, packers, and exporters look promising in Excel spreadsheets, but the reality is quite different. Added to this is the relentless market pressure and growing anxiety in the spot market, as prices in Europe are falling and in the United States they are hovering in the 70s and 84s. An oversupply of these sizes is becoming evident, and the expected commercial response on May 5th was not optimal, according to reports from our clients.
In terms of figures, the United States market leads Colombian exports, accounting for 60%, according to projections presented by Corpohass. This figure has remained stable for almost three weeks. Colombia's share of that market is 4.6%, approximately 1% higher than the previous week. Europe, meanwhile, has a 3.6% share, down from 3.7% the previous week.
Farmgate prices, in general, continue to decline, and exporters' revenue is affected by the high percentage of small sizes, which represent approximately 40% of the volume. For reference, average prices in commercial proposals are COP 8,000 for large sizes, COP 4,000 for medium sizes, and COP 1,500 for "baby" sizes, without considering specific restrictions or exportable percentages for each proposal.
For now, a little coffee, shelter from the rain, and continue to take care of the origin of our beloved Avocados from Colombia.
Jorge Molina Duque, Operations Manager, Quality Studio CO, jorge.molina@qualitystudio.cl , Colombia