For approximately four years, we have witnessed a significant shift in the behavior and trends of the Hass avocado industry and its global supply and demand market. Trading windows are becoming increasingly shorter, with specific periods of moderate volume arriving in markets that align with certain periods and saturate others. The inclusion of major new players in the industry at different stages of the business has a general impact, and the production base must adjust its costs, operations, planning, and harvest logistics based on an effective commercial strategy that allows it to allocate its volumes and make the new avocado industry a profitable business on average annually.

The words diversification and innovation then come into play a fundamental role in promoting the economic and social sustainability of the business itself. The consolidation of long-term clients becomes increasingly necessary, and the search for new, unsaturated markets with a growth trend in their consumption are factors that every producer, exporter, and importer must clearly understand in their corporate strategy, which significantly influences their sustainability and the logistical, commercial, and financial planning of the business.

Canada is emerging as a potential strategic diversification market for Colombian avocados. However, it remains a relatively unexplored destination for Colombian producers due to logistical, commercial, and reputational challenges. While Mexico continues to dominate with 85% of the cumulative supply projected for 2025, Colombia has a real opportunity to grow by focusing on quality, consistency, and a long-term vision. Logistically, Canada is considered a medium-transit market, with a 12-day lead time, making it a market with potential for development and growth, provided that all specifications and mandatory requirements are clearly defined.

So far in 2025, consumption suffered in the first quarter due to high prices and their daily fluctuations from Mexico, which reduced purchasing power. The average for this period was below what the market has historically seen, meaning that in the first quarter there was an average of 75-80 loads per week. However, we have seen some recovery in consumption in recent weeks precisely because of the drop in prices from Mexico, which has been reflected in the latest statistics, returning to an average of 100 loads per week. The interesting aspect of the market share is the growth in arrivals from Peru in this last period due to its high volumes, and some sporadic volumes from Colombia. These latter volumes need to be more consistent so that this market can establish a benchmark for the quality of the origin and thus allow it to become a source that inspires confidence in the market as a whole. Regarding preferred commercial sizes, despite its proximity to the United States, Canada is a market that favors medium sizes, with S60/70 being the most in demand in the open market and size 48 being the preferred "steak" in the supermarket distribution channel.

The market exists, it's growing, and it's a market with significant challenges and potential for new players seeking to enter it. Consistency, stability, and competitiveness are key factors for development, consolidation, and long-term success. Its most representative sales area is the East Coast region of Ontario, though its size and potential in the markets of Quebec, British Columbia, Alberta, and others should not be overlooked.

For Colombia, Canada offers significant advantages. First , Colombia benefits from a Free Trade Agreement with Canada, which exempts it from tariffs, unlike the 10% tariff imposed in the U.S. Second , the market has room to receive fruit from origins other than its traditional ones. Third , Colombian fruit, in both the peak and off-season, aligns with Canadian consumer preferences for sizes: medium and small sizes such as S60, S70, and S84. The latter two are ideal for bagged and mesh packaging, which are experiencing strong demand and significantly improve sales and inventory turnover. Finally, Canada boasts good logistical connectivity and less stringent requirements regarding agricultural, social, and environmental certifications compared to markets like Europe and the U.S.

The challenges and opportunities for improvement for Colombia in the Canadian market should focus on greater consistency in the quality of its shipments. There has been significant inconsistency, hindering a positive experience throughout the supply chain. Fruit often presents problems during its natural ripening stage, as the Canadian market largely does not employ any forced ripening processes. Finally, a secure connectivity route via the USA must be established to overcome the challenges in the direct logistics chain from Colombia.

Canada is a market I call "black or white" because the gray areas are extremely high risk. If you overcome that and are able to move forward with a solid strategy and focus on generating an excellent experience for your end customer, the market will respond positively.

Given the current state of constant change in the avocado industry and its markets, Canada is considered an important market to consider in its diversification strategy. As with any global market, attention must be paid to the details of the value chain, the quality of the product supplied, and a thorough understanding of market factors such as competition, distribution channels, and high-demand formats and presentations. For Colombia, this market has not yet been present in its export share, but it offers significant opportunities for growth and expansion.

Compared to Europe, we also have some competitive differences. On that continent, we compete with more than 10 origins (Spain, Morocco, Peru, Chile, South Africa, Kenya, Tanzania, Portugal, Italy, etc.). Canada offers a less competitive landscape: Mexico is a strong traditional leader in supply, followed by Peru currently, and, very sporadically, Colombia in a preferred third position. Peru has gained ground due to its increased volume of shipments and the improved flavor of the fruit that Canadian consumers seek. For this reason, my company, Cosmo Fruit Global INC , faces an immense challenge and is focusing its category strategy and efforts for 2025 on Canada. This means we aspire to be pioneers and become a weekly ambassador for the sale and distribution of Colombian avocados throughout the country.

Mauricio López President / CEO Cosmo Fruit Global Inc. Tel.:+ 1 647 5300327 - mlopez@cosmofruitglobal.com www.cosmofruitglobal.com