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Week 22: Mexico exports 749 avocado shipments to the US amid reduced volumes

Mexico's 2023-2024 season continues its downward spiral, likely ending one to two weeks earlier than expected. Shipments from Mexico to various markets have decreased significantly in the last two weeks; only 749 shipments were sent to the United States in week 22.

As mentioned previously, the current conditions in the supply and sale of Mexican fruit are relatively normal; some years are more complicated than others, but in general nothing is happening that has not been seen before by all parties involved in the harvesting, packing, and distribution of avocados from Mexico.

The current season's fruit ("black fruit") is concentrated among a few producers who are taking advantage of the situation to negotiate new prices almost daily, using exporters to secure higher prices. Meanwhile, exporters have been willing to pay higher prices to obtain the required volume of fruit, particularly those with sales programs. Exporters who typically operate on the open market have encountered more resistance from their clients in paying the prices required to purchase fruit from producers.

Some companies have reduced their presence in the fields, presumably to source fruit from other origins to supply their customers. Mexico's market share has declined and is likely to continue falling in the coming days, as California is expected to maintain its harvest pace and Peruvian volumes are anticipated to increase.

There is no confirmed news regarding the start of the new season's fruit harvest in Mexico. It has been reported that the fruit in the various producing regions has not yet reached the appropriate dry matter content. Harvesting is expected to begin in the second half of the month, which will add another factor to consider when evaluating market performance. However, a few containers of new fruit have already been exported to other markets such as Canada and Japan without any negative feedback.

Sergio Paz Vega

sergio.paz@coliman.com

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