Week 11: Strong demand and rising prices for small-sized Mexican avocados
Mexico
Mexico exported 1,179 shipments to the United States market in week eleven. Based on the daily scheduled harvest volumes, a higher volume would have been expected. Demand for Mexican fruit remained consistent, and importers generally continued to request fruit.
Reported inventories of Mexican fruit decreased throughout the week, reaching their lowest point on Friday, March 14. Similarly, the number of days of available inventory also declined during the week, indicating that demand for fruit would remain strong through week twelve.
Demand was dominated by sizes 60s and smaller, primarily 70s and 84s, making these the most sought-after sizes by exporters and generating a considerable increase in prices both offered to producers and quoted by exporters. The price of 60s also rose, but not to the same extent. Conversely, 48s fruit was weaker in the market, decreasing in price due to a larger supply of this size resulting from the volume exporters had to harvest to fulfill their orders for smaller fruit.
The high supply of these calibers has certainly been welcomed due to their abundance; the price increase was caused more by strong demand than by scarcity or low availability. Demand for these calibers is expected to remain strong because several retail chains are using them, which theoretically could be more attractively priced for consumers compared to .60 and .48 calibers. Additionally, the Canadian and Mexican domestic markets maintain good demand for these calibers, which are traditionally the most widely used.
Mexico is expected to maintain stable volume for the coming weeks. Prices offered to producers are attractive, and the changing weather, with warmer temperatures, is an additional incentive for growers with orchards located at mid-altitudes to harvest their fruit. We should see greater stability in Mexican fruit prices for the remainder of March and April.
Sergio Paz Vega
Mexico
