Week 21: Mexican avocado shipments decrease due to international competition
ARTICLE
Overall, demand for Mexican fruit was low during the week. Importers were not actively seeking fruit and instead took advantage of the opportunity to purchase discounted fruit from exporters who, for one reason or another, had excess inventory either at the source or at the border. Prices remained stable, and it was toward the weekend that upward pressure began on the prices offered to producers.
The recurring effects of the end of the season include a continuous rise in prices paid to producers, a reduction in the cosmetic quality of the fruit, pressure on the domestic market due to prices being similar to or higher than those in the export market for various fruit sizes, a short shelf life for the fruit if not handled very well, a concentration of available fruit among a small number of producers giving them greater negotiating power and therefore greater opportunities for speculation, and finally, the weather factor, as all producers eagerly await the start of the rainy season. None of these points are new to this time of year.
Mexico undoubtedly has the capacity to continue participating significantly in the North American market. Its fruit is preferred over that of other origins in various markets, and there are chains and distributors who are loyal to Mexican fruit. It will be crucial to see the decisions the industry makes regarding the start of the new season's fruit harvest. Harvesting fruit with adequate dry matter content has been a factor the industry has meticulously monitored for many years; however, it is also true that this control has been used to postpone harvests. In this respect, producers and Plant Health Boards will have a greater responsibility this year to ensure Mexico remains competitive in the market. It is certain that in the coming days, fruit in both Michoacán and Jalisco will meet the dry matter requirements. In fact, the harvest for other export destinations has already begun, and increasing volumes of this fruit will be seen daily in markets such as Canada, the Middle East, and Japan.
Sergio Paz Vega
Mexico
