Quality, box, and patience

Good morning, good afternoon, good evening.

The story for this week about our beloved Hass Avocado in Colombia, from this origin, is the following.

We are seeing an interesting uptick in export projections for Colombian avocados to the United States. Although we are still handling a much lower volume than in previous years—as we have been discussing—the balance is starting to shift slightly, reaching approximately a 65/35 split, where about 35% of Colombian Hass avocados are going to the US market.

The projections are looking promising again, bearing in mind that our crossbreed volume hasn't been particularly high and the US market hasn't yet shown especially strong performance. Meanwhile, in Europe, we continue to see prices adjusting downwards week after week across virtually all sizes, accompanied by a significant increase in shipments from our continental neighbor: Peru.

Compared to the same week 20 of last year, we see a drop of nearly 50% in the total volume exported from Colombia. And specifically to the United States market, the decrease is approximately 65%.

On the other hand, the situation in the field is not very different from last week. The exchange rate has remained relatively stable, and the weighted average price per kilo for fully certified fruit is around 3,000 pesos.

Currently, larger sizes continue to receive better recognition, with average prices close to 4,820 pesos per kilo. Medium sizes decreased by approximately 10%, settling around 2,500 pesos, while small sizes continue to face pressure, falling by about 25%, with prices around 1,200 pesos per kilo for export fruit.

The proposals from exporters have been rather elusive or scarce for nearly four weeks now. Some negotiations continue to reach producers directly, on a one-to-one basis, and the difference is being made by those with the strongest financial backing to pay faster and compete in the domestic market, a market that currently carries less risk than exporting.

And when we talk about the national market, we are referring to both domestic consumption and the processing plants for avocado pulp, guacamole, and oil, actors that —as we have mentioned in previous columns— are crossing paths and competing directly for the fruit at this time of year.

The weather, for its part, has been kind. It has perfectly exemplified the saying: "as long as it rains and the sun shines, the farmer is happy."

Dry matter content may still fluctuate, but quality remains the determining factor for our avocado operation. Some have already understood the message; others have been understanding it through the returns obtained and by observing how different markets open up or close for our fruit.

And the big question for this week is:
How are we going to accommodate the main harvest, which is coming in quite large and abundant?

See you later!

Jorge Molina Duque
Operations Manager, Quality Studio CO
jorge.molina@qualitystudio.cl
Colombia