How to defend the profit margin in the avocado industry

October 9, 2026

Efficiency and sustainability of profitability in the global industry

For Sebastián de la Cuadra, CEO of Avobook, the challenge for the global avocado industry is not only to increase production, but also to maintain profitability in a scenario of higher costs and competition between origins.

Analyzing the current market landscape, the executive points out that the main tool the supply chain has is production efficiency. However, the CEO of Avobook acknowledges that there are many difficulties when it comes to putting these tips into practice: “It’s easy to say, but often the weather and conditions beyond the producers’ control cause everything to go differently than planned.” 

Logistical and market challenges for producers, exporters and importers

The executive's analysis takes into account that factors such as weather, unexpected conditions, or increased production costs don't only affect the producer. "Exporters have higher costs—plant costs, logistics, and negotiations with clients. Importers or distributors are also under pressure because there are more origins and fruits of different qualities circulating in the market," he maintains .

For avocado importers and distributors, the pressure also stems from a greater number of supplier origins and a wider range of fruit quality in the market. Added to this is the risk of changing market conditions between purchase and delivery, impacting expected profit margins. “It’s also risky to buy expensive fruit, wait for it to arrive, and then have the market collapse,” notes the CEO of Avobook.

Fruit quality and yield per hectare: Key margin factors

Given this scenario, De la Cuadra emphasizes that today's challenge is not to produce more, but to produce more efficiently. The key is to increase the yield per hectare, rather than simply increasing the size of the orchards, and above all, to obtain high-quality fruit. "Today, the challenge must be to produce good quality fruit, more kilos per hectare, and appropriate sizes."

However, achieving that efficiency doesn't depend solely on the producer's management. De la Cuadra warns that weather and other conditions beyond their control can alter the expected results.

In that context, the learning from established origins such as California, Mexico, Chile, Spain, Peru, Australia, New Zealand and South Africa stands out, where years of experience have allowed for a better understanding of which genetics adapt to local soil and temperature conditions.

Global supply overview: Evolution and potential of supplier origins

Regarding a potential global oversupply of avocados, the executive is optimistic. His analysis suggests that supply growth will vary from country to country. While some are making progress, others face limitations or need to make production adjustments before continuing their expansion. Added to this is the time new projects require to become established.

“We know that a new origin takes several years to grow and consolidate. Sometimes these trials can take 10-15 years to determine the best way to produce. Each country is different,” he explains.

Among the current origins and their growth potential, De la Cuadra highlights Mexico's potential to expand avocado production to other states and the possibilities that Peru has to improve the efficiency of its fields.

In the case of Brazil, it notes that it is growing with increasing strength, and for Colombia, it anticipates a pause in expansion while it consolidates its current progress, before resuming its trajectory.

In the Mediterranean region, De la Cuadra mentions that Spain can still continue to grow, as can Portugal. He also sees good potential in Morocco and views emerging projects from countries such as Greece, Italy, Turkey, and Egypt favorably.

Promoting consumption and opening key markets in Europe and Asia

According to the CEO of Avobook, sustaining the sector's growth also requires stimulating consumption. The executive highlights the work of the Hass Avocado Board (HAB) and organizations that promote different origins in the United States, as well as the World Avocado Organization (WAO) in Europe.

Among the examples of companies working to increase demand, he mentions Avocados From Mexico and its investment in promotion at events like the Super Bowl. However, he believes there is still room to expand these efforts, highlighting Asia and the domestic markets of producing countries like Peru and Colombia.

In Europe, De la Cuadra identifies opportunities in both Eastern European countries and traditional markets, where he believes there is still potential to double consumption. From his perspective, this would allow for sustained double-digit growth in the coming years, coupled with compliance with the certifications demanded by buyers, especially those related to social responsibility.

Industrialization and the domestic market as strategic business alternatives

For the CEO of Avobook, strengthening the domestic market means expanding both fresh fruit consumption and the possibilities for processing avocados that are not currently exported. These alternatives are part of his vision for growth that combines production efficiency with commercial outlets. “Without a domestic market, it becomes difficult to increase production,” he maintains.