The sector continues to show interesting dynamism. Commercial proposals are increasing by nearly 10% week over week, news that undoubtedly encourages the courageous producers of our beloved Hass avocados #avocadosfromcolombia. Volume continues to rise, although all indications are that these levels may only be sustained until week 8, before beginning to adjust.

Exports are once again exceeding 200 containers per week, with an average size distribution of approximately 40% large and medium sizes and 20% baby sizes. Regarding prices, the overall average is around COP 3,700, with larger sizes performing better at around COP 5,200, while medium sizes are at COP 3,300 and baby sizes at around COP 2,000, considering fruit with certifications for good agricultural and social practices.

This week, Bancolombia's Economic Research Department published a very interesting article on the impact of the minimum wage and the exchange rate, which is well worth reading. As we have been discussing, producers, as well as exporters, face a significant challenge in an environment where profit margins are becoming increasingly sensitive. In this context, the most efficient and those with the strongest financial backing seem to have the best chance of coming out on top in the scenario that is beginning to solidify in the sector.

Processors are also starting to breathe easier thanks to the increased volume available, and an improvement in domestic consumption is being observed, leading to more intense competition for fruit, both for export and processing. All of this is happening amidst weather that is beginning to affect Colombian fruit and will set the tone for the coming weeks.

International markets are showing a significant upturn in Europe, with packing plants operating at full capacity. Next week, we'll be sharing firsthand what we see and hear during our visits to key players in the Netherlands, Belgium, and at the Fruit Logistica trade fair in Berlin, Germany. On the other side of the Atlantic, signs of life are beginning to emerge in the North American market, and we expect fruit exports to pick up considerably between February and March. Meanwhile, we continue to assess the projected harvest and the potential impact of the Avocados from Colombia Quality Program, led by Corpohass.

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