The challenge for Colombian avocados: improving exports to the United States
Currently, a large part of Colombian avocado production goes to Europe, but it is a destination that is increasingly attracting other origins that are competing for a market that is still developing.
Europe has become a hub for the development of new avocado export industries. Avobook has shown how Israel, Brazil, Peru, and Kenya have begun to increase their shipments, sharing a market that is still developing.
This is no coincidence. The quality and phytosanitary certification requirements are less stringent than those imposed by the United States, where consumption is massive and constant, but with greater obstacles in these areas.
Colombia is one of the newest players in this industry, having made its first avocado shipments in 2011, which is why its production and commercial development is still progressing. Given this stage, the European market remains an excellent alternative.
However, this region demands that its fruit withstand longer journeys, which can take up to 16 days, while potential buyers in North America are less than four days away on some shipping routes. This situation underscores the need to increase its market share in that part of the world.
This is explained by Jorge Molina Duque, commercial director of Coltrópicos, a Colombian producer, packer and exporter that last year exceeded one hundred shipments, despite being in business for only 3 years.
“Europe is our main destination, but I believe it will become a more distant destination, because each year it will continue to add more origins, which will be closer and more developed than Colombia,” he warns.
According to reports, between 70 and 80% of the avocados produced in Colombia go to the old continent, but the proximity of the North American market and the commercial conditions make it necessary to take action to improve exports to that country.
“The controlled atmosphere system starts working after the fruit is inside the container for four days. The transit from Cartagena to Miami takes five days. There are some new transits that take three days. There's another one to Philadelphia that takes six days, but there's also a ten-day transit to Miami. The fastest trip to Europe takes 12 days, and the longest can take up to 16, so all things considered, business will be better in the United States,” he explains.
But it's not just a matter of distance and logistics. Trade deals with the United States also offer more favorable conditions for exporters.
“Reaching the United States improves even the cash flow. In the case of Europe, if I send the shipment on the 11th of the month, with all the documents, they give me a 50% advance. That will arrive on the 27th. Many of them pre-sell that while the fruit is at sea. It arrives at the warehouse, they sell it, and they settle the sales 30 days after arrival. That is, we're talking about the money coming back in about 60 days. In the United States, it works a little differently: from what I've seen, if I send fruit on the 11th, by the second week of June I expect to receive 100% of the agreed-upon amount,” Molina explains.
The United States and its Buffer Zone requirements
To break with the current state of Colombian avocado distribution, some challenges must be overcome that have slowed down the process, mainly in phytosanitary certifications.
“The first challenge is Mexico. They’ve known how to manage that market for many years. They harvest there and the fruit is on the shelf in two days. That’s already a complex competition. Furthermore, to export to the United States, Colombian producers must have a specific work plan for that country, and that includes complying with a Buffer Zone. In other words, the farm has to guarantee that there are no quarantine pests within a one-kilometer radius,” he warns.
Hence the task is to increase the number of certified fields, where there is a significant challenge that producers and the Colombian Agricultural Institute (ICA) must take on.
“So, it’s not easy for producers to get their fruit to the United States. Furthermore, if I, as a producer, know that I’m getting paid better or with more stable prices in Europe, why would I invest in that?” Molina explains.
But the numbers show that this perspective is set to change. According to Jorge Molina, the Colombia Avocado Board (an association representing the interests of avocado exporters) projected that, by 2029, half of all shipments should be destined for the United States.
A complicated goal, but feasible if producers and exporters can agree on a plan that allows them to meet the demands of a market that will always be demanding avocados and offers better business opportunities.
