The European avocado market faces challenges due to falling supply and price pressure.
Shipping delays and quality issues are impacting supply, while adjustments in demand are expected.
The supply of Hass avocados in Europe has decreased to 3.6 million boxes, with stable volumes in Morocco, Spain, and Portugal, but a drop in arrivals from Israel and Latin America. Transport delays have led to quality issues in some shipments, adding pressure to the market. Meanwhile, Peru, Kenya, and Tanzania are increasing their supply, although it remains limited.
Despite reduced availability, demand has cooled due to high prices, a lack of promotions, and school holidays. The oversupply has led to price adjustments, especially in small and large sizes, while medium sizes remain stable.
In the short term, a slight decrease in arrivals is expected in week 9, with stabilization in week 10. Spain and Portugal will increase their share, while volumes from Latin America could continue to decline. Morocco will also reduce its export pace, affected by market pressure and lower labor availability due to Ramadan.
Looking ahead to the next season, Brazil faces a severe reduction in production in São Paulo, with losses of up to 90%, while Minas Gerais is emerging as a key region. In South Africa, rains have delayed the harvest by two weeks, with the first arrivals expected in week 14.
In the organic segment, OTC Organics reports a shift in demand, with Peru taking center stage in the European market. The season is expected to last until week 37, with the addition of avocados from Kenya to diversify the offering.
Mangoes are also facing disruptions due to transport delays, affecting quality and availability in Europe. Peru, Brazil, and Ivory Coast are adjusting their production to weather conditions, with prospects for a strong start to the season but a more limited supply in the second half of the year.
Source: freshplaza.es