Extreme heat and rain have affected production in Mexico, reducing its share of the U.S. market. Producers are looking for alternatives in California, Peru, and Colombia.

The avocado market faces a challenging scenario, with prices expected to remain high in the short term. Mexico, the main supplier of the fruit to the United States, has seen its market share drop from 90% to 75% due to adverse weather conditions that have hampered supply flow. David Billings of Stonehill Produce Inc. notes that extreme spring heat and a longer rainy season have slowed crop development, forcing growers to harvest earlier than planned.

This imbalance has led to three adjustments in the harvest estimate and has put additional pressure on prices. Although California's harvest is showing good volumes this year, many growers have begun harvesting early, affecting fruit size. Meanwhile, Peru and Colombia will bring forward their exports to try to alleviate the shortage in the market. However, Mexico continues to dominate supply, and the key will be how much U.S. consumers are willing to pay.

Another factor that could influence the market is the potential imposition of a 25% tariff on products imported from Mexico, a measure currently on hold until April 2. If implemented, the impact on avocado prices could be even greater.

Source: freshplaza.es