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Good prices for avocados in the Caribbean

The scarcity of avocados in South America creates more distribution work. The United States is the best market for avocados and for many other products that arrive there by sea. There is also much demand from the Lesser Antilles, Puerto Rico, France, Spain, and the Netherlands, due to the shortage of product in those markets. However, during spring, since prices spike because of the high demand, low supply, and transport costs, many European buyers sometimes prefer to wait for the next season to avoid paying astronomical prices for avocados. 



AMR-Agro is an export company from the Dominican Republic that began operations in 2007. They mainly export tropical fruits and vegetables, such as avocados, papayas, tomatoes, peppers, and mangoes, as well as tubers like potatoes. However, the company can also supply other products to its customers, such as pomegranates, if a specific demand for them arises. This company has a mixed production model. It has its own lands and also buys products from other producers to which they provide the necessary tools and seeds for their production, especially in greenhouses. In other cases, this company provides agricultural and financial advice to producers so they can obtain their certificates of quality and food safety, a requirement that all producers must meet in order to work with AMR-Agro. 

"We export to several markets, such as the United States, Canada, the Caribbean (more specifically to Puerto Rico and the French territories), although we also export to Europe: Spain, Holland, France, and, from time to time, to England," stated Raul Reyes. 



Exports will always depend on the market, on the season, and they can even depend on the specific situation of a regular supplier in the event of a loss due to the weather, for example.

"We have our own brand, AMR-Agro, although we also have associated brands, mainly for American products," Raul said, "or in the case of a French company that directly gives us their boxes."

The products arrive here and are distributed, either by boat or by plane; everything depends on the product. The main ports are Rio Haina, Santo Domingo, and Caucedo. From there, they send ships to both Europe and the United States. "Florida is one of the main ports of entry. Our ships arrive in Miami in just 3 days. We also make shipments to New York or Philadelphia within 5 to 6 days. The main port for the products we send to Europe is Rotterdam (9-10 days). We also ship to Barcelona (14 days) and less and less to Italy, due to the duration of the trip, which can last up to 25 days, so we tend to ship by air in these cases," Raul said.




Different products for each season
Avocados are priced well in the Caribbean and in the US. However, Florida's avocado season is about to start and that will push prices down. There are differences between the varieties: the Green skin avocados are at their peak, which will end in summer because there will be more production and varieties. There is a shortage of Hass until September, when it is harvested again. There tends to be avocado all year round, as the different variety's production seasons do not overlap. In addition, this year seems to be a good year for avocado as there is a lot of production.



Regarding papaya, there is production all year, although this crop is very sensitive to the climate, which can cause production peaks. "The last rains affected our crops in Santo Domingo, specially in the rainy areas. The crops in the west and south, which are drier areas, were not so badly affected. As a matter of fact, producers were even thankful that it had rained in these areas. We have some production, but we have not been very affected," he said. Papaya exports are mainly destined for the United States and Canada, but also for Europe, where they are transported by boat. There is competition from Mexico and Guatemala, as they are the main producers of papaya, however, "our customers have a strong presence in the distribution chain industry and we do not believe prices will be very affected," Raul stated. The main exporter of papaya for Europe is Brazil, so, as soon as Brazil fails, AMR-Agro has a chance to make shipments. 


They also produce coconuts throughout the whole year. The main competitor of the Dominican coconuts for Europe is Sri Lanka. However, in recent years, the coconut from the Ivory Coast is gaining presence in the market, even though they do not have the same characteristics and are smaller. These coconuts have lower prices, which is why they are tipping the market. "We used to make weekly shipments, but now, we only send when they call us," Raul stated. Currently, the company ships its coconuts to the US. However, they don't have enough product due to the droughts of last year and the scarcity of resources that many producers have, which doesn't allow them to recover so easily. "When nature does not help, the impact is enormous," said Raul. Much of the production goes to Haiti, since export requirements are less demanding than in other countries.

New product
"We have seen great demand for red habaneros in Europe, so that will be our next goal," Raul said. "Some time ago we began sending them to Spain, the Netherlands, and France, although they were very punctual shipments. We are looking for a distribution chain to be able to sell them on a constant basis," he added. The problem is that these countries also produce this product. However, there is a window from November to March or April when European production is very low, and they can export them to supply the demand. 



"Mangoes help us keep volumes in summer," Raul said. "We wait until Peru, Brazil and Mexico have a low supply, that gives us a window to send Dominican Republic mangoes to Europe." They produce the Keitt and Palmer varieties. The Kent is more demanded, however, the Dominican Republic doesn't have the best soil and climate conditions to produce it. "It occurs in specific areas and, at the moment, its production is limited, even though it's been cultivated for several years," Raul said.

For more information: 
Raul Reyes
Empacadora AMR Agro S.A.
Dominican RepUblic
E: raul@amr-agro.com
www.amr-agro.com
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