Damage to the Florida's green skinned avocado crop following Irma has been a boon for Dominican Republic avocado producers. New York prices for green skin avocados are currently 40 to 45 dollars a box compared to 26 to 28 dollars a box a year ago.
Jose Rosa, President of the Cambita Avocado Cluster in the DR says “we are only able to meet about 25% of the present demand, this is going to clearly be the Year of the Dominican Green Skinned Avocado.”
This helps make up for the losses suffered by Dominican producers when the US suddenly banned the import of green skinned avocado's from the Dominican Republic from March 2015 to January 2016 because of a Mediterranean fruit fly outbreak.
The Florida green skinned avocado plantations could be knocked out of the market for as much as two years if they have to renovate. The U.S. Department of Agriculture maintains a marketing order that authorises grade, size, quality, and maturity regulations for more than 60 different green skinned avocado varieties to maintain the quality of both Florida and imported avocados shipped to consumers.
The Dominican Republic produces 20 of these varieties and the U.S. market just opened on October 17 for the major variety produced in the DR, which is Semil 34. Rosa predicts that the market will drop and stabilise at the 32 to 34 dollar a box range within a couple of weeks. Dominican avocado producers are benefiting as well from farm gate prices of 13 to 15 dollars a box that are usually 7 to 8 dollars.
The Dominican Republic is the World’s second largest producer of avocado's but only the 14th largest exporter, indicating strong domestic consumption. Green skin avocados make up 85% of the DR's production and retain a strong position in the U.S. market. This market is concentrated on the East Coast, which houses the largest populations of Caribbean immigrants where 75 percent of green skin avocados are sold. The DR holds a 98 percent share of U.S. imports of green skins; and also holds a total monopoly on that segment after March when Florida is not producing.
One benefit of the March 2015 to January 2016 US ban on green skinned avocado's for the DR was that exporters were forced to look for alternative markets in Europe. The U.S. Department of Agriculture funded Exporta Calidad Program, implemented by the International Executive Service Corps (IESC), is helping Dominican producers and packing houses achieve the GlobalG.A.P. Certification required for the Europe where there is a growing niche and ethnic market.
For more information:
Brian Rudert
IESC Exporta Calidad Program
Tel: +1 809 262-9848