The Central American avocado season is in full swing, but exports from Mexico to Europe are still not going the way Aztec Fruits had hoped. The exporter group, which has a sales office in Leuven, is working closely with local growers to supply Europe. However, the European market is proving extremely difficult this season. Demand is minimal, and volumes are high. Add to that the mounting logistical problems from Mexico, and it is no surprise that very little is being shipped. Conditions are somewhat better for Guatemalan avocados, but even that market is far from strong, says Rodolfo Meza of Aztec Fruits.
© Aztec Fruits
Mexican avocados
"The new Mexican crop is actually excellent," he explains. "That has been different in recent years. Volumes are good, and the quality is high. The weather has been ideal, with sufficient water at the right moments and plenty of sunshine. As a result, there is a lot of fruit available. But we have run into major logistical issues. That is our biggest challenge at the moment. The European market is not easy this year anyway. There is a lot of competition, and demand is low. We really notice that. Consumers seem less eager to buy than usual. When that combines with the logistical problems from Mexico, long delays, and unreliable arrival times, it becomes very difficult."
Markets other than Europe
"The last containers are now arriving in Europe, but for the moment, we are not loading any new ones. We want to wait until logistics become reliable again," Rodolfo continues. "It is a pity, because this year there is plenty of fruit in Mexico, and we could even be competitive in price. But when transit times stretch to 35, 37, or even 40 days, it becomes almost impossible to guarantee quality and returns. That is simply too long. We were even able to send some air freight for a short two-week period, but that window was limited. We hope things improve soon, though it is uncertain whether that will happen this season."
© Aztec FruitsMexican avocados
"A lot is now going to the United States, and a large share is being consumed within Mexico. Prices on the Mexican market are relatively low this year, so people are buying more avocados. As a result, there is less pressure to export to Europe. At the same time, other markets such as Canada, Japan, and even the Middle East are performing well. So there are plenty of sales opportunities outside Europe, but unfortunately, we are not benefiting much from that."
Guatemalan avocados stable, but European market saturated
After a preparation period of about 2.5 years, the company, which also works with papaya, mangoes, and limes, started with Guatemalan avocados for the first time last season. Volumes were still modest, but quality and prices were strong, and the response was positive. According to Rodolfo, there is significant potential thanks to their flavour and the added value they bring to the product range. "There, fortunately, things are going better. The logistics are more stable, with transit times of 20 to 25 days. We have been arriving in Europe continuously for 10 to 12 weeks and hope to continue for another five to 10 weeks. Guatemalan avocados mainly go to Europe, and that currently works better than shipments from Mexico. Our biggest competitor here is Colombia, which has large volumes and relatively low prices. But as long as logistics from Guatemala hold up, we can compete well."
© Aztec Fruits
Guatemalan avocados
Still, the situation is not particularly favourable. "In Europe, prices are clearly lower than in previous years. Supply is enormous, coming from many origins: Colombia, Israel, Morocco, and others. At the same time, consumption in Europe seems to be lagging. It feels like the market is somewhat saturated. This makes it a very difficult year. Some years are better, others are more challenging. It is a matter of persevering. We believe it is important to keep our programmes in Mexico and Guatemala running so customers see that we continue to deliver consistently and reliably, even when circumstances are tough."
Project at Mexican retail
Meanwhile, Aztec Fruits is not standing still. The Ataulfo mango season will start again early next year, bringing its own challenges, but they are looking ahead with confidence. They also have a new project underway with one of Mexico's largest supermarket chains. "We are setting up a packaging line in which we will apply many of the practices we learned in Europe. In Mexico, fruit is usually sold loose, so packing products in small cardboard trays or containers is a new concept. We will be marketing avocados, apples, tomatoes, and other products this way. For Mexico, this is quite innovative, so we are very enthusiastic about it."
© Aztec Fruits
Retailer packaging
"We have been doing local sales for years, but the Mexican market is developing quickly. Retailers are now showing real interest, and we saw a great opportunity to start this project. It involves a wide range, not only avocados but also mangoes, mandarins, and apples. Much of it is locally grown, but there are also some imports, such as mandarins and apples from the United States. So it goes far beyond the products we normally export to Europe. It is a collaboration with the second-largest retailer in Mexico, and this type of packaging concept does not really exist there yet. That is why this project is so exciting for us."
© Aztec Fruits
For more information:
Rodolfo Meza
Aztec Fruits
Interleuvenlaan 62,
3001 Hevrelee, Belgium
Tel: +32 456 18 4982
[email protected]
www.aztecfruits.com
