“The supply from Mexico is fair but it’s probably a harvest issue in Mexico with the growers,” Henry says. “Sometimes the growers harvest more aggressively than other times and it makes for that erratic flow.”
In turn though all that inconsistent supply has made for fluctuating prices. “It’s an erratic flow of fruit into the marketplace and then it creates erratic pricing,” says Henry. “Prices have been going up recently and we’ve had much more uneven pricing for the last number of months.” He in fact notes that those pricing fluctuations trace back to even as early as the beginning of summer 2016.
Demand stays steady
Meanwhile, though baseline demand for avocados has not dropped, demand will likely decline. “Demand declines when prices go too high. Then retailers start shrinking their displays and aren’t aggressively advertising and then demand slows down,” adds Henry.
Looking ahead, Henry predicts more of the same for the coming weeks for avocados. “There’ll be reasonable volume coming in and relatively high pricing for now,” he says.
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