“Since 2002, US avocado consumption has grown 250 percent”

The Hass Avocado Board (HAB) is an agriculture promotion group established in 2002 and is governed by federal law. It’s the organization’s mission to increase avocado consumption in the United States. “The organization is entirely funded and managed by the avocado industry under the oversight of the United States Department of Agriculture (USDA). Although other commodities have similar boards in place, it is a unique concept not seen in other parts of the world because it mandates, by federal law, everyone’s participation” says Emiliano Escobedo, Executive Director of the HAB. “Here in the U.S., there are 22 agriculture promotion groups that are similar to HAB but for other products ranging from blueberries to cotton, dairy, eggs and watermelon. Together, these programs raise about $1 billion annually for generic research and promotion programs.”

The HAB was created after U.S. avocado producers and importers approved the regulation in a national referendum in 2002. The primary purpose of HAB is to grow the demand for Hass avocados in the US. All U.S. producers and importers of fresh Hass avocados are required by federal law to contribute 2.5 cents for every pound of Hass avocados they sell in the US. 

The funds collected are used to expand the consumption of Hass avocados in the US. When the program was established in 2002, the organization raised $17 million per year. In 2017, a total of $51 million was raised and the estimated amount of funding for 2018 is projected to be $60 million. Hass avocado volume sold in the US has increased from 680 million pounds in 2003 to a projected 2.4 billion pounds for 2018, nearly 250 percent growth.

While most research and promotion boards in the US use the funds to promote their products generically, the HAB is authorized to distribute 85% of the funds collected to associations that represent producers and importers of Hass avocados from California, Chile, Mexico and Peru. These organization use the money to promote their country of origin in the market place. The remaining 15 percent is used by HAB for generic marketing and research programs. HAB invests the money towards achieving the boards five-year vision which is to be the catalyst for fresh avocados to be the number one consumed fruit in the U.S. and industry stakeholders to be successful. Among the programs the board funds, the following are included:

“The research work that we are doing is getting noticed outside the US and as a result, demand for Hass avocados is growing worldwide,” said Escobedo. Today, more than ever before, the US is competing with other markets throughout the world for supply. “I foresee this competition intensifying within the next few years,” shared Escobedo. “On the positive side, the US economy is doing well and in combination with strong purchasing power, and strong consumer demand for our product the US per capita consumption of avocados will continue to grow.” 

Escobedo expects avocado prices to continue rising. In the week of April 10, 2016, a total of 52 million pounds of avocados were shipped into the US. At that time, the price reported by USDA’s Market News FOB Texas was $22 for a 25lb lug of conventional 48’s. This year however, 58 million pounds were shipped into the US during that same week for a price of $39/lug. “The volume increased by eight million pounds, and the price increase by almost 80 percent,” said Escobedo. “That’s the power of growing demand for your product.”

On May 11, Escobedo will be presenting at the MacFrut Tropical Fruit Congress in Rimini, Italy. 

For more information:

Emiliano Escobedo

Tel: (+1) 949-341-3250