The Spanish avocado campaign will end in around a month and a half. Although the market was slow for the Spanish production in January and February because of the abundant supply from other origins, which caused a delay in the harvest and marketing of up to twenty days, the situation has changed in March and sales are being carried out more quickly.
"The supply from Chile, Mexico and Colombia is falling in Europe and the demand remains strong, so Spain is taking advantage of its own marketing window. We are now selling all that we were unable to bring to the market in January and February; it is our avocado month," said Sigfrido Molina, manager of Sigfrido SLU. Prices are adjusted to the supply available at the moment, according to the producer and exporter. In the field, prices range between € 2.50 and € 3.00 per kilo, depending on the size, while the four-kilo box ranges between € 12.00 and € 14.50. "A few weeks ago, not many growers liked the avocado prices at origin, and those who waited to harvest later are now seeing good results," he say.
In the first week of April, Sigfrido will start importing avocados from Peru, Kenya and South Africa for their off-season campaign. Last year, there were some difficult times between spring and summer due to Peru's strong production, which resulted in the avocado volume being almost twice larger than what the market could absorb. "Traditionally, Peruvian exporters always announce a smaller production than they actually have, in order to try keeping prices high. This year, the Peruvian harvest is starting late, and with the entry into production of new plantations, there could be more production than last year," says the exporter.
Although the world's avocado supply continues to grow, Sigfrido Molina says that its high demand and the fact that it is becoming a staple product are causing prices to remain at profitable levels. "In recent years, the avocado sector has experienced a period of prosperity to remember, with prices that have reached the 18 Euro per box, since there was always a shortage of such a highly-demanded product. In my opinion, having such exorbitant prices is a disservice to the product. Personally, I am more comfortable with having enough volumes to meet the market demand and with prices per box of between 11 and 12 Euro, which are still very profitable for the producer and are good for all links in the chain."
Moreover, he warns that after several years with such high prices, "the avocado sector has attracted many inexperienced entrepreneurs with little knowledge about the product. We are seeing the acreage expand in other areas of Spain, such as Valencia, Huelva and Cádiz, which are traditionally citrus producers."
Sigfrido is committed to encouraging customer loyalty through its brand, which is positioning itself well in markets such as France. "We are making some incursions in Canada, but that is trickier because of the competition from Mexico, which has an advantage because of its proximity. I think Europe still has a great potential for growth when it comes to avocado consumption. This includes countries like Italy, Greece, Norway or Denmark."
Recently, Sigfrido SLU has created a new subsidiary company called Tasty Import, focused on the sale of organic mangoes and avocados, and it has already obtained a good turnover between December of last year and the first months of 2019.
For more information:
Sigfrido Molina
Sigfrido, S.L.U.
T: +34 951 919 944
M: +34 653753694
sigfrido@sigfridofruit.com
www.sigfridofruit.com