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Market analysis of imported avocados in the Chinese market

This is the peak of the sales season in many avocado production areas in the southern hemisphere. The price of avocados in Shanghai Huizhan Wholesale Market is currently around 80-100 yuan [12.36-15.45 USD] per box of 5.6 kg. Ms. Liu Bosu, spokesperson for specialized avocado importer Mr. Avocado, recently shared her insights on the conditions in various production areas as well as the sales conditions in China.

Peru
The Peruvian avocado season is nearly over. The biggest problem this season is the uncertainty of shipping periods. The unexpected delays in shipping even affected the prices this season. "Shipping between South America and China has been unreliable since the beginning of the season. Ships often arrive late. The impact of the pandemic on the Peruvian side, as well as the shortage of workers in Peruvian harbors, add to the uncertainty. Chinese importers sometimes wait for days until their products arrive, and then several ships arrive in port at the same time, which leads to a sudden increase in supply volume. Not only does the sudden arrival of several dozen shipping containers full of import avocados affect the price, but there are importers, wholesale traders, and distributors who all have to manage their storage space, and we have to deliver to our clients in a timely fashion as well. All of these aspects have become challenging to manage due to the uncertainty of shipping," explained Ms. Liu.

"We agreed with retailers to fix the price, so that we can guarantee consumers top-quality avocados at stable prices despite the challenges we currently face. We have been able maintain the same price in new retail channels, traditional retail channels, and specialized fruit stores throughout the Peruvian avocado season."

Mexico
The retail season of Mexican avocados is almost over. The product quality of Mexican avocados dropped towards the end of the season. According to Ms. Liu, "Mexico was the first country to receive permission for avocado export to China. Chinese consumers are very familiar with Mexican avocados. However, the weather conditions in Mexico are more humid than in other avocado production areas. Mexican avocados do not look great and the fruit flesh is quite moist. In addition, Mexico struggled with the same shipping problems as Peru. However, when supply from other production areas fell short, Mexican avocados sold well. The price was quite high."

Colombia
Last year Colombia received permission for the first time to export avocados to China. Mr. Avocado immediately imported a shipping container of Colombian avocados to test the market. "This season the production volume of Colombian avocados was relatively small. In addition, shipping was unreliable and expensive, so the supply volume of Colombian avocados was very small. We will continue our import of Colombian avocados in November this year. We expect that the import volume will be larger than last season."

Chile
The avocado production season in north Chile began early this year. Mr. Avocado imported the first shipping container of the season, which is about to arrive. This container of Chilean avocados will likely enter the market in record time. "The first avocados of the season are often still quite moist. In addition, Chilean avocado production areas suffered from heavy rainfall when the harvest season just commenced. It is always important to pay extra careful attention to product quality early in the season."

"It is our understanding that the Chilean avocado production volume is large this year. People in the Chilean avocado industry have set their eyes on the Chinese market this year. The price will likely start high this year because the Chilean avocados will arrive around the same time as Peruvian avocados disappear from the market. The temporary supply shortage will probably push the price of Chilean avocados up. How the price will then develop depends on product quality and shipping times," said Ms. Liu.

New Zealand
The avocado production season in New Zealand overlaps with the last stage of the Peruvian avocado season and the first stage of the Chilean avocado season. "In the past New Zealand mostly supplied markets in Japan and Korea. This year many avocado suppliers from New Zealand are setting their eyes on the Chinese market, because the production volume is huge this season. They hope to expand their share of the Chinese market this year. We expect a lot more New Zealand exporters to send their avocados to the Chinese market," said Ms. Liu.

"New Zealand obtained permission for avocado export to the Chinese market in 2018. A small number of Chinese importers buys their avocados in New Zealand. This year is the first time we import from New Zealand. Two shipping containers already arrived. The product quality is quite good. The reason we expand our import channels is the growth in the Chinese avocado market. Avocados are now a regular product in the Chinese market, and we hope to diversify our supply channels, so that we can offer our customers a rich consumer experience."

Maintain close relations with production areas
Mr. Avocado maintains close relations with strategic partners such as top-quality avocado growers, packaging factories, and exporters in Peru, Chile, Mexico, the USA, Colombia, and New Zealand. This strategy ensures the optimization of distribution, cost-saving in packaging, and improvements in customer experience. In this way Mr. Avocado guarantees year-round supply of top-quality avocados.

For more information:

Ms. Duan

Mr. Avocado

E-mail: info@mr-avocado.com 

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