Hurricane Erick did not affect the avocado-producing areas in Mexico, but its passage coincided with an international oversupply that is strongly impacting prices in the market. The recent rains in Mexico have been beneficial for production, but the international market is saturated, stated Manuel Cerda Morales, president of the Association of Avocado Producers and Exporters of the State of Mexico (APEAMEX).
"It's rained heavily in avocado-growing areas such as Michoacán, Jalisco, and the state of Mexico. The rains came 15 days to a month earlier than usual, favoring fruit size and quality," he stated. As a result, the sector expects an abundance of large sizes with good shelf life. That offers a competitive advantage on the market. "The new harvest will last up to 30 days. That's a good advantage for markets and retailers," he stressed.
However, this strong yield is at odds with market developments. Currently, there is an oversupply in the United States, the main destination for Mexican avocados. "There are a lot of avocados on the market at the moment. Peru, Colombia, and California are also sending large quantities. Atlanta and McAllen are saturated with fruit, particularly of size 48, one of the most sought-after sizes," he said.
"In New Jersey, they are auctioning off 10kg boxes at $14.50. And it's good quality fruit. The surplus is putting a lot of pressure on prices," Manuel stated. This complicates profitability, especially for producers outside Mexico, who are subjected to tariffs. "Colombian and Peruvian avocados pay a 10% tariff. That's hitting them pretty hard. They continue to export, albeit with minimal margins."
Mexico, however, maintains a strong position, as it can export to the U.S. without tariff barriers and meets high-quality standards. APEAMEX, which brings together export-oriented producers and packers, plays a key role in maintaining trade flows and responding quickly to market changes.
"We expect a complicated market in the future. The new Mexican harvest will arrive when California and Peru are finishing their seasons, which could generate an accumulation of supply. Despite this, APEAMEX is confident that the quality of the Mexican fruit and its shelf life will allow it to remain competitive," Manuel concluded.
For more information:
Manuel Cerda Morales
APEAMEX
Mexico
Tel.: +52 452 526 1156
Email: [email protected]
www.apeamex.mx