Brazil is positioning itself to expand in the global avocado market as demand increases and supply remains concentrated among a limited number of exporters. Mexico and Peru account for around 60 per cent of global avocado exports, while Israel, Spain, and Kenya each contribute just over 4 per cent. These countries face limits related to land, water, and climate.
Avocados are projected to become the world's second most traded tropical fruit by 2030, after bananas. Export values have increased over time, with European prices rising from about US$1.50 per kg in 2012 to US$2.40 per kg ten years later.
"Avocados are in high demand, and production is still concentrated in a handful of countries. Brazil has all the conditions to become highly relevant," said Flavio Zaclis of Barn Investimentos.
Brazil has available land, water resources, and suitable climate conditions in key regions, including higher altitude areas. The conversion of pastureland into fruit production is being considered as part of this shift.
Avocado production offers higher returns compared with grain crops. Revenue can reach up to 225,800 reais per hectare (US$45,160 per hectare), with margins around 50 per cent. Grain production generates about 7,200 reais per hectare (US$1,440 per hectare), with margins just above 20 per cent.
Land values reflect this difference. Areas suited to fruit crops can exceed 300,000 reais per hectare (US$60,000 per hectare), compared with about 58,900 reais per hectare (US$11,780 per hectare) for grain production.
Investment activity is increasing. Altitude, an agricultural company launched by Barn Investimentos, has acquired a 200-hectare farm in southern Minas Gerais to convert into avocado production. The project is expected to reach commercial production in about four years.
In the short term, the company plans to source fruit from third-party growers to test export markets while assessing further land acquisitions and partnerships.
The expansion of avocado production in Brazil will depend on factors including market access, certification, and trade policy, as seen in the development of other exporting countries.
Source: TheAgriBiz
