A steady stream of avocados making its way into the United States from Mexico has kept down avocado prices. Imports from Chile and Peru have also contributed to weak prices, though a temporary halt in avocado shipments by Mexican growers could cause a market jolt in the coming weeks.“There's plenty of supply that's outstripping current demand,” noted Alejandro Knight of Marabella Produce in McAllen, Texas. “Although prices have improved since last month, they are still below what's normal for this time of year.” While f.o.b. prices at the McAllen border crossing can get up to $33.00 per carton at this time of year, current prices for the most popular sizes are hovering in the low 20s.
“Sizes 48 and 60 are the most sought after,” said Knight. “The smaller sizes, like the 70s and 84s, are the most difficult to move.” A production spike in the Mexican state of Michoacan has added to the flow of avocado imports coming into the United States from Chile and Peru.
Abundance in the avocado market has made for cheap prices, and Knight thinks that in the future, the year round supply of avocados could reach such levels that the item will cease to be a high-priced commodity and become much more common. As for this season, he's anticipating the market will improve in the coming weeks.
“There's talk that the association of avocado growers in Michoacan might decide to halt shipments for a few days to level out the market,” he said. “That would slow imports and increase prices.”
For more information:
Alejandro Knight
Marabella Produce
+1 956 992 0890