In the avocado global market overview last week it was explained that April is a transition month, in which 'large' origins stop their supply. "It's a standard month of extremely high prices and little supply," says Evy van Gastel of Special Fruit.
Peru, Chile and South Africa
Last year the situation was different. "Chile had a much longer season which meant there was less demand for the Mediterranean origins. These countries were therefore less quickly exhausted compared to 2017." She explains that the three main origins are Peru, Chile and South Africa. "When none of these three are in 'full swing' there are always shortages. These shortages are then filled up by multiple smaller origins. Literally bits and pieces. It's a period of 4 weeks (14 to 17) in which we will be in different phases of the origins. As of May we will be more comfortable again and the main origins will be South Africa and Peru."
Supply from many countries
At the moment Special Fruit has various origins in its assortment. "We received our last container from Chile this week and the first from Peru will arrive next week. We also have the first shipment from South Africa in. Chile started the season early due to the shortages in Peru, but are now also ending earlier. The quality of the fruit wasn't as strong this year. The Mediterranean origins Spain, Israel and Morocco are also coming to an end. To catch the total shortage we also have supply from Colombia, Kenya and Mexico.
Peru situation
The negative weather conditions in Peru still influence the supply. "The avocados haven't been affected, but the infrastructure has. The harvests have been delayed as the roads can't be accessed and the fruit can't get to the ports. We have 1 to 2 week delays at the moment."
Planting
Evy indicates that avocados are being planted where possible. "An example is the northern Olmos in Peru. The region is very popular for new planting and foreign investors. This is mainly to do with the fact that this region bears early fruit. The first harvests can take place in March. However, there is a lack of good planting material at the moment. Waiting lists run to 2022."
Prices never been so high
The prices on the spot market go up to € 17 euro per 4 kilos. The demand remains good and the closer it gets to Easter the more it will increase. The price is around 25% higher than last year. The price will recover, but a 'healthy' market price won't be seen until May." Will this increase in price continue over the next few years? "In a market with shortages you can assume that records can always be broken."
New markets
An important development in the avocado market is the entry of new markets, such as Asia. "This will have the largest impact for Europe. China has really good returns, in particular in the smaller calibres. Suppliers in production companies play into this to put pressure on the price conditions."
Prepared to pay more
Avocados continue to rise in popularity, even if the price is high. "The product has been promoted as a superfood in recent years and it is profiting from it. Many people have now absorbed it into their day to day diet and so more value is attached to it. This means the customer is willing to pay more for it."
For more information:
Special Fruit
Evy Van Gastel
Adres: Europastraat 36
2321 Meer, Belgium
Telefoon: +32 3 315 07 73
www.specialfruit.com