Arrivals of Peruvian avocados are trickling in and have been for the last few weeks. Cooler weather has meant the start of the season has been a little slower than usual, with light volumes. But this is set to change soon as significantly more volume is on the way. "Avocado arrivals from Peru to North America started in the last few weeks," said Brent Scattini of Mission Produce. "It was a slow start with only light volumes due to cooler weather in the growing regions. Heavier volumes are on the water now and we expect the Peru crop to be larger than last year."
Scattini explained that early season avocado shipments are generally destined for Europe and Asia, which has been the case this year. As the season progresses, an increasing number of shipments direct their cargo to North America. "The front end saw heavier shipments to European and Asian markets," he said. "But this is now turning around as we see an increase in volume for North America. The European and Asian markets are more attractive at the front end of the season because in North America, there is still a decent amount of fruit around from both Mexico and California."
Most Peru fruit tied into programs
Scattini noted that the majority of Peruvian avocados are already tied in with retail programs and therefore their prices are fairly well set. It appears that shippers have been more organized this year compared to last year.
"Most of the volume from Peru will be tied into direct retail programs," he noted. "Last year, many arrivals came into ports without a plan. This year has been different as there have been more programs established and most of the fruit has been spoken for already."
Broader market strengthening
The general avocado market is strengthening as dwindling Mexican fruit supplies are being stretched. Suppliers note that the amount of incoming fruit is approaching the point where it cannot fill demand.
"The Mexico market has been stable, but in the last two weeks has been strengthening," Scattini shared. "We are seeing supply tighten up as volumes decrease due to weather conditions. At this time of year, anything south of 47,000,000 lbs per week is an under-supplied market in North America, and that is exacerbated in summer months when consumption increases."
Scattini added the size profiles are presenting a challenge for shippers from both Mexico and Peru, with fruit tending to larger sizes. "The Peru size profile is big, with the majority of the fruit being 48s and larger," he said. "There are very few 60s and 70s coming out of Peru right now, making it more difficult to fill orders for smaller sized fruit. Sizes in Mexico are also larger, but once the Loca crop starts, both sizing and quality will improve."
Currently, the Peru Avocado Commission are running commercials around the World Cup, promoting Peruvian avocados in the process. Suppliers note that this is receiving great support and has been helped by the quality of Peruvian fruit, which is reportedly high. "We are seeing an increased demand for Peruvian avocados," Scattini observed. "Quality is fantastic so far and the taste profile from Peru is getting better every year. Each year, there is a maturing, not only of the trees that have been planted, but of the entire operation in Peru."
Peruvian avocados and new bags on display at United Fresh
At United Fresh this week, Mission Produce will have avocados from Peru on hand to give visitors a chance to get a good look at them. The company will also be displaying its new bag options, specifically designed for the "Avocado minis" line, which was recently made available in organic. "Mission Produce will be showcasing Peruvian avocados as well as discussing our new bag for conventional and organic minis," Scattini said. "They are designed to tap into the snack fruit market and are available in different sizes and formats, as well as being able to be customized by either piece count or weight. This will complement our existing range which also includes the 'Emeralds in the Rough' offering. We will also be distributing our booklet, called 'AvocaDOs and DON'Ts', which is a guide for retail and foodservice business that provides information on how best to handle avocados."
Visitors to the United Fresh FreshMKT expo can find Mission Produce at Booth #1741.
For more information:
Brent Scattini
Mission Produce, Inc.
Tel: +1 (805) 288-8165