While the movement of avocados ahead of the Super Bowl–a high avocado-consuming event–was normal at the retail level, foodservice demand was slightly different. "Foodservice was a little bit behind, depending on the region. In southern California, we saw a bit of a drop off on foodservice but over on retail, the numbers are really good," says Ozzie Figueroa of Henry Avocado. "There's always a lot of promotion at the retail level for the Super Bowl. In the last few years, foodservice has pulled back a little bit. We'll be close to matching our volume from last year on foodservice but we had expected more volume to move."
Meanwhile, supply right now, which is similar to last year at this time, is good for avocados with Mexico fully underway with production. California has also begun harvesting to tap into some of the stronger pricing and demand for avocados. (Shortly after New Year's, there was a bit of a shortfall on Mexican fruit for a week that created a gap.) "I think California will pull back now a little bit once the Super Bowl is done. They're probably going to wait until March to ramp it up again," says Figueroa.
Strong January pricing
As for pricing, January saw stronger avocado pricing, and pricing also often strengthens ahead of the Super Bowl pull. Right now though they're leveling off following that pull. Pricing is coming off though on smaller fruit, size 60 and smaller. "I believe that's going to rectify in the next couple of weeks as we go into February/March April," he says. "This is the heavy time for our industry because this is when traditionally demand and consumption go up," he says, adding that pricing will likely strengthen ahead of Cinco de Mayo, another holiday associated with eating avocados.
Looking ahead, Figueroa expects the supply of avocados to be good through May. In the summer months starting with June, Mexico transitions avocado crops and historically this is when there's less fruit available. "We are starting to see Colombia produce more volume as well. Peru will return to form with better volume than we experienced last season," he says.
For more information:
Ozzie Figueroa
Henry Avocado
Tel: +1 (760) 745-6632
[email protected]
www.henryavocado.com
