The price of Spanish fruit and vegetable products continues to spiral upward, given the natural slowdown in the production that happens during the coldest period of winter, as well as the end of the cycles, and avocados have not escaped this trend. "Right now, avocados cost as much as €3.50 per kilo at origin," says Hugo Steeds, of Perez Zara Agricola. "The reality is that water and climate stress have caused a reduction in the productions in the Mediterranean arc, which includes Spain, Portugal, Israel and Morocco."
"At the same time, Chile has had an off year and it may only reach 150 or 160 million kilos this year, compared to the 240 million kilos it usually produces. Meanwhile, Israel, whose production should have now reached its peak in terms of volume, is reporting a 40% drop compared to 2022. Colombia, an origin with good acceptance in Europe, is trying to fill the gap, but is not managing to offer the needed consistency in terms of quality and calibers. It is a perfect storm. The supply from the Mediterranean arc will run out three months earlier than in the previous year, causing prices to rise, as well as a gap in the supply."
"We are all anticipating a large increase of imports from southern hemisphere origins (Peru, South Africa, Brazil, Kenya, Tanzania, etc.). It is quite likely that the European price will drop from a historically high price to a historically low one in a matter of a few weeks. This volatility is difficult to manage, and we are not giving the best impression to the production chain and to the consumer in a year that has not been the best in terms of quality."
These high margins for the production chain "are not sustainable" and may also cause a boom effect and encourage the planting of even more hectares, says Hugo Steeds. "If Spain, as an avocado producer and supplier, wants to remain an attractive origin in the market, it will have to focus not only on prices, but also on technical development and competitiveness."
"Given Andalusia's current water problems, it is clear that the avocado industry should invest and innovate in order to become more sustainable, leading the way in reducing its water footprint before it is too late."
"The boom in the planting worldwide should be accompanied by greater regulation and sector consolidation to ensure a balance between quality and price," said Hugo.
For more information:
Pérez Zara Agrícola
Ctra. a- 2101 km, 7,9
San Martín del Tesorillo, Cádiz, Spain
Tel.: +34 646 490 027
hugo@perezaragricola.com