Not waiting for better prices has proven to be the winning strategy of the Portuguese avocado season, says Rocio del Pilar Rodrigues, sales director of Portuguese avocado exporter Global Avocados: “Our avocado campaign has evolved very positively. Fortunately, last season we decided to follow its natural course, quite the opposite of what most Spanish producers did. We did not withhold the product, waiting for a price increase that never came, but rather we adapted to the reality of the market, so we ended our campaign at the right time. Global Avocados ended its season on April 10, at which point our avocado stock was completely at zero, meaning our total sales volume has been 4 million kilos.”
“Ending at the right time meant that we avoided the avocado accumulation crisis suffered by others and also avoid that the flowering of our trees would be affected for the current campaign. Neither did the high summer temperatures nor the lack of water affect us with the same force as it did Spain, which is why this campaign of our volume has practically doubled. We’ll be able to supply all our customers without any problem and are even opening doors to new customers. We always approach this with moderation and caution, since we like to work responsibly and we did not want to take the risk of not being able to meet the needs of all customers.”
According to Rodrigues, the lower available volumes led to some Spanish exporters overpaying for the fruits at the fields: “It's been a campaign marked by a lack of avocado. The general volume has been much lower than in previous campaigns for the reasons I mentioned earlier and this has generated constant pressure from European customers to get product. This situation has also caused Spanish companies, seeing their volume reduced by 40-50%, to struggle to obtain the maximum product possible, some of them even buying in the field at really high prices. This in turn created evident tension both between customers in Europe and among the farmers themselves, generating a clash between the purchase price and the sale price, as in many cases the field prices were higher than the sale prices in Europe. From our point of view, customers have been very cautious and have controlled their purchases, at all times they have offered good prices, but always imposing a maximum price limit.”
As prices for larger avocados shot up, European clients had to accept medium sized avocados, Rodrigues explained. “Despite the lack of avocado during this campaign, in a way, customers have tried to fight against speculation. And although their preferences have been large sizes, which were the most lacking and valued, they have known to find other paths. They adapted to medium calibers with more affordable prices and deviating as much as possible towards other quite interesting origins. Although Global Avocados has not been affected or harmed at any time, since we do not play the speculation game, for us, without a doubt, the greatest competition has come from Morocco. We must not forget that it's an expanding origin and growth, with a very attractive line of sizes and a very correct level of quality.”
Overall Rodrigues is really happy with how the past avocado season in Portugal went: “We’re really proud and satisfied with the results obtained and with the work carried out during these months. We close this season with very good feelings, mainly with the feeling of a job well done, and results in line with it. Undoubtedly, we’ve grown in experience, as a company and as professionals, and, above all, we have managed to position and introduce the avocado of Portuguese origin throughout Europe in a very prominent way, as well as consolidate our customers and give our product the place it deserves.”
For more information:
João Bento Inácio
Global Avocados
Tel: +351 281 381679
Email: geral@globalavocados.pt
https://globalavocados.pt/