The avocado market will reach record highs over the next several weeks. Mexico’s avocado supplies will not be on the market until the Flora Loca summer crop begins in July. Prices are skyrocketing; Mexican avocado shipments have diminished nearly 90%, putting significant pressure on California’s crop. Peruvian stocks will increase over the next several weeks, but will not completely cover shortages. Expect extremely limited supplies and drastic price increases.
- Over the last eight months, strong demand has resulted in a record-high number of shipments from Mexico, bringing the spring crop to an early end
- Current imports are at an all-time low (down approximately 90%)
- Mexico’s summer crop is expected to begin the week of July 4
- It will take several weeks once harvesting begins for supplies to meet demand
- New crop fruit will possess lower oil content, therefore needing longer ripening time than present supplies
- California growers are approximately 60% through this season; high volume is forecast for the next six weeks
- Due to shortages of Mexican fruit, California is under pressure to fill the void nationwide
- Prices are escalating
- The crop is dominated by 60-count and smaller sizes; 48-count and larger fruit is extremely limited
- Peruvian imports are tight, but expected to ramp up over the next few weeks (peaking in July)
- The overall impact to the U.S. market will be minimal
- Most product is being imported for contract business; very little volume is being sold on the open market
- Supplies are dominated by 48-count and larger sizes; typically only No. 1 grade fruit is imported
- Prices will remain much higher than normal for the next four to six weeks (until supplies increase in late July)
Please contact your Markon customer service representative for more information.
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