Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
More than 3,000 Mexican avocado farmers in the state of Michoacan joined forces and took up arms to fight back against criminal cartels recently.
Last year the death of Homero Gomez, a renowned Mexican conservationist, inspired the farmers to unite in self-defense. The farmers are opposing illegal logging and avocado farming in protected reserves. The illegal farming of the crop speaks to its profitability.
The recent increase in avocado prices (as seen below) is not due to a lack of supply, although there is some concern about the threat of the rainy season.
Avocados From Mexico, a nonprofit organization, said production grew 13% in 2020 and 18% from 2019. Mexican avocados represent more than 80% of the U.S. avocado market.
Mexican imports into the U.S. grew 5% in 2020 and 33% in January. During the first four months of 2021, the volume of avocado imports grew 2.4% while import value dropped 23.5%, with Mexico as the origin of nearly all of the avocados during the period.
The Hass Avocado Board reported volume sales of avocados were up 5.2% in the four weeks ended May 16, while the average unit price was down 9.2%. Avocados prices have been one of the fewer respites in a time of food inflation.
Mission Produce (AVO) reported a 22% increase in volumes and a 14% decrease in ASPs during the quarter ended April 30, while Calavo Growers (CVGW) reported a 9% increase in volumes and a 10% decrease in prices.
Saturday is National Avocado Day. Demand for avocados continues to grow, but so does supply.