OVERVIEW OF THE WORLD AVOCADO PRODUCTION

 

Jan Toerien.

President of the International Avocado Society

IV World Avocado Congress. Oct 6th 1999

 

 

SUMMARY. With a production of 2’000 000 ton, the avocados can be regarded as an international fruit. America dominates avocado production with 80%. North and Central America produces 60% with Mexico as the dominant country. South America produces 20% and the rest of the world the other 20%. Increased plantings of mainly Hass and increased production with better technology will lead to a strong increase in production within the near future. Domestic consumption represent 90% of the total production and only 10% of the volume is traded internationally. The EU is the major importer with the USA as the next important market. Producers will have to plan for the commercialization of bigger crops in the future. They will have to become more sensitive to the needs of the customers. Improving initiatives, cooperation and hard work will ensure a good future for the avocado.

 

The world production of avocados is estimated at 2 000 000 ton in the year 2000. America produce 80% of the world avocados, with 60% from North and Central America and 20% from South America. The rest of the world produces the other 20% of the avocados.

Production levels are low in many avocado producing countries. Yields will increase as result of implementation of existing and new technology. Mayor problems were solved and contributed to the well-being of the industry. Many new advances show a promise the were only dreamt of in the past, and the scientists deserve our gratitude.

Huge expansion in production areas of Hass in many countries will increase production in the near future. We can expect to double the production within the next 10 years. Producers will have to realize that marginal production levels may not be enough to survive economically in the future. Increased yields of quality fruit will ensure good profits. Producers will also have to realize that the increased volumes will mean bigger business, which will also involve bigger handing companies. This may mean that producers will have to cooperate with producers that may be considered competitors at present. Producers should become more aware of the customer needs. Cultivar, size, quality, condition, packaging, presentation, are some factors that will be higher on the agenda in the future, This is certainly true for the international trade. Producers should also take note of the development of a preference to organically grown food on a global scale. The successful producer of the future will require more skill and consideration in the production. The challenge will be to increase the yield of quality fruit in a system that is acceptable to your own customer.

 

AVOCADO PRODUCTION

Major Producer Countries:

Mexico                           600- 800 000 ton          Venezuela            46 000 ton

USA                               160-200 000                 Colombia             43 000

Dominican Republic      150 000                       El Salvador          37 000

Brazil                             115 000                       Cameron              34 000

Indonesia                      105 000                       Costa Rica            32 000

Israel                               75 000                       Australia              32 000

South Africa                    80 000                       Guatemala            30 000

Spain                               60 000                       Zaire                     28 000

Haiti                                 60 000                       Kenia                     9 000

Chile                                60 000                       New Zealand           4 000 ton

 

CONSUMPTION

Domestic Consumption

Domestic consumption of avocados is 1 800 000 ton which represents 90% of the world production. Mexico with a consumption of 10 kg/capita, Israel with 4 kg/capita, Chile with 2.5 kg/capita and others are showing the real potential of the fresh fruit market. This is an indication that consumption can be increase. Improvisation is important and it is interesting to learn that 50% of the production in Brazil is used in a fresh drink of fruit juice. In Argentina some frui is sold as “Salad Palta”.

The future production will increase strongly within the next 5 years and the market demand should be increased to keep avocado production profitable. The avocado customer base should be broadened and existing markets should be targeted to increase consumption. New uses like baby food and the folate factor should be promoted.

 

INTERNATION AVOCADO TRADE

Only 10% (200 000 ton) of avocado production is traded internationally. Only a few markets are of international significance. Of the existing markets, the European Union is the most important and is followed by the USA. Market development in countries like Canada, Japan, Singapore and others will take effort but will be essential to absorb the expected increase in production. It is time for competitor producers to draw up a strategy to develop the markets. You can not afford the luxury of oversupplying markets and drop prices. Now is a good time to consider options and opportunities for the future. The avocado market is in the hands of the delegates of this WAC IV.

 

EUROPEAN UNION

The European Union (EU) is the single most important international market with 150 000 ton of avocados per year. This means that 3 out of every 4 avocados that are exported, are exported to Europe. Four countries dominate the supply to Europe.

 

SPAIN

Spain is a member of the EU and is a preferred supplier of avocados. From a total of 60 000 ton, Spain exports 30 000 ton to Europe. Spain has the advantage that it is close to the markets and can market fresh fruit.

 

SOUTH AFRICA

South Africa was the major supplier for the past 10 years with 20-40 000 tons. The crop estimate for 2000 is 60 000 ton for export. The long sea journey to Europe makes quality management very difficult. Controlled atmosphere and sophisticated temperature management is essential for fruit quality.

 

ISRAEL

Israel dominated the EU market with 64% in 1987. Over the past few years production levels were 30-40 000 ton for export. The industry has a strong technological basis and the crop estimate for 1999 is 75 000 ton with an export volume of 50 000 tons. Water is a limiting factor in production.

 

MEXICO

Mexico exports only a small volume of the total crop to Europe. The advantage is that Hass is the main cultivar. In some years Mexico export up to 34 000 ton to Europe.

 

France dominates the EU avocado market. Up to 70% of imports is to the French markets, although a meaningful volume is re-exported to the rest of Europe. Consumption in France is 1.2 kg/capita and in the rest of the EU, less than 300 g/capita.

The challenge to producer countries will be to increase the consumption to 750 g/capita within the next 5 years. This will be vital to keep the industries in Spain, RSA, Israel and Kenya alive.

Prices decreased constantly from 40–45 FF in 1985 to 25-35 FF in 1998. The prices in the summer of 1999 recovered and price levels of 40-55 FF were achieved. Hopefully this will be a turning point.

Fruit quality on the markets vary and is a cause for concern. Better quality management will increase the potential of the EU market. It should be kept in mind that 20% of the French customers eat organically produced fruit and vegetables.

Promotion and advertising is costly and controversial amongst growers who have to pay the costs. Communication amongst exporting countries could have benefits to increase the efficiency of promotion and increase consumption.

 

USA

After the EU the USA is the second most important importing market. Local consumption is 700 g/capita and increasing. Three countries dominate the exports to the USA. Mexico, with a production of 750 000 tons is the biggest producer of avocados. The relaxing of the trade embargo of export to the USA is a major market factor. Mexican fruit is allowed into the 19 North/Eastern states under certain regulation and will increase the supply base to the USA. An estimated 20 000 ton were exported during the past year. It should be kept in mind that the local market was good and that the market could be expanded. Chile and Dominican Republic will closely monitor the market impact. They may reconsider EU or Canada as a market alternative. Chile exports 20000 ton to the USA and became focused on this market. The increase from 11 000 to 18 000 Ha in a few years is a reflection of the Chilean expectation of future market conditions. Dominican Republic produces 150 000 ton of avocados of 18 cultivars. Only 10 000 ton are exported to the USA. Their exports to the EU became insignificant.

 

 (Figures are based on information from the Food and Agriculture Organization of the UN. Other information were based on the publication of Fruitrop.

1999/10/06