U.S. Loves their Avocados and their appetite for the same is always increasing. With a constant increase in demand for Avocado’s Mexico’s pie is getting bigger and better. Steve Thaft, president of the Eco Farms Avocado quoted, “As the total consumption of avocados in the U.S. market continues to grow, the Mexican deal is becoming a bigger and bigger part of the puzzle”.
The Reasons as to why is Mexico Getting a bigger Part of the Avocado Trade
Experts have cited a number of reasons as to why is Mexico getting a meaty portion of the Avocado business
- Chile harvests its maximum Avocado’s during Mexico’s peak season. However, unlike earlier the supply to the U.S is not as much as it used to be earlier. There have been two major reasons for this short supply of Avocado’s from Chile. One they have had a short crop season and second they have had divided loyalties. Divided loyalties means, that besides U.S Chile has acquired other markets as well where their supply goes.
- But besides Chile, Mexico’s volume is growing up like crazy. As of now, the Avocado fruit export to US is done from the harvesting done in the state of Michoacán. The volumes are expected to be at an all time high in the year 2012-13 and hence U.S is exoecting a good supply of Avocado’s from the Mexicans.
- Besides, Michoacán a lot of Avocado plantations have also been developed in the states of Nayarit and Jalisco. However, these states are still not allowed to do any exports in Japan or the U.S. But sooner or later, thats bound to happen and thus U.S would get a good supply of this wonder fruit.
- As of now the fruit coming in from Michoacán dominates the U.S market. The place grows 92% of the total Avocado’s planted in Mexico. This also accounts for 40% of the total avocado’s grown the world over.
- Though Avocado farming has tripled world wide, Mexico continues to be the top most grower of Avocado’s worldwide.
- The value of avocado exports has tripled in the past five years. Exports in 2011 were a close to 400,000 metric tons and were worth 990 million dollars, as compared to 338 million dollars in 2006. The main export markets are the USA (80%), Japan (9%) and Canada (6%). As is evident by the figures U.S takes the maximum share as of now.
- The increase in the exports has been due to a constant increase in demand by the U.S Consumers. Avocados have for sometime now been on the menu card of popular fast food chains. This explains this spurt in the rise fro demand of Avocados. In 2010-11 biggies like Burger King, Subway, Wenger’s have made this exotic Mexican fruit a part of their menu. This clearly explains the rise in the demand for this fruit.
- Since, Avocado’s are in demand not only for domestic use but also commercial use,it is clear that the fruit will be continued to be in high demand in the future as well.
However, the overall Avocado business has not been a smooth sail in the recent years. Owners of Avocado Orchards have reported a significant rise in the farming costs if the fruit. Cost of inputs like water, fertilizers, electricity and labor have seen a sharp increase. Moreover the growers over the last few years are facing a major problem with the local gangs in the Avocado growing states. The owners are forced to pay ‘protection money’ to criminal gangs in the state of Michoacán. This has concentrated the plantations in the hands of few big players only who can afford the protection money costs.
