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Avocados in Charts: Dynamic growth and opportunities in the U.S. market


Over the last eight years, avocados have seen a staggering amount of growth, quickly going from being considered an exotic and somewhat strange non-sweet fruit, to staple in many homes across the U.S. Not to mention avocados’ starring role during the Super Bowl, which has been highlighted year after year with the advertisements put out by Avocados from Mexico.

Compared to 2010, the industry moved 59% more volume in 2017, growing from an average of 114 million pounds to 182 million pounds per month respectively. This dramatic increase in volume highlights the breakneck pace with which the category has been growing.

Avocado movement in the U.S. market (in pounds)
(Source: USDA Market News via Agronometrics)

Coupled with impressive growth in volume, the avocado markets have been able to offer very attractive pricing. With an average of US$32 for a two-layer flat, the market has seen few upsets while increasingly reaching for new heights, setting a record last September with an average of US$73.61.

Avocado Shipping Point prices in USD (two-layer flats)
(Source: USDA Market News via Agronometrics)

This is the first mini-article of a series where we dive into the data and highlight the opportunities and risks that the market data can help us bring to light. By dissecting the market data that we can start getting a glimpse of what factors are driving change and how markets are evolving. In the graph below we can see how the volumes arriving in the U.S. have evolved over the last eight years. As we move through the series, we will explore the dramatic growth of Mexico and what that has meant to for the other origins, and other questions like how is California managing its considerable challenges? What happened to fruit from Chile? And how has Peru’s entrance into the market been accepted?

Comparing avocado movements from different origins in the U.S. market (in pounds)
(Source: USDA Market News via Agronometrics)

Written by: Colin Fain
Original published in FreshFruitPortal.com on May 29, 2018 (Link)

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