Skip to main content

Agronometrics in Charts: How much more volume can the U.S. avocado market absorb?

If there is any fruit whose consumption is a worldwide trend, it's avocados. Its popularity, in addition to its delicious taste, is mainly due to the characteristics and benefits it has for human health. The consumption of the so-called "green gold" is increasing in some markets and there are those who say that in the future the price of avocados will exceed that of gold.

However, the price of avocados in the U.S. market has remained fairly constant over recent years. For example, the average price of the Hass variety in the North American market in 2000 was US$2.40 per kilogram, while in 2020, the average price was $2.90 per kilogram, as shown in the graph below.

Historic Avocado Prices (Price by Variety)|USD/KG
Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Hass avocado supplies in the U.S. come mainly from Mexico, California, Chile, Peru and Colombia. Despite the explosive increase in avocado arrivals from Mexico, which are on the way to breaking records, their prices have remained fairly stable as is shown in the graph below. This can only be explained by an increase in consumption and demand for avocados in the North American market.

Historic Avocado Volumes (KG)
Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Faced with the above, the question arises: How much more volume will the U.S. market be able to absorb as it's on track to exceed more than 1.3 million kilograms at the end of 2021?

The answer seems to be given in consumption which continues to set records, and where events like Cinco de Mayo or the Super Bowl take place when avocado consumption in the form of guacamole is already a classic.

Additionally, it's necessary to observe what happens with Mexican exports very closely. As well as with countries that are increasing in production and exports of avocados, such as Peru, and origins that recently began their exports such as Colombia.

Written by: Cristian Crespo F.
Original published in on July 06, 2021 (Link)

Popular posts from this blog

Agronometrics in Charts: Demand for berries skyrockets in 2021

This time for the ‘In Charts’ series we will give an update as to how the average prices of berries have been behaving. Specifically, we will look at the prices of blueberries, raspberries, strawberries, and blackberries in the United States market and compare them with previous seasons. An increase in demand, brought on by the tendency to consume “superfoods” such as berries during the Covid-19 pandemic, seem to have pushed prices up despite the fact that volumes imported by the United States have been similar or higher than those of previous years. Let's look at each particular case: Blueberries Blueberry prices experienced a significant increase from week 3 of 2021, showing the highest prices of the last 5 seasons for the same date. If we observe the following chart, we can see that, for week 7 of 2021, the average price of conventional blueberries was $7.60 per kilo. This is 24 percent higher than in 2020 when the average price was $6.14 per kilo. Volumes for blueberr

Peru's blueberry oversupply takes its toll on export price

Overview of the Peruvian blueberry season, complemented by charts from Agronometrics.   Original published in   on November 25, 2020  This year's Peruvian blueberry season began in June with the export of 1,010 tons worth 5 million dollars. These figures represented a 25% increase in volume and a 77% increase in value over the same month of 2019. The lower production in the northern hemisphere due to weather problems allowed producers to achieve attractive prices of $ 5.15 per kilogram in June. Volume (in Kg) of blueberry from Perú in the US market Source: USDA Market News via Agronometrics . (Agronometrics users can view this chart with live updates here ) The good reception of Peruvian blueberries and the increase in prices encouraged exports during July, a month in which the country shipped 4,808 tons (+ 108%) for 26 million dollars (+ 102%). In this month, the increase in the Peruvian supply generated a slight 3% fall in the typical prices of the month,

Tight raspberry volumes make for more “normal” pricing

Overview of the raspberry supply by Ben Escoe of Twin River Berries, complemented by charts from Agronometrics. Original published in   on May 12, 2021  “They’re starting to pick up, but it’s been tight--really tight,” says Ben Escoe of Twin River Berries in Portland, OR, noting this largely has to do with the weather conditions in Mexico. “It’s been cold and windy there which has caused damage in the fields and contributed to the low supply. Year over year, the volume is comparable or even better. But demand is high and forecast to actual supply has been lower.” Mexico grows raspberries for most of the year, stopping only for the rainy season which begins at the end of June or early July. Meanwhile California’s volume won’t really begin until the middle to the end of May. Volumes (in Kg) of raspberries from Mexico in the US Market​ Source: USDA Market News via Agronometrics . (Agronometrics users can view this chart with live updates here ) Higher berry deman