Mexican avocado imports by U.S. importers will remain strong in 2018-19. A new report from the USDA notes Mexican hass avocado production is forecast at 1.9 million metric tons or more for marketing year 2018-19.
By way of comparison, production estimates for the 2017-18 season are about 2 million metric tons, according to industry estimates.
Mexico’s Michoacán region is the world leader in avocado production and accounts for 80 percent of total Mexican avocado volume.
Total area planted for Mexican avocados for 2017-18 is about 571,000 acres, up a little more than 5 percent from about 540,000 acres in 2016-17.
Export outlook
Mexico’s avocado exports for 2018-19 are forecast to be close to 1 million metric tons, according to the report. That is similar to 2017-18, according to the USDA report.
The USDA report said the U.S. is the top importer from Mexico, consuming between 74 and 79 percent of total Mexican exports. About 6 percent of exports are sent to Japan and 7 percent to Canada.
While Mexican hass exports to the U.S. have increased with year-round access to all 50 states, the USDA report said exports to Canada, Japan and Europe have also risen.
The USDA report said a price dispute between producers in Michoacán and packing companies caused growers to cease harvesting activities Oct. 29 for approximately two weeks.
The report said an agreement was reached to end the strike on November 14,th when the parties along with the Mexican government agreed to have public reports of market information including:
- Product exported;
- Product sent to domestic market;
- Volumes sold; and
- Destination
Growers in Michoacán generally sell their fruit on the spot to a packer in terms of pesos per kilo.
“The intention is to have transparent commercial value information of the avocado trade,” the USDA report said. “Parties agreed that market prices will be adjusted according to the supply/demand principle.”
Mexican producers said the strike caused a deficit of 38,000 metric tons in the U.S. market, but that resumption of packing was expected to erase that shortage within a few weeks, according to the USDA report.