Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Rising demand drives up avocado prices in US, Mexico

Rising demand drives up avocado prices in US, Mexico

Business Reporter
According to Asiafruit Magazine of May 2017, soaring global demand has pushed avocado prices to their highest level in almost 20 years. This follows a reduction in output from major source markets such as Mexico, Peru and Califonia. According to Bloomberg data released in April 2017, a 10kg carton of Hass avocados from the Stateof Michoacan, Mexico was being sold for $27,89, more than double what it cost at the same time in 2016, reaching a 19-year high.

Global demand for avocados increased by 120,1 percent from $2,2 billion in 2012 to $4,9 billion in 2016.

The United States, which accounted for 40,4 percent of global imports of avocados in 2016, recorded a rapid increase in per capita consumption of this highly nutritious fruit from just over 1,5kg in 2006 to more than 3kg in 2015.

Increased consumption in other countries such as China, Spain, UK and Germany, among others,has put additional pressure on current supply thereby driving global prices higher.

Avocado is classified as a “Super Food”. Super Foods are foods that are rich in nutrients and low in calories.

Zimbabwe’s exports of avocados increased by 301,9 percent from $1 063 000 in 2012 to $4 272 000 in 2016, driven mainly by large-scale avocado producers from plantations in the Manicaland Province.

According to Trademap, major destination markets for Zimbabwe’s avocado exports in 2016 were Netherlands, United Kingdom, France and Germany accounting for 68,3 percent, 13,4 percent, 9,0 percent and 6,6 percent, respectively.

ZimTrade, therefore, urges both small and large-scale avocado producers to consolidate their orders and increase exports to markets such as the EU, US and Asia.

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