Fresh HASS Avocados Green from Mexico, Avocado Pear
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- Supplier: GOLDLITE TRADING PTY LTD
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Product Overview
Description
Production areas were concentrated in Central and South America, but as consumption is growing everywhere, it has caused a larger number of countries to invest heavily in avocado production. Currently, more than 80% of the world’s avocado production is in the hands of 11 countries. Mexico leads this list with 33.9% of the world production. It is followed by the Dominican Republic, Peru, Indonesia, Colombia, Brazil, Kenya, United States, Venezuela, Israel and China. The top avocado exporters are Mexico, the Netherlands and Peru.
Mexico is losing some markets due to the increased participation of Peru and Chile, especially outside the US. Colombia is the rising star in the avocado market, as the quality is very close to Mexican and they have year-round production. In Kenya, avocado is increasingly replacing coffee and tea plantations, becoming the leading fruit export and making the country the largest African producer. However, it only exports 10% of its total avocado production.
Top avocado producers have a large concentration of small farmers, each with less than five hectares of harvested avocado, that are increasingly integrating to export supply chains. In many countries, such as Kenya, it is predicted that there will be large investments in cold-chain and infrastructure for supporting avocado export supply chains and the integration of smallholder farmers.
Main Trade Regulations
The food safety requirements for avocados are the same as for other fresh fruit and vegetables in the US and Europe. Avocados need to comply with phytosanitary requirements to prevent the introduction and spread of organisms harmful to plants and plant products in both regions. As well, it must comply with the maximum residue levels (MRLs) for pesticides in and on food products.
Avocado trading may be affected by a particular country`s level impositions. For instance, Mexico avocado imports into the US have benefited from the NAFTA trade agreement, but may be affected by additional tariffs imposed by the US as sanctions on high migratory flows.
With the trade agreement with China, Kenya is expecting to send at least a 40% of the avocado production to the Chinese market. However, China has imposed the entry rule of “freezing the fruit to negative 30 degree Celsius after peeling off the skin and chill further to negative 18 degrees while in transit to the destination”. This means farmers and traders will need to invest heavily in cold chain capacity to meet the requirements, excluding small-scale growers with no investment capacity. To date there is not evidence that Kenya is trading avocados to China to the levels and conditions agreed.
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