Hass Avocado Market Improves As Peru Halts Export Volume
“After a few difficult months, prices on the avocado market have recovered somewhat in recent weeks. The prices were, indeed, dismal and below cost in May and June. Peru, thus, halted export volumes to Europe to make some space on the market again. They’re exporting more to the US, Asia, and Chile instead of Europe. We’re now getting less from Peru, which you notice right away in the market,” says Annabel Kรถnst, avocado buyer at Nature’s Pride.
“Reducing the quantities means the old stock is disappearing and shortages in certain sizes. The price is currently scrambling up and moving towards healthier grower prices. So, we’re going into the summer with a good balance between supply and demand. All eyes are on the coming weeks, though.”
“Some importers are experiencing avocado shortages, but that will be over in about four weeks. Everyone will be scaling back enough with their supplies from the source countries. Then the extra demand that’s now in the spot market will vanish again. Therefore, it’s important that everyone adjusts their programs well to the demand. Then, together, we can prevent a new surplus in the market,” says Annabel.
“Besides Peru, Colombia, too, is diverting sizeable volumes to other markets and limiting the volume they’re sending to the Netherlands. Since those volumes to Europe were put on hold because of the prices, Kenya is increasingly sending a few avocadoes our way. And South Africa is sending stable volumes.”
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