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Red Book Marketing
August 28, 2009
 

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Fall Avocados

Market Snapshot*

The U.S. Department of Agriculture was reporting the following prices on avocados:

Florida: One-layer flats of various green-skin varieties, sizes 8, 9, 10 and 12, mostly $7.

Chile, two-layer cartons of hass imported through Los Angeles: 32s and 36s, $40.25-42.25; 40s, $42.25-44.25; 50s, mostly $34.25-36.25; 60s, mostly $20.25; 70s, mostly $18.25; 84s, $13.25-15.25.

Chile, two-layer cartons of hass imported through Philadelphia: 40s and 50s, $32.25-34.25; 60s, $20.25-24.25; 70s, $15.25-20.25; 84s, $12.25-14.25.

* Prices from the USDA's Fruit & Vegetable Market News, Aug. 24 and 25.

The Shipping Scene

California avocado growers are winding down their season early this year because of an extremely short crop, but ample supplies of fruit from Florida, Chile and Mexico should be available throughout the fall and well into the winter.

Florida's season got off to a slow start in late May, most likely because of a couple of patchy frosts that hit some growing areas, said Manny Hevia, secretary/treasurer at Miami-based M&M Farms Inc.

Prices for the state's avocados are appropriate for the supply, he said early this week, and many supermarkets are running promotions.

After two consecutive years of bumper crops, "The trees need to rest," he said. Volume is running 10% to 15% below normal, but he described quality as "superb."

"(Price points) are allowing retailers to market aggressively, and they're allowing the consumer to get a good deal," he said. "It's a win-win for everyone."

Florida ships Guatemalan and West Indian varieties, not the hass that California is noted for, but Hevia said Florida avocados typically are quite large.

The crop usually peaks around the Fourth of July, but this year the peak occurred about a month later, and supplies still are going strong, he said.

Florida growers expect to ship 900,000 bushels of more than 60 green-skin varieties during the 2009-2010 season, which runs from May to March, said Alan Flinn, manager of the Homestead-based Florida Avocado Administrative Committee. Last year, Florida produced 1,067,000 bushels.

In California, Santa Paula-based Calavo Growers Inc. has about a week's worth of California avocados left, said Rob Wedin, vice president, fresh sales and marketing. The company also is importing fruit from Chile and Mexico.

Chile's season, which lasts up to six months, is just getting under way, and Mexico's crop, which is available year-round, remains light as growers wait for the new crop to reach an acceptable maturity level. Up to 65% of Mexico's avocados are size 48 and larger, and quality "looks great," Wedin said. Both countries ship the hass variety.

California had a small, 165-million-pound crop because of two spring heat waves. But product now shipping from the Santa Barbara area "looks fantastic," Wedin said. "The flavor is unbelievable."

Next year's California crop could hit 500 million pounds, he said. In fact, he anticipates heavy supplies from all three countries over the next year, with supplies surpassing this year's volume by 20%.

Both Chile and Mexico are now harvesting avocados that compare to California's hass avocados that ship in February and March, said Avi Crane, president and chief executive officer at Prime Produce International LLC in Orange, Calif.

"As the season progresses, oil levels will increase," he said, and by November oil levels and taste will be similar to summer California hass avocados.

For the first time this year, volume should be consistent during the fall, Crane said, with supplies of Chilean and Mexican avocados about equal. Price levels of 68 cents to 99 cents apiece will allow continued promotions.

Here's a look at some fall avocado events:

  • The Chilean Avocado Importers Association will hold a national consumer contest called the Chilean Avocado Lovers Club's "So Good, So Many Ways Random Drawing" beginning Sept. 1, said Maggie Bezart, marketing director. Each supermarket that agrees to promote the drawing with materials produced by CAIA will award two $250 grocery store gift cards and 10 soccer ball prizes.
  • The Hass Avocado Board, Mexican Hass Avocado Importers Association and Chilean Avocado Importers Association are preparing to launch a marketing campaign called "The Big Hit" that will be tied to the professional baseball 2009 play-off season that runs late September through late October.
  • The Avocado Producers and Exporting Packers Association of Michoacán (APEAM) said that Rick Bayless, winner of Bravo's "Top Chef Masters," will appear at the Avocados from Mexico booth number 3228 Oct. 3 at the Produce Marketing Association's Fresh Summit Exposition in Anaheim, Calif.

(By Tom Burfield, Western correspondent for The Packer. The Packer and Red Book Credit Services are part of food360º, a division of Vance Publishing Corp., Lincolnshire, Ill.)

 

Resources

National FOB Review
USDA Fruit & Vegetable Truck Rate Report

Avocado Shipments by Origins
United States Standards for Grades of Florida Avocados

Florida Department of Agriculture and Consumer Services
Florida Inspection Offices

California Department of Food and Agriculture
California Inspection Offices

Chilean Avocado Importers Association
Hass Avocado Board
Avocado Producers and Exporting Packers Association of Michoacán (APEAM)

PACA regional offices:

Fort Worth, Texas Regional Office

Business Hours: 8 a.m. - 4:30 p.m. Central Time

Robert Parker, Regional Director
Email: robert.parker@ams.usda.gov
Evert Gonzalez, Assistant Regional Director
Email: evert.gonzalez@ams.usda.gov
Telephone: 800-495-7222 Ext. #4
817- 978-0777 (local)
Fax: 817- 978-0786

 

Tucson, Arizona Regional Office

Business Hours: 8 a.m. - 4:30 p.m. Mountain Standard Time (Nov. - March); Pacific Standard Time (April - Oct.)

Jerry W. Taylor, Regional Director
Email: jerry.taylor@ams.usda.gov
Patrick P. Romero, Assistant Regional Director
Email: patrick.romero@ams.usda.gov
Telephone: 800-495-7222 Ext. #5
520-879-4361 (local)
Fax: 520-670-4798

 

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