Market Update

The U.S. Department of Agriculture reported that two-layer cartons of hass avocados from Mexico crossing through Texas were 40s, $38.25-39.25; 48s, $36.25-38.25; 60s, $34.25-36.25; 70s, mostly $33.25-34.25; 84s, mostly $26.25-27.25. Southern California avocados were 32s, mostly $40.25; 36s, $40.25-41.25; 40s, $41.25-42.25; 48s, $43.25; 60s, $40.25-43.25; 70s, mostly $36.25-38.25; 84s $28.25.

*Prices from the USDA's National F.O.B. Review, Aug. 27.

The Shipping Scene

Supplies of Chilean avocados will be down this fall, but volume from Mexico and Florida should be substantial, grower-shippers say.

The California hass avocado deal from Temecula-based West Pak Avocado Inc. will be winding down for the season over the next week, but the company already is shipping hass avocados from Mexico and Chile, said Randy Shoup, president.

After 40% of California's avocados fell victim to a freeze early this year, two freezes in Chile wiped out as much as 42% of that country's current crop, he said, "but the availability will still be good."

Chile is expected to export more than 8 million cartons to the U.S. in 2007-2008. That will be down from 10.5 million cartons in 2006-2007, when that country had its biggest avocado crop ever.

Last season, the Chilean crop shipped from September to April, but this year, shipments are expected to wind down in late January, Shoup said.

Prices likely will be higher this season, but not excessively higher. Mexico is expected to have substantial volume, which will help moderate prices, he said.

Mexico is just beginning its season, and should ship avocados almost year-round, peaking from January to mid-April.

Shoup anticipated good quality this season.

"We received our first Chilean arrivals (Aug. 23) and the quality was excellent," he said. "The fruit we have been packing in Mexico also is very good."

The two freezes within the past month or so have delayed some shipments of Chilean avocados while crop damage is evaluated, said Chris Puentes, president of Interfresh Inc., Fullerton, Calif.

"They don't want to send damaged fruit to this market," he said.

New Zealand and the Dominican Republic also ship some avocados to the U.S., but those shipments are minuscule compared to California's and Chile's, he said.

California's crop is winding down sooner than usual because of the January freeze. Tighter supplies mean higher prices on the state's avocados - about $45 per 25-pound box compared to usual prices at this time in the $30 range, he said.

Remaining fruit from California should provide rich eating quality, Puentes said, with "nice oil content." Chilean and Mexican avocados are not as mature and rich-tasting yet, but flavor will improve as the season progresses, he said.

The Hass Avocado Board, Irvine, Calif., has a tailgating marketing program that positions hass avocados as a key ingredient for tasty tailgating party foods, and an integrated marketing campaign is scheduled to run from mid-August through October, said Jan DeLyser, marketing administrator.

Growers of Florida avocados finally have good volume again, following two troublesome years, said Peter Leifermann, president of Fresh King Inc., Homestead.

Hurricanes Wilma and Katrina cut the season short in 2005, and the trees hadn't recovered by 2006, he said.

Growing conditions were perfect this year, he said. Growers have plenty of fruit and will be able to offer promotional prices.

Fresh King started shipping avocados in June and is expected to continue at least through January. With good volume and promotional prices, "We've been able to open a lot of new avenues," Leifermann said.

With four times as much volume as the company had last year, Fresh King has been able to fill some of the gaps created by the Chilean freezes, he added.

Leifermann said it's refreshing for growers and retailers to realize that demand still exists for Florida avocados after two years of short supplies.

Also in Homestead, Brooks Tropicals LLC is experiencing a "fantastic year" with its SlimCado product, said Mary Ostlund, director of marketing.

SlimCados are avocados selected from certain of the 70 varieties available in Florida that meet the company's criteria on fat and calorie content and flavor, Ostlund said.

SlimCados have 35% fewer calories than hass avocados, 50% less fat, they have a green stem and do not turn dark when they ripen, Ostlund said. They typically are larger than the hass and have a smaller seed.

"It's a different avocado," she said, since the hass is grown in a dry, warm environment, and the SlimCado is grown under hot, humid conditions.

The taste varies from buttery to nutty to creamy, "but it definitely has an avocado taste," she said.

(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.)

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