Grupo Los Cerritos boasts big volume from Jalisco
With 2,900 acres of high-density avocado groves in Jalisco, Grupo Los Cerritos is the leading avocado exporter from Jalisco, says Sophia Cavaletto, sales representative.
“Understanding the importance of food safety and sustainability for consumers around the world, Los Cerritos has certified its groves under both GlobalGAP and Rainforest Alliance,” she said. “We are poised for growth in the coming years as more of our groves reach maturity and become certified. Continued improvement is at the heart of what we do. Gains in productivity and quality are key to our sustainability commitment as witnessed through our Rainforest Alliance and social responsibility projects.”
For the upcoming season, Cavaletto said the lack of summer rains in Mexico has negatively impacted the avocado size curve coming from non-irrigated groves.
“In Jalisco, fertigation is more common than it has historically been in other regions of the industry,” she said. “As such, GLC Cerritos has been able to maintain a larger size curve and greater productivity.”
If fall rains continue, the size curve and crop size could normalize; if conditions remain dry, the spring of 2023 could be difficult, she said.
Marketing angles
Cavaletto said Grupo Los Cerritos divides the Mexican avocado season in four ways.
July through September is historically a transition to new crop, and she said Mexican fruit size and volume can be limited.
“Over this period Mexico’s participation in the U.S. market generally increases from right around 50% to over 75%,” Cavaletto said.
October through December is Mexico’s peak production and availability, with market shares over 90% are common. During those months, the Mexican fruit size curve normalizes, and significant promotions are possible.
January through March features promotional activities for the Super Bowl.
After the Super Bowl, the season of Lent includes increased competition from the Mexican domestic market, followed by typical harvest disruptions during Holy Week. Good promotional opportunities occur around Easter, Cavaletto said, and Mexico’s share of the avocado market can top 90% in the period.
April through June is the final quarter of the traditional crop season, and sizes tend to be larger and competition from other countries of origin begins arriving to the U.S. in critical volume. “We are working this year to get authorization to ship new crop [of fruit] from Jalisco in this period,” she said.
In terms of organic fruit, Cavaletto said Grupo Los Cerritos is looking to certify its packing facility as organic but does not farm any avocados organically.
Cavaletto said Grupo Los Cerritos would love to see a greater lift on the 4-kilogram gift packs, especially around the holiday. “[The pack] can be a great addition for parties where a household needs more volume than loose fruit or bagged options can offer,” she said.
Untapped growth
There is tremendous growth potential for avocado demand both in the U.S. and around the world, Cavaletto said.
Demand increases will come from frequent users start to use more and when non-users become introduced to avocados and begin to purchase them, she said.
“August 2022 through May 2023 had very attractive pricing for consumers in the U.S. which allowed both of these two groups to increase their consumption,” Cavaletto said.
“Consistent supply also gives supermarkets and restaurants the confidence to give more shelf and menu real estate to avocados," she said. "Jalisco avocados in general and GLC Cerritos in particular will help Mexico to be a more complete year-round source for U.S. consumers.”
Consistently climbing demand over two decades gives the industry optimism that growth will continue.
“The industry absorbed double-digit annual volume growth from 1997-2017 while maintaining or increasing value,” she said. “From 2018-2022 supply stagnated, but demand continued to grow thanks in part to the $65 million in avocado promotions funded by the Hass Avocado Board, its associations and Avocados From Mexico."
