Future looks bright for Peruvian imports
Peru’s avocado volume to the U.S. is expected to double from the 70 million pounds of 2016 to an estimated 150 million pounds this year.
Marketers say they don’t expect that kind of year-to-year jump moving forward, but they do say Peru’s contribution to the U.S. avocado supply should see steady growth in the next five to 10 years.
“The fruit is gaining acceptance and good credibility every year,” said Rankin McDaniel, president of Fallbrook, Calif.-based McDaniel Fruit Co. “The Peruvian industry has done a very good job of maintaining a quality product ... and as they continue to do that, they continue to get converts, if you will, in the U.S.”
The potential for growth certainly is in place, said Doug Meyer, senior vice president of sales and marketing with Murrieta, Calif.-based West Pak Avocado Inc.
“What that number looks like in five or 10 years is difficult to know. We feel very optimistic of continued year-over-year growth in consumption here in the U.S. market, so the need will continue to be strong and Peru has upside potential to keep growing.”
Demand for avocados in the U.S. has grown by 15% per year, according to some industry estimates, so any volume increase from Peru will be welcome, said Bruce Dowhan, vice president of Los Angeles-based Giumarra Cos. and general manager of Escondido, Calif.-based Giumarra Agricom International LLC.
“I would expect, with the increased demand in the U.S. — and we expect that demand to continue to grow — the fact that Peru avocados are becoming more in-demand, I’ll expect that we’ll see Peruvian avocados have a greater influence over the next 10 years,” he said.
Volume
Avocado volume from Peru to the U.S. is projected to double over the next five years, said Xavier Equihua, CEO and president of the Washington, D.C.-based Peruvian Avocado Commission.
Production also will double in the coming five to six years, he said.
“Even with that increase in production, remember one thing, and we’re seeing it this year: The demand for avocados exceeds supply because it’s no longer a product that is sold in one country,” he said. “There’s interest in avocados all over the world. You can talk about increases in production worldwide, but demand will exceed production and we’re seeing a prelude of that in the U.S. this year, and in Europe.”
Avocado consumption across the U.S. averages about 7 pounds per-capita and “a lot higher” in the West, which means there’s plenty of room for the rest of the country to catch up, said Robb Bertels, vice president of marketing for Oxnard, Calif.-based Mission Produce Inc.
“There’s still a lot of potential in the middle part of the country and the East for consumption to grow,” he said.
As demand continues to climb, there will be more demand in the summer months for fruit, and that’s an opportunity for Peru, Bertels said.
“I’d anticipate a higher percentage of fruit grown in Peru will find its way here,” he said. “It depends on what the market is doing, but demand will continue to pull fruit here.”
Mexico remains “the big horse” for avocado volume shipped into the U.S., Bertels said.
“Luckily for Peru, it fits into a time when Mexico is going out, so that fits pretty well together,” he said.
