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3 challenges of the Colombian avocado industry

3 challenges of the Colombian avocado industry

Colombia, one of the most attractive avocado supplier countries in the world for its availability of fruit during most of the year. At a conference held in Territorio Aguacate II by Pedro Pablo Díaz, Director of the Board of Corpohass and Executive Manager of Jardín Exotics about the challenges of the colombian avocado sector.

New markets

Currently the country has 14 open markets for avocado exports, among which are the United States, Canada, Hong Kong, Germany, Afghanistan, among others.

However, 95% of the Colombian avocado is being exported to Europe, which shows great dependence. Therefore, it is essential to develop the other markets to which we have the possibility of accessing and thus avoid possible problems due to the collapse of the European market.

According to an interview realized by the Portafolio newspaper with Giovanni Gómez, Analdex’s Director of Economic Affairs, there is a growing field in several markets, among which the United States stands out, which consumes nearly 900,000 tons of avocado hass annually.

Currently, the opening of new markets for the export of Colombian avocado to countries such as Japan, which is a country that already has the habit of consumption of fruit, is under negotiation. Contrary to this is China, which is a market that is barely learning to consume avocado.

According to Andrés Valencia, Minister of Agriculture and Rural Development, Japan is a country with more than 120 million avocado consumers.

For avocado producers it is of great importance that the fruit is traded in the markets at a fair price, so it is important to take into account several factors that affect the sale price of the fruit abroad.

Return prices

The volatility of avocado prices is one of the main challenges, given that the market is not constant and prices vary in relation to supply and demand.

An example of this was what happened in June 2018 where the supply of avocado was higher than the demand in international markets. The United States was stocked with avocado by the production of California and Mexico. The South Africans and Peruvians brought more containers than usual to Europe. They supplied this market with 600, 650 to 700 weekly containers, where 450 weekly containers are usually consumed. This oversupply in the market generated that the avocado was sold at 4 euros a box.

This case leads us to reflect on the importance of not oversaturating the markets with a single product and looking to export to new markets to prevent affections in the sale price of the fruit abroad and thus have a good profit margin.

In order for the avocado to be sold at a just price, it is necessary to closely monitor the quality of the fruit that is produced and that it meets each of the parameters required by the international market.

Quality at destination

“This is the great challenge that Colombia has”

One of the main challenges in the avocado industry is the quality of export fruits given that sometimes in the same tree you can find a dry matter differential of up to five points. What has implications in the fruit quality.

Producers should focus their efforts on protecting more the blooms and perform a more intensive work of nutrition of the fruit to be able to improve the quality, thus fulfilling some parameters demanded by the final market of the fruit.

To learn more about the main challenges of the Colombian avocado sector, attend the IX World Avocado Congress and learn from the leaders of the avocado business. Attend and acquire your ticket here: www.worldavocadocongress.com.co

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