2020 summer avocado campaign

The European Hass supply rocketed up from mid-May, rapidly pressurising the market. After a rather hesitant start to the Peruvian campaign, export volumes literally exploded from week 22. There was a six-week overlap in the shipment peaks from the Olmos and Chavimochic production zones, driving the Peruvian supply to unprecedented levels! Over the month of June, incoming Peruvian shipments were 30 % bigger than in 2018 (the last record year), and 89 % bigger than in 2019. In the face of the massive volumes from this giant, the other origins, such as South Africa, Kenya and Colombia, eased up, yet the overall supply reached historic levels (+ 64 % on 2019, and + 20 % on 2018). Although there were numerous promotions implemented in the supermarket sector, in an attempt to maximise fruit sales, this avalanche of volumes could not be absorbed. Stocks built up right across Europe, especially for the extreme sizes (12-14, and 22 and above). In this context prices drastically collapsed in the space of three weeks, reaching rock-bottom levels. From week 26, the average rate for size 18 dropped to between 4 and 5 euros per box. The market had not seen such low prices since 2011. So Peruvian exports to the European market must be scaled back, to avoid a lasting crisis. The wider opening of the US market to Peruvian avocados should also contribute to reducing shipments to Europe.

Source: CIRAD

hass avocado size 18 - EU barometer