MARKET UPDATE - 8/15/17
AVOCADO UPDATE - 8/8/17
Mexican avocado availability will be touch and go for the balance of August, and most likely through September, for the following reasons outlined below. Our field department remains in constant negotiation with growers. Fruit prices both in the field, as well as at the border, including forward ripening centers, are fluctuating daily. Keeping you supplied is a top priority of ours.
1.) This is not an isolated problem, but rather one similar to last year around this time. National Restaurant & Retail Chains across the U.S. are having these same discussions with their suppliers.
2.) Outages or shortages will occur, however we are taking the necessary steps to limit this.
3.) News outlets will most likely begin reporting on this soon.
4.) Mexico has four blooms. The bloom we are currently in is the Flor Loca crop. This crop is much smaller not only in fruit size, but overall tonnage. Severe weather has been a contributing factor. Excessive rain and hail storms have affected an already short crop.
5.) Growing regions in Mexico are vast. Many are located in different mountainous elevations, allowing for fruit to be harvested at different stages throughout the growing season.
6.) The majority of the valley floor has been harvested. After harvesting in lower elevations has been completed, the natural progression is to harvest at higher levels. Heavy rains have prevented many from picking their higher elevation fruit. For dry matter maturity, testing indicates that fruit has yet to meet the minimum maturity levels needed to allow for harvesting. Avocados act as sponges. While on the tree, an avocado will absorb vast amounts of water during wet conditions. Water from the ground is then transferred through the tree's root system, passing through stems, injecting directly into the fruit itself. This influx of water dilutes the oil content that an individual piece of fruit possess. This high percentage of water gives fruit a "fail" reading when tested.
7.) Grower's who do have mature fruit ready for harvest are having their daily harvest capped by local permit offices. Government Grower Agencies are setting limits on daily harvesting.
8.) The United States is not the only market for Mexico. Mexico supplies the U.S., Canada, Europe, and Asia. It’s worth mentioning that Mexico itself consumes more avocados per capita than just about anywhere else they export to.
Outlook: Markets will most likely remain turbulent for the next 45 days. The outcome will be dependent on how much fruit packers will have access to on a daily/weekly basis.