Mexico’s avocado exports remain stable in 2018/19 despite strikes

Mexico’s avocado exports are expected to remain stable in 2018-19 at around 1 million tons, according to USDA data. This comes despite the recent turmoil in Mexico’s main avocado production state, Michoacán, with producers complaining about low prices and practices they deem unfair. The USDA report highlights how the depreciation of the Mexican peso has helped drive exports in recent years. Indeed, the export estimate is significantly higher than the 874,000 tons of the 2016-17 campaigns. By far the largest market for Mexican avocados is the US, which receives about 75% of the total, followed by Japan and Canada. Exports to Europe have also increased. Avocado exports for 2017/18 generated US$2.8 billion, compared to $2.5 billion in 2016/17. Avocado prices for 2018/19 for size 48s in the US, F.O.B L.A. began in July at about US$42 a carton, and in September reached about US$72. By mid-October prices dropped to around US$26. The recent Michoacán strike is estimated to have led to a deficit of 38,000 tons in the US market, but the product was redistributed over the following weeks.