"The avocado market is facing difficult conditions due to strict regulations in Europe and a preference for large sizes, which are hard to obtain in Mexico. Competition with Peru and high logistics costs make exporting more challenging, while prices are influenced by high demand in the U.S. and the limited window of opportunity in Europe," says Alberto Zamudio, partner and commercial director of Zavocado.
With a focus on fresh avocados, the company supplies markets in the United States, Europe, Canada and Asia. "For the current season, Zavocado expects annual exports to reach approximately 32,000 tons, shipped mainly by air to distant markets such as Europe, and by road to the U.S. market," says Zamudio.
One of the key challenges for Zavocado is the increasingly strict regulations in Europe, particularly in Germany. These regulations are making the entry of Mexican avocados more difficult, while competitors such as Peru or Chile enjoy more favorable regulatory conditions. Furthermore, the window of opportunity for exporting to Europe is limited mostly to the months of October and November.
According to Zamudio, "Europe prefers large calibers, but due to climatic conditions, Mexico can't always meet this demand." This situation has led Zavocado to suggest adjustments in the avocado sizes for the European market, something that is already being implemented in the United States with good results.
Another big challenge is the competition from Peru in Europe, and the recent increase of California's production in the U.S. market; however, Mexico remains the main avocado supplier in the U.S., backed by the Avocados from Mexico brand, which promotes strategic marketing campaigns in the U.S.
Despite these challenges, Zavocado has managed to maintain its growth and has projected a 5% increase in its turnover in the 2024-2025 campaign. "This is largely due to the stability of avocado production in Michoacán, where the company has its own conventional and organic crops. Zavocado is betting strongly on organic avocados, as this product is becoming increasingly popular in the United States," says Zamudio.
To strengthen its position in the market, Zavocado has established solid logistical alliances that facilitate the fast and safe transport of its products. "Logistics is always a challenge," says Zamudio, "especially for shipments to Europe, which are mostly carried out by air. These alliances allow an efficient delivery of the goods, minimizing the impact of the usually high costs of airfreight.
In the future, the company has plans to invest in infrastructure and in the development of new product formats, such as netted avocados, a growing trend in supermarkets. Zamudio says that Zavocado is committed to growth and continuous improvement, adapting to changes in the demand and strengthening its presence in international markets.
For more information:
Rosy García
Zavocado
Michoacán, Mexico
Tel.: +52 1 354 119 1855
[email protected]
www.zavocado.com