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Avocado demand to start picking up next week

Supplies of avocados from Mexico are good and steady. “I just received the numbers from our sourcing team and there’s going to be about 1,400 loads available this week from Mexico so supplies look really good,” says Rob Ybarra, executive vice-president of Villita Avocados. Supplies are looking slightly less than this time last year, though it’s enough to take care of the industry as a whole.

Steady supplies are welcome, particularly following last week’s Hurricane Otis in Mexico. “It looked like it could have gone either way. We were spared and we had minimal damage and were two days delayed in picking fruit,” says Ybarra.

Demand looks slightly different though. “Last year there was a surplus of COVID money in the economy and this year there’s not, so I think that’s affecting demand for the industry a little bit,” he says. For Villita Avocados, it’s tapping into a larger interest from consumers to move avocados--namely, consumers’ increasing preference for sustainable packaging. In September, the grower-shipper introduced a new avocado bag that has a label made of paper film and netting composed of cellulose fiber yarn from Forest Stewardship Council-certified eucalyptus wood. In all, the bag is 100 percent plastic-free while the netting is TÜV certified home compostable and industrial compostable.

Stronger pricing over 2022
Meanwhile, on pricing, it is a little higher this year, especially on the bigger sizes. There are fewer larger sizes out there--particularly on 32s and 36s. While 40s and 48s sizing seem to have normal availability, the size curve overall is trending more towards 48s and the smaller fruit. “It looks like 60s in this turnaround is the new 48,” adds Ybarra.

Looking ahead, with U.S. Thanksgiving a few weeks away, avocado demand is expected to strengthen. “We’re definitely going to see demand picking up starting Monday of next week. I’m expecting a really robust couple of weeks of sales,” says Ybarra. “Supplies will keep pace with demand so I think we’re going to be in good shape.”

For more information:
Rob Ybarra
Villita Avocados
[email protected]
https://villitaavocados.com/