The solutions to the production and distribution challenges the avocado industry is currently facing are closer than one might think, especially when looking at the topics of expansion and diversification.
The main challenge is to meet the high demand for avocados in various regions, such as North America, Europe, and Asia, because the so-called “green gold” has become one of the favorite foods globally for its flavor and nutritional properties.
Data provided by Statista lists the avocado as one of the most important foods in the superfood category and according to projections of the “OECD-FAO Agricultural Outlook 2021-2030” report, it will reach a value of 17,910 million dollars by 2025, placing the avocado as the most consumed tropical fruit in the world within the next ten years.
There is talk that projections and data show growth in both the consumption and marketing of avocados; however, there is not much support provided to the domestic industry, because even though Michoacan will continue to consolidate itself as the main avocado producer, at some point it will need the contribution of other states.
For Mexico to increase its avocado production and export capacity by 5.2% annually and supply 63% of the global market, as referred to by the OECD, it must use all the elements available, which could include diversification in the types of fruit.
The industry will benefit from Jalisco’s role as an exporter of certified avocados and the avocado harvest expansion in other states like Puebla, Morelos, and Nayarit because they will strengthen production volumes and provide competitive advantages.
Some countries are beginning to fulfill more significant roles in the avocado industry, such as Chile, Peru, Spain, and other Latin American nations; for the time being, this does not represent a real risk for the national avocado industry; however, greater internal cohesion, strengthening of value chains, expansion, new technology, and even, as I have already mentioned, diversification in the types of fruit are required.
These edges can address production challenges, such as weather phenomena affecting harvests.
Finally, it is worth noting that, in 2017, the global demand for avocados shot up drastically by 350% compared to the year before, and since then, it has not stopped growing; meanwhile, during the last year, Mexico’s exports rates increased by 25% compared to 2020 and 57% compared to 2016, just in the U.S. market alone.
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