Colombia

Food & Beverages

24-08-2021

Colombia expects huge growth in U.S. avocado exports

Colombia

Though the total volume of Colombian avocados in the U.S. market on an annual basis has not yet reached 10 million pounds, over the next five years it could increase 100-fold. At least that is the view of William Watson, managing director of the newly formed, U.S.-based Colombia Avocado Board. “We expect Colombia avocado exports to the U.S. to become a billion-pound industry in the next five years,” he said.  “Although the avocado industry in Colombia is quite old, the expansion of the Hass variety program, as well as implementation of the phytosanitary work plans for the U.S. are new. Colombia has more than 3,000 certified growers exporting around the world, but only a very small number have completed their work plans for U.S. export. That alone tells us how quickly Colombia can expand their market potential as growers come online.” CAB officially launched in late 2020 as the industry-wide promotional arm for Colombia avocados shipped and sold in the United States. In the same manner as California Avocado Commission, Avocados from Peru and Avocados from Mexico, CAB is organized under the federal U.S. marketing order that established the Hass Avocado Board. Eighty-five percent of the funds collected on Colombian avocados sold in the United States will be distributed to CAB from HAB for the purpose of promotion. Watson said CAB is also funded by importers and exporters of Colombian avocados, with those funds earmarked for administrative expenses. Watson revealed that Colombia already has strong export programs across Europe and Asia that will continue.

 

“Colombia’s global gap certifications for food safety, sustainability and social responsibility meet some of the highest standards in the world, which is why they do so well in their export marketing to Europe and Asia,” he said. Colombia offers two seasonal windows, with its main crop in the market from October to April and its second season stretching from May to August.  While Colombia’s potential volume in the U.S. market might seem ambitious and could represent a big jump in volume, Watson is confident that U.S. marketplace can absorb that volume. “We haven’t even come close to capturing the possibility of max avocado demand. There are so many consumers who haven’t experienced avocados outside of traditional usage and there are heavy users that can easily be converted to super heavy users and truly drive sales.” He said today’s consumers are creative and health-conscious and they continually find new ways to use avocados.  “I think the reality is still such that we don’t know what the upper limits of avocado demand can be,” he said. “The U.S. market growth over the past 10 years has already shown us what rocket ship consumption looks like, but we also know that we’ve only scratched the surface.  Research shows us that we are just beginning to break through with new users, but the fastest way to move the needle is from converting heavy users to super heavy users. That alone tells us that there is huge potential for this versatile super fruit.”

 

Watson, who has had extensive experience in developing marketing strategy for fruit including as the founding chief executive for the National Mango Board, said it is too early to speculate what will be the best path forward for Colombian fruit.  “But the reality is Colombia provides a strong complement to the existing avocado category by coming to market during October-April and again in May-August and helping to supplement the current production schedule of all of our competitors.” For the 2021-22 season, he said Colombia will have more fruit for the U.S. market but it will still be relatively small in the area of 16 million pounds. “Our volume continues to grow and will see an increase over the 2020-21 season,” he said. “As for marketing, we are taking a very methodical and strategic approach,” he continued. “Our competitors in California, Peru, and Mexico have been excellent stewards of the category, along with the Hass Avocado Board, to build consumer awareness and consumption. We are lucky to follow in their footsteps and carve out our own path that will include telling the message of Colombia and the rich and diverse growing areas that provide complementary growing seasons to the current production.” He did say one of Colombia’s inherent advantages is it proximity to the U.S. market. He explained that Colombian fruit will be able to get to U.S. East Coast ports in four days via ship. That’s much quicker than Peruvian fruit and even faster than a a truckload of Mexican avocados can make the trip from Michoacan.