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McDaniel expects similar Peruvian avocado volume to 2023

By
Tim Linden

Though growing conditions have led to a smaller Peruvian avocado crop this year, McDaniel Fruit Co. is expecting to have supplies very similar to its 2023 volume for the U.S. market.

Carson McDaniel, vice president for the Fallbrook, CA firm, said it seems likely that avocado exporters from that South American country will be allocating a greater percentage of their supplies to the U.S. market to maintain a consistent volume. He also noted that much of the drop in volume came from the more northern growing district, while the U.S. market typically gets the majority of its fruit from the production regions further south.

McDaniel stated that Peru has three major markets for its Hass avocados: Europe, the United States and Chile. He expects that during the U.S. summer months, when the U.S. market is ripe for Peru’s avocados, the volume will be there. “Though as a country, they may be down 20-40 percent, we are anticipating imports to the U.S. to be in the neighborhood of 200-220 million pounds, which would be similar to last year, maybe even up a bit.”

In any event, McDaniel Fruit is planning to import its normal volume to fill the program needs of its customers all over the country. It will be bringing fruit to both coasts to fill those orders. McDaniel expects Peru to continue to have larger fruit, as it always has, but that fruit will peak one size smaller than usual. The country’s growers, which have a predominance of younger trees, typically produce a lot of 30 and 36 size fruit, sometime too many. He said the one size drop in the size curve will work well for the U.S. market.

“We are expecting our volume to ramp up in mid to late July,” McDaniel said. “One trend for us is that we will have more organic avocados out of Peru this year.”

He noted that the company is increasing its position with regard to organic avocados.

The U.S. avocado market has been very strong all spring and is expected to last through the summer. While McDaniel said that is good for Peruvian fruit, which should see a nice bump in FOB prices compared to last year, he is not anticipating an increase in speculative shipments. Peru has earned its reputation as a strong summer partner filling the avocado needs for some of the larger retail customers in the United States on a program basis. McDaniel acknowledged that generally speaking, U.S. importers have managed Peruvian supplies with the underlying strategy that each avocado should have a designated U.S. buyer before being shipped. He said McDaniel will continue to follow that strategy.

He added that Peru is an important partner for McDaniel Fruit with all of its Peruvian fruit packed under McDaniel’s Linda Vista brand and clearly marked with its country of origin. “This year we expect to sell a bunch of bagged avocados from Peru,” he said. “And we will be packing a wide range of sizes in bags from 40s to 84s.”

McDaniel added that with California expecting to produce more summer fruit than originally anticipated, the Fallbrook grower shipper will be selling good supplies of avocados from three sources this summer: Peru, California and Mexico. “Our customers will have more options than usual. We can supply the best fit for each customer,” he concluded.

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