Villita Avocados touts compostable avocado bag

Though Pharr, Texas-based Villita Avocados Inc. already announced the introduction of the industry’s first plastic-free and fully compostable display bag, Executive Vice President Rob Ybarra said the news is so big it will be top of mind until at least the transition to this revolutionary packaging is complete in spring of 2024.

“Retailers are showing lots of interest,” Ybarra said. “We expect some major retailers to come aboard.”

Villita has been working on the development of the bag for quite a while and initially planned to introduce it for its organic avocado customers. “But we have gotten such good feedback we are going all in,” Ybarra said.

During this interview, which was conducted before the International Fresh Produce Association’s Global Produce & Floral Show, Ybarra said the bag would be formally introduced to the industry during that show with initial shipments taking place this fall. “In January and February, we plan to introduce it to all of our customers and by March we hope to be 100 percent plastic free in our bag programs.”

Ybarra said there is an additional cost to supplying these bags but the company is not asking its customers to cover the entire upcharge. “The bag is more expensive but this is a partnership and we are also investing in this bag for the future,” he said. “We will not be passing the entire cost on.”

During this Oct. 10 discussion, the longtime industry buyer and seller noted that the avocado market was in flux. “Two weeks ago (late September), the market on 48s was $45,” Ybarra said. “On Monday (Oct. 9), it was around $35. But we (the industry) are not picking much today and there is no picking tomorrow, so by the end of the week, the market should go up again.”

Ybarra said the summer size problems Mexico was experiencing are now in the rearview mirror. “There are a lot of 40s and 48s,” he said. “Supplies of 32s and 36s are below normal but they are available.”

Ybarra added the size curve is pretty good with the smaller 70s and 84s often being used on bagged programs. “But I’ve also seen some retailers switching from 60s to 70s on their bulk display to give a lower price point for their customers,” he said.

Bagged fruit, he said, continues to gain in popularity as more and more consumers are eating more avocados and hence buying more during each trip to the supermarket.

“They are a healthy alternative and good for any meal,” he said. “We’ve heard of people using pureed avocados as baby food.”

Ybarra said the only blemish on this year’s crop are the dark spots caused by the excessive rain that has hit Mexico recently. “The dry matter is higher now, which is good, but we are going through a rough patch cosmetically because of the two hurricanes that hit the growing regions,” he said, adding that the black spots on the shell do not impact the quality of the fruit inside.

The Villita executive also reported that the company is increasing its volume tremendously with the opening of its third packing shed in central Michoacan. It now has two packing houses in that heavy avocado-producing state and another in the adjacent state of Jalisco. “For the 2023/24 crop, we should have three times the volume that we had in 2022/23,” Ybarra said. “We are also doubling our ripening capacity in Pharr going from four ripening rooms to eight. We want to be known as the premier ripening center in Texas.”