Peruvian avocados to fill void for Eco Farms
Peruvian avocados to fill void for Eco Farms
On the last business day in May, not many Peruvian avocados had made their way to the marketplace, but this season the market is ready for them — and can no doubt use them.
Matthew Clark, general manager for Eco Farms Avocados Inc. in Temecula, CA, predicted that California will not reach the estimate for the size of its crop even though it has been downsized significantly in recent weeks. As the California season was getting under way several months ago, the California Avocado Commission estimated the marketable crop at 327 million pounds.
“That’s has been revised to 283 million (pounds) and we don’t think it is going to reach that,” he said, adding that 250 million to 265 million seems more likely.
Clark said Peru could be in a very good position to fill the void as California is going to certainly end its season sooner than anticipated.
The Eco Farms executive is advocating for the orderly marketing of Peruvian fruit spread out over an extended length of time. He said Peruvian fruit should be available from June until near the end of September. Last year, shippers from there sent about 135 million pounds of avocados to the United States. This year, initial estimates were well over 200 million pounds to the United States.
“That was an unrealistic number,” said Clark. “It was then reduced to another unrealistic number and now it has been reduced again to something a bit more reasonable.”
Clark said Peru could export 160 million to 180 million pounds if it is orderly and spread out. “Last year they competed against themselves by sending it all at one time,” he said. “As long as they don’t do that, it should work well.”
He noted that Peru tends to send only 36-, 40- and 48-size fruit to the United States. While the United States does like this large-size fruit, a restricted size portfolio also reduces opportunities, as some buyers do feature smaller sizes.
Eco Farms brings both conventional and organic avocados in from Peru, and Clark said Peruvian avocados, with their summer time frame, are a very good fit for this Southern California company.
Like from other foreign points of origin, the organic fruit is certified as such at the packingshed. He said most of the Peruvian fruit is used for the firm’s program business, which makes up a larger share of the company’s sales each year. This year, he noted that Eco Farms will almost exclusively devote the Peruvian avocados to those pre-sold programs and will not bring any fruit in on a speculative basis.
It’s no secret that last summer Peruvian avocados flooded the market during a relatively short time frame and caused some downward pressure on the market price. Clark said there will be a multi-tier pricing system differentiating between the points of origin: California, Mexico and Peru. He noted that any price differentiation is determined by buyer demand not by the shippers.
Clark added that with a year under its belt with regard to blending Peruvian avocados into the mix, Eco Farms, like the industry at large, is more prepared to do a better job this year.
“We expect to have a similar program to last year but we will do it better,” he said.