Mexican avocado producers see opportunities in opening of California and Florida markets
Mexican avocado producers see opportunities in opening of California and Florida markets
As of Feb. 1, Mexican-grown Hass avocados that have met the required U.S. Department of Agriculture protocols may be shipped to California, Florida and Hawaii for the first time in some 80 years.
From the mid-1920s until about a decade ago, Mexican avocados were not allowed to be marketed anywhere in the United States due to phytosanitary concerns. Since then, access to the U.S. market for avocados from Mexico has been phased in, first to states where any imported pests that might have slipped through in spite of the protocols could not over-winter. And then, two years ago - as the protocols were deemed effective - to all of the Untied States except for California, Florida and Hawaii, the three states with their own avocado industries.
Now the entire U.S. market is open to Mexican avocados, and Mexican producers naturally see opportunities due to the broader market access. They are particularly pleased to have access to the California market, which consumes more avocados than any other state.
The Avocado Producers & Exporting Packers Association of Michoacan, generally known by its acronym APEAM, is actively involved in promoting consumption of Mexican avocados in the United States.
"We had a big event in Mexico" to celebrate the opening of the new markets, said Emiliano Escobeda, APEAM's industry representative in New York. Mexican President Felipe Calder?n participated in the celebration, which was held Feb. 5 in Uruapan, Michoacan, in the heart of Mexico's avocado-growing region, as trucks laden with avocados were leaving for California and Florida. Having Mexican Hass avocados available in the marketplace in addition to those from California and other growing regions, most notably Chile, is a positive thing for everyone concerned, according to Chris Tully of Preston/ Tully Group in Garden City, NY, which represents APEAM and also the Mexican Hass Avocado Importers Association.
"It means choice for consumers, and I think any time you bring choice to consumers it is a positive thing, especially given the demand for avocados," he said.
Mexico is "a reliable, high-quality source for Hass avocados," Mr. Tully said. The expanded market access will bring "high-quality avocados into volume markets like California," where consumers are "very demanding" and knowledgeable about avocados.
Particularly in the light of "recent weather conditions" that have reduced the size of the 2007 California avocado crop, "the fact that Mexico can supply product to California" will benefit California consumers, he said.
Retailers will benefit as well, Mr. Tully continued. "Any time a retailer has another source for high-quality product, it is a positive thing in the marketplace. It helps ensure ample supply to meet the increased demand for avocados."
Importers will benefit "because they now have a market they can sell their product into," he said, noting that "many of those same importers" also handle both Californian and Chilean product.
In Mexico, not only will the expanded U.S. market access give producers additional sales opportunities, but those additional sales are also expected to create an additional 25,000 jobs in Mexico, he said.
Although California is a particularly attractive market for Mexican avocados, Florida also offers opportunities, Mr. Tully said. However, Hispanics in Florida tend to consume more of the Fuerte avocado variety than Hass, "so our mission in Florida is to transition them from the Fuerte to the Hass variety, and that will come," he said.
In terms of magnitude, Hawaii is not as big a potential market as California and Florida, but there will still be opportunities, he said. "We are not going to dismiss Hawaii."
According to Mr. Escobido, Mexico, which produces on average about 1 million metric tons of avocados per year (most of which is consumed domestically), should have "ample supplies" to meet the demands of the U.S. market. He expects the U.S. market this year to be "very attractive for growers in Mexico," and some who are not yet certified to export to the United States will want "to be part of the program" and will apply for certification.
APEAM is running a nationwide U.S. campaign promoting Mexican Hass avocados, with a heavy focus on the eastern states. Now a California component targeted to a Hispanic audience has been added, Mr. Escobido said. That will include television commercials in Los Angeles and San Diego on Univision as well as a public relations campaign.
Although the new markets opened on Feb. 1, there was not a big rush of Mexican Hass into California, Florida and Hawaii on the first day, Mr. Escobedo said. Exporters and importers are "taking it slowly." He expects that volume will increase in March as the season for Chilean fruit winds down. Actually, according to a press release from the Fresh Produce Association of the Americas, a U.S. Department of Agriculture computer glitch "nearly stopped imports of fresh avocados from Mexico just days before the Super Bowl, the leading day of avocado consumption in the United States." Due to the change in the protocol, permit renewals "all came back with an expiration date of January 31, 2007," the release stated. By the time the USDA fixed the glitch, "the backlog for import permits was over a month long, meaning virtually no import permit renewals leading up to the big game."
But the FPAA lobbied the USDA to expedite the situation, and the cooperation received was gratifying. "It is not often that government officials and agencies are willing to go the extra mile to put consumers and the industry as a priority," said FPAA President Lee Frankel. But by the end of the day on Feb. 1, nearly all pending avocado import permit renewals had been processed.
From the mid-1920s until about a decade ago, Mexican avocados were not allowed to be marketed anywhere in the United States due to phytosanitary concerns. Since then, access to the U.S. market for avocados from Mexico has been phased in, first to states where any imported pests that might have slipped through in spite of the protocols could not over-winter. And then, two years ago - as the protocols were deemed effective - to all of the Untied States except for California, Florida and Hawaii, the three states with their own avocado industries.
Now the entire U.S. market is open to Mexican avocados, and Mexican producers naturally see opportunities due to the broader market access. They are particularly pleased to have access to the California market, which consumes more avocados than any other state.
The Avocado Producers & Exporting Packers Association of Michoacan, generally known by its acronym APEAM, is actively involved in promoting consumption of Mexican avocados in the United States.
"We had a big event in Mexico" to celebrate the opening of the new markets, said Emiliano Escobeda, APEAM's industry representative in New York. Mexican President Felipe Calder?n participated in the celebration, which was held Feb. 5 in Uruapan, Michoacan, in the heart of Mexico's avocado-growing region, as trucks laden with avocados were leaving for California and Florida. Having Mexican Hass avocados available in the marketplace in addition to those from California and other growing regions, most notably Chile, is a positive thing for everyone concerned, according to Chris Tully of Preston/ Tully Group in Garden City, NY, which represents APEAM and also the Mexican Hass Avocado Importers Association.
"It means choice for consumers, and I think any time you bring choice to consumers it is a positive thing, especially given the demand for avocados," he said.
Mexico is "a reliable, high-quality source for Hass avocados," Mr. Tully said. The expanded market access will bring "high-quality avocados into volume markets like California," where consumers are "very demanding" and knowledgeable about avocados.
Particularly in the light of "recent weather conditions" that have reduced the size of the 2007 California avocado crop, "the fact that Mexico can supply product to California" will benefit California consumers, he said.
Retailers will benefit as well, Mr. Tully continued. "Any time a retailer has another source for high-quality product, it is a positive thing in the marketplace. It helps ensure ample supply to meet the increased demand for avocados."
Importers will benefit "because they now have a market they can sell their product into," he said, noting that "many of those same importers" also handle both Californian and Chilean product.
In Mexico, not only will the expanded U.S. market access give producers additional sales opportunities, but those additional sales are also expected to create an additional 25,000 jobs in Mexico, he said.
Although California is a particularly attractive market for Mexican avocados, Florida also offers opportunities, Mr. Tully said. However, Hispanics in Florida tend to consume more of the Fuerte avocado variety than Hass, "so our mission in Florida is to transition them from the Fuerte to the Hass variety, and that will come," he said.
In terms of magnitude, Hawaii is not as big a potential market as California and Florida, but there will still be opportunities, he said. "We are not going to dismiss Hawaii."
According to Mr. Escobido, Mexico, which produces on average about 1 million metric tons of avocados per year (most of which is consumed domestically), should have "ample supplies" to meet the demands of the U.S. market. He expects the U.S. market this year to be "very attractive for growers in Mexico," and some who are not yet certified to export to the United States will want "to be part of the program" and will apply for certification.
APEAM is running a nationwide U.S. campaign promoting Mexican Hass avocados, with a heavy focus on the eastern states. Now a California component targeted to a Hispanic audience has been added, Mr. Escobido said. That will include television commercials in Los Angeles and San Diego on Univision as well as a public relations campaign.
Although the new markets opened on Feb. 1, there was not a big rush of Mexican Hass into California, Florida and Hawaii on the first day, Mr. Escobedo said. Exporters and importers are "taking it slowly." He expects that volume will increase in March as the season for Chilean fruit winds down. Actually, according to a press release from the Fresh Produce Association of the Americas, a U.S. Department of Agriculture computer glitch "nearly stopped imports of fresh avocados from Mexico just days before the Super Bowl, the leading day of avocado consumption in the United States." Due to the change in the protocol, permit renewals "all came back with an expiration date of January 31, 2007," the release stated. By the time the USDA fixed the glitch, "the backlog for import permits was over a month long, meaning virtually no import permit renewals leading up to the big game."
But the FPAA lobbied the USDA to expedite the situation, and the cooperation received was gratifying. "It is not often that government officials and agencies are willing to go the extra mile to put consumers and the industry as a priority," said FPAA President Lee Frankel. But by the end of the day on Feb. 1, nearly all pending avocado import permit renewals had been processed.
