Avocado Markets and Production in Latin America

Avocados as a tree and a fruit are endemic to Central and North America, particularly Mexico. The green, creamy fruit is world renowned for its taste, its health attributes, and its variety of uses, particularly in the production of guacamole. Avocados are an extremely popular niche product in a variety of markets worldwide mainly because of their high levels of potassium and vitamin K. Similarly, avocados can be processed to produce consumer goods, such as soap, cosmetics, and oil. Today, a number of avocado strands are grown in countries with tropical and Mediterranean climates throughout the world. In recent years, the largest producers of avocados have been Mexico, with more than 1.5 million metric tons annually, and the Dominican Republic, with more than 400.000 metric tons. Other major producers include Colombia, Peru, and Indonesia, each of them producing more than 250.000 metric tons of avocados annually. Over the last decade, international demand and market prices for avocados have increased consistently. This article explores the status of avocado markets in Latin America.

Avocado Markets and Production in Latin America

There are many varieties of avocados worldwide; particularly popular is the Hass variety, which is small, dark green, and has a thick pebbly skin. Another popular variety is known as Bacon and these avocados tend to be somewhat bigger, lighter green, and have a smooth skin.

During 2016/17, Mexico is expected to produce some 1.8 million metric tons of Hass avocados, mainly in the Pacific coastal state of Michoacán. This represents a significant increase from the 1.6 million metric tons of avocados produced in 2015/16 and the 1.5 million metric tons cultivated during 2014/15 in Mexico. Meanwhile, total exports for 2016/17 are expected to surpass the 1 million metric tons. In the state of Michoacán, which accounts for some 80% of Mexico’s avocado production, the amount of land devoted to avocado production is expected to increase from 135.000 hectares in 2015/16 to more than 147.000 during 2016/17. The second largest avocado-producing state in Mexico is that of Jalisco, where more than 17.000 hectares of avocado are cultivated annually.

At the same, Chile is a country with a variety of climates and, therefore, is well suited for agricultural production. Avocados are the third largest fruit crop in Chile and the domestic market for this fruit consumes almost 50% of the national production. Meanwhile, the European Union, particularly the Netherlands, is the largest export market for Chilean avocados, followed by the United States and China. Even though the total area devoted to avocado crops in Chile has declined in recent years due to unfavorable weather variations and transition to more profitable crops, the overall national output of avocados has remained strong.

During 2014/15, avocado production in Chile totaled 152.000 metric tons, which then increased to 175.000 metric tons in 2015/16 and an expected total of 200.000 metric tons in 2016/17. Similarly, in recent years, the amount of land devoted to avocado cultivation in Chile has accounted for approximately 30.000 hectares.

(Read more about International Trade and Food Markets in Chile)