Opinion: Rabobank World Avocado Map
The Rabobank World Avocado Map 2023 reveals many things about the avocado market and all signs point that the European avocado market is ripe for the picking.
In this post, we will dive deeper into the current state of the European avocado industry, potential strategies for exporters to grow in the European market, and some future predictions.
Our Views on Current EU Avocado Consumption and Growth Potential
With education, partnerships, and reliable sourcing, the potential for EU avocado market growth is significant. Tapping into this demand could be lucrative for exporters able to navigate the logistical challenges.
Consumption Lagging in EU
The EU is far behind the US in avocado consumption, with some countries just discovering this nutritious fruit. Promoting avocados and educating people about their health benefits could significantly expand the market.
“A huge market is waiting. Efforts are to be made to promote avocado consumption in EU.”
Many lessons can be learned from the early marketing efforts in the United States to introduce and promote avocados to the American consumer.
Future Growth Depends on Major Producers
Much of Spain’s avocado exports come from other sources like Morocco and South America. The Netherlands imports but does not consume a high volume.
Instead, “The total volume of avocado in the world will depend on the production in Mexico,” according to Diego De La Cuadra. Major producers like Mexico, South Africa, Kenya, Colombia, and Peru are poised to boost the avocado supply and meet growing EU demand. However, “logistics problems could affect some countries,” Diego De La Cuadra warns, citing issues like the Panama Canal transit time and overland shipments from distant countries.
Quality and Partnerships Matter
We believe that strong partnerships with reliable partners will improve exporters’ position. Building alliances and focusing on quality can strengthen an exporter’s standing. Implementing uniform standards across exporting countries may also help open the EU market.
“A worldwide or at least national quality standard would help to get better access,” Tomás De La Cuadra suggests.
Strategies to Increase Avocado Exports to Europe
To boost avocado exports to Europe, exporters need solid strategies. Our two experts weighed in on key factors to consider:
Build reliable partnerships in Europe
Finding importers and distributors committed to quality and customer service is key. They can help promote your brand and get fruit to market efficiently.
If you want to benefit from SAFTA’s cold chain partner network with fixed pricing and guaranteed transparency, get in touch.
Focus on high-volume entry points
The ports of Rotterdam and Antwerp are crucial, as nearly all avocados enter Europe there. They offer specialized facilities and expertise to ensure an uninterrupted cold chain. Exporters should establish a presence to oversee quality control and logistics.
| ROTTERDAM | ANTWERP | |
|---|---|---|
| Advantages | ||
| Size and Capacity | Largest port in Europe with extensive capacity | Well-sized port with efficient fruit terminals |
| Connectivity | Excellent inland transportation links | Central location in Europe with good accessibility to major markets |
| Logistical Hub | Key logistics hub with numerous distribution centers | Efficient cargo handling ensuring quick turnaround times |
| Cold Storage Facilities | State-of-the-art cold storage facilities | Terminals with specialized facilities for perishable goods |
| Disadvantages | ||
| Draught Limitations | Some parts may have draught limitations | - |
| Capacity Constraints | May face capacity constraints during peak seasons | - |
Meet quality standards
European consumers have become accustomed to high food quality levels. Consistent quality and food safety standards assure customers and open up more markets. Quality control partners, like Quality Studio, ensure that exporters get the best price for their goods.
To show your commitment to quality, you could consider certifications like Global GAP or ethical standards.
Diversify production
While Mexico dominates global production, diversifying sources may buffer against risks like drought or disease. Emerging producers in Africa, South America, and Southeast Asia show promise.
Improve logistics
Transporting avocados long distances while maintaining quality can be tricky. As Diego De La Cuadra noted, “Logistics problems could affect some countries. Peru, Chile, and Ecuador depend on the Panama Channel. Mexico, Kenya, and South Africa are facing extensive transit times.” The time it takes to ship avocados from Central and South America and Africa to Europe might cause the fruit to ripen too quickly before it even arrives at its destination. Careful planning and temperature control are required to ensure avocados arrive in good condition.
Negotiate pricing
Unfortunately, “the avocado market is still more FOB or “on commission” which weakens the exporters’ position,” said Tomás De La Cuadra. Selling avocados FOB or on commission means that exporters have little control over pricing and are at the mercy of buyers. This significantly reduces profit margins for exporters.
“The Netherlands functions as a place where fruit enters Europe, they are actually not a big consumer of avocados.”
While the Netherlands serves as the main entry point for avocados into the EU, the fruit then needs to be distributed throughout the rest of Europe, adding additional time and logistical challenges. Establishing distribution centers in strategic locations could help address this problem.
Exporters must ensure quick, uninterrupted transport to deliver ripe, ready-to-eat fruit. Direct shipping routes and optimal transit times are essential. Shorter sea voyages may require air freight for part of the journey.
Predictions on Future Global Avocado Production and Export Markets
The avocado industry is poised for significant growth in the coming years. According to experts, much of this growth will come from increased global trade and the opening of new export markets.
Production Expansion
We predict efforts to promote avocado consumption in Europe will pay off, creating a “huge market waiting” to be tapped. At the same time, Diego De La Cuadra anticipates production increases in Mexico, Africa, Colombia, Brazil, and other regions. More volume means more significant export potential, primarily as logistical challenges are addressed.
The European Opportunity
The EU avocado market remains largely untapped, especially compared to the US. Demand will continue to grow in the different European countries.
Changing Trade Flows
We should all expect a shift in major exporting countries and trade routes. Production in places like Spain, California, and Chile may decline while Mexico, Africa, and South America ramp up. New trade alliances and infrastructure like an expanded Panama Canal will facilitate the movement of avocados from these emerging origins to Europe and beyond.
Pricing Considerations
As Europe’s appetite for avocados grows and service providers like SAFTA, exporters will gain more leverage to negotiate different pricing terms that are more favorable. This could significantly impact the bottom line for producers able to capitalize on the opportunity.
Conclusion
Exporting avocados to Europe could be quite a lucrative opportunity if you play your cards right.
According to the experts, the EU market is severely underserved and eager for the creamy green fruit we all know and love. The key will be focusing your efforts on promotion to drive up demand and finding reliable partners in Belgium and the Netherlands, the main entry points for avocados into Europe.
While the market currently favors buyers, building solid relationships and adhering to quality standards can strengthen your position. Despite future fluctuations in supply from major producers, the increasing interest across the EU suggests avocados are poised to become a staple.
