Avocado, the Green Gold Rush

25.11.2021
 
The cultivation of this fruit has continued to grow in Spain in recent years and now exceeds 14,000 hectares of area and is close to 100 million kilos of production. Andalusia is the leader in volume and extension, with Malaga and Granada as spearheads, although it is also growing in the Canary Islands and the Valencian Community.
 
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The avocado is a growing crop in Spain, which already exceeds 14,000 hectares of surface, concentrating its vast majority in the known as Axarquia of Malaga and the tropical coast of Granada, which show off more than 10,000 hectares together, although it has also been establishing itself strongly in the Canary Islands, the Valencian Community and even in other areas of Andalusia as Huelva and Cadiz, according to the latest data from the Ministry of Agriculture, Fisheries and Food, corresponding to the 2019 financial year.

Specifically, Malaga leads the national ranking of cultivated avocado extension, with 7,390 hectares, followed by Granada, with 2,683 hectares. The Canary Islands has a total of 1,866 hectares, of which 1,581 are exploited in Santa Cruz de Tenerife, while the remaining 285 are in Las Palmas, followed in area Cadiz, with 592 hectares, 553 of which are cultivated in irrigated and the rest in rainfed system, then Valencia, with 543, after it, Huelva, with 520, then Alicante, with 284 hectares, and Castellon, with 188. There are other areas with residual crops: eleven hectares in Seville, eight in the Balearic Islands, six in Tarragona, five in Almería, four in the Region of Murcia, three in the Principality of Asturias and one in A Coruña.

Its attractive price at origin attracts the attention of growers, although they must be wary of the boom in production in competing countries such as Morocco and Portugal, as areas closer to Spain, and they must not lose sight of the growing trend of transoceanic imports recorded by the European Union, from Peru, South Africa, Mexico and Colombia.

The subtropical climate of Granada and Malaga makes these areas ideal for its development, a factor that can be replicated in crops grown under plastic, with proper monitoring of water and energy consumption so that it does not become a factor that conditions the final profitability.

Average avocado price increases 9%.

The volume of avocado production in Andalusia, which brings together more than 90% of the total in Spain, has exceeded 87.000 tons in the 2019/2020 campaign, which has culminated with a good price level in all its varieties, according to the Observatory of Prices and Markets of the Ministry of Agriculture, Livestock, Fisheries and Sustainable Development of the Junta de Andalucía, which highlights the positive assessment of the sector regarding the response of the European market to the consumption of this fruit during the first months of the Covid-19 crisis, considering that it has gone from being considered as an exotic product by consumers to be part of the usual shopping list.

The average price of the campaign has stood at 2.34 euros per kilo, representing an increase of 9% over the previous year. The 'Hass' variety, which accounts for 88% of Andalusian production, has closed the year with an average price of 2.44 euros per kilo and has starred in the lowest increase over the previous season, with only 5%. The 'Bacon' avocado, with a final price of 1.30 euros per kilo and a representativeness of 3% of the total production is the one that has registered the highest increase compared to 2018/2019, with 66%. The 'Fuerte' variety, which represents 5%, increases its final price by 28% and stands at €1.53 per kilo. By categories, the first of these stands out, which has accounted for 71% of the total volume marketed, reaching an average settlement price at origin of €2.73 per kilo.

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The Andalusian avocado production has been favored by the situation of the European market, where the high demand faced a relatively weak supply with a shortage of large sizes. The high prices paid by the United States have led to the diversion of significant volumes of this fruit from Mexico and Peru to this country, while Chile entered the market with a significant reduction in its production and abundance of low caliber avocado, which together with that of Colombia, has put upward pressure on the prices of larger sizes.

At the beginning of the pandemic, about 22% of the production in Andalusia was still on the tree. The weather conditions at that time, with rainfall and lower than usual temperatures, contributed to slow down the ripening rate of the fruit, while the market adapted to this exceptional situation never experienced before. The closure of the Horeca channel throughout Europe in the first weeks and the orientation of consumers towards massive purchases of other staple products, mainly in supermarkets and supermarkets, to the detriment of greengrocers and wholesale markets, caused the fall of wholesale markets. However, the gradual return of consumers to the usual purchase format increased the demand for avocado at a time of shortages in the European market, coinciding with the end of the campaign productions of competing countries such as Chile, Mexico and Morocco, in addition to the delay in the arrival of shipments from Peru, which has pushed up prices until the end of the campaign, as reported by the Price Observatory of Andalusia.

According to the consulting firm Nielsen, national consumption has increased throughout the months of the pandemic, compared to the same period last year. Specifically, in March it increased by 26% to 4,636 tons; in April, it grew by 37%, with 4,044 tons; and in May, by 35%, to 4,318 tons. The sales prices achieved in these months were €4.74 per kilo in March, €4.8/kilo in April and €4.72/kilo in May, representing increases of 6, 7 and 8%, respectively, compared to the same months of 2019.

 

Foreign market

The Andalusian avocado, a benchmark of quality in the market, has increased the volume of exports during the production period by 16% over the previous season, an increase very similar to the value of exports, which has done so by 15%, with a figure exceeding 278 million euros. The European Union receives 96% of foreign sales, the main destinations being France, with 38% of the volume; the Netherlands, with 17%; and Germany and the United Kingdom, with 11% and 10%, respectively.

But it's not all plain sailing. Managing the avocado crop is not easy, as its yield per square meter is relatively low. Each hectare of avocado produces around 10,000 kilos of product, which means an average of one kilo per square meter. In addition, the tree that bears this fruit depends on optimal irrigation management, with the drip system being the most suitable for this purpose.

Chamsa recommends the use of Titan PC or PC2 self-compensating drippers.

 
                 
 

Precisely, the sector is suffering from the scarcity of water resources, mainly in southern Spain, where it is experiencing restrictions for months, as exceptional measures taken by the Junta de Andalucía before the persistent drought, a fact that worries producers by the uncertainty it generates for their future. "There are still restrictions and more that are going to put us in this hydrological year, since the administrations do absolutely nothing and, with this, they will lead to total ruin to the Axarquia and part of the Costa Tropical," denounces the head of the producers of Spain, an association that has about half a thousand members, who cultivate a combined area of over 3,350 hectares, which is why the use of maximum irrigation systems are now more important than ever.

Promising future

Despite the pending challenges, the future of the so-called 'fruit of life' is hopeful. According to the World Avocado Organization (WAO), it is expected that by the end of 2020, the European Union will consume more than 750 million kilos of this nutritious product, rich in fiber and potassium, low in cholesterol and triglycerides and a powerful source of energy. In 2018, nearly 75 million kilos of avocado were consumed in Spain (the country as a whole produces more than 97.7 million kilos), beating the previous year's record. Despite this, the average intake per inhabitant in Spain is one kilogram per year, far below the 2-2.5 kilos recorded by the Nordic countries.

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Precisely, one of the recognitions sought by the production sector in Spain is the implementation of a protected geographical indication that reinforces the added value of the avocado and increases its differentiation in the market for the consumer, a measure that has been demanded for years. 

Another differentiating aspect of the avocado lies in its properties, which make it an ideal product to form part of major research projects, within the framework of society's commitment to sustainability and the circular economy, contributing to the fight against climate change. 

Via Interempresas.net

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