Avocado prices fall sharply amid heavy Peruvian supply

Avocado prices fall sharply amid heavy Peruvian supply

Avocado prices fall sharply amid heavy Peruvian supply

Avocado prices have fallen sharply over the past month amid an oversupply of Peruvian avocado and an fears of recession impacting the consumption of relatively expensive food products, according to agriculture commodities data group Tridge. 

Tridge data shows that wholesale prices of avocado in Mexico dropped by 47% month-on-month, and avocado prices in the U.S. also fell by 27% month-on-month.

Colombian avocado prices also fell by 39% month-on-month.

"The price downturn is due mainly to oversupply," Tridge said.

"Peru has been increasing avocado export by 25% every year for almost five years, and this year, its export volume has increased by 30%."

It said that in Europe, there is an "avocado disaster" because of an oversupply issue, and U.S. and Asian markets are starting to exhibit similar market reactions. 

Moreover, some avocado market participants observe that consumption of avocado is falling because people are buying fewer avocados while high inflation and recession affect household income. In some countries, avocados are sold lower than the farmgate price, Tridge said.


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