“Colombia’s Hass avocado production will continue to grow significantly in the next 5 to 10 years”

Colombia achieved a new agricultural export record in 2021. The country’s agricultural exports increased by 19.9% over the previous year, driven by the significant growth experienced by many of the products in its agro-export basket, including avocado, which, according to the Ministry of Agriculture and Rural Development, increased by 40.1%.

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Colombia’s avocado industry has experienced rapid growth in recent years thanks to companies such as Hass Colombia, which have worked to develop this product’s image and its Colombian origin to position the country among the main players in the global market for this fruit.

“Hass Colombia is a pioneer company in Colombia in the export of Hass avocado. It was created in 2007 and in 2010 it opened its first packer and exported its first batch of avocado. We have been experiencing a 30% annual growth and today, 14 years later, we are the third-largest exporter of Hass avocado in Colombia,” stated Juan David Restrepo, the company’s manager.

“Our company has a very associative character. We work with small and medium farmers to help them become qualified producers so that their avocado meets the export markets’ increasingly strict requirements. Last year we managed to work with 350 producers and we hope to continue growing in production and in the number of associates.”

The country’s potential to expand its avocado cultivation, one of the most demanded fruits worldwide and with better projections in the short-medium term, is still very large; unlike other important producing countries whose growth in hectares is limited. In fact, Colombia is an attractive destination for foreign investors in the agricultural sector.

“Colombia’s Hass avocado production will continue to grow significantly in the next 5 to 10 years. Many new crops will enter into production in the coming years, and there are still many areas available in the country suitable for growing this fruit,” Juan David stated. “Investing in Colombian agriculture stimulates the economy, generates more employment and more services. However, if there is no correct planning it could also cause a negative distortion in the industry.”

Asia, a market to build

The European market has been very important for Hass Colombia and for the country’s avocado sector. “Prices in Europe have been good and this has delayed the development of other markets with potential, such as North America and Asia.”

“We at Hass Colombia have been doing exercises with the United States, the largest consumer of avocados in the world, although Mexico is its major supplier and represents great competition. Our negotiating agenda includes Japan, South Korea, and China. Colombia still sends very low volumes of avocado to Asia, as the country’s avocados were admitted to China and Korea last year. We must build that market in an orderly manner so that the quality corresponds to the expectations and we can consolidate the growth of consumption.”

“In fact, the sector needs to improve its quality in the short term. Producers need to have more specific agronomic formulas to handle avocado and offer a more uniform product that offers confidence and a good experience to the final consumer.”

“In the medium term, there is some uncertainty about the volumes to be produced. Avocado is such a popular product with such good prices that other origins are also trying to grow in order to maintain and even increase their market share, and this can lead to an imbalance between supply and demand,” Juan David Restrepo added. However, there could also be a lack of balance if the consumption of avocado, a fruit that has its own global promotion organization, unexpectedly skyrocketed. “The world’s current planted area would not be sufficient to cover demand if avocado consumption in China, which currently stands at 100 grams per capita, increased to a kilo.”

Increased production capacity in 2022

Hass Colombia continues to work to improve its production capacity and the quality of the fruit it sends to the demanding international markets. “This year we’ll increase our packaging capacity with a new line that will allow us to go from packing 20 tons of product per hour to about 34 tons.”

“It is a high-precision technology line that has a greater capacity to identify defects and to separate qualities, which will allow us to offer the best products to our customers.”

“We have also been developing technology products for our farmers to help them improve their productivity and the quality of their fruit,” stated the manager of Hass Colombia.

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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