Consumption of avocados in the UK is increasing every year and, even though the sector still has a long way to go to bring eating levels up to those of the Americas, promotional campaigns organised by bodies of origin such as the South African Avocado Growers’ Association (SAAGA), Peruvian growers’ association ProHass and the Chilean Hass Avocado Association (CHAA) have not gone unnoticed by consumers and the trade alike. Neither has the influx of ready-to-eat avocados in the multiples - showing consumers that there is more to the product than a rock-hard pear.
“Every year, UK consumers are becoming more aware of avocados. That is evident from talking with the buyers at the multiples, people in the stores and the importers and, as a result, demand is increasing,” says Adolfo Ochagavía, president of CHAA. “The UK market is a good and very stable one. The way it works fits very well with Chilean growers’ requirements, and growers are very aware of the importance of marketing campaigns in the UK to expand demand. Nevertheless, the market penetration for Hass avocados is around 25 per cent, which is very low compared with the Chilean figure of 98 per cent.”
SAAGA research has shown that consumers have become more aware of avocados, and the body’s annual marketing campaign has proved increasingly successful, with consumer knowledge of avocados growing due to recipe booklets and promotions within the multiples.
Paul Devlin of Hall International, which is the marketing arm of grower HL Hall in South Africa and one of the largest importers of avocados to the UK market, has noticed a change in the industry. “There has been a lot of co-ordination between the Peruvian and South African markets in particular, to make sure avocados are available and that there is not an oversupply situation on the market,” says Devlin. “Other producing countries have been involved over the last five years or so as well, such as Chile. The main bodies that represent origins, such as SAAGA and CHAA, have been instrumental in co-ordinating shipments and arrival, so there has been a nice flow to the market.”
Importer Mack Multiples, which brings in avocados from Spain, Israel, Morocco, South Africa, Peru and Chile, as well as Kenya, to provide UK retailers with year-round supply, has increased its import volume of the fruit to 120 pallets a week in order to supply demand from customers.
“The media, the awareness of superfoods and a more cosmopolitan diet have made avocados a much more common feature in the shopping trolley,” says Steven Rees, commercial manager for Mack’s salad and vegetable division. “They are moving towards a staple item rather than an infrequent purchase for many consumers.”
The season so far
This year’s avocado supply started with the last product of the 2007-08 season from Chile, which had experienced unseasonable frosts during the growing period, resulting in less product on the market. But the Israeli offer was in full swing, having started its campaign in late September.
Major Israeli exporter Agrexco began the season with green-skinned variety Ettinger, which it sells solely to wholesale markets. This was followed in mid-November by the main avocado varieties Fuerte, also a green-skinned fruit, and the harder-skinned Hass, which is proving to be the nation’s favourite type, of which 95 per cent of Agrexco’s volumes went to UK multiples.
The 2007-08 Israeli avocado season was also badly affected by frosts in the country’s main producing area in Granot, which caused a shortage that ricocheted through the market, resulting in the Spanish crop running short to the end of May. “The frosts in Israel meant that everyone who had intended to take large volumes of Israeli crop went to Spain instead, bringing the season to a swifter conclusion than expected,” says Rees.
And the effects of the frosts in Israel are set to have an impact on the coming season for Israeli avocados, due to arrive in the UK at the end of this month. “Last season [2007-08] was badly affected by the frost and we had a shortage of product for our customers,” explains Oded Yacovson, general manager of Agrexco UK. “This coming season is an on year, but the young plant was severely affected, so volumes will again be low.
“Last year, we exported 2,700 tonnes [of avocados] to the UK, the year before we did 7,000t and this year we will do 4,400t. It is an on year, but the volumes have been affected by the frost earlier on in the year. But quality is very good.”
Mack Multiples admits that the past season was difficult. “Early Spanish avocado supplies were fine, but then we found supplies were uncomfortably short and expensive due to the frost in Israel,” says Rees. “And the last Chilean season was short due to pre-season frosts, which caused some vascular issues; but otherwise overall quality was fine and pretty constant.”
From April, South African supply came into play and the campaign is expected to last until next month. As the season comes to an end, SAAGA predicts that the total volume for export through the season will be 12 million 4kg cartons, with approximately three million cartons making their way to the UK. This constitutes a similar percentage to 2007, although the amount of avocados was less, at 9.4m cartons. But despite this rise in production, the South African season was also affected by frost.
Avocados are mainly grown in the eastern parts of the Limpopo and Mpumalanga provinces in South Africa, as well as parts of Kwazulu-Natal and some small plantings in the Cape. “We have had good harvesting conditions,” says SAAGA’s Derek Donkin. “Last year’s frost negatively affected this year’s yield in some orchards, but it is expected that they will be back in full production in 2009.
“We estimate that total yield will be similar to last year, but the export crop will be larger due to high export percentages, as a result of good quality brought about by very favourable weather conditions this year.
“We have also had high export packouts and the market has remained stable, despite higher volumes from all origins during the latter half of the season.”
Delvin agrees that it has been a good season for South Africa, but reveals that there have been some problems caused by an abundance of Hass on the market. “It has been fairly consistent and the only time it was not was in August, when Hass was very much oversupplied from South Africa and Peru. It means that prices are under pressure now, but we expect the market to recuperate in two to three weeks,” he says.
In May, Agrexco ended the Israeli season by providing green-skinned varieties Pinkerton, Ardith and Nabal. And as Morocco and Spain’s campaigns came to an early end, the market welcomed avocados from Peru and lesser volumes from Kenya.
Hall International supplements its South African offer with avocados from a few select growers in Peru and Kenya. “This year, Hall International estimates that it will handle 1.7m 4kg cartons of South African avocados, as well as market Kenyan and Peruvian product,” says Devlin. “This complements our South African offer, because Kenyan and Peruvian fruit arrives in the same marketing window. But it does depend on how fruit comes into the market, so we have to amend our market programmes accordingly.”
Peruvian grower and exporter Camposol produces avocados in Trujillo, northern Peru, and sends 11 per cent of its Hass production, which accounts for 90 per cent of its crop, and 34 per cent of its Ettinger, which represents the other 10 per cent, to the UK market.
The Peruvian avocado season, which historically starts at the end of March and finishes in mid-August, was delayed by two weeks compared to last year, because of changeable weather conditions. “Apart from the late start, the weather was good to the crop,” says Sandra Brescia, sales executive at Camposol. “Our avocados got to the UK for the first week of April and the season ended the first week of September.
“It has been a good season for both volume and quality, and the market has recognised this with good prices,” she adds. “We have increased the amount of hectares we are growing on this year, but the fruit will be ready to export in the next two years, and Camposol will grow to 3,000ha in the next three years. We send most of our production to the French and Spanish markets.”
To the future
As the last of the Kenyan crop disappears from the UK market in September, the new Israeli season will be welcomed in. So far, Agrexco says that the weather this season has not hit the coming Israeli season, but there has been a knock-on effect from the frost at the start of this year.
Chilean supply will swiftly follow Israeli fruit this year, which is scheduled to reach the UK towards the end of September, in a change to recent seasons. “Normally, the Hass avocado season, for export purposes, ships from July to February the following year,” explains Ochagavía. “This season [2008-09], because of the frost that hit Chile last year, we have less fruit, so we will have a shorter season. The first loads of fruit will arrive in the UK in the second half of September and the last arrivals will be in mid-January 2009.”
Chile consists of approximately 30,000ha of Hass avocados, located in four regions: the central avocado-growing area runs from Ovalle in the north to Peumo in the south.
“Last year, we had a heavy frost in the country that affected the production areas in different degrees, both last year and this year,” says Ochagavía. “In 2003-04, we estimated that production was 120,000t and last season [2007-08] it was 156,000t. But in the 2006-07 season, we had a peak production of about 220,000t. So based on the figures, we have grown and we expect a bigger crop for 2009-10.”
Although yield has been affected by frosts, the quality of Chilean avocados is expected to be very high this season, due to favourable weather conditions this winter and plenty of rainfall. “The problem was the winter of 2007,” says Ochagavía, “and with avocados, winter frosts affect the season by burning the fruit and also the initial flowering, which affects the next year’s fruit.”
Ochagavía believes that the UK market is crucial to the Chilean Hass avocado industry and, despite competition from South Africa and Peru at the start of the season and from Spain and Israel at the end, demand is strong. “The UK market is important for the Chilean Hass avocado industry; the volumes shipped to it have been growing over the last five seasons, and we still see a lot of potential to grow,” he says.
But will demand from UK consumers for exotic items such as avocados dip as the credit crunch takes its toll? Donkin believes that the avocado industry may be facing a challenge in the near future. “The general trend over the past decade has been one of increasing demand,” he says. “However, in the last year, with consumers feeling the pinch across the globe, there has been pressure on avocados, as they are often viewed more as a luxury than a necessity.”
And even though the various avocado associations have managed to increase consumption of avocados in the UK, promotions need to remain on top form to continue the good work.
“UK consumers have a greater awareness, but there is still a long way to go,” says Yacovson. “Some still consider avocados to be ‘fattening’. With zero per cent cholesterol, they are high in monounsaturated oils, an essential element for lowering total cholesterol levels.”
And Yacovson fears that further trouble may be ahead for Israeli avocado growers, with the same issues that have always affected the industry becoming worse.
“The main issues are still the same - fuel costs, pound against the shekel, the demand for less pesticide use - and now the current economic situation in the UK. People are cutting back on expenditure, and avocados, although not considered an exotic any more, will be affected,” he says.
“This year the currency is becoming weaker and weaker every week - it is going to be a very hard season. Currently the multiples are taking the Hass variety and we are selling the green varieties to the wholesale market. But there is a greater volume of green avocados in Israel and I would like the consumption of these to become greater here in the UK.”
The UK market remains important to Hall International, but it has significantly increased its exposure throughout Europe this season. This year, an estimated 42 per cent of the company’s avocado crop will have been exported to the UK, which is a decrease on previous seasons.
“We are looking towards mainland Europe and working with supermarkets there to increase our exports,” reveals Devlin. “As our production volume has grown we have had to find other outlets for our fruit. Also the exchange rate situation of euro to sterling has put the UK at a disadvantage. We have continued to support the UK, but the exchange rate has had an effect on returns.
“Five years ago, we would have been sending 80 per cent of our crop to the UK; there has been a big change. We still have commitments to the UK, as it takes in a broad mix of avocados, but on the supermarket side, the continual price war makes things difficult.”
Rees has also noticed some changes from the UK side. “The main issues have been consistent availability and the price fluctuations that those periods of short supply bring,” he says. “After that, there can be issues with the consistency of fruit quality, particularly when ripening.
“Profitability has been marginal in years where availability is short for an elongated period. Otherwise, it can be a fairly profitable area, but it is still a specialist market - especially when it comes to ripening,” adds Rees.
SINCLAIR MAKES ITS MARK
Manufacturer of fruit labelling equipment and labels Sinclair Interational has been assisting many category managers and retailers in developing ripe-and-ready avocado programmes across the UK, Europe, South Africa and the US.
Sinclair’s iQ firmness tester enables 100 per cent sorting of product by firmness, at a line-speed up to 600 cups per minute (or 10 per second), without sampling. As well as improving product consistency, these systems also reduce the considerable product waste associated with destructive sampling.
A sensor mounted inside Sinclair’s unique bellows delivery system, pictured, returns an iQ firmness value, which is transmitted back to the line for separating product into up to six firmness bands.
Sinclair’s system offers the ability to measure the fruit and divide whole batches into multiple grades or ripeness categories, controlled by an easy-to-use software package. A strong relationship with the current industry standard, the penetrometer, enables the system to out-perform traditional hand-sorting techniques in terms of throughput, accuracy and cost.
The Sinclair iQ product range consists of three applications: the online, able to mount on existing sizing equipment; the total package, complete with carrier; and the portable Benchtop unit, used for sampling and quality control. iQ systems around the world are supported in the field by a global network of fully trained Sinclair and agent staff, included with the Sinclair iQ package.
“With the growing importance of both ripe-and-ready and pre-cut product lines, systems that segregate every fruit based on firmness or maturity are set to become indispensable to fruit processors and suppliers,” says James Packham, Sinclair iQ’s product manager.
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