Requirements and challenges for the Peruvian avocado in the European market
European avocado imports almost tripled between 2013 and 2017, a trend that has occurred thanks to t…European avocado imports almost tripled between 2013 and 2017, a trend that has occurred thanks to the increase in consumer demand for ready-to-eat and healthy foods. This emerging sector has created opportunities for both producers and exporters, especially those of the Hass variety, although competition is growing. The best opportunities are found in large consumer markets such as France, Germany, Spain, and the United Kingdom, which are supplied throughout the Netherlands.
This, according to a recent report by the Center for the Promotion of Imports from Developing Countries (CBI), which portraits the general picture of the market for this fruit in the Europe.
This office reports that avocados are generally classified into three categories: Extra Class, Case I, and Class II. Europe almost exclusively imports Class I avocados. In addition, the report states that it is important that the fruit arrives intact, clean, free of pesticides, without abnormal external moisture, with a stem of no more than 10 millimeters in length and that it can resist transport and handling.
Sizes and packaging
According to the CBI report, fresh avocados are classified according to Size Codes from 1 to 30 with a minimum weight of 123 grams (in the case of the Hass avocado it can be 80 grams). "In Europe, consumers prefer Hass avocados that range from 16 to 20, and 14 to 16 in the Fuerte avocado variety," it states.
Packaging requirements vary according to customers and market segments. However, the fruit must be shipped in new, clean, quality packaging to protect the product properly.
In addition, exporters must be careful with the labeling, for which Europe also has specific requirements. For example, Europe doesn't allow labels that contain ink or toxic glue, and the text must be in English (unless buyers indicate something different) and must have traceability.
Markets with greater opportunities
The CBI highlights that imports from developing countries such as Peru, Mexico, South Africa, Kenya, and Colombia have been growing and that their value exceeded one trillion euro for the first time in 2017. The rest of European imports, which amount to nearly half a billion euro, correspond mainly to Chile, which is not considered a developing country by the OECD, and Israel.
"Since 2015, the total value of avocado imports has developed faster than the volume, which indicates good prices for suppliers. In the short term, we can expect demand to remain high and growing," the document states.
Based on production and trade statistics, avocado consumption in Europe is close to 500 thousand tons, which represents about one kilo per capita. This rate of consumption is still relatively low compared to the United States, where the public consumes four times more avocados.
Traditionally, France is the largest market for avocados, although the United Kingdom, Spain, and Germany are showing strong growth. The report also takes into consideration the Scandinavian countries, which are much smaller in terms of population, but have a high level of fruit consumption, thanks to a strong promotion and attention to healthy eating.
Trends
Regarding consumer trends, the CBI points out that the European consumer is prepared to pay a premium price for ready-to-eat avocados. This category is comprised by fruits that are ripe.
The CBI stated that it was surprising how well the fruit fit into the European diet thanks to its good fats, fiber, vitamins, and minerals. In fact, these characteristics are used in the promotion of the product throughout Europe.
They also looked into the trade of organic avocado and stated that the current supply of organic avocados did not satisfy market demand because of the difficulty of producing them. "This can be an opportunity for producers who are able to comply with the strict guidelines stipulated for organic methods of production," the report states.
Source: agraria.pe