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Eco Farms Avocado Market Update

Eco Farms Avocado Market Update- May 15 2019

The Avocado market has seen significant price increases in the last week as field prices in Mexico and California are rising very quickly. Volume last week into the US was 45.2 million lbs. - an increase of 16.5% v. the prior week. As the industry has seen before, more volume does not necessarily translate into lower prices. In this case, inventory levels are below normal and supplies are not currently meeting the US demand (weekly demand is approx. 52-54 million lbs.) Mexican Avocado imports were 36.8 million lbs., California Avocados growers harvested about 6.7 million lbs. and Peruvian Avocado arrivals were 1.7 million lbs.* Very few stores were on Ad last week, not a surprise since Cinco De Mayo was the prior week. Promotions should be up this week and next week as well with Memorial Day weekend right around the corner, though the higher market pricing will once again be a challenge for retailers large and small. 


California 

California Avocado growers harvested 8% less last week v. the prior week. It has become apparent that California has already reached its peak harvesting levels for the season. Harvesting will likely stay in the 7 to 9 million lbs. range for the coming weeks but with higher FOB pricing, harvesting levels will likely increase this week and next and that will be much needed. Quality is great and sizing is balanced. 


Mexico

Mexican Avocado imports were up 21% last week v. the prior week and Mexico has an 81% market share. The field price increases in Mexico in the last 7 to 10 days are not sustainable and is catching the industry off-guard. The response by the industry will most certainly be increased supplies from other sources, both California and Peru. Mexico is clearly finishing up their late-season crop with quite a bang and the strong demand for fruit is one major factor contributing to higher prices- late season fruit ripens well and tastes very good. The flora loca crop will begin sometime in June- a little earlier than normal but no finalized date yet. As soon as dry weight matters are adequate for US standards, Mexico will start shipping. The flora loca crop (June to August) looks to be fairly large- above average based on crop estimates. The market will certainly need a summer boost from Mexico and ideally at stable and steady pricing. 


Peru 

Peruvian Avocado imports were up just slightly last week, with most arrivals on the East coast. Volume should increase this week and next week as many major retailers will begin fixed price programs on Peruvian Avocados. There should be around 3 to 4 million lbs. this week and 4 to 5 million lbs. next week- but much of that is pre-committed and only limited volumes are available for spot business. Peruvian Avocado exporters are carefully studying the US market and with prices rising they will react as quick as they can to help support the category with good quality Peruvian Avocados in June and throughout the summer. 


Organic Avocados 

Organic Avocados continue to be in extremely short supply. Pricing is up from last week and may continue to increase until supplies catch up with demand. Peru will help fill some of the shortages in the coming weeks, but it likely will not be enough in the short-term and pricing will stay high well into June. 


Final Thoughts

FOB pricing is rising very quickly right now in the US market and the need for stability is essential. Mexico may be frustrating with the unpredictability of prices but they still are supplying 80% of the market and pricing would be even higher with less Mexican Avocados around. The bottom line is that a light crop out of California and a lighter than normal late-season crop for Mexico are causing the current situation the industry finds itself in. Increased supplies of California and Peruvian Avocados in the coming weeks and flora loca Mexican Avocados in June will help calm the situation but it may be a little challenging until then. 


Have a great rest of the week! 


 *Source: Hass Avocado Board 

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Eco Farms Avocado Market Update

ECO FARMS AVOCADO MARKET UPDATE- MAY 10 2019 

The Avocado market continues to adjust with less supply coming from Mexico and a reduced harvesting pace in California. Overall, last week volume was down 14% v. the prior week. Just 37.5 million lbs. entered the US market last week, the lowest one-week total in 2019. Mexico send 29 million lbs. last week, California harvested 7.3 million lbs. and Peruvian arrivals were 1.2 million lbs.* After heavy volumes in early April, volumes have really been light these last few weeks- while this can be explained partially by higher inventories in April, another likely reason is that Mexico and California have a little less fruit than previously expected. More volume will be needed in the coming weeks in order to keep up with demand as Memorial Day weekend promotions will begin in just a couple weeks.Last week saw 16,151 stores on Ad last week with an average price of $1.20 per piece. While 2018 saw more overall stores and a lower price - 19,237 stores at 88 cents per each- these are still very good numbers and the retail support for the category remains strong.** Higher FOBs no doubt limited what some retailers were willing or could do, but consumers see a real value in Avocados not just when the price is low. With good quality and supplies, as well as effective and well-strategized consumer-driven promotions, the category did well during this past promotion. The industry is very appreciative of the promotional boards efforts to drive demand at the retail level. 

California

California growers harvested 22% less fruit last week than the prior week- just over 7 million lbs. However, with a 19% market share, California is keeping the market supplied particularly with West coast retailers and food-service chains- not much fruit is heading outside the Western States. With volume down this past week and this week’s volume expected to be about the same, it is becoming evident that California may only have a minor role to play in the market for the coming months. Growers will likely harvest at a slow but steady pace in May and June and likely drop off by mid to late July. On the other hand, cool weather for most of April and so far in May has also allowed many growers to have less urgency to harvest, perhaps those growers who were waiting to harvest will get going in the coming weeks. Stay tuned for updates but California’s light crop- which was expected heading into 2019- will certainly be a major factor in the market in the coming months. 

Mexico

Mexican Avocado imports were 29 million lbs. last week, good for a 77% market share last week. Mexico is still the market leader by far, but with less volume left on the trees and lower shipments for several weeks now, it appears Mexico will not have large volumes in May. Pricing is certainly higher this week than it was a couple weeks ago and that is 100% driven by lower supplies. Time will tell how much fruit makes its way to the US market, but likely it will be in the 29 to 32 million lbs. range for the coming weeks. The market probably need about 40 million lbs. (about 1,000 truckloads) based on demand, but Mexico probably won’t be able get that number in the coming weeks.

Peru

Peruvian Avocado imports were 1.2 million lbs. last week, still very limited as the season is still just started. Volumes will increase by the end of the month and it appears Peruvian Avocados will be very important to the US supply picture if Mexico and California are a little light. Look for the weekly volume to increase to 4-6 million lbs. by the end of May as the season ramps up. 

Organic 

AvocadosOrganic Avocados continue to be in very short supply, with Mexico having very limited Organic availability and the market being almost exclusively dependent on California. Pricing is reflecting this lower supply with pricing in the low to mid $60s and rising. 

Final Thoughts

The US market has not seen this light of volume in a 3-week period in a very long time. Pricing will likely increase in the coming weeks with no major increase in supplies expected. Mexico may have more fruit once the flora loca/off-bloom harvest begins, but that will not be until late June/early July. Things could be a little challenging until then but the industry will rely on California and Peru will help fill the supply gap, but not certain that will be sufficient. Hopefully pricing remains predictable and steady and Mexico finds some additional volume on their late-season crop as demand for Avocados remains very good.Have a great weekend!


*Source: Hass Avocado Board 

**Source: USDA 

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Employee Spotlight - Helen Kanthavong

1) What is your position here at Eco Farms and what do you do? 
I am currently working at Eco Farms in the shipping and receiving department. Since I am new to produce, it was essential for me to understand where everything comes from, how the fruit should look, how we pack the fruit, learn the sizes, and how many boxes go on each pallet. I started by setting up orders, loading and unloading the trucks, shipping and receiving the products, receiving the rejected product back into the storage. Being detailed and confirming each order is shipped correctly is essential before loading each truck. 
2) How long have you worked at Eco Farms? 
Eco Farms is my very first produce company that I’ve been working with, and I’ve been working here in Eco Farms for 6 months now. 
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Tango Tangerines

Did you know there are over 10 varieties of tangerines? 

Just to name a few there are Clementines, Murcotts, mandarins, Dancy Tangerines, Pixies, Willow Leaves, Chinese Honey, Wilkings, Satsumas, Fremonts, and Karas. 

The season for the tango tangerines that we have at Eco Farms is from February to April.

And then there are even hybrids like the golden nuggets!

There are dozens of varieties of tangerines.Learn more about them here: 
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Employee Spotlight - Gahl Crane, Sales Director

Gahl Crane our sales director, just finished up his 3rd year at Eco Farms. Here at Eco Farms, we’ve dedicated ourselves to providing dependable, outstanding quality avocados 🥑 and citrus 🍊 to make life-long customers. 
And for that, we need a great team!
1) What is your position here at Eco Farms and what do you do? 
Sales Director. I am responsible for many of our key retail and food-service accounts and work closely with our President/Founder, Steve Taft, on sales and procurement and overall management of the sales team. I also represent the company at trade shows and at industry promotional boards such as HAB and AFM. 
2) What did you do before working at Eco Farms? 
I have been in the Avocado industry for over 14 years- mostly in sales/sales director positions.  
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The Hass Avocado Board

HAB - The Hass Avocado 🥑 Board. HAB exists to serve all stakeholders in the North American Avocado industry from growers, health professionals, marketers, and of course, consumers! They recently revamped their website, check out their new site: https://hassavocadoboard.com/
For Growers:HAB provides growers with volume data, projections, market insights and other business tools to help make good business decisions. 
For Health Professionals:HAB conducts independent, peer-reviewed #nutrition research that is shared with health professionals that enable them to advise consumers on the health and wellness benefits of eating fresh Hass avocados. 
For Marketers:HAB provides volume data, consumer studies, and 
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Employee Spotlight - John Patrick

John Patrick - Account Manager 
Here at Eco Farms, we’ve dedicated ourselves to providing dependable, outstanding quality avocados 🥑 and citrus 🍊 to make life-long customers. And for that, we need a great team! 
John has been with us for over a year and is our salesman for the east coast! Thank you, John. 
More about John: 
1) - What is your position here at Eco Farms and what do you do? 
Sales, mostly Southeast and East Coast. I sell to all channels and many different types of customers.   
2) What did you do before working at Eco Farms? 
I worked for Keystone Fruit. Prior to Keystone, I was at Mission Produce
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Employee Spotlight - Cindy McCalmont

Here at Eco Farms, we’ve dedicated ourselves to providing dependable, outstanding quality avocados 🥑 and citrus 🍊 to make life-long customers. And for that, we need a great team! 
Cindy has been with us for 1 year and 3 months and is a fundamental part of Eco Farms. Thank you, Cindy! 
More about Cindy: 
1) What is your position here at Eco Farms and what do you do? 
All aspects of accounts receivable - invoicing, billing, processing customer payments, electronic depositing, collections, keeping customer aging reports current and misc. office duties.
2) What did you do before working at Eco Farms? 
Construction Accounting (Account's payable) and Project Coordinator for
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The Evergreen Tangerine Tree

The tangerine tree 🌳 is a variety of mandarin 🍊 that produces small, thin-skinned fruit similar to an orange. 
Tangerines are evergreen and grow about 10 to 15 feet tall, although old trees can reach 25 feet. 
The trees need full sun ☀️ and well-draining soil. A southern exposure is best for planting to allow maximum sunlight for fruit production and warmer temperatures to protect from frost ❄️! 
The fruit often ripens in the winter or early spring, making tangerines a popular winter snack and a traditional Christmas favorite in many homes. While a single tree is capable of producing fruit on its own, planting more than one tangerine cultivar in an area can increase the yield of tangerines on all of the trees.

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Organic Grapefruit Macarons Recipe

You are what you eat, so eat something sweet; like these Organic Grapefruit Macarons. 

Ingredients: 

For Macarons: 

-2 cups powdered sugar 

-1 cup almond meal 

-3 large egg whites, room temperature 

-1/4 tsp of salt 

-1/4 granulated sugar 

-2 Drops red food coloring 


For Lemon Curd: 

-3 egg yolks 

-½ cup granulated sugar 

-¼ cup pink grapefruit juice from Organic Eco Farms Grapefruit 

-1/2 tbs pink grapefruit zest from Organic Eco Farms Grapefruit 

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