Mohammedia – The start of the Moroccan Hass avocado campaign has been on a challenging note, with the first crops for this year finding their way to the market for prices that fell below last year’s levels. Currently, the market is saturated with avocados sourced from Latin America, which pushes prices down and makes competition more evident for Moroccan exporters.
“The first Hass avocado harvests are arriving just as the European market is being flooded with avocados from Latin America. Peru is still present on the market with significant volumes, three weeks later than usual. Chile has also just started with very large volumes compared to the previous season,” said Yassin Chaib, CEO of Mavoca, in an interview with Fresh Plaza.
This increase in fruit importation by major producers has caused a significant decline in prices. Moroccan avocados entered the market at prices down 20% from last year. According to the exporter, prices have been declining steadily ever since the first consignment arrived due to low market demand in Europe.
The outlook is especially discouraging for green-skinned varieties, which have already started their season. These varieties, including local Moroccan greens, have been competing with Ettinger avocados imported from Israel, which have turned out to be much more plentiful than originally expected.
“Demand was low, and the export campaign for these varieties has been nothing short of disastrous,” Chaib explained.
Market confidence shaken by exaggerated loss reports
Compounding the problem, Chaib pointed to misleading estimates of volume losses in Morocco that, he says, hurt the country’s credibility with European buyers.
“Some growers put forward figures for losses that were far too exaggerated, which undermined market confidence in Moroccan origin this season,” he explained.
This uncertainty caused importers in Europe to find a new source for their produce even before the Moroccan season had begun. According to Chaib, this adversely affected Moroccan suppliers, who entered a saturated market.
Given that the global market is oversupplied, it is believed that prices will continue to be muted for the rest of this year.
“As long as the market is supplied with large quantities from Latin America, prices will not change,” Chaib said, adding that December’s low demand, typical during the holiday season, will likely prolong the situation.
However, Mavoca and other Moroccan suppliers are looking ahead to January, when Latin American shipments typically see volumes fall and European market demands increase. Chaib is hoping for a market price rebound in January to start the year on a positive note.
To differentiate themselves until then, Moroccan exporters are relying on quality and bigger sizes. “While we wait for January and better market conditions, we will also set ourselves apart from the competition by offering better quality and larger sizes,” Chaib explained.
They are now waiting for avocados that are still on the trees to mature and enter bigger calibers (12, 14, and 16), which are in high demand and could increase prices.
Presently, it seems that the Moroccan avocado industry is coping with a challenging beginning in terms of global oversupply and confidence impacted by prices. It is hoped that with a change in the calendar year, market conditions will favorably improve.
