Fresh Plaza: Mr. Avocado: ‘Chinese imports of avocados expected to grow significantly this year’
The avocado has huge market potential in China. Both supply and demand are growing stronger every year but domestic production is still in its early days. The Chinese market predominantly relies on imported avocados. However, the sales of avocados slowed down in the last few months as a result of the outbreak of COVID-19.
Mr. Avocado is one of the leading companies in the Chinese avocado market and the first to sell ready-to-eat avocados in China. Ms. Shi Chunyu, vice-president of operations at Mr. Avocado, recently shared her analysis of the Chinese avocado market in the last few months: “Market supply was insufficient in February. The supply of import avocados consisted of avocados from Chile, where the production season is approaching the end, and a small volume of avocados from Mexico. Apart from this, the market also suffered from a shortage of workers and problems with transportation as a result of the outbreak of COVID-19. All of these factors combined to create a decline in avocado sales. However, Mr. Avocado is a fresh produce company and we guarantee the supply of fresh products to the retail market, while we continue to keep our own workers safe and operate in accordance with government guidelines.”
“All of the warehouses of Mr. Avocado, throughout the entire country with the exception of Wuhan, were back in business by the middle of March. And now, even the warehouse in Wuhan has resumed distribution. The new production season of Peruvian avocados has just begun. The peak of sales will start around the end of May. At that time, Mr. Avocado will sell Peruvian avocados throughout the country and organize promotional activities. Mr. Avocado will arrange for a large number of promotional activities in the coming months to display the ready-to-eat avocados from Peru. The aim is to add the avocado to the daily cuisine of Chinese consumers,” explained manager Shi.
“The overall sales of fresh fruit from Mr. Avocado declined by 30% last year. The main reason for this development was the inexperience of some intermediaries. The refrigerated supply chain was frequently interrupted. However, Chinese consumers have gradually come to recognize the product quality of Mr. Avocado’s ready-to-eat avocados and the sales of ready-to-eat avocados increased last year. The 2019 sales volume of ready-to-eat avocados increased by 65% in comparison with 2018.”
“The price of avocados was quite high this season because the supply volume was limited. The sales volume was therefore small as well. However, the supply of avocados from Peru began to grow in early April and this slowly restored the price to regular levels. The production volume was especially large this year in Peru and so the Chinese import volume of Peruvian avocados is expected to grow significantly. At the same time, the outbreak of COVID-19 had an immense impact on the retail market. Online sales rapidly increased. The sales volumes of various e-commerce platforms are expected to double in comparison with conditions prior to the outbreak of COVID-19. We care a lot about our customers and especially during this difficult period we are working extra hard to make sure we supply our customers with the highest quality avocados.”
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