Climate challenges and opportunities for 'Ready to Eat' avocado - BIG Interview with Oscar Martinez, Aguacatera del Sur
Peru
Tuesday 24 September 2024
VU | Aguacatera Del Sur
Aguacatera del Sur is focused on avocado production and marketing and operates in Peru, Spain and Mexico.
Today we talk to Óscar Martínez, General Sales Director of Aguacatera del Sur, who offers us a detailed analysis of the current dynamics of the avocado market, the challenges facing production in Peru and the emerging opportunities in the growing “ready to eat” segment.
Aguacatera del Sur specializes in the production and marketing of avocados, with strategic operations in Peru, Spain and Mexico.
Fructidor: This year has been particularly complicated for avocado production due to weather conditions. What impact has the El Niño phenomenon had on the summer season?
Oscar Martinez: Yes, this year's summer season has developed under very particular, although cyclical, conditions. We are coming from a very strong El Niño phenomenon, which has considerably affected some key producing areas, especially in the north of Peru. This region concentrates a large volume of production in a few weeks, and the drop in fruit volume and size has been almost unprecedented. This has greatly conditioned the global supply from Peru.
Fructidor: In this context, how do you evaluate the market behavior in 2024?
Oscar Martinez: I don't think we should consider 2024 as a year of improvement for the market. Although there has been some demand, it has had to adjust to much lower volumes than the market could offer under normal conditions. However, we expect this situation to begin to partially improve in 2025, when the sector will be able to recover to a greater extent.
Fructidor: How are imports expected to affect the winter season, especially considering the conditions in Spain?
Oscar Martinez: Imports in the winter season usually coincide with the local season in Spain. However, due to the lack of water in the Spanish producing areas, I am not sure if imports will continue to increase. At this time of year, the main non-Mediterranean producers are Colombia, Chile and Mexico. Colombia has a strong orientation towards the United States, while Chilean exporters prioritize their local market and then the United States.
Fructidor: In such a competitive market, how do you see the difference between local fruit and imports?
Oscar Martínez:
There will always be a commercial premium for local fruit. In the United States, for example, California production is highly valued, as are Mexican avocados because of their proximity and speed of distribution. In Chile, its local market also highly appreciates national production. In Europe, without a doubt, local fruit also stands out, especially because we can enjoy avocados harvested at their optimum point of ripeness, which significantly improves the consumer's experience.
Fructidor: What are your expectations for the future, especially for 2024 and 2025?
Oscar Martínez: We look to the future with optimism, but also with moderation. It is important to make a realistic analysis of what we can expect for 2024, taking into account the external factors that have influenced the evolution of the market. In addition, for 2024-2025, as part of our sixth anniversary, we aim to strengthen sales in the ready-to-eat segment. This is a very competitive sector, with more and more players who are working very well. Building customer loyalty and attracting customers through the brand will not be an easy task, but our consistency and presence in recent years are our best guarantee.
Fructidor: Finally, how do you face the challenge of loyalty and competitiveness in the market?
Oscar Martínez: We know that the ready-to-eat segment is very competitive, but we are focused on providing excellent service to our customers. We have managed to maintain a constant presence in the market, and that is our greatest strength. We continue to work closely with our customers and the best suppliers to offer them high-quality products. We are here to support our customers and collaborate with the best suppliers in the market.
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