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The US Avocado Industry

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The US Avocado Industry USDA’s Economic Research Service has provided this report for historical research purposes. Current reports are available in AgEcon Search (http://ageconsearch.umn.edu) and on https://www.ers.usda.gov. ​ ​ United States Department of Agriculture Economic Research Service https://www.ers.usda.gov A 93.44 AGES 9524 ERS Staff Paper Economic The U.S. Avocado Research Service Industry Commercial Agriculture Division Number 9524 Diane Bertelsen Joy Harwood Glenn Zepp Waite Library Applied Economics - U of M 1994 Buford Ave - 232 elsOff St Paul MN 551084040 USA This report was reproduced for limited distribution to the research community outside the U.S. Department of Agriculture and does not reflect an official position of the Department. 613. q AC-6 , ci5A 44 The U.S. Avocado Industry. By Diane Bertelsen, Joy Harwood, and Glenn Zepp. Commercial Agriculture Division, Economic Research Service, U.S. Department of Agriculture. Staff Paper.AGES-9524. Abstract Avocados are a subtropical fruit and their commercial production in the United States is limited to California, Hawaii, and Florida. California, with about 90 percent of U.S. acreage, markets avocados year round, but the largest volume is shipped between March and August. Florida's marketing season is from June through March. Hawaii has limited out-of-State shipments. Avocado prices display a definite seasonal pattern, declining from February through May and rising from June through November. Hass is the most widely-grown variety. Avocados are primarily used fresh in salads and as the main ingredi- ent in guacamole. U.S. avocado consumption rose sharply during the 1980's but has trended downward during the early 1990's. Reduced supplies and high retail prices curtailed consumption after the 1990 freeze that lowered California production for several seasons. Keywords: Avocado, production, prices, shipments, trade, consumption. Acknowledgments This report contains information that was prepared by the Economic Research Service in cooperation with the University of California for the Office of Risk Management, Consolidated Farm Service Agency, U.S. Department of Agricul- ture. Major contributors were Diane Bertelsen, Joy Harwood, Hyunok Lee, Robert Dismukes, and Glenn Zepp (coordinator). The authors appreciate the efforts of the reviewers: Ben Faber and Gary Bender, University of California Cooperative Extension Service, and Carlos Balerdi, IFAS-Cooperative'Extension, Florida. This report was prepared for limited distribution to the research community outside the U.S. Department of Agriculture and does not reflect an official position of the Department. Washington, DC 20005-4788 October 1995 Contents Summary • • • iv Introduction • • 1 Industry Structure • • OOOOOOOOO ▪ 1 Location ... .......... 4 Farm Characteristics .......... ▪ 4 The Avocado Market • • ............. 6 Supply . • . • • .......... • 8 Demand . • • • • • • . 10 Prices . • • • • . 13 Cultivation and Management Practices • • • • ............ 16 Varieties . • • • • •. ............... 16 Propagation and Planting 18 Growing Conditions . • 18 Fertilization . • • • • 19 Pesticides . • 19 Production Perils 19 Frost and Freeze .. 19 Excessive Rain and Humidity 20 Excessive Wind 21 Excessive Heat and Sunburn 22 Marketing Avocados 22 Harvesting 22 Packing and Shipping 23 Marketing Organizations 24 References 25 Is List of Tables Table Eagg. 1 U.S. avocados: Area, yield, production, price, and value, 1980-95 . 2 2 California avocados: Area, yield, production, price, and value, 1975-95 2 3 Florida avocados: Area, yield, production, price, and value, 1975- 95 3 Hawaiian avocados: Area, yield, production, price, and value, 1988-94 3 5 States reporting avocado production: 1992 and 1987 Census of Agriculture 5 6 Size distribution of farms producing avocados, 1987 7 7 Avocado farm size, California, 1990 8 Market value of sales from farms producing avocados, 1987 7 9 Avocado shipments in the United States, 1988-94 9 10 Fresh avocados: Supply and use, 1970-94 12 11 California avocados: Monthly f.o.b. prices, 1987-94 15 12 Avocado varieties and harvest dates 17 Figures Figure page 1 Sources of U.S. avocado shipments, 1990-94 . 8 2 U.S. avocado supply 11 3 U.S. avocado consumption 11 4 Average grower prices for avocados 13 5 California avocado field prices, 1994 14 6 Avocados: Seasonal f.o.b. prices, 1987-94 15 III Summary Avocados are a subtropical fruit, and commercial production in the United States is limited to California, Hawaii, and Florida. During the 1990/91 through 1994/95 seasons, the value of U.S. avocado production averaged $205 million. California accounted for nearly. 95 percent and Florida about 5 percent of the value, while Hawaii accounted for less than 1 percent. Annual production is variable and has recently ranged from 278 million pounds in 1989/90 to 583 million in 1992/93. California had 72,600 acres of avocado trees in 1994/95, more than 90 percent of U.S. acreage. Avocados are grown mostly in California's southern coast region, which includes San Diego, Riverside, Ventura, and Santa Barbara Counties. Acreage has been declining in San Diego County, but rising in Ventura County, due mainly to a difference in water costs. Nearly all of Florida's avocados are grown southwest of Miami, in Dade County. Hastened by tree losses due to high winds from Hurricane Andrew in 1992, Florida's bearing acreage declined from a peak of 11,300 acres in the mid-1980's to 5,700 acres in 1994/95. California markets avocados year round, but the largest volume is shipped between March and August. Florida's marketing season extends from June through March, with about 90 percent of its volume shipped between August and December. Hawaii has limited out-of-State shipments. Avocado prices display a definite seasonal pattern, declining from February through May and rising from June through November. Prices are generally highest, and show the greatest variability from year to year, during October and November, when the volume of shipments is typically lowest. Hass is the most widely grown commercial variety of avocado. Trees may be picked once or several times a year depending on the size of the crop. Avocados are hand picked and harvesting is a highly labor-intensive operation. Avocados are susceptible to weather-related damage. 'chile freezing temperatures are not common in avocado-growing areas, there were widespread freezes in Florida in 1989 and in California in 1990. Strong wind can damage fruit and trees, while excessive rain fosters and spreads fungal diseases. Rain can postpone, but does not usually preclude, harvest because mature avocados can remain on the tree for several weeks (or months depending on the variety and location) without loss of quality or reduced yields. Avocados are primarily used fresh in salads and as the main ingredient in guacamole. Cooking impairs their flavor and appearance, but satisfactory frozen products have been prepared from the pulp. Less than 10 percent of U.S.-grown avocados are used for processing. U.S. avocado consumption topped 2 pounds per person in 1993, the highest level since nearly 2.4 pounds in 1987. Per capita consumption rose sharply during the 1980's but has trended downward during the 1990's. Reduced supplies and high retail prices curtailed consumption after the 1990 freeze that lowered California production for several seasons. iv The U.S . Avocado Industry Diane Bertelsen Joy Harwood Glenn Zepp Introduction The avocado belongs to the genus Persea americana and, as a member of the laurel family, Lauraceae, is related to camphor, sassafras,and cinnamon. The fruit is a berry, consisting of a single large seed surrounded by a buttery pulp. It has an oil content of 3 to 30 percent. The fruit skin varies in thickness from thin to thick, in texture from smooth to rough, and from light green to black in color. The fruit can be round or pear shaped and weigh as little as a few ounces or as much as 5 pounds. Avocados are grown commercially in Florida, Hawaii, and California, as well as in Mexico, Brazil, Chile, Australia, Israel, and South Africa. Although cultivated in the American tropics since pre-Columbian times, avocados were first reported growing in Florida in 1833 and in California in 1856. Commer- cial production in both States began between 1910 and 1920. California ships avocados year round and provides the bulk of the U.S. supply. Florida supplies the east coast markets from June through March. Hawaiian avocados cannot be shipped to any other State except Alaska, because of plant health requirements that restrict in-shipments of fresh avocados from certain areas. Since Hawaii produces less than 1 percent of the U.S. crop and has limited out-of-State shipments, the State industry is not described in this report. Hass avocados, the dominant variety grown in the United States, have a thick, rough skin that turns from green to black as the fruit matures and ripens. The yellow-green pulp is usually sliced for use in salads or mashed to make guacamole. California produces mainly Hass, while Florida has other varieties that are often larger with lighter, smoother, and thinner skin. This report describes many aspects of the U.S. avocado industry, including the conditions under which avocados are produced and marketed, determinants of demand, and the resulting supply and price patterns. Data and background information are from Government and industry sources. Industry Structure Avocados are a subtropical fruit and commercial production in the United States is limited to California, Hawaii, and Florida. During the 1990/91 through 1994/95 seasons, the value of U.S. avocado production averaged $205 million (table 1). California accounted for nearly 95 percent and Florida about 5 percent of the value, while Hawaii accounted for less than 1 percent (tables 2-4). Avocado output is quite variable, ranging from about 278 million pounds in 1989/90 to 583 million in 1992/93. 1 Table 1-U.S. avocados: Area. yield. production. price, and value.
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