Record profits generated by avocado shortages
Avocado prices are on the rise due to tight supply, leading to increased revenue for major fruit distributors. Mission Produce reported a record $324 million in third quarter revenue, while Limoneira expects record avocado revenue for the fiscal year. Despite higher prices, consumer demand for avocados remains strong in the U.S.
The supply shortage is attributed to drought and high temperatures in major exporting countries like Mexico and Peru, prompting distributors to rely more on avocados from California. California’s harvest exceeded expectations, providing some relief for supply challenges. However, the overall shortage has led to significant price hikes.
Limoneira plans to expand avocado production to meet the growing demand, while Mission executives anticipate a rebound in supply from Peru in the future. Despite potential price decreases, consumer demand for avocados is expected to remain high.
Overall, the avocado industry is facing supply challenges, but distributors are optimistic about continued strong demand for the popular fruit.
Source
Lara Heller graduated from the University of Amsterdam in the Netherlands with a degree in New Media and Communication. During her studies, she specialized in digital media, social media strategies, and content creation. She participated in various digital media projects during her university years, focusing particularly on online journalism and media ethics. After graduation, Lara started working as a content strategist at one of Europe’s leading digital media agencies, where she developed campaigns that strengthened the digital presence of numerous international brands.