Organic Peruvian Avocado Promotion to Begin in June

Promoters claim that for the first time ever, organic avocados will be marketed generically in the United States under the banner of a federal marketing order.

Avocados from Peru (AFM), the US marketing arm of the Peruvian Avocado Commission, is launching the promotion in June and running it through the summer, using funds collected by the Hass Avocado Board and earmarked for point-of-origin promotions. Under US law governing organics, producers can opt out of federal marketing order programs and get a rebate on the funds collected on their organic production. Typically that is what happens for programs stretching from produce to meat to dairy. However, AFM has convinced organic avocado importers of Peruvian fruit to pool their funds and launch a summer promotion this year.

Under US law governing organics, producers can opt out of federal marketing order programs and get a rebate on the funds collected on their organic production.

The program is focused on retailers and is customized, with each participating retailer able to choose from several options to promote organic Peruvian avocados they carry.

Bob Lucy of Fallbrook, CA-based Del Rey Avocado Company, one of the larger organic avocado suppliers in the United States, said the promotion is being well received by retailers, with several chains already having signed up. 

Bob Lucy, Del Rey Avocado

Lucy is the chairman of the AFP marketing committee and believes this is a very important year for Peru’s organic avocado producers about sales in the United States. While Europe is the top market for Peru’s conventional avocado production, he said they are not aggressive promoters of the organic crop. For Peruvian growers to continue to devote the resources to grow organically, they need to get a premium return from US buyers, he said. 

As Peru begins marketing its organic avocados in the United States, demand has been very good, with organics receiving $20 over the conventional FOB price per carton. Lucy said some of the major retailers have committed to continuing to pay a similar premium for Peruvian organics as they shift to that point of origin. If other retailers follow suit, Lucy said it would send a good message to growers in Peru that growing organics is a worthwhile and profitable pursuit.

For Peruvian growers to continue to devote the resources to grow organically, they need to get a premium return from US buyers.

Xavier Equihua, president of the Peruvian Avocado Commission, believes this will be an excellent year for Peruvian organic avocados because California has a smaller crop, and Mexico is running out as an option as its 2020/2021 season winds down. He said that is a major reason that Peru is launching the campaign as it is an excellent opportunity to inform the retail community of the Peruvian organic option.

Xavier Equihua, President, Peruvian Avocado Commission

AFM, however, has other motives as well. Equihua noted that organics are a produce subcategory with phenomenal growth, and AFM wants to be a leader in promoting the category to act as inspiration for other organic produce producers.  He believes other avocado promotion programs—as well as promoters of all fresh produce—should be pushing organics.

As Peru begins its marketing of organic avocados in the United States, demand has been very good, with organics receiving $20 over the conventional FOB price per carton.

There is also a political motivation as well, Equihua noted. Peruvian organic producers have discussed the possibility of launching a generic organic commodity program that would cut across many different food groups. The central idea is to collect assessments and promote the concept of organics. Equihua said AFP wants to let US policymakers know that a separate organic promotion program is not needed for avocados as avocado marketers are the experts in their crop, and he believes promotions for organic avocados are better led by avocado promoters than by organic promoters.

For 2021, Equihua estimated that about 6 percent of Peru’s avocados destined for the United States will be organic. Peru’s shipments to the United States have been projected to be between 200 and 235 million pounds over the next three and a half months—that would mean about 12-14 million pounds of organic avocados from Peru in the US marketplace.