With a positive balance at the end of 2022, the Hass avocado sector expects to continue the line of growth in relation to production. They also want to strengthen the measures to deal with the volatility of export currencies.
(‘Pandemic opened doors to multiple businesses’: Agro Go).
This is how he confirmed it Jorge Enrique Restrepo, executive director of the unionwho in dialogue with Portafolio, stated that they intend to continue strengthening international trade, but also to encourage local consumption of this variety of avocado that, according to the union leader, continues to have a lot of potential.
What is the balance of the sector for the end of the year?
As of September, 75,600 tons of Hass avocado have been exported, which is equivalent to a 9% increase compared to the same period in 2021. That in foreign currency is US$142.5 million, however, they have had a decrease of 9 % in relation to the previous year.
Why the downward trend despite the expensive dollar?
Some of the main destinations, such as Europe, have experienced a significant drop in prices due to excess supply, especially in the harvest that runs from May to August, because that is when Peru begins to compete with us, in addition to South Africa. That amount of fruit that they take out each year means that there is more supply, which has a negative impact on prices.
What are the main destinations?
The Netherlands is the main destination with 47% of exports. United States in a very positive way, this year it has represented 20%, the United Kingdom 10%, Spain 8% and Belgium 4%. In total there are 30 destinations.
(Business confidence, at the lowest level in two years).
How have the rains affected you?
Winter has had severe consequences in several aspects, it has affected the quality of the fruit, the time in which the harvests must be made, it has made it difficult to access the properties to be able to remove the fruit and take it to the packing plants because many are in the network of tertiary roads.
Colombia has been raining non-stop for two years and this is in all producing areas, which are Antioquia, the three coffee regions, Huila Tolima, northern Valle del Cauca and Cauca.
How does inflation affect them?
The raw materials for the manufacture of agro-inputs have had a general increase in prices, many of these are imported and now the peso is a much weaker currency.
From the market point of view, our main client is Europe and followed by the United States where inflation has also begun to have a negative impact, which is changing consumption habits, because Hass avocado is not yet considered within the family basket.
When people have to cut supermarket budgets, the avocado takes a hit.
And dollar volatility?
In an agro-export sector it is favorable that the dollar has a high value in relation to the peso. I believe that the negative is not an x value but the uncertainty generated by volatility. When the dollar begins with such abrupt changes in short periods of time, uncertainty begins to be seen in Colombia, but also derived not from an internal situation, but from many international factors, for example, the increase in interest rates than in the United States to control inflation.
How do you see the Minagricultura proposal to produce agro-inputs locally?
A high cost of fertilizers affects competitiveness. Finally, it is impacted within the cost and the different factors that surround agriculture. If the inputs are manufactured in Colombia with the same quality and at lower prices, it is welcome because all the agriculture would gain from it.
However, what happens with the avocado is that it did not fall within those prioritized chains for what is the subject of this aid program.
Does the tax affect them?
In a certain way yes. It affects depending on the type of company, but here we have a shield that is the president of the SAC.
We have a position on the board of directors and apart from the fact that we are a union of affiliates, we channel that fight through the work of that general leader who represents all of agriculture.
How long does the harvest take?
From moment zero until the first fruit is collected, three years pass. As of year 3, fruit begins to be sold, that is, to recover the box, and approximately in year 7 is when a balance is reached.
How did it go in Avocado Territory?
The event included an academic forum, a business conference, a commercial exhibition and specialized talks. In addition, it was the epicenter of connections between all the participants in the value chain.
The academic offer included 90 experts from eight countries. The conference spaces were 78 in total and we had new areas in relation to previous editions where we presented ventures that have a high component of technology, innovation and contribution to the avocado sector.
In the commercial sample we have 130 companies from 20 countries, among other things.
Diana K. Rodriguez T.
BRIEFCASE
