Mexican avocado has a great chance of either being exported or consumed locally at this time of year, but producers need financial support to meet demand.
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The Super Bowl is one of the most popular sporting events in the world and presents a great opportunity for Mexico in both the export sector and national sales of avocado or the call Green gold.
Given the popularity of guacamole and other avocado snacks in the US, approximately 31% of total Mexican avocado sales are generated abroad between December and February, with the US being the primary target market.
With that in mind, there will be an unpublished edition of the Super Bowl for the agri-food market this year, not only because of sanitary restrictions in stadiums but also because of the potential that the avocado market implies for the fact that It will be the most watched sporting event on TV and streaming platforms.
In fact, the Association of Producers and Packers, Exporters of Avocado of Mexico (Apeam) predicts that exports of these fruits will increase by 4% this year compared to 2020, despite the COVID-19 pandemic.
The expected increase in international sales of the fruit confirms this at this time of the year It is the most important thing to Michoacan avocado exporters and they should take advantage of it. In the current context of the economic crisis, the challenge of meeting this relentless demand is to have the necessary working capital, even for basic costs such as payroll or paying to suppliers. To do this, most exporters need financial support.
Considering that banking institutions tightened their lending policies in 2020, systems like digital factoring have become a real alternative as it is not a debt to continue with the rate of growth given market demands.
Due to the financial troubles of the pandemic and the growing need for Mexican companies to maintain their cash flow to avoid closing their business, Drip Capital saw funding requests increase by 300% in late 2020, a 50% increase in funded volume from 2019.
Image: Kisoulou via Unsplash
Another option, very national
According to the Mexican Avocado Group (GAMEX), the record for avocado shipments to the US was broken in the second week of January and shipments increased from 32,000 tons to 35,000 tons. However, there is currently a lot of uncertainty as sales have not increased.
Considering that the Super Bowl is also one of the most popular sporting events in Mexico and that per capita consumption is 7 kg per person, according to SIAP (Agrifood and Fisheries Information Service), although exports are not increasing, the market has also been up national level growth opportunities.
The avocado that is not exported stays in the country, which is also a great opportunity. Avocado growers can also use domestic factoring tools as part of this sporting event to increase their production and sales. A necessary upswing in the midst of a badly hit economy.