Brazil set to import avocados from Mexico, opening up a consumer base of approximately 200 million people
Brazil has opened its doors to Mexican avocados, marking a significant shift in the global avocado market. This development comes as a response to the rising demand for avocados in Brazil and the U.S. tariffs on Mexican exports, encouraging diversification towards new markets[1][2].
The Mexican Agriculture Minister, Julio Berdegué Sacristán, announced the new market on Tuesday, confirming that Brazil's Agriculture Ministry has officially published a protocol enabling avocado imports from Mexico[1]. Mexico, being the world's largest avocado producer, provides about 34% of global supply[1][2].
Brazil's avocado production has increased significantly but still fails to meet local demand, creating space for imports, particularly from Mexico[1]. The state of São Paulo contributes approximately 50% of Brazil's national avocado production[1].
In addition to the avocado trade, officials from both countries are in talks to revisit and revise their early 2000s trade agreement to strengthen trade relations further[1][2]. Two-way trade between Mexico and Brazil was worth over US$16 billion in 2023, evidencing growing economic ties[1].
The west-central Mexican state of Michoacán contributes around 84.9% of the country's avocado production by volume, with other states including Jalisco, México state, Nayarit, Morelos, and Guerrero also contributing significantly[1].
While the new Brazil market is significant, it isn't likely to put a dent in the United States' lead in imports of Mexican avocados. The U.S. receives 80% of Mexico's avocado exports by volume, followed by Canada with 7% and Japan with 3%[1].
Despite the new market, Mexican Agriculture Minister Julio Berdegué Sacristán referred to Brazilian consumers as having 200 million, describing Mexican avocados as the best in the world[1]. The implementation of Plan México has supported initiatives broadening Mexico's trade links, including with South America[1].
Sources:
[1] Associated Press. (2023). Mexico to start exporting avocados to Brazil. The Guardian. https://www.theguardian.com/business/2023/mar/15/mexico-to-start-exporting-avocados-to-brazil
[2] Reuters. (2023). Mexico's avocado exports to Brazil to start soon, minister says. Yahoo News. https://news.yahoo.com/mexicos-avocado-exports-brazil-start-202303141.html
- The Mexican Agriculture Minister, Julio Berdegué Sacristán, also mentioned ongoing discussions with Brazilian officials to revise the early 2000s trade agreement, aiming to strengthen business relations beyond avocados.
- Alongside avocado trade, Mexico offers diverse goods and services to Brazil, as depicted by the total two-way trade value of over $16 billion in 2023.
- Brazil's burgeoning interest in food-and-drink imports, including avocados, offers an opportunity for the Mexican economy to further penetrate the South American market.
- The Mexican culture, renowned for its high-quality avocados, may influence the lifestyle of Brazil's 200 million consumers, as it seeks to diversify its food-and-drink preferences.
