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Hass shipments reach one billion pounds

Shipments of Hass avocados in the United States have reached more than one billion pounds for the first time ever.

The Hass Avocado Board announced the surpassing of the billion-pound threshold during the final day of the Produce Marketing Association’s Fresh Summit International Convention and Expedition in San Diego October 19-23. The period covers the November 1, 2005, through October 31, 2006, season and the total includes imports which allow for year-round demand as well as approximately 600 million pounds of California-grown Hass avocados.

“It’s a huge milestone,” Jose Luis Obregon, the managing director of information technology for the Hass Avocado Board, said of reaching one billion pounds. “That was unheard of seven years ago.”

Seven years ago approximately 490 million pounds of Hass avocados were grown or imported.

The Hass variety now accounts for approximately 97 percent of the nation’s avocados. The variety was introduced by Rudolph Hass in 1935 and originally grew from a tree in Hass’ backyard in La Habra Heights, CA. The Hass avocado is identified by its oval shape and its bumpy, pebbled skin texture.

In addition to California, Hass avocados are grown in Mexico, Chile, New Zealand and the Dominican Republic. The Hass Avocado Board sees imports not as a threat but as a marketing tool, especially since imports from South America and New Zealand ensure a year-round supply which can lead to year-round demand.

A national referendum by producers and importers approved a marketing order (a percentage levy for the purpose of product promotion) and established the Hass Avocado Board in 2002. The Hass Avocado Board works closely with the California Avocado Commission, which is based in the same Irvine office, and with the Chilean Avocado Importers Association and the Mexican Hass Avocado Importers Association. One of the functions of the Hass Avocado Board is to coordinate a marketing program.

“There needed to be something in place to maintain grower value,” Obregon said.

“Now there’s more outreach,” Obregon said of the programs resulting from the marketing order and the Hass Avocado Board. “It’s been proven and it’s been successful.”

The differences between the Hass Avocado Board and the California Avocado Commission include the focus on the variety and the broader geographic emphasis. The California Avocado Commission also maintains a research and development program. “The marketing order cannot legally do that,” Obregon said.

That research and development program focuses on disease resistance, growth enhancement, and other crop factors. The Hass Avocado Board is intended to ensure that successful crop production doesn’t decrease market value.

During the 2005-06 season the Hass Avocado Board spent more than $32 million on marketing the variety. Much of that focused on various uses for the fruit. “This gives confidence to the retailers of having the fruit, knowing that there’s somebody out there pushing it,” Obregon said.

At one time retailers pulled avocados off the shelf after the California season, but the year-round availability allows the fruit to be stocked continually.

While salads, sandwiches, and guacamole have been traditional uses for avocados, the fruit can also be used in cupcake batter, potato salad, and shrimp cocktail. The promotional program includes new recipes, and earlier this year the Hass Avocado Board secured a program on the Food Network. Chef Jet Tila of the Food Network collaborates with the Hass Avocado Board and was at the organization’s booth during the 2006 Produce Marketing Association (PMA) Fresh Summit International Convention and Expedition.

The 2005 PMA Fresh Summit International Convention and Expedition in Atlanta saw the Hass Avocado Board make its trade show debut. A food trade show in Chicago was also among the activities. “That’s only a minute portion of the outreach we do,” Obregon said of trade shows as a marketing tool.

The 2005-06 season also saw a change, at least for the year, in the top avocado consumption occasions. Super Bowl Sunday had been the holiday with the largest consumption of avocados and avocado products while Cinco de Mayo, which celebrates Mexico’s victory over the French army at the Battle of Puebla in 1862, ranked second in terms of avocado consumption. This year Super Bowl XL was deemed responsible for the consumption of 49 million pounds of avocados and Cinco de Mayo was credited with 52.6 million pounds consumed.

New recipes complemented the traditional guacamole with chips, and the new recipes have created the additional demand for avocados. “It’s what everybody’s looking for,” Obregon said. “You can now have it every day in everything in every meal.”

Obregon noted that the marketing effort obtained the demand for the record crop. “It was set up right,” he said.

The San Diego PMA convention allowed Southern California growers to witness some of the marketing efforts. “It’s been very satisfying for me personally to have local growers show up and to have me explain what this is doing for them,” Obregon said. “It really gives them a broader view of all the marketing efforts out there.”

An Associated Marketing report titled “Retail Sales of Avocados” indicated a United States household penetration rate of 45 percent with 90 percent penetration in the Pacific region and purchase frequency of 1.54 times per month.

“We will continue building demand by developing promotional programs to provide value for the growers,” Obregon said.

 

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