Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Vietnam eyes U.S. avocado market after Trump spat with Mexico

Published 05/16/2019, 08:21 AM
Updated 05/16/2019, 08:21 AM
© Reuters. FILE PHOTO: A woman eats guacamole in this picture illustration, in Mexico City

© Reuters. FILE PHOTO: A woman eats guacamole in this picture illustration, in Mexico City

By Khanh Vu

HANOI (Reuters) - Vietnam is seeking to export avocados to the United States, the Southeast Asian country said on Thursday, after U.S. President Donald Trump's threat to shut the U.S.-Mexico border raised fears American consumers could see a shortage.

Avocado prices in the United States jumped by nearly 50% in April on fears that Trump would halt shipments from Mexico, which accounts for some 80% of its supply. Both processors and wholesalers began to stockpile the fruit as a result.

The United States imported more than 900,000 tonnes of Mexican avocados last year worth nearly $2.1 billion, 10 times the value it buys from the rest of the world, according to crop forecaster Gro Intelligence.

Avocados, typically used in guacamole or spread on toast, could be a high export earner for Vietnam, the government said in a statement on its website.

Avocado consumption is on the rise in Vietnam as living standards improve, fuelling interest amongst domestic buyers.

"Avocados are increasingly seen as a quality fruit that can be used in cooking and beauty products for women," said Le Van Duc, deputy head of the department of crop production at Vietnam's Agriculture Ministry.

"The area of avocado plantation in Vietnam is rising due to that higher demand," Duc told Reuters by phone.

That trend has also been driven by weak coffee prices, which have prompted Vietnamese farmers to switch to other crops, including avocados, according to Duc's department.

Coffee prices hit their lowest in six years this month on fresh concerns over the U.S.-China trade war and strong sales from Brazil.

Vietnam already exports a small volume of avocados to the European Union, but has not yet managed to enter the U.S. market, which is dominated by Mexican supply.

Duc said it was too early to tell if Vietnam's drive to export avocados to the United States will be successful.

© Reuters. FILE PHOTO: A woman eats guacamole in this picture illustration, in Mexico City

"There will be lengthy negotiations, and more calculations are needed regarding the possible production scale and the quality to compete with other producing countries," Duc said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.