AMRIC Data Confirms California Avocados Have Delivered FOB Price Advantage Over Imports for the Past Seven Years
At the end of each California avocado season, the California Avocado Commission utilizes AMRIC data to analyze and compare FOB pricing for California avocados and imported fruit within and outside California. The data is reported annually in the Tiered Account program, a comprehensive report designed to help Commission staff and industry stakeholders measure the overall timing and performance of CAC’s marketing efforts and adjust them as needed to improve performance the following year.
Through the Tiered Account program, the Commission can measure the price premium received by California avocados over imports when and where California avocados are available — thus monitoring and measuring the value created by CAC’s marketing programs each year and over time. In 2020, the Tiered Account program reported the average weekly FOB price of California avocados was 7% higher than imports in the California region and reached as high as 29% at the end of August. The four-year average has been a 16% FOB premium over imports.
While California is a primary destination for the fruit, California avocados also deliver an FOB advantage on shipments outside of California. Beyond the state, California avocados showed an average FOB price advantage of 5% over imports, reaching as high as 19% at the beginning of September. AMRIC data also reveals that over the past four California seasons, California avocados averaged a 7% FOB premium versus imports outside California. “According to the 2020 California Avocado Tracking Study*, 81% of avocado shoppers in the U.S. say that it’s important that their avocados are grown in the U.S. and these shoppers are willing to pay a premium for California avocados,” states Jan DeLyser, CAC’s vice president of marketing. “CAC communicates information like this to targeted customers, helping build willingness among these gatekeepers to pay a premium FOB price for California avocados.”
By tracking California avocado price premium over time, the Commission gains insights into the short- and long-term effectiveness of the Commission’s marketing programs. For each of the past seven years, California avocados have delivered an FOB price advantage over imports, reaching highs of 22% in both 2015 and 2019 in the California region. Insights from this data assist the Commission in adjusting its marketing program as needed and ensuring retail partners in targeted markets are provided with resources that promote the sales of California avocados and increase the value of the fruit for all stakeholders. In turn, this data helps the Commission and shippers synchronize marketing activities with retailers — ensuring California avocados are optimally promoted when and where they are available.
*Source: 2020 California Avocado Tracking Study. QC1. Price and ripeness are sometimes important factors in purchasing avocados. How important are each of the following when purchasing avocados (Grown in the U.S.) Answers: extremely/very/somewhat important