Guatemala’s avocado industry is poised for explosive growth, driven by an increasing global demand and targeted investment. The industry has come under severe pressure, in particular from security threats similar to those that targeted Mexico’s avocado industry. Guatemala is preparing to begin exporting their avocados to the United States. Five key ingredients will determine if this new endeavor succeeds.
The recent establishment of a large avocado packing plant by Mission Produce, a California-based company and one of the world’s top avocado suppliers, highlights Guatemala’s growing potential in this sector. Situated in the municipality of Barberena, the new facility is forecasted to create hundreds of jobs once it opens in August. This investment emphasizes Mission Produce’s dedication to strengthening its leadership role as the global avocado production leader.
Francis Bruderer, president of the Guatemala Avocado Producers Association, said the avocado sector has exploded. He noticed avocado trees being planted at an ever increasing pace each year. In terms of land area devoted, they rank third, behind rubber trees and African palm plantations. Guatemala already has about 17,300 acres (7,000 hectares) of avocado orchards. Experts believe this area may expand to almost 75,000 acres (30,000 hectares) over the next 10 years.
As of these developments, Guatemala’s avocado export protocols have not been approved by the U.S. government. This delay can be a huge barrier to getting a foot in the door of the profitable U.S. market. Guatemala expects to export 1,700 tons of avocados in the first year, with an aggressive target of 15,000 tons by 2030. The ongoing 10% tariff on Guatemalan imports imposed by former President Donald Trump adds another layer of complexity to these export ambitions.
“For us it is a concrete opportunity; it means promoting rural development and sustainable economic growth.” – Bernardo Arévalo
Steve Barnard, the co-founder and executive director of Mission Produce, would describe his company’s investment as a “strategic investment.” This step though is meant to bolster their frontrunner leadership in the avocado race. To counter that, local producers are joining other global players such as California-based Mission Produce. This agreement represents a great deal of confidence in Guatemala’s capacity to deliver avocados.
As optimistic as the hype around the industry might be, the nation’s security continues to be a hot-button issue. Indeed, there has been growing panic among economic agents of such threats as those that have occurred in Mexico’s avocado-growing areas. Ricardo Barrientos noted that “there’s a lot of caution and fear among economic actors because things aren’t well-defined,” highlighting the uncertainty surrounding negotiations with the U.S. government.
Besides security challenges, environmental concerns cycle through as a major concern over the burgeoning avocado industry. The agriculture ministry has been highlighting the need to adopt and practice sustainable agricultural practices to counter the environmental effects. Air pollution, deforestation, and water consumption are big issues. Now, as we double the area by converting forests into new orchards, the massively high water needs of avocado trees started to surface.
“To produce and export avocados, good agricultural practices that contribute to good management of the fruit and the environment have to be implemented.” – Guatemala’s agriculture ministry
Guatemala has much to teach US neighbors with less experience exporting avocados to lucrative European markets. With this knowledge in hand, it is poised to successfully penetrate the U.S. market. This new expertise could give them a leg up as they cruise to fulfill growing demand in both directions.
Further complicating matters are recent developments related to U.S. imports from Mexico. As you may know, the U.S. has recently suspended avocado imports from Mexico. This decision follows the threats made against inspectors in Michoacan state, which adds new safety and regulatory concerns that may affect Guatemala’s lucrative US export aspirations.
