Shipments of fresh Hass avocados to the U.S. have increased dramatically in recent years, primarily in response to the opening of the U.S. market to imports from Mexico. Inflation-adjusted prices received by California growers have nonetheless remained nearly constant on average, despite considerable year-to-year volatility. Our analysis shows that consumer demand growth, fueled in part by a successful industry promotion program, has prevented falling prices.
California avocado growers’ long-standing program to fund advertising and promotion programs for their fruit was extended to include imports of fresh avocados through the Hass Avocado Promotion, Research, and Information Act, signed into law on October 23, 2000. Mandatory program assessments of 2.5 cents per pound on all Hass avocados sold in the U.S. market commenced effective January 2, 2003 under the Hass Avocado Promotion, Research and Information Order (HAPRIO).
The assessment is collected by first handlers for California production and by the U.S. Customs Service for imports and forwarded to the Hass Avocado Board (HAB). These funds are then allocated to programs and activities designed to increase the demand for Hass avocados in the U.S. market. The HAB uses 15% of the assessments to fund activities such as nutrition research, marketing, and information programs intended to benefit all avocado producers. It rebates 85% of domestic assessments to the California Avocado Commission (CAC) and up to 85% of importer assessments to the certified importer associations for their own promotion programs. There are currently three certified importer associations operating under the HAB: the Chilean Avocado Importers Association (CAIA), the Mexican Hass Avocado Importers Association (MHAIA), and the Peruvian Avocado Commission (PAC).
To read the rest of the story, please go to: Giannini Foundation of Agricultural Economics, Univ. of CA
