APEAM: Contributing to the value of Mexico's avocado exports

  • Reference: IIST-MI-148-E-E

  • Number of pages: 23

  • Geographic Setting: Mexico

  • Publication Date: Aug 31, 2017

  • Source: San Telmo (España)

  • Type of Document: Case

  • Industry Setting: Agribusiness

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Description

APEAM is the association of producers and packers of the Mexican state of Michoacan, the leading producer of this crop in the world. After many years unable to export to the United States for phytosanitary reasons, the association obtained authorization in 1996 to continue introducing this product to the American market. In 2016, APEAM was the U.S. main supplier of avocado. However, new challenges lay ahead, such as the claims of Cofece, an anti-trust commission, of practices that restrict competition; finding a way to maintain price stability; increasing the visibility of the product’s Mexican origin (U.S. consumers barely recognized that avocados were Mexican, largely considering them “California avocados.” In turn, given the high prices of recent years, per capita consumption in Mexico (which had been, until recently, the world’s primary market) had dropped to its lowest level in years. At the same time, American marketers absorbed most of the product’s added value, since they were in touch with the store chains and closer to consumers.

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Keywords

agrarian sector Alliances Mexico partnership