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Avocado Dominance

Around one-half of global avocado exports are from Mexico and 86 percent of them are shipped to the U.S. The dominance of this trade is illustrated by Mexico’s avocado exports growing at 9.5 percent CAGR and U.S. imports expanding at 9.2 percent CAGR. Of the top five global avocado exporters, only Peru is showing significant growth, and again the U.S. is becoming a major draw for the trade. The trade is notable since until 1997 and the NAFTA agreement, the U.S. banned the import of avocados from Mexico. U.S. producers feared Mexico’s lower cost product. Some argued much of the California-based production was just a tax write-off for high earners. Since opening the market, U.S. production has only fallen 15 percent but a fruit t...

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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