MANILA, Philippines, June 16, 2021 /PRNewswire/ — AGRI Developments Mgt. Corp. ("AGRI Developments") today announced that it has completed its expansion into Hass Avocado production in Bayawan City, Philippines. The development has been created to meet rapidly growing demand for Hass Avocados within the Philippines as well as regionally across Asia.
Mr. van Egeraat, CEO of AGRI Developments Mgt. Corp. stated, "Demand for Hass Avocados has simply been extraordinary. Growth across Asia over the past five years has surpassed 50% annually in certain key markets. This is three times faster than in Europe and five times faster than the United States, the largest consumer in the world."
Hass Avocados are a relatively new product in Asia with consumption rates still far below the rest of the world. Production at the moment is centered in the Americas with the United States and Latin American countries such as Mexico, Pure and Chile supplying the bulk of Hass Avocados sold in Asia.
As consumption in Asia rises so will prices as supply pressure in the industry is rampant. Environmental factors such as droughts and rising costs of production will it make it more challenging for produces located so far to cheap their produce cheaply to Asia.
Mr. van Egeraat added, that the Philippines is the only country currently capable of commercially producing Hass Avocados in Asia. This places it at a competitive advantage enabling it to supply the region at a lower cost as well as faster, due to its strategic location near all key import markets. He stated that to his knowledge AGRI Developments are only the second company in the Philippines, after Dole that aims to commercially produce Hass Avocados.
The Hass Avocado Market
Avocados are one of the fastest growing markets in the world driven by consumers seeking tasty, healthy and versatile food options. The COVID 19 pandemic has boosted avocado demand even further proving it to be "pandemic proof" as health conscious consumers drive sales globally.
In terms of value, the global avocado market is worth 12.8 USD billion and is forecast to surpass 18 USD billion annually by 2025 (+40%). Tasty and packed with high fibre content, healthy fats and dozens of necessary vitamins and minerals avocados have been embraced by a new generation of health driven consumers. Imports have grown considerably over the past five years rising 70% from 1.54 billion KG in 2014 to over 2.6 billion KG today.
AGRI Developments is a leading private alternative asset company specializing in the agricultural and agribusiness industry. We seek emerging investment opportunities globally with an objective of delivering long term value in high growth developing sectors within the industry. As world population increases, the need for more productive and sustainable uses of land becomes more urgent. Our mission is to build successful agricultural related businesses that deliver a positive impact.
By 2050 Earth will need to produce 70% more food to feed an additional 2.5 billion people, whilst arable land decreases. AGRI Developments in support of the world’s needs always aims to do more with less. By creating more value with less risk, by producing more crops from less land and generating more business with less of an ecological footprint.
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SOURCE AGRI Developments