Avocado supply chain

Avocados are tropical fruits. The principal countries producing avocado are
Mexico, Dominican Republic, Peru, Colombia, Indonesia, Kenia, Chile and
Israel. The healthy nature and multiple uses of avocados result in a strong
global consumer demand for avocados. They are harvested when mature, but
not ripe. Ideally, the packhouse is just a short distance from the orchards. This
minimizes the risk on damage during transport and facilitates early cooling in
the packhouse. Soon after arrival at the packhouse, unloading takes place and
processes such as grading and packing start. After pre-cooling, a proper
loading in refrigerated trucks or reefers is important to maintain good
temperature conditions during transport. A closed cold chain, so without
intermittent warming, is important to control the ripening process and
prevent condensation. Until the retail stage, avocadoes should be mature, but
not necessarily ripe yet. Some importers or service providers have
packhouses with ripening facilities. These are important for the concept of
ready-to-eat avocados and supply to supermarkets.

Farmer: A harvest crew will arrive to an orchard at a specific time. The crew
leader will then add to the system a pick-up harvest time to start the
traceability. The person will include the GPS information and photographs in
situ. With this information, the server will obtain satellite imagery of the site
and estimate the conditions of the orchard. To identify the harvest, a label
(through a QR code) will be generated.

Carriers: The avocado batches will be carried around to one or more

distribution centers. The travel will be registered by a carrier monitor that
will registered by a carrier monitor that will register the transportation
vehicle’s GPS to have a real-time information on the complete route. It might
also help that the product arrives toward its destiny at an optimal time. The
distribution center can generate smaller batched from the ones received.
These new batches will be marked with a new label (QR) that will register the
original batch and the date of repacking. This process will repeat until the
avocados are tagged individually, or in their package, ready to be sold to a
consumer or retail point.
Packers: A packer will get the harvest batch and process the avocados
according to their size and visual examination. The avocados are then packed
in boxes sorted by quality and request from the system the printing of a
physical label with QR that will mark the created batch. This will allow for the
traceability of the avocado fruits as a group package.

Merchant: The QR attached to each avocado individually will be available

for final customers to query specific useful information to the consumers.
With this, retailers might also receive assurance about the quality, origin, and
organic features, amongst others.

Consumers: The final consumer will interact with a front- end (mobile)
with some useful and interesting information about the fruit: Origin, orchard
conditions, distribution channels, and on-side photos, amongst others.

Avocado Global supply chain

The global market size of avocado has grown rapidly in the past decades,
driven in part by an increase in demand from consumers seeking healthier
food alternatives . As an illustration of this trend, avocado consumption in the
US increased about five-fold from 2000 to 2018. The consumption in the US
was estimated at 1 million metric tons (MMt).

Mexico leads the total consumption of avocados in the world. Mexico’s

avocado consumption is all domestically produced. The US is the second place,
followed by the European market .

Avocados are also used to produce cooking oil; however, avocado oil is a
relatively new product with a low production volume compared to other
cooking oils. It is estimated that avocado oil production is about 2000 MMt
per year worldwide. The main producing countries of avocado oil are New
Zealand, Mexico, Chile, the US, and South Africa . Un- fortunately, there is not
enough public information about the consumption and production of avocado
oil .
Avocado production in 2017 is estimated at about 6 MMt globally,
representing an increase of 65% from 2010 Mexico is the main avocado
producer in the world . About half of Mexico’s avocado production is exported,
mostly to the US and to a lower degree to Japan, Canada, and Europe. More
than 80% of the US, Japan, and Canada’s avocado imports come from Mexico .

The US is the largest avocado importing country in the world .Imports from
Central and South American countries are very low, due to their domestic
production.

The Mexican government estimates that by 2030 Mexico’s avocado

production will exceed 3 million metric tons, out of which more than 2 million
metric tons are estimated to be exported . This constitutes an estimated
annual growth in domestic production and exports of 3.5% and 5%,
respectively.

Impact of Avocado Global supply chain

Diversifying supply chains
In close memory, the European Avocado market consisted of less than 7 sources for year-round
supply. Nowadays, the European Avocado market is supplied by upwards of 17 countries, and
numerous regions within source countries. Westfalia Fruit has invested in new sources of supply
to bolster these paradigm supply shifts to today having the most diverse avocado growing
footprint, with expansions seen globally in recent years.

This diversification of the supply chain reduces risks of disruptions by spreading out production
& sourcing across multiple locations. Provides increased resilience, less reliance on any one
source or service, improved cost management & competitiveness, increased flexibility to easily
respond to changes in demand, staying ahead of trends, enhancing competitiveness, and
championing sustainable production.

Matthew Churchill, Global Brand Manager at Westfalia Fruit, underlined the importance of
adapting to the ever-evolving supply dynamics: "The patterns of supply to various markets
continually shift. Therefore, it is of paramount importance to pioneer new sources and regions
of supply in a proactive manner to safeguard unhindered supply.”
Investing in cutting-edge technologies
Investing in new technologies & processes can increase efficiency and reduce costs. The use of
technology such as precision agriculture & automated packing. Blockchain-based traceability
systems - improved efficiency, reduced costs, and increased transparency throughout the supply
chain – helps identify and address potential threats. Data management – to detect and mitigate
potential supply chain disruptions such as weather and seasonal related. Improved
sustainability by investing in new processes and technologies that reduce waste and minimize
environmental impact.
Quality enhancement, shelf-life extension and waste reduction are of upmost importance.
Westfalia Fruits new patented technology uses short-wave ultraviolet (UV-C), exposed at the
final point of contact alongside modified atmosphere packaging (MAP). The benefits are
numerous, including extended shelf life, enhanced quality, increased availability & reduced
stock loss.
Another example is demonstrated by Westfalia Fruit’s total crop use, zero waste strategy. “We
use the whole crop, supplying whole-head avocados to leading retailers, food service and
wholesale customers. Unsuitable avocados are processed to extract the pulp of which is used
into a plethora of value-added products, but we don’t stop there – we strive to use everything,
with our avocado stones generated from this process being used as an exfoliator in cosmetics
replacing harmful micro-plastics – it really is a virtuous circle of production whilst ultimately
unlocking value in the supply chain.” noted Graham Young, Group COO of Westfalia Fruit.
Building resilience through risk management & integration
Provides improved visibility of systems and processes to identify and respond to potential risks
and disruptions rapidly, streamlines the flow of goods and information which can reduce lead
times and increase efficiency.
Improved forecasting encompassing data management and ‘mining’ leads to improved
inventory management, reduced waste, and increased sales, improved collaboration, and
communication among different stakeholders in the supply chain.
Improved risk management, a holistic view to identify and mitigate potential risks and hazards –
from research to consumer, in the short, medium, and longer-term.
A holistic approach is taken through Westfalia Fruits integrated supply chain, from end to end,
from research to customer.
“This begins right at the start of the supply chain, through plant material selection and varietal
breeding programs, through to supply to customers and each step in between, we have laser
focussed approach at all levels” adds Matthew Churchill, Global Brand Manager.
Westfalia Fruit has the world’s largest privately funded research institute focusing on sub-
tropical fruits – specifically Avocado. The research has commercial relevance with findings being
shared with the industry and worldwide scientific community. We offer technical advice and
support to growers around the world.
Ultimately this research is crucial to the health and vibrancy of the global Avocado industry and
is delivered through the three principles of our founder – Dr Hans Merensky: experimentation,
demonstration and only then, commercialization.
An example of this research excellence includes pioneering developments in irrigation systems –
reducing water use. Tree planting density and tree architecture, achieving the best from the
resources available. The development of disease resistant root stocks – advanced tree health.
Enhanced cultivar development – high yielding, improved productivity & climate adaptability.
Pest & disease resistance, reduced levels of inputs, alternatives and IPM technology.
Graham Young affirmed, "The importance that this research makes not only to Westfalia but to
the entire global avocado industry cannot be understated. The timings involved are lengthy, 25
years for the development of disease tolerant root stocks and a new variety to be released. We
as an industry are reaping the rewards today of disease resistant root stock development that
started over 35 years ago, taking a longer- term risk management approach. Our commitment
extends beyond our own interests; it is a commitment to the vitality of the entire global
avocado industry."

Another example of safeguarding the supply chain via cultivar development is the Gourmet
GEM® avocado variety. GEM® is a protected avocado cultivar that can only be grown and traded
under license. Westfalia holds the world-wide Master Licence to produce GEM®, as well as the
exclusive right to trade GEM® in Africa, the EU, and many other regions of the world, offering
choice as a ‘top tier’, ‘best’ variety.
A Global perspective and commitment
Westfalia Fruit's distinctive contributions extend far beyond its operational boundaries. Graham
Young remarked, "What we are accomplishing is profoundly unique and unparalleled. Avocado
production, with its inherent adaptability, can thrive in developing regions. We acknowledge the
transformative role of avocado production in these communities. Through our investments, we
simultaneously serve communities worldwide while upholding the health and stability of the
broader industry."
In an ever-evolving global landscape, Westfalia Fruit's comprehensive resilience strategy
underscores its dedication to adaptability and proactive risk management. By addressing both
internal and external challenges, prioritising collaboration, compliance, and holistic risk
assessment, the company is strategically positioned to strive to ensure the continuity and
stability of supply chains in the short, medium, and long term. These endeavours fortify
business sustainability and elevate the strength and resilience of the entire industry.
"In the world of avocados, the supply chain may seem straightforward, commencing at the
harvest. However, from a risk management perspective, we delve deep into the very roots, from
developing plant material to producing new varieties, adopting optimal planting techniques and
precise irrigation practices. This holistic approach ensures our readiness, not only for today but
for the years to come." notes Graham Young COO of Westfalia Fruit.

How different foods impact carbon footprint?

The carbon footprint of different foods can vary significantly based on various factors,
including production methods, transportation, and processing. Here's a general overview
of how different foods impact carbon footprint:

1. Plant-Based Foods:
o Low Impact: Fruits, vegetables, legumes, nuts, and seeds generally have a
lower carbon footprint. They require less energy and resources to produce
compared to animal-based products.
o Moderate Impact: Grains and cereals can vary, but in general, they have a
moderate carbon footprint.
2. Animal-Based Foods:
 o High Impact: Red meat, especially beef, tends to have a high carbon footprint.
Cattle farming is resource-intensive and produces significant greenhouse gas
emissions (methane).
o Moderate Impact: Poultry and pork generally have a lower carbon footprint
compared to beef but still contribute to emissions.
3. Processed and Packaged Foods:
o Higher Impact: Highly processed and packaged foods may have a higher
carbon footprint due to energy-intensive manufacturing processes and
transportation.
o Lower Impact: Minimally processed or locally sourced foods often have a
lower carbon footprint.
4. Dairy Products:
o Moderate to High Impact: Dairy products, such as cheese and butter, can
have a moderate to high carbon footprint. Dairy farming, like cattle farming,
contributes to emissions.
5. Seafood:
o Varied Impact: The carbon footprint of seafood depends on factors like
fishing or aquaculture methods. Wild-caught fish may have a lower impact
than certain types of farmed fish.
6. Transportation:
o Higher Impact: Foods that are transported long distances or shipped by air
generally have a higher carbon footprint. Local and seasonal produce often
has a lower impact.
7. Food Waste:
o Significant Impact: Food waste contributes to greenhouse gas emissions in
landfills. Minimizing food waste is crucial for reducing overall carbon
footprint.
8. Organic vs. Conventional Farming:
o Varied Impact: Organic farming practices may have a lower impact on the
environment, but the overall impact depends on factors such as crop type,
farming methods, and transportation.
9. Land Use Change:
o High Impact: Converting natural ecosystems to agricultural land can result in
a significant carbon footprint. This is particularly relevant to certain types of
agriculture, such as deforestation for cattle ranching.
10. Energy Sources:
o Varied Impact: The energy sources used in food production and processing
influence the overall carbon footprint. Sustainable and renewable energy
practices can help reduce emissions.

It's important to note that these are general trends, and specific practices within each
category can vary. Sustainable and environmentally friendly farming practices, as well as
conscious consumer choices, can contribute to reducing the overall carbon footprint of the
food we consume.
Vulnerability of food systems
Food systems can be vulnerable to a range of challenges and disruptions, which can have
significant impacts on food security, availability, and access. Several factors contribute to the
vulnerability of food systems:
Climate Change:
Extreme Weather Events: Increased frequency and intensity of extreme weather events,
such as droughts, floods, hurricanes, and heatwaves, can disrupt agricultural production,
leading to crop failures and reduced yields.
Shifts in Growing Seasons: Changes in temperature and precipitation patterns can alter
growing seasons, affecting the suitability of certain crops in specific regions.
Environmental Degradation:
Soil Erosion and Degradation: Poor land management practices can lead to soil erosion
and degradation, reducing the fertility of agricultural land and compromising long-term
productivity.
Water Scarcity: Water scarcity, either due to over-extraction, pollution, or changing
precipitation patterns, can impact irrigation and reduce water availability for crop cultivation.
Pests and Diseases:
Emergence of New Pests and Diseases: Changing climate conditions and increased
global trade can contribute to the spread of pests and diseases, threatening crops and livestock.
Monoculture Practices: The reliance on a limited number of crop varieties in monoculture
systems increases susceptibility to pests and diseases.
Global Trade and Supply Chain Disruptions:
Dependency on Global Markets: Reliance on international trade for food supply makes
food systems vulnerable to disruptions in transportation, logistics, and trade policies.
Supply Chain Vulnerabilities: Disruptions in supply chains, as seen during global events
like the COVID-19 pandemic, can affect the availability and affordability of food products.
Conflict and Political Instability:
Displacement of Farmers: Conflict and political instability can lead to the displacement of
farmers, disruption of agricultural activities, and food shortages.
Trade Restrictions: Political tensions and trade disputes can result in the imposition of
trade restrictions, impacting the flow of food across borders.
Economic Inequality:
Limited Access to Resources: Economic disparities can lead to limited access to resources
such as land, technology, and credit, affecting the ability of small-scale farmers to adapt to
changing conditions.
Price Volatility: Fluctuations in global commodity prices can affect the affordability of food,
particularly for vulnerable populations with limited purchasing power.
Social and Demographic Changes:
Population Growth and Urbanization: Rapid population growth and urbanization can
place pressure on food systems to meet increasing demand, leading to challenges in supply
chains, infrastructure, and distribution.
Changing Diets: Shifts in dietary patterns towards more resource-intensive diets can strain
food production systems.
Addressing the vulnerabilities of food systems requires a holistic approach that integrates
sustainable agricultural practices, climate-resilient technologies, social safety nets, and policies
that promote equity and inclusivity. Building resilient food systems is crucial to ensuring food
security in the face of ongoing challenges and future uncertainties.

Food Waste and Food Loss

Food systems can be vulnerable to a range of challenges and disruptions, which
can have significant impacts on food security, availability, and access. Several
factors contribute to the vulnerability of food systems:
1. Climate Change:
Extreme Weather Events:Increased frequency and intensity of extreme weather
events, such as droughts, floods, hurricanes, and heatwaves, can disrupt
agricultural production, leading to crop failures and reduced yields.
Shifts in Growing Seasons:Changes in temperature and precipitation patterns can
alter growing seasons, affecting the suitability of certain crops in specific regions.
2. Environmental Degradation
Soil Erosion and Degradation.Poor land management practices can lead to soil
erosion and degradation, reducing the fertility of agricultural land and
compromising long-term productivity.
Water Scarcity: Water scarcity, either due to over-extraction, pollution, or
changing precipitation patterns, can impact irrigation and reduce water availability
for crop cultivation.
3. Pests and Diseases
Emergence of New Pests and Diseases. Changing climate conditions and
increased global trade can contribute to the spread of pests and diseases,
threatening crops and livestock.
Monoculture Practices:The reliance on a limited number of crop varieties in
monoculture systems increases susceptibility to pests and diseases.
4. Global Trade and Supply Chain Disruptions
 Dependency on Global Markets: Reliance on international trade for food supply
makes food systems vulnerable to disruptions in transportation, logistics, and
trade policies.

Supply Chain Vulnerabilities:Disruptions in supply chains, as seen during global

events like the COVID-19 pandemic, can affect the availability and affordability of
food products.
5.Conflict and Political Instability
Displacement of Farmers:Conflict and political instability can lead to the
displacement of farmers, disruption of agricultural activities, and food shortages.
Trade Restrictions.Political tensions and trade disputes can result in the imposition
of trade restrictions, impacting the flow of food across borders.
6. Economic Inequality:
Limited Access to Resources: Economic disparities can lead to limited access to
resources such as land, technology, and credit, affecting the ability of small-scale
farmers to adapt to changing conditions.
Price Volatility: Fluctuations in global commodity prices can affect the affordability
of food, particularly for vulnerable populations with limited purchasing power.
7. Social and Demographic Changes:
- Population Growth and Urbanization:Rapid population growth and
urbanization can place pressure on food systems to meet increasing demand,
leading to challenges in supply chains, infrastructure, and distribution.
-Changing Diets: Shifts in dietary patterns towards more resource-intensive diets
can strain food production systems.
Addressing the vulnerabilities of food systems requires a holistic approach that
integrates sustainable agricultural practices, climate-resilient technologies, social
safety nets, and policies that promote equity and inclusivity. Building resilient food
systems is crucial to ensuring food security in the face of ongoing challenges and
future uncertainties.