Primer describing the investment opportunity and development of the hass avocado industry in Colombia

1. Avocado in
COLOMBIA

2. Introduction
2
AVOCADO
In this primer, you will find the strategic advantages that Colombia has
as a producer and marketer of hass avocado. You will also find the
opportunities ProColombia has identified to conquer new markets and
consumers around the globe.
Worldwide consumption of avocado grows around 3% each year
(Euromonitor, 2016), this means there’s a window of opportunity for
new players, like Colombia, where they can occupy spaces that other
producers have missed and develop new markets.
According to FAO, the United States is the biggest consumer in the
world and the demand is growing in Europe and China because of the
avocado’s qualities. It is considered a superfood because of its
nutritional and sensorial attributes, related to the high contents of oil
and the presence of vitamins A, B1, B2, B6, C, D, E, K, folic acid, and
biotin. Also, because of its content of calcium, iron, phosphorus,
copper, magnesium, manganese, sodium and potassium. These
elements confer beneficial properties for health, mainly in the
prevention of diseases of the circulatory system.
The variety of avocado called hass contains more oil than avocados with
green skin, it represents a personal portion and its thick skin facilitates
its exportation. One of the greatest virtues of hass compared to other
varieties is its prolonged harvest season, factor that along with its
quality, has increase the world consumption.

3. International context
3
AVOCADO
According to the FAO, world production in 2017 was 6.05 million tons,
which represented a growth of 5.4% compared to the previous year.
World production
34%
11%
8%6%
6%
3%
3%
2%
2%
25%
World's Leading Avocado Producers (2017)
Mexico Dominican Republic Peru
Colombia* Indonesia Brazil
Kenya Venezuela Chile
Others
During 2017, Mexico was the world's leading avocado producer with a
total of 2.03 million tons (34% of the world total), followed by the
Dominican Republic (637,688 tons) and Peru (466,758 tons). Colombia
is fourth in the world with a 6% share in global production, surpassing
producers such as Indonesia, Brazil, Kenya, the United States and Chile.
Source: FAO. *Ministerio de Agricultura y Desarrollo Rural
The United States is the leading importer of avocado in the world, with
a share of more than 40% of the total amount of avocados imported
into the world. Other countries that stand out are the Netherlands
(11%), France (7%), the United Kingdom (4%), Germany (4%), Spain
(4%), among others.
Top Avocado Importers in the World

4. 4
AVOCADO
43%
11%
7%5%
4%
4%
4%
3%
2% 17%
Top Avocado Importers 2017
United States The Netherlands France United Kingdom
Germany Spain Canada Japan
China Others
Source: Trademap
Mexico is the main exporter of avocado in the world, with a
participation superior to 48% over the total of avocado exported in the
world. Other countries that stand out are the Netherlands (13%), Peru
(10%), Chile (8%), Spain (6%), the United States (3%), among others.
Top Avocado Exporters in the World
48%
13%
10%
8%
6%
3%
1%
1%
1%
9%
Top Avocado Exporters in 2017
Mexico The Netherlands Peru Chile
Spain United States New Zealand Kenya
France Otros
Source: Trademap

5. 5
AVOCADO
Production of Avocado in Colombia
The area planted with avocado is growing significantly throughout the
world. According to FAO, America is the continent that concentrates the
largest area sown (63%). For its part, according to the Ministry of
Agriculture of Colombia, the country has registered an annual growth
of 11% in the area planted in the last 5 years.
According to information from Finagro, the following varieties of
avocados are mainly produced in Colombia:
Name of
variety
Variety (picture) Characteristics
Papelillo
Extended form
Light green color
Smooth shell
Maturing time: up to 5 days
Average weight: 452 grs
Regions: Antioquia, Caldas, Quindío,
Risaralda, Valle del Cauca, Tolima,
Cundinamarca, Boyacá, Meta,
Casanare and Arauca.
Hass
Oval shaped
Green to purple color
Thick and rough shell
Maturing time approximately 7 days
Average weight: 150 to 400 grs
Regions: Tolima, Caldas, Antioquia,
Quindío, Valle del Cauca, Risaralda..
Choquette
Rounded shape
Dark green color
Thick smooth shell
Maturing time between 6 and 8 days
Average weight: 662 grs.
Santana
Oval shaped
Intense green color
Thick smooth shell
Maturing time between 8 and 10
days
Average weight: 683 grs.
Source: Finagro

6. 6
AVOCADO
Historical evolution of avocado production in Colombia
The national production of avocado has presented a constant growth in
the last 10 years. There have been positive variations in areas such as
the cultivation and harvest of this fruit. In 2017, production peaked
with 376 thousand tons, corresponding to an average yield of 9 tons
per hectare and a growth of 12.3% compared to 2016.
Source: Ministerio de Agricultura y Desarrollo Rural. Secretarías de Agricultura
Departamentales. *Proyecciones SIOC, Ministerio de Agricultura y Desarrollo Rural.
5
6
7
8
9
10
11
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(p)
Production of Avocado in Colombia (2007 - 2018p)
Production (thousands tn) Area (thousands ha) Performance (tn/ha)
According to the Ministry of Agriculture, the area planted with creole
avocados increased close to 38% in the last 5 years, in the case of hass
avocado, it showed a 126% positive variation. This situation is explained
by the growing expectation around the sector, the increase in
consumption, the entry into new export markets, the promotion of new
plantings and the improvement of production processes in the chain.

7. 7
AVOCADO
Cultivated Area of Avocado by Region and Variety
Tolima, Antioquia, Caldas, Santander, Bolívar, Cesar, Valle del Cauca,
Risaralda y Quindío represent 86% of the total planted area in the
country.
Zone Region
Cultivated
area (ha)
Yield (ton/ha) Variety
West – Eje
cafetero
Antioquia, Caldas,
Quindío, Risaralda
and Valle del Cauca
32,146 11
Hass
Papelillos
Center Tolima 15,325 10
Hass
Papelillos
Atlantic
Coast
Bolívar and Cesar 8,270 9
Criollos
Antillanos
Santanderes Santander 6,375 10
Criollos
Antillanos
East
Cundinamarca,
Boyacá, Meta,
Casanare and Arauca
11,420 7 Papelillos
Source: Evaluaciones Agropecuarias Municipales. Ministerio de Agricultura y
Desarrollo Rural.
Area and production of avocado in Colombia by department
Source: Evaluaciones Agropecuarias Municipales. Ministerio de Agricultura y
Desarrollo Rural.
Region
Area (Ha) Production (Tons)
2016 2017 2018 (p) 2016 2017 2018 (p)
Tolima 12,339 14,190 15,325 60,704 66,471 71,789
Caldas 10,645 12,242 13,099 50,626 55,435 59,870
Antioquia 7,883 9,065 9,700 54,374 59,540 63,708
Santander 5,473 6,294 6,735 21,094 23,098 24,715
Bolívar 3,767 4,332 4,635 29,782 32,611 34,894
Quindío 3,109 3,575 3,825 16,479 18,045 19,308
Cesar 2,954 3,397 3,635 20,402 22,340 23,904
Valle del Cauca 2,320 2,668 2,855 29,529 32,334 34,597
Risaralda 2,168 2,493 2,668 15,721 17,214 18,419
Others 9,047 10,404 11,420 44,582 48,817 51,981
TOTAL 59,705 68,661 73,896 343,295 375,906 403,184

8. 8
AVOCADO
Harvest Calendar of Avocado in Colombia
Avocado harvest is subject to altitude above the level at which the crop
is located. Early harvests are obtained in warm climates and late
harvests in cold climates. This improves the availability of hass avocado
practically all year round.
The harvest calendar of avocado by region:
Source: Competitividad de la Cadena Productiva de aguacate en Colombia – MADR
As an additional point, it is important to mention that in Colombia
there are two avocado harvests per year. On the one hand, the main
harvest, which happens between October and January, and the
secondary crop or mitaca that occurs between May and September.
Regarding the international harvest calendar, in the southern
hemisphere the largest avocado offer is available between the months
of April to October. In this area, Chile stands out as the main exporter
and, to a lesser extent, Peru and South Africa. However, despite this
apparent seasonality, Mexico has the capacity of exporting superior
quantities throughout the entire year, competing with countries
regardless of their geographical location.
Zone Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dic
East – Antioquia
North – Tolima
Eje cafetero
Southwest
Meseta Popayán
Norte del Valle
Consumption of avocado in Colombia
Variable 2014 2015 2016 2017 2018*
National production (ton) 288,739 309,852 343,295 375,906 403,184
Exports (ton) 1,760 5,543 18,201 28,487 37,800
Imports (ton) 3,128 1,130 217 133 133
Apparent consumption (ton) 290,107 305,439 325,311 347,552 365,517
Source: Ministerio de Agricultura y Desarrollo Rural

9. 9
AVOCADO
Hass avocado in Colombia
There are factors that positively affect the consumption of avocado:
• The per capita consumption of fresh avocado in Colombia is 3.8
kilograms per year.
• A change in the eating habits of Colombians, who seek healthier diets
and recognize the nutritional benefits of this fruit.
• An increase of the availability of hass variety in national markets,
especially during high production seasons.
Source: Competitividad de la Cadena Productiva de aguacate en Colombia – MADR
On the other hand, according to figures from the avocado production
chain in Colombia, in 2017 the area planted with avocado hass in
Colombia represented 21% of the total area planted with avocado in
Colombia. During 2017, growth in the area planted with hass avocado
stood out, registering an increase of 14% in relation to the previous
year.
The estimated area and production of hass avocado in Colombia is:
Hass avocado production in Colombia
Variable 2014 2015 2016 2017 2018 (p)
Cultivated area (Ha) 7,800 8,765 11,860 13,500 15,530
Harvested area (Ha) 4,385 7,429 8,667 9,625 10,583
Production (Ton) 28,500 52,000 65,000 77,000 98,051
Performance (Ton/Ha) 6.5 7.0 7.5 8.0 9.0
According to estimates of the Ministry of Agriculture and Rural
Development, about 68% of the area planted in the country is in
productive age, the remaining area is in a developmental stage, so a
progressive increase in annual production of the fruit is expected.
The hass variety of avocado is primarily produced in 7 regions of the
country, in altitudes superior to 1,500 meters above sea level. Most of
the cultivated area is in the west and in the eje cafetero, where there
are about 32 thousand hectares cultivated of the varieties Hass and
Papelillo.

10. 10
AVOCADO
Source: Competitividad de la Cadena Productiva de aguacate en Colombia – MADR
Due to the different production zones, altitudes and varieties, Colombia
has hass avocado year long. However, hass variety is produced primarily
between October and January.
Harvest Calendar of Hass Avocado in Colombia
The regions harvest calendar shows that Colombia can supply the
growing worldwide demand.
Region
Cultivated area
(ha)
Harvested area
(ha)
Production Yield
Tolima 4,138 2,820 28,197 10.0
Caldas 3,537 2,410 21,209 8.8
Antioquia 2,619 1,785 18,917 10.6
Quindío 1,818 1,239 10,532 8.5
Valle del Cauca 1,252 853 7,079 8.3
Risaralda 1,033 704 6,475 9.2
Otros 1,134 773 5,641 7.3
Total 15,530 10,583 98,051 9.0
Area and Production of Hass Avocado in Colombia 2018
Source: Competitividad de la Cadena Productiva de aguacate en Colombia – MADR
Harvest Calendar of Hass Avocado in Colombia
Region Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dic
Antioquia
Caldas
Cauca
Risaralda
Quindío
Tolima
Valle del Cauca
Harvest calendar of main competitors
Country /Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dic
México
Chile
Perú
Sudáfrica

11. Country /Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
España
California –
USA*
Colombia
11
AVOCADO
Source: Trademap
On the other hand, when analyzing the world exports of these same
countries, there is an increase in sales between March and May (mainly
Mexico and Peru), and Mexico’s and Chile’s exports have peaks from
August to October.
Monthly exports of the main competitors
In general, the exports of the main actors of the avocado chain
decrease during November, February and August.
*http://www.californiaavocadogrowers.com/industry/crop-projections-and-estimates
High presence in the market
Medium presence in the market
Low presence in the market
0
100
200
300
400
500
USDmillion
Avocado Export Calendar 2017
Spain United States Mexico Peru
South Africa Chile Colombia

12. Aptitude for the commercial cultivation of the Hass
avocado
12
AVOCADO
584 thousand hectares have been identified of having high aptitude for
the cultivation of hass avocado in Colombia.
Avocado Zoning Methodology
The design and elaboration of the avocado zoning was carried out from
the evaluation of 3 components: physical, socioeconomic and
socioecosystemic. These 3 factors bring together a series of variables
that allow an adequate analysis of the aptitude that the development
of the crop would have in the different regions of the country. The
following is an in-depth description of each of the variables that make
up the zoning methodology for hass avocado :
1. Physical Component
• Climate: it considers the following variables: average temperature
(degrees Celsius (° C / year)), total precipitation (millimeters (mm /
year)) and solar brightness (annual average daily (hours sun / day)).
• Soil: Moisture of the soil, slope, depth, erosion, drainage, pH,
fertility.
• Morphodynamics: volcanic, seismic, flood and landslide threat.
2. Socioeconomic Component
• Social criteria: labor market, citizen security, institutionality, living
conditions.
• Economic criteria: municipal economic indicator, rural property
sizes, rural land prices, infrastructure and logistics.
3. Socioecosystemic Component
• Ecological criteria: ecological integrity, strategic ecosystems, areas
protected by the SINAP (National System of Protected Areas of
Public, Private or Community Governance, and of the National,
Regional or Local Management Area), land cover, international
recognition.
Zoning Study Results
Colombia has about 3.2 million hectares with aptitude for growing hass
avocado, the departments that have the availability of land with the
highest conditions are Antioquia, Cundinamarca and Boyacá:

13. Aptitud Hectáreas Principales departamentos
High 584,536
Antioquia (2.5%), Cundinamarca (5%), Boyacá
(4.3%), Cauca (1.7%) and Santander (1.6%)
Medium 1,513,147
Antioquia (6.4%), Cauca (9.5%), Santander
(8.1%), Cundinamarca (5.6%) and Boyacá (5.7%)
Low 1,172,327
Antioquia (5.4%), Tolima (6.6%), Cauca (5.1%),
Boyacá (6.7%) and Huila (8.5%)
13
AVOCADO
High Aptitude: areas with best conditions*
Medium Aptitude: areas with moderated limitations*
Low Aptitude: areas with strong limitations*, which could be adapted
with large investments and / or the development of new technologies.
Not suitable: areas with physical and socioecosystemic constraints that
make the development of the activity impossible.
Legal exclusions: areas in which, because of legal mandate, the
development of commercial cultivation of avocado isn’t allowed.
* From the physical, socioecosystemic and socioeconomic point of view.
Aptitude for the Comercial Cultivation of Hass Avocado in
Colombia
Source: Unidad de Planificación Rural Agropecuaria – UPRA

14. 14
AVOCADO

15. 15
AVOCADO
Region
High
aptitude
(ha)
Share %
Medium
Aptitude
(ha)
Share %
Low
Aptitude
(ha)
Share %
Antioquia 154,807 24.5% 401,160 22.2% 337,854 22.6%
Cundinamarca 121,193 19.2% 134,912 7.5% 57,078 3.8%
Boyacá 99,568 15.7% 132,650 7.3% 154,274 10.3%
Cauca 54,110 8.6% 297,095 16.4% 159,668 10.7%
Santander 49,363 7.8% 247,794 13.7% 99,501 6.7%
Huila 47,644 7.5% 120,624 6.7% 153,643 10.3%
Nariño 30,236 4.8% 107,764 6.0% 95,671 6.4%
Caldas 20,552 3.2% 83,679 4.6% 39,531 2.6%
Valle del
Cauca
18,086 2.9% 80,666 4.5% 64,512 4.3%
Norte de
Santander
13,449 2.1% 55,256 3.1% 70,169 4.7%
Quindío 8,530 1.3% 31,799 1.8% 6,865 0.5%
Risaralda 6,495 1.0% 33,048 1.8% 34,726 2.3%
Putumayo 3,748 0.6% 5,480 0.3% 360 0.0%
Tolima 2,998 0.5% 53,029 2.9% 159,922 10.7%
Caquetá 1,058 0.2% 1,544 0.1% 2,913 0.2%
Meta 514 0.1% 3,280 0.2% 1,297 0.1%
Cesar 218 0.0% 10,086 0.6% 24,458 1.6%
Magdalena 68 0.0% 1,789 0.1% 13,367 0.9%
Bolívar 0 0.0% 0 0.0% 6,590 0.4%
Casanare 0 0.0% 1,688 0.1% 5,561 0.4%
Chocó 0 0.0% 3,259 0.2% 5,289 0.4%
La Guajira 0 0.0% 238 0.0% 2,447 0.2%
Total 632,637 1,806,840 1,495,696
Aptitude for the Commercial Cultivation of Hass Avocado
by region
Source: Unidad de Planificación Rural Agropecuaria – UPRA

16. Following the dynamics of productive expansion of the avocado,
international trade has recently generated high volumes and an
expansion in the demand for this product, specifically of the hass
variety. In response to this increase in consumption, Colombian exports
have registered a notable advance in terms of value and volume of
abroad sales of this fruit.
The main players in the international avocado market are Mexico, the
Netherlands (marketer), Peru and Chile. In 2017, Colombia ranked 13th
as a global supplier, registering an increase of around USD18 million (10
thousand tons) in addition to those exported in 2016. For Colombia,
this growth represented a participation of 1% in the total sales of
avocado in the world during 2017.
16
AVOCADO
Colombian exports of avocado
Historical dynamic of Colombia’s avocado exports
Country
2016 2017
Var %. Share %
US$ FOB US$ FOB
1. Mexico 2,103 2,901 38% 48%
2. Netherlands 616 804 31% 13%
3. Peru 397 580 46% 10%
4. Chile 363 457 26% 8%
5. Spain 269 343 27% 6%
13. Colombia 35 53 51% 1%
Others 678 846 25% 14%
Total 4,461 5,985 34% 100%
Source: Trademap. HS: 080440. Numbers in million.
The evolution of Colombian avocado exports has been growing in the
last 7 years. While in 2010 exports worth USD107,918 (56 tons) were
registered, in 2018, sales abroad were of USD 63 million, corresponding
to 30,009 tons.
In value, the growth of the exports was that of 18,5% (+USD 9,8 million)
in 2018, in volume, it incremented 5,3% (+1.522 tons).

17. 201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
USD million 0,1 0,2 0,0 1,2 3,6 10,3 35,0 52,9 62,7
Tons 56 123 5 542 1.76 5.54 18.2 28.4 30.0
-
5.000
10.000
15.000
20.000
25.000
30.000
35.000
-
10,0
20,0
30,0
40,0
50,0
60,0
70,0
Tons
USDmillion
Evolution of Colombian Avocado Exports
2010 - 2018
17
AVOCADO
Main export destinations
Source: DANE. HS: 080440.
In 2018, the destinations to which the Colombian avocado was
exported were:
Netherlands:
Exports: USD29.7 million
Share: 47.3%
Relative Growth: +57.1% Absolute growth: +USD10.8 million
United Kingdom:
Exports: USD12.5 million
Share: 19.9%
Relative Growth: -11.7% Absolut growth: -USD1.7 million
Spain:
Exports USD11.6 million
Share: 18.5%
Relative Growth: 0% Absolut Growth: -USD1,989

18. Belgium:
Exports USD3.2 millones
Share: 5.2%
Relative Growth: -14.4% Absolut Growth: -USD543,944
France:
Exports USD2.5 million
Share: 4%
Relative Growth: -2.2% Absolut Growth: -USD55,225
United States:
Exports USD660,118
Share: 1.1%
Relative Growth: +100% Asolut Growth: +USD589,547
18
AVOCADO
Exports Business Network in Colombia
Source: DANE. HS: 080440.
Company name
Avofruit S.A.S.
Westsole Fruit Colombia Sas / Westfalia Fruit Colombia S.A.S
Pacific Fruits S.A.S.
Hass Colombia Sat
Jardin Exotics Sas
C.I Fruty Green S.A.
Green West S.A.S.
Hass Diamond
Mountain Avocado Sas - Antes Tropyfruits S.A.S.
Hasspacol S.A.S
C.I. F&P Trading S.A.S
Frutales Las Lajas S.A.
Flp Colombia S.A.S.
Wolf & Wolf Latin America Ltda C I
Avocate SAS
Avofruit S.A.S.
Westsole Fruit Colombia Sas / Westfalia Fruit Colombia S.A.S
Pacific Fruits S.A.S
Source: DANE. HS: 080440.

19. According to the ICA, Colombia currently has admissibility for the
export of avocado hass to the following countries:
• Hong Kong
• Peru
• Argentina
• Panama
• Costa Rica
• United Arab Emirates
• Canada
• Bahrain
• European Union
• England
• United States
• Singapore
• Switzerland
In addition to these markets, Colombia exports to other countries that
do not require the develpment of any sanitary protocol.
Colombia is working on the admisibility of hass avocado with the
following countries:
• Mexico
• Chile
• South Korea
• Japan
• China
19
AVOCADO
Markets enabled for the export of avocado hass
from Colombia

20. 20
AGUACATE