1 Export Project

Arab Academy for Science, Technology & Maritime Transport

College of International Transport & Logistics

12th Week

Import & Export Management Course

Student ID 13108025

Student name Ahmad Bakr

H.S code 080440

Submitted to: Dr. Abdallah Ramadan

1-Product Specification

Product name - Avocados, fresh or dried Product group

H.S chapter 08

H.S code 080440

2 Export Project

2-Top 10 Exporters

a- In term of values (thousands of U.S dollars)

Countries 2011 2012 2013

Mexico 887,642 877,908 1,086,934

Netherlands 167,089 194,216 257,621

Chile 227,697 159,257 190,116

Peru 164,399 136,208 185,019

Spain 167,615 135,492 153,660

Israel 71,487 83,266 122,121

USA 59,469 82,469 114,178

South Africa 31,727 61,876 77,210

New Zealand 67,690 43,122 56,725

Kenya 24,897 35,729 34,742

World 2,009,979 1,945,539 2,427,837

In this chart we will find that Mexico is the Market Leader in exporting market of the

Avocados in terms of value in 2011 about 44.16%, 2012 about 45.12% 2013 about

44.76% nearly half of the market revenues of avocado go to Mexico however growth

rate is about 23.80% every year.

In the second place came Netherlands with market share in 2011 8.31%, 2012 9.98%,

2013 10.61% this percentage is continuously increasing with a growth rate 32.64%.

The rest of the Market share is nearly divided between the other exporter countries.

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Top 10 Exporters in Terms of Value

2011 2012 2013

3 Export Project

2-Top 10 Exporters

b- In term of Quantities (in tons)

Countries 2011 2012 2013

Mexico 347,209 494,481 563,492

Peru 81,431 83,576 114,515

Chile 102,820 91,527 96,937

Netherlands 71,075 79,438 90,221

Spain 68,050 59,924 63,494

Israel 41,499 42,488 62,315

South Africa 31,566 55,143 50,742

USA 17,919 29,630 43,211

Kenya 21,974 19,837 20,858

Dominican Republic 20,102 16,967 20,628

World 890,764 1,054,071 1,205,967

In this chart we note that Mexico is exporting in Terms of quantity about 50% in 2013

of the whole exports as it is the biggest producer of Avocado, which make the

competition is so hard for other exporter. Mexico growth rate from 2012 to 2013

reaches 13.95% which contribute in world growth rate of exported quantity of

avocados which increases by 14.41% for the same years.

Mexico50%

Peru10%

Chile9%

Netherlands8%

Spain6%

Israel5%

South Africa4%

USA4%

Kenya2%

Dominican Republic2% Avocados' Exporters

Mexico Peru Chile Netherlands Spain Israel South Africa USA Kenya Dominican Republic

4 Export Project

2-Top 10 Exporters

c- In term of unit value (U.S dollars) (Price per ton)

Countries 2011 2012 2013

Mexico 2,557 1,775 1,929 Netherlands 2,351 2,445 2,855

Peru 2,019 1,630 1,616 Spain 2,463 2,261 2,420 Chile 2,215 1,740 1,961

USA 3,319 2,783 2,642

New Zealand 3,175 3,358 3,892 South Africa 1,005 1,122 1,522

France 2,493 2,091 2,313 Belgium 2,754 2,296 2,443 World 2,256 1,846 2,013

In this chart we note that Mexico Price per ton was higher than the world Price in the

same year and it is lower than the world price in the following 2 years Mexico can play

a vital role in the Price as it is the biggest Exporter. The highest Price per ton is New

Zealand and the USA. South Africa has the lowest price per ton in the three years.

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Top Ten Exporters in Terms of Unit Value

2011 2012 2013

5 Export Project

As shown below USA is the top importer of Avocados in terms of value, its share in the market

of the avocado in 2013 is 42.63% so it can affect the world price by its commercial policy. USA

has increased its rate of importing value through 2012 to 2013 after it was decreased from

2011 to 2012 which affect the world value of imported Avocados the growth rate in the last

two years in the USA was 25% which increased the world growth rate by 24%.

USA50%

Netherlands11%

France10%

Japan7%

Canada6%

United Kingdom4%

Germany4% Spain

4%

Sweden2% Australia

2% Imported countries in term of value

3-Top 10 Importers

a- In term of values (thousands of U.S dollars) Countries 2011 2012 2013

USA 962,923 913,732 1,141,751

Netherlands 178,367 188,224 260,813

France 204,279 200,210 231,863 Japan 131,962 161,804 162,020

Canada 109,311 122,514 145,779

United Kingdom 73,769 74,550 90,753 Germany 72,234 67,398 89,681

Spain 60,677 67,818 83,541 Sweden 45,123 46,379 53,594

Australia 57,200 38,282 49,634 World 2,174,670 2,173,704 2,695,155

6 Export Project

3-Top 10 Importers

b- In term of Quantities (Tons)

Countries 2011 2012 2013 USA 415,416 502,546 571,793

Netherlands 88,666 95,693 115,140

France 87,930 94,610 99,736 Japan 37,173 58,555 60,458

Canada 36,127 48,836 57,526 United Kingdom 35,123 37,675 41,384

Spain 29,552 33,948 41,034

Germany 29,077 26,817 31,085 Sweden 16,563 18,799 19,635

Belgium 6,025 12,549 15,077 World 941,642 1,104,721 1,263,681

We note here that USA share in the imported quantity of the market of Avocado is

54%, while the imported value by USA was about 50% of the world in 2013 but what

makes this difference is the price. As noticed before USA was one of the top ten

exporter of the Avocado in terms of value and quantity thus a part of these imported

quantity will be re-exported. The annual rate of imported quantity is increasing in the

USA during the three years, and the annual world rate as well.

USA54%

Netherlands11%

France10%

Japan6%

Canada5%

United Kingdom4%

Spain4%

Germany3%

Sweden2%

Belgium1%

Top ten imported countriesin term of quantity

in 2013

7 Export Project

3-Top 10 Importers

c- In term of unit value (U.S dollars) (Price per unit)

Countries 2011 2012 2013

USA 2,318 1,818 1,997

Netherlands 2,012 1,967 2,265

France 2,323 2,116 2,325

Japan 3,550 2,763 2,680 Canada 3,026 2,509 2,534

United Kingdom 2,100 1,979 2,193 Germany 2,484 2,513 2,885

Spain 2,053 1,998 2,036

Australia 3,538 3,570 3,950 Sweden 2,724 2,467 2,730

World 2,309 1,968 2,133

From previous chart we will notice that Australia takes the highest price in the three

years. USA in 2011 was higher than the world, but in 2012 and 2013 USA was the least

cost per ton in the imported countries of Avocados and this is related to the quantity

imported.

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Top 10 Importers in term of unit value

2011 2012 2013

8 Export Project

The top exporter to the USA is Mexico which export 89.14% of the quantity exported.

Peru and Chile are in competition the, Peru export share to the United States 3.78% in

term of quantity and 4.44% in term of value, Chile export share to the United States is

4.59% in terms of quantity and 4.17% in terms of quantity.

Netherlands’ top exporters are Peru and Chile with 48% in term of

quantity but they are difference in the price Peru’s price is higher than

Chile’s price but the variance of the prices between the 5 competitors are

close to the world price.

4- Selecting Target Markets in terms of values 2013

a-The first market: is United States (571,793Tons)

Competitors Values

(Thousands $) Quantities

TON Price

$

Mexico 1,027,445 509,728 2,016

Chile 42,875 23,438 1,829 Peru 50,700 21,617 2,345

Dominican Republic 20,697 16,988 1,218

World 1,141,751 571,793 1,997

b-The Second market: Netherlands (115,140Tons)

Competitors Values (Thousands $)

Quantities TON

Price $

Peru 71,831 29,996 2,395

Chile 53,611 26,149 2,050

South Africa 38,286 16,054 2,385

Spain 25,941 10,109 2,566

Israel 20,440 9,799 2,086

World 260,813 115,140 2,265

9 Export Project

c-The third market: France (99,736Tons)

Competitors Values (Thousands $)

Quantities TON

Price $

Spain 71,942 25,946 2,773 Peru 52,117 22,370 2,330 Israel 31,727 15,388 2,062 Chile 23,103 12,007 1,924

South Africa 18,803 8,064 2,332 World 231,863 99,736 2,325

France is the third target market Spain is the top competitor with 26% in

term of quantity and 31% in term of value with price higher than the

world price.

d-The fourth market: Japan (60,458Tons)

Competitors Values

(Thousands $) Quantities

TON Price

$

Mexico 139,390 52,922 2,634

USA 18,261 5,957 3,065

Chile 2,151 892 2,411 New Zealand 2,218 686 3,233

World 162,020 60,458 2,680

Mexico came again as the first exporter but this time for Japan with

market share of 87.53% in terms of quantity and 86% in terms of value

with price near to the world price. United States came here as an exporter

to Japan but with higher price than the world price.

10 Export Project

Summary

Mexico is the top exporter of Avocados in terms of value

and quantity.

Mexico, Peru and Chile avocados’ prices per ton are lower

than the world price.

The top importing country of avocado is the United States

in terms of quantity and Value and it is one of the top ten

exporters.

Chile use the policy of price discrimination which export

the same product to different countries for example in USA

1,829$ and in Japan 2,411 with different prices while Peru

has near prices.

According to these analysis the structure market for

Avocado is monopolistic competition represented in

Mexico thus our target market will be countries other than

Mexico export to such as USA and Japan.

We will avoid exporting to Netherland as well because it is

one of the top ten exporter so the competition there will

be difficult.

So France is the selected market according to the

following:-

1-Few competitors without monopolism compared with

Mexico.

2-Price variance are nearly equal to the world price expect

for Spain.

3- Our chance to compete there is likely high than other

countries.