5 Year Economic Study Shows Investments Pay
Study Purpose
In aiming to maintain and expand demand for avocados within the United States, the Hass Avocado Board (HAB) commissioned a five-year economic study (2013-2017) to determine efficacy and ROI of assessments. The study was conducted by independent researchers at the University of California, Davis (UC Davis).
Study Findings
Researchers concluded the following:
- Promotion programs funded primarily by HAB assessments paid off handsomely for California Hass avocado producers and importers of Hass avocados during the review period.
- Promotion programs conducted by HAB and its member associations played a fundamental role in expanding demand for Hass avocados in the United States.
“The findings of this independent study confirm the important catalyst role that HAB plays in making avocados the envy of the produce industry,” said HAB Executive Director Emiliano Escobedo. “Our job is to make avocados America’s most popular fruit – and it’s working.”
Why Demand & Consumption are Rising
In an effort to try and understand all of the growth drivers that helped make a little-known fruit out of California one of the fastest growing categories in all of produce, the researchers at UC Davis went through a rigorous and meticulous process to identify benefits of the coordinated efforts, the monetary investments, and the go to market strategies that were employed by all of the players to achieve this success. This study was engaged to understand the economic benefit to all participants, and to study the ROI of the resources they put against making avocados the “toast” of produce.
They evaluated:
- The projects and investments of HAB itself
- The affiliated and coordinated effort of the California Avocado Commission, Avocados from Mexico, the Peruvian Avocado Commission, and Avocados from Chile
They assessed how all of these well planned and well strategized marketing efforts were creating value and returns to avocado producers and importers here in the United States.
Increased Sales Linked to Higher Demand not Lower Prices
Researchers also found that the expansion of sales in the U.S. market has been achieved primarily through rising demand not lower prices. The programs delivered a benefit to cost ratio ranging from 1.6 to 3.6 for the California producers and importers of Hass avocados who funded them.
Program Expansion
Ultimately, the analysis suggests that an expansion of the programs – even by a small amount – would further increase grower and importer profits.
But don’t take our word for it – read the study yourself and learn about the findings that an independent third-party expert reported about our industry, our growth, and our positive economic benefit we are creating for produces and importers of our favorite super food – Hass Avocados.
Read the report for yourself to see what is driving all this goodness.
Other Happenings
Watch the HAB Webinar featuring the World Avocado Organization (WAO)
Join us on https://hassavocadoboard.com/webinars/ to view this extremely interesting webinar, and the attempt to help grow demand for fresh Hass avocados in the second largest market in the world, the EU 27 + U.K.
Avocado Geeks
Welcome to the AVOCADOGEEKS posts, only on the Hass Avocado Board LinkedIn Page feed. If you have not seen our “Avocado Insights” yet – you need to!!
The Latest Five-Year Evaluation of the Hass Avocado Boards Promotion Programs 2018-2022
HAB in early 2023 engaged with a group of professors and graduate students in the Department of Agricultural and Resource Economics at the University Of California at Davis, to do this economic evaluation of our Research & Promotion activity.