Public-private strategies to establish a successful avocado export cycle: cases from Colombia

Abstract

PurposeThe purpose of this research is to study the Colombian avocado export industry, identify key insights associated with creating and sustaining the avocado value chain, and to understand the impact of the public policies affecting this industry.Design/methodology/approachThe approach consists of two case studies to shed light on the opportunities and challenges of developing a sustainable avocado value chain in Colombia. One case deals with a vertically integrated business (Arcángel Miguel) while the other focuses on an association of small growers (Asohass). The analysis was informed by a series of interviews with key actors along the avocado supply chain to uncover the business strategies to move avocados to destination markets. The authors compare and contrast approaches to business development, international expansion, and role of public policies.FindingsThe authors found that the strategies followed by these organizations differ in means but aim for the same objective: maximize profits, improve environmental performance, and enhance the social wellbeing of growers. The authors found that each type of business model requires distinct public policies to succeed and different strategies to appropriately allocate efforts. The findings are relevant to other high-value crops and other Latin American countries with similar geographical and social characteristics.Research limitations/implicationsThese insights underscore the need of public policies tailored to the specific needs of the different actors in the value chain. The current emphasis on certifications and export markets works well for large agribusinesses, but smallholder growers need policies tailored to new investments in physical, human, and social capital.Originality/valueThis study contributes to the literature on avocado value chains in Latin America, emphasizing the challenges faced by the emergent Colombia avocado sector, a country that only began exporting this commodity in 2010.