0:00 The Appreciation of Green Gold 3:17 Dark Arts Behind Avocado's Rise 6:11 The Golden Hass Standard 9:27 Microeconomics of Avocados 13:12 Farm to Store Supply Chain 15:57 Breadth vs Depth 20:12 Billion Dollar Oligopoly
Hey mate - as someone who can do their PhD in the Fruit Trade (if someone would want it), I have to say this is one of the most incredibly well put together and explained essays on the fruit industry (a specific commodity) I have ever seen. I think you make one GLARING error at the start, in that you sway too heavily into the idea of perfect competition, when fruit (except for a very small subset of hypersized economies of scale types) is much more akin to Monopolistic Competition. Branding (especially) and origin differentiation (which you capture) are the best ways to discern yourselves (to the intermediaries, not the final customers). More and more (if you ever want some guidance on it) the apple business is doing incredibly well to develop Trademarks. Otherwise... Absolutely SMASHING (get it...) piece. I will share this far and wide! (for instance... to my friend who works for Mission!)
@@somefishhere getting flashbacks to Econ 😢 low barrier to entry business I.e. fashion, food, salons. Very fragmented due to the diversity of buyer demographics and psychographics
@@somefishhere A good example of monopolistic competition is fast food. There are no monopolies because of low barriers to entry and the fact that no firms have complete price setting power, but each firm does have the advantage of differentiation. Taco Bell is highly differentiated compared to Jack in the Box, with specific products that you can't find elsewhere, which means that they can raise their prices a little bit without losing customers, which allows them to behave a little bit like a monopoly even though they aren't one.
Masterworks sets up a company for each painting and you only buy shares of the company. You own basically nothing, you're not as safe as stocks, and Masterworks' advertisements conveniently disregard the paintings that don't sell well
MBA out here giving us the rundown of whole industries while treating growth as a simple datum rather than compound. I guess they follow the Zuck doctrine of "If you aren't breaking things, you aren't moving fast enough."
I'm a Mexican and here's what I can say about this subject. When I was a kid avocados where like any other fruit. You could get them whenever you want to and as much as you'd like. I was proud because it's a local fruit so it made sense that it was cheaper. As years went by I noticed that the prices just started to skyrocket. Nowadays buying one single avocado is a luxury. They have got really expensive. You could buy a whole meal for what you would pay for a single avocado, it's crazy. That's because we are getting sold the avocados at a price premium because the demand on the US is so high. Farmers rather sell their product to the americans that would pay more than to us their fellow mexicans. Now then, even after all of that has been said, this video shows me that they are the ones who set up the prices and have all the cards on their hands and you know what? Good for them. Usually the farmers are the first ones to get fucked up so I guess I don't mind paying more if that means the farmer got paid fairly. Now then, cartels always fuck things over. Like... Always... they are a bunch of thugs that will do anything for a quick buck. Just this year the prices of lemons skyrocketed because some idiots decided that they wanted to kidnap a ton of lemon farms and keep them to themselves. They are not just evil, they are stupid. They didn't know what to do with all those lemons and couldn't sell them anyway so they eventually left and let farmers back to their houses which brought back lemon prices. I can see a future where some idiot decides to try and do something similar just to realize that trees can't grow fruit faster when you point a gun at them and just fuck over the prices of avocados. Mexico is a great country and all but it's so covered in shit (and manipulated by the US) that you can't see the shiny gold behind all of that. It's such a shame really.
Mexico doesn’t suffer so much from American manipulation, as it does from a long-since crystallized oligarchy and an analog of that oligarchy; the cartel. The fact that multiple Mexicans were able to become some of the richest individuals (on earth) solely with Mexican assets, resources, and labor, shows that it’s a country with that potential, but that would rather sit in status-quo (the rich get richer, buildings in Polanco get taller, and the poor can just leave for the USA if they don’t like it).
I really don't like the bias he had against the farmers. He called the collection of independent small farmers an oligopoly. Does he even know what an oligopoly is? It also sounded like he was praising the corporate owned farms of Mission and that their vertical business model was superior because it meant the corporation kept the profits.
@@xungnham1388 It's a business channel, what do you expect? If Mission has a better business model, then that's just a matter of fact. No need to get emotional about it.
@@otheroption He's completely misusing the term oligopoly to connote a bias assessment of the situation. An oligopoly would first and foremost need collusion of independent farmers to price fix which he doesn't try to show. Instead all he did was present a supply/demand situation where supply had leverage and threw around a label of oligopoly.
I have a huge “Fuerte” (strong in Spanish for it can take frost) tree that is 50 feet tall. Drops leaves and flowers all over. These green skin grow all over Sunnyvale/San Jose, California. Most not planted but squirrels eat 90% of my huge crop and drop seeds all over. The Haas ones much more popular since they can be shipped easier with the thicker skin… but I think the thin green skin tastes better. I got very fat squirrels in my yard.
Come to Zimbabwe. Avocados are still dirt cheap even though people consume way more than before. Exporters make a killing. However, I think it’s because many families have avocado trees on their yard (some even up to 4 trees)
Damn I heard the same thing about Kenya. Now I really want to visit (plus to try the Ugali/Nsima/Sadza depending on who you ask). When are they in season?
my wife's family in the philippines has a few avocado trees. every july/august we'd get avocado-d out! and man they were huge compared to hass ones sold in america, and just as tasty. i've become disappointed in what the mexican/ca avocado industry can produce in comparison, but i guess they have to do it year round.
Growing up in Kenya avocados were all over the place and sold for peanuts. I remember my grandmum's place which had an avocado tree that produced avocados bigger than a grown man's feast, oily and delicious. At peak season the avocados would fall from the trees and be eaten by dogs! Now Kenya has joined the avocado craze. Farmers are uprooting coffee to grow hass avocados for the insatiable Chinese market. Avocado rejects aren't thrown away, some people buy them and make avocado oil from them. This has become the new in fruit and its making farmers a lot of money
Damn that sounds delicious. I live in America and corn is so cheap right now so I want to start making Ugali. I guess you guys could use the avocado oil as a fry oil too
Dude your content is great, as someone who doesn't know shit about business/markets/etc, your content is an interesting look into different aspects and companies.
In the Philippines avocados are grown as feed for pigs. It is a diferent variety - much larger but taste the same as the smaller avocados sold in supermarkets outside the Philippines.
I agree with the statement that Mexican avocados are superior. I used to hate avocados, then one day I went to a moms and pops Mexican grocer and bought avocados for my better half. He told me that the avocados were exceptionally better tasting than usual and asked where I bought them. Next time we went to the big chain grocery store we bought avocados from there and bought some from the Mexican shop. Wow no comparison. Side by side taste test of Peruvian and Californian big chain avocados compared to Mexican avocados proved Mexican avocados to be the tastier by a landslide. I ended up loving (Mexican) avocados and buy Mexican avocados exclusively now. If I’m going to pay $2.50 per avocado, I might as well buy the best of the best and Mexican avocados are that.
I was in south america for a few weeks and they had many varieties of Avacado. One variety they had was like 5x times the size of regular avacados, and it tasted really good too. seemed unpractical for most households though, and better for restaurants
It's a FRUIT glut, globally (unfortunately). With the dumspter fire that is demand in China and Europe, all types are struggling. (Source: South African in the fruit trade, we are struggling to move oranges, soft-citrus, apples, pears, and blueberries)
While I disagree with the concept of Masterworks, I strongly appreciate that you have done your research about its solid regulatory status, its stability, and its fundamentals. I've seen way too many stocks promise the world and get thrashed a quarter after the IPO when the truth is revealed, and I'm glad you're keeping the same high standards for your content to vet your advertisers. Excellent video once again. There's so much about avocado I didn't know. In my home country of Venezuela, all the avocados grown there are greenskins, and it's not nearly as popular an ingredient outside of things like guasacaca. I wonder if that would be different if the main crop was Hass!
great channel you have here mate. well researched and well edited, glad that I found you right now where interesting comments about where you made mistakes or things you may have missed complete the picture, sadly with RUclips's algorithm once you get picked up and get some serious steam rolling the comment section will be a fiesta of scam bots with most value ending up buried.
this is crazy to me because where i'm from we give each other avocados. my grandparents had the best tasting avocado tree (tree still there, they aren't), still haven't tasted a better avocado. anyway, we gave them to neighbours coz the tree produced away too much and they's fall and spoil. the hass rough ones are the best in my opinion. they're creamy and taste good.
1. Pick before sun comes up. 2. Pack day time powering HVAC with solar. 3. On truck or train or plane at night to USA. Using alt energy for HVAC would be good way to cut costs for avacado co.
As a Latino raised by parents that emigrated to the US, One of the most vexing things our community has had to deal with is a huge jump in price of avocados. Because of its booming popularity with non-Latino Americans In the past 10 years. Before hipsters and the upper class started Fetishizing avocado toast, we used to get avocados for $.50. Thankfully ALDI came to the US at the same time and now sells avocados Between $.79 and $1, where I live in the north east.
Before you cream over ALDI a little too much - they are one of the most terrible retailers to supply to. They definitely look past "cosmetic" problems, but because of their dominance in some spaces - they squeeze the producers to beyond what's termed "at-cost" delivery. You end up delivering to ALDI not because it's economical, but because the alternative (dumping) is worse. It's not fun.
@@sooibot Interesting. I didn’t know they were a bad retailer partner for suppliers to do business with. That explains why they have the cheapest prices for a lot of their produce versus their local competitors. ALDI usually comes in $.50 to $1.50 less on average compare to the same fruit from a nearby supermarket. Seeing that you have a Dutch sounding name, you’re probably from Europe and are familiar with how those Germans operate. Are there any good RUclips videos or documentaries on ALDI’s shady business practices? Another question. ALDI’s four letter competitor, LIDL, has arrived recently to America. They are running funny TV commercials, using actors pretending to be Eastern European mafiosos, with the phrase ‘LIDL has suspiciously low-priced groceries!’ ruclips.net/video/jdv__8bD0vk/видео.html Are they operating the same way as ALDI?
@@brian_castro they operate very similarly to Aldi. I'm from South Africa. In Germany LIDL is slightly more upmarket. In UK they compete on par with another, as discounters. Obviously the issue (with supplying them in UK), is that they have no long term relationships (as they do in Germany with LIDL but not Aldi.) The short term focus (yearly), causes you to compete heavily for their favour, and if you do a good job in one year, it doesn't matter the next. They also negotiate the prices down, and will take it from the most unscrupulous. Bottomline though, some big suppliers don't care - and just want to move product. Like Del Monte in the video. Is what it is.
To be fair; your community would have had to deal with inflated avocado prices in the east coast no matter what, mainly because avocados necessitate mild climates, and shipping them such distances comports added costs. I remember avocados going for nearly $1.75/unit in 2008, well before Instagram and “hipster hype”.
I don't think it's easy to take the net profit margins at face value since those companies are incentivized to increase declared expenses to reduce taxable income. We can look more into gross margin as a more believable marker among the 3.
Hey Modern MBA, I always enjoy your breakdowns and was thinking that the HBO Max debacle going on at WB might be an interesting topic for you to check out. In all the discussion regarding the topic, I don’t think I’ve seen anyone discuss the details such as how one of the most prestigious film studios in Hollywood ended up in 60 Billion dollars worth of debt. Or how the scenario is likely going to unfold with this merger with Discovery along with the purge Zaslav is doing. I’d like to here your take on the matter. Just a suggestion. Love your channel btw
Thank you for an extensive overview. However, I’m surprised that you decided not to mention that growing avocados requires a substantial amount of water, and consequences of this requirement on local communities.
Nice Video....... Don't forget to mention New Zealand. One type of avocado here is as big as a softball. Since becoming vegan in 2018, my only source of fat is PB, hummus, and avocado. I eat about 12 avocados every week.
For the most part they are free in south Florida. So many people handing them out at the same time. The trees produce a lot of fruit. Big good tasting ones not Hass.
All farmers are constantly lobbying for people to eat more of their produce, it’s not just avocado growers, that’s not unusual or note worthy. What’s unique is their success.
us is moralistic as long as the bottom line of a corporation or convenient lifestyl of its population arent threatened. Cartels and Saudi Arabia are a prime example of this.
I think it’s possible that’s why Del Monte doesn’t grow its own avocados since otherwise it might be threatened with media exposure of “ill treated” or “under paid”workers even if it’s the same standard as the rest of farms in the country.
Well, at least we’re not like Mexico; no morals, nothing excellent; just the poor and self-flagellating “muchedumbre” and the Polanco types that stash their cash in countries they like to talk shit about, no in-between.
Excellent and super insightful analysis! I have to ask (as an aspiring entrepreneur) did you take a business analysis course or you learnt it from school or work? Do you mind sharing your research tools and processes? Would be super grateful if you reply, Thanks.
I would be really interested in an addendum to this video talking about how climate change is thought to impact the industry, given avocados' sensitive growing range
What the other guy said - except there's a few things going FOR avocado. The first is that it's far less concerned about rain (rain spells in fruit production in general can spell disaster). The other is that it will cause production to have to "move up an altitude." The big secret here? The alternative places that have not yet expanded as much as Mexico, are India and Africa. If they get their act together, the green gold will flow.
@@nishant54 The Sahara and the Horn of Africa have been experiencing levels of rainfall so high, they are causing Chinese and European companies to build agricultural infrastructure in arid places previously covered in sand. The Sahara is likely going to see intensive agriculture by the 2030s. The DRC has an optimum climate for avocados, but given it’s another poor near-equatorial country, it’s likely not going to set-up any meaningful industry on its own- they still can’t produce optimally from their land, which though mostly arable, is left untouched.
That last insertion of Mission brand means that this was sponsored by it, and that explains the shadow misrepresentation of "everything from México is tied to narco" and the frame of "Mexican and California oligopoly" which is beyond ridiculous when it involves hundreds of small producers , just that they have bargain power which is something HEALTHY, or we should go back to banana's Countries model? Where the industry determine the cost in detriment of the producers?
It even have a insertion at the end of the video, just seconds after making the association of "blood green diamonds" of whatever avocado is not sell by Mission
When I first tried an avocado, I couldn't believe that anyone would eat it of their own free will, and now you're telling me that production can't keep up with demand, this world is doomed.
It's not expensive if you consider paintings are just some paint splashed on a canvas. And avocados are just a seed smashed into dirt and left to grow for a while.
![FNAF vs TF2 - Episode 2 [SFM]](http://i.ytimg.com/vi/z5b3V2-VLb0/mqdefault.jpg)
0:00 The Appreciation of Green Gold
3:17 Dark Arts Behind Avocado's Rise
6:11 The Golden Hass Standard
9:27 Microeconomics of Avocados
13:12 Farm to Store Supply Chain
15:57 Breadth vs Depth
20:12 Billion Dollar Oligopoly
Why put the same timestamps in description and in comments?
There is no nafta fool.
Michaocan
Hey mate - as someone who can do their PhD in the Fruit Trade (if someone would want it), I have to say this is one of the most incredibly well put together and explained essays on the fruit industry (a specific commodity) I have ever seen. I think you make one GLARING error at the start, in that you sway too heavily into the idea of perfect competition, when fruit (except for a very small subset of hypersized economies of scale types) is much more akin to Monopolistic Competition. Branding (especially) and origin differentiation (which you capture) are the best ways to discern yourselves (to the intermediaries, not the final customers).
More and more (if you ever want some guidance on it) the apple business is doing incredibly well to develop Trademarks.
Otherwise... Absolutely SMASHING (get it...) piece. I will share this far and wide! (for instance... to my friend who works for Mission!)
What is mopolistic competition
@@somefishhere getting flashbacks to Econ 😢 low barrier to entry business I.e. fashion, food, salons. Very fragmented due to the diversity of buyer demographics and psychographics
thank (you) for this (commen.) (Have a nice day)
@@somefishhere A good example of monopolistic competition is fast food. There are no monopolies because of low barriers to entry and the fact that no firms have complete price setting power, but each firm does have the advantage of differentiation. Taco Bell is highly differentiated compared to Jack in the Box, with specific products that you can't find elsewhere, which means that they can raise their prices a little bit without losing customers, which allows them to behave a little bit like a monopoly even though they aren't one.
@@micahdesilva1685damn that’s cool
If Masterworks have a waitlist why would they pay you to get more customers
@@grant9904 Tell me more, a search only result in tons of sponsor ads.
Anyone who says the have a waitlist but can get you to the front means there never was one😅
Masterworks is a scam
Masterworks sets up a company for each painting and you only buy shares of the company. You own basically nothing, you're not as safe as stocks, and Masterworks' advertisements conveniently disregard the paintings that don't sell well
@@andyb2028 that’s literally the same of owning a stock then😂
Your math is wrong, you can't just divide 150% by 24 years to get the annual appreciation. It's 3.9% per year, not 6.2%
This is a huge mistake, yikes
MBA channel biiig yiiikess
3.9% would be 250%… you can’t take the 100 of and treat it as a 150% increase because it’s not. It’s a 250% increase. Glaring mistake.
Maybe he's rushing to finish this one
MBA out here giving us the rundown of whole industries while treating growth as a simple datum rather than compound. I guess they follow the Zuck doctrine of "If you aren't breaking things, you aren't moving fast enough."
BABE WAKE UP NEW MODERN MBA
No joke, my gf basically did that. What an awesome channel.
Same!
Amature...what you're supposed to do is listen to it on your own and then act like you're really smart for knowing all of it.
@@Fubastaexactly!
I'm a Mexican and here's what I can say about this subject.
When I was a kid avocados where like any other fruit. You could get them whenever you want to and as much as you'd like. I was proud because it's a local fruit so it made sense that it was cheaper.
As years went by I noticed that the prices just started to skyrocket. Nowadays buying one single avocado is a luxury. They have got really expensive. You could buy a whole meal for what you would pay for a single avocado, it's crazy.
That's because we are getting sold the avocados at a price premium because the demand on the US is so high. Farmers rather sell their product to the americans that would pay more than to us their fellow mexicans.
Now then, even after all of that has been said, this video shows me that they are the ones who set up the prices and have all the cards on their hands and you know what?
Good for them. Usually the farmers are the first ones to get fucked up so I guess I don't mind paying more if that means the farmer got paid fairly.
Now then, cartels always fuck things over. Like... Always... they are a bunch of thugs that will do anything for a quick buck. Just this year the prices of lemons skyrocketed because some idiots decided that they wanted to kidnap a ton of lemon farms and keep them to themselves. They are not just evil, they are stupid. They didn't know what to do with all those lemons and couldn't sell them anyway so they eventually left and let farmers back to their houses which brought back lemon prices.
I can see a future where some idiot decides to try and do something similar just to realize that trees can't grow fruit faster when you point a gun at them and just fuck over the prices of avocados.
Mexico is a great country and all but it's so covered in shit (and manipulated by the US) that you can't see the shiny gold behind all of that. It's such a shame really.
Mexico doesn’t suffer so much from American manipulation, as it does from a long-since crystallized oligarchy and an analog of that oligarchy; the cartel. The fact that multiple Mexicans were able to become some of the richest individuals (on earth) solely with Mexican assets, resources, and labor, shows that it’s a country with that potential, but that would rather sit in status-quo (the rich get richer, buildings in Polanco get taller, and the poor can just leave for the USA if they don’t like it).
I really don't like the bias he had against the farmers. He called the collection of independent small farmers an oligopoly. Does he even know what an oligopoly is? It also sounded like he was praising the corporate owned farms of Mission and that their vertical business model was superior because it meant the corporation kept the profits.
@@xungnham1388 It's a business channel, what do you expect? If Mission has a better business model, then that's just a matter of fact. No need to get emotional about it.
@@otheroption He's completely misusing the term oligopoly to connote a bias assessment of the situation. An oligopoly would first and foremost need collusion of independent farmers to price fix which he doesn't try to show. Instead all he did was present a supply/demand situation where supply had leverage and threw around a label of oligopoly.
@@sergpie yeah, but as long as US fruit oligarchs keep buying from cartels and supporting, changes will get more difficult over time
I have a huge “Fuerte” (strong in Spanish for it can take frost) tree that is 50 feet tall. Drops leaves and flowers all over. These green skin grow all over Sunnyvale/San Jose, California. Most not planted but squirrels eat 90% of my huge crop and drop seeds all over. The Haas ones much more popular since they can be shipped easier with the thicker skin… but I think the thin green skin tastes better.
I got very fat squirrels in my yard.
'The only asset class that has outperformed avocados is art, which brings us to our today's sponsor...'
Bro, the S&P 500 was right there ☠️☠️
Come to Zimbabwe. Avocados are still dirt cheap even though people consume way more than before. Exporters make a killing. However, I think it’s because many families have avocado trees on their yard (some even up to 4 trees)
Damn I heard the same thing about Kenya. Now I really want to visit (plus to try the Ugali/Nsima/Sadza depending on who you ask). When are they in season?
my wife's family in the philippines has a few avocado trees. every july/august we'd get avocado-d out! and man they were huge compared to hass ones sold in america, and just as tasty. i've become disappointed in what the mexican/ca avocado industry can produce in comparison, but i guess they have to do it year round.
Growing up in Kenya avocados were all over the place and sold for peanuts. I remember my grandmum's place which had an avocado tree that produced avocados bigger than a grown man's feast, oily and delicious. At peak season the avocados would fall from the trees and be eaten by dogs! Now Kenya has joined the avocado craze. Farmers are uprooting coffee to grow hass avocados for the insatiable Chinese market. Avocado rejects aren't thrown away, some people buy them and make avocado oil from them. This has become the new in fruit and its making farmers a lot of money
Damn that sounds delicious. I live in America and corn is so cheap right now so I want to start making Ugali. I guess you guys could use the avocado oil as a fry oil too
These Masterworks ads are gonna get you in trouble some day.
Dude your content is great, as someone who doesn't know shit about business/markets/etc, your content is an interesting look into different aspects and companies.
In the Philippines avocados are grown as feed for pigs. It is a diferent variety - much larger but taste the same as the smaller avocados sold in supermarkets outside the Philippines.
Could you please make a video on how you develop your analysis? Would pay for this.
I agree with the statement that Mexican avocados are superior. I used to hate avocados, then one day I went to a moms and pops Mexican grocer and bought avocados for my better half. He told me that the avocados were exceptionally better tasting than usual and asked where I bought them. Next time we went to the big chain grocery store we bought avocados from there and bought some from the Mexican shop. Wow no comparison. Side by side taste test of Peruvian and Californian big chain avocados compared to Mexican avocados proved Mexican avocados to be the tastier by a landslide. I ended up loving (Mexican) avocados and buy Mexican avocados exclusively now. If I’m going to pay $2.50 per avocado, I might as well buy the best of the best and Mexican avocados are that.
Stop sneaking ads into the actual content!!!!
Stop complaining. The man has to make money.
Amazing how well the masterworks add seamlessly integrated into the story line **mind blown**
You should do the canadian milk board next
I’m really glad that the farmers are able to have this kind of leverage over avocado companies. That’s how it should be
I was in south america for a few weeks and they had many varieties of Avacado. One variety they had was like 5x times the size of regular avacados, and it tasted really good too. seemed unpractical for most households though, and better for restaurants
Avocado is the greatest blessing of the Mexican people. It is a crop which gives the farmer, not the wholesaler, the advantage.
the netflix series Rotten has a great episode about avocados!! feel like it flew under the radar, but it’s a great ep and series as a whole.
This is why I love this channel! Business videos on topics/companies you never see anywhere else! Keep up the great videos. :D
you are a GEM. so happy to say I got here before you have a million subs!
We have a glut currently in Australia as such we can buy Haas for $1.20Au in the supermarkets here.
It's a FRUIT glut, globally (unfortunately). With the dumspter fire that is demand in China and Europe, all types are struggling. (Source: South African in the fruit trade, we are struggling to move oranges, soft-citrus, apples, pears, and blueberries)
i love your channel and long for new content. Thank God for the perfect timing
While I disagree with the concept of Masterworks, I strongly appreciate that you have done your research about its solid regulatory status, its stability, and its fundamentals. I've seen way too many stocks promise the world and get thrashed a quarter after the IPO when the truth is revealed, and I'm glad you're keeping the same high standards for your content to vet your advertisers.
Excellent video once again. There's so much about avocado I didn't know. In my home country of Venezuela, all the avocados grown there are greenskins, and it's not nearly as popular an ingredient outside of things like guasacaca. I wonder if that would be different if the main crop was Hass!
great channel you have here mate. well researched and well edited, glad that I found you right now where interesting comments about where you made mistakes or things you may have missed complete the picture, sadly with RUclips's algorithm once you get picked up and get some serious steam rolling the comment section will be a fiesta of scam bots with most value ending up buried.
The masterworks ad was smooth although I saw it coming when you had the Mona Lisa on the chart
My dad is from Michoacan. I remember I helped an uncle pick avocados as a kid. I took a big bag home and ate avocados with salt.
Ok?
Sounds delicious. Avocados salt lime juice and spicy peppers is the best combo
@JK8 My point is that avocados are cheap in Mexico
@@arandomzoomer4837 Yes, lime juice, salt, Yum
this is crazy to me because where i'm from we give each other avocados. my grandparents had the best tasting avocado tree (tree still there, they aren't), still haven't tasted a better avocado. anyway, we gave them to neighbours coz the tree produced away too much and they's fall and spoil. the hass rough ones are the best in my opinion. they're creamy and taste good.
FUN FACT: Avocado ( pronounced AGUATL) means "Testicle" in the Aztec Nahuatl Language.
1. Pick before sun comes up.
2. Pack day time powering HVAC with solar.
3. On truck or train or plane at night to USA.
Using alt energy for HVAC would be good way to cut costs for avacado co.
As a Latino raised by parents that emigrated to the US, One of the most vexing things our community has had to deal with is a huge jump in price of avocados. Because of its booming popularity with non-Latino Americans In the past 10 years. Before hipsters and the upper class started Fetishizing avocado toast, we used to get avocados for $.50.
Thankfully ALDI came to the US at the same time and now sells avocados Between $.79 and $1, where I live in the north east.
Before you cream over ALDI a little too much - they are one of the most terrible retailers to supply to. They definitely look past "cosmetic" problems, but because of their dominance in some spaces - they squeeze the producers to beyond what's termed "at-cost" delivery. You end up delivering to ALDI not because it's economical, but because the alternative (dumping) is worse. It's not fun.
@@sooibot Interesting. I didn’t know they were a bad retailer partner for suppliers to do business with. That explains why they have the cheapest prices for a lot of their produce versus their local competitors. ALDI usually comes in $.50 to $1.50 less on average compare to the same fruit from a nearby supermarket.
Seeing that you have a Dutch sounding name, you’re probably from Europe and are familiar with how those Germans operate. Are there any good RUclips videos or documentaries on ALDI’s shady business practices?
Another question. ALDI’s four letter competitor, LIDL, has arrived recently to America. They are running funny TV commercials, using actors pretending to be Eastern European mafiosos, with the phrase ‘LIDL has suspiciously low-priced groceries!’
ruclips.net/video/jdv__8bD0vk/видео.html
Are they operating the same way as ALDI?
@@brian_castro they operate very similarly to Aldi.
I'm from South Africa. In Germany LIDL is slightly more upmarket. In UK they compete on par with another, as discounters.
Obviously the issue (with supplying them in UK), is that they have no long term relationships (as they do in Germany with LIDL but not Aldi.)
The short term focus (yearly), causes you to compete heavily for their favour, and if you do a good job in one year, it doesn't matter the next.
They also negotiate the prices down, and will take it from the most unscrupulous. Bottomline though, some big suppliers don't care - and just want to move product. Like Del Monte in the video.
Is what it is.
To be fair; your community would have had to deal with inflated avocado prices in the east coast no matter what, mainly because avocados necessitate mild climates, and shipping them such distances comports added costs. I remember avocados going for nearly $1.75/unit in 2008, well before Instagram and “hipster hype”.
Wow the last line brought a tear to my eye
its an understatement to say your content is really good, thank you keep it up
I was surprised you didn't mention Westpak. I eat A LOT of avocados, and I'd say Westpak is the most common company I see on the stickers.
I don't think it's easy to take the net profit margins at face value since those companies are incentivized to increase declared expenses to reduce taxable income. We can look more into gross margin as a more believable marker among the 3.
Your videos are usually incredible but this one is priceless.
MBA grew 20k subs well deserved
Hey Modern MBA, I always enjoy your breakdowns and was thinking that the HBO Max debacle going on at WB might be an interesting topic for you to check out. In all the discussion regarding the topic, I don’t think I’ve seen anyone discuss the details such as how one of the most prestigious film studios in Hollywood ended up in 60 Billion dollars worth of debt. Or how the scenario is likely going to unfold with this merger with Discovery along with the purge Zaslav is doing. I’d like to here your take on the matter. Just a suggestion. Love your channel btw
Another brilliant video, loved it.
Thank you for an extensive overview.
However, I’m surprised that you decided not to mention that growing avocados requires a substantial amount of water, and consequences of this requirement on local communities.
Avocado toast keeps you poor isn't a meme and involves a literal cartel conspiracy
What a time to be alive
This content never misses
Nice Video.......
Don't forget to mention New Zealand. One type of avocado here is as big as a softball.
Since becoming vegan in 2018, my only source of fat is PB, hummus, and avocado.
I eat about 12 avocados every week.
For the most part they are free in south Florida. So many people handing them out at the same time. The trees produce a lot of fruit. Big good tasting ones not Hass.
This guy deserves so much more views. Great content! ❤️
What an amazing description of “aguacate “ as we say in Spanish. Really, great job.
I guess we are lucky here in the south eastern US because I have never seen a Haas Avocado over $1. Still a very interesting video.
I eat a lot of avocado, not because I am rich. I work for a fast food restaurant that has guacamole, and part of my compensation is in food.
Ur analysis is great mate, it would be really great if u could make a deep analysis video on Korean chaebols.
Great start for the week!
Another amazing video. Keep it up!
I fucking love this channel
Breaking Guac is gonna be something to behold when it comes out
Ahh, Jesus, you got me. Nice masterworks lead in.
This is very good information. Thoughts on making similar videos for other produce markets?
People worried about avocado cartels but buy from dole which actually is a fruit cartel
Underrated channel
This title and thumbnail appealed to me a lot more than before and I’m finally watching 😜
Great vid. I gave 100% watch time
All farmers are constantly lobbying for people to eat more of their produce, it’s not just avocado growers, that’s not unusual or note worthy. What’s unique is their success.
us is moralistic as long as the bottom line of a corporation or convenient lifestyl of its population arent threatened. Cartels and Saudi Arabia are a prime example of this.
"you can always count on America to do the right thing, after they have exhausted all other options"
I think it’s possible that’s why Del Monte doesn’t grow its own avocados since otherwise it might be threatened with media exposure of “ill treated” or “under paid”workers even if it’s the same standard as the rest of farms in the country.
Well, at least we’re not like Mexico; no morals, nothing excellent; just the poor and self-flagellating “muchedumbre” and the Polanco types that stash their cash in countries they like to talk shit about, no in-between.
5:47 BRUH who peels an avocado like that LMAO
I know right 😂
amazing content and channel, super interesting stuff
You told is so well!
I am from Trinidad and avocados were plentiful. We have a fruit that has more in common with the Florida avocado than the Haas.
Another great video!!
16:43 you got the graph wrong bananas is at 39% and pineapples is only at 11%
avocado doesn't sound like a word anymore lol
I will drink everytime he says avahcahdahs
Edit: I got alcohol poisoning
Bloody hell *bites avocado toast @1am*
Keep up your awesome content dude! God bless you :)
im surprised there isn't more comments or views! but great video!
just wish you didn't do that ad.. that is basically a NFT
I wish there was more info on the cartels. That was glossed over way too quickly
Interesting thanks
Excellent and super insightful analysis! I have to ask (as an aspiring entrepreneur) did you take a business analysis course or you learnt it from school or work? Do you mind sharing your research tools and processes? Would be super grateful if you reply, Thanks.
good video
I would be really interested in an addendum to this video talking about how climate change is thought to impact the industry, given avocados' sensitive growing range
It's not thought fool, it is going to decrease the production no matter what and that is actually a good thing.
What the other guy said - except there's a few things going FOR avocado. The first is that it's far less concerned about rain (rain spells in fruit production in general can spell disaster). The other is that it will cause production to have to "move up an altitude."
The big secret here? The alternative places that have not yet expanded as much as Mexico, are India and Africa. If they get their act together, the green gold will flow.
@@sooibot No green gold will flow fool. Water will be finished in those places.
@@nishant54
The Sahara and the Horn of Africa have been experiencing levels of rainfall so high, they are causing Chinese and European companies to build agricultural infrastructure in arid places previously covered in sand. The Sahara is likely going to see intensive agriculture by the 2030s. The DRC has an optimum climate for avocados, but given it’s another poor near-equatorial country, it’s likely not going to set-up any meaningful industry on its own- they still can’t produce optimally from their land, which though mostly arable, is left untouched.
Maaan, so glad i activated the notifications
The episodes are so good. I added the notification so that I am alerted when a new episode is uploaded.
Glad you're here!
Was the price of avocado in 95 adjusted for inflation ?
Each and every video is great! Who would've thought about the business of avocados? Keep it up!
🥑🔥 is it just me or are these uploads happening more frequently than before 🤔🤔 great vid!
Have you seen the large smooth green skin avocado??
Aldi sells avocados for only 69 cents each and they’re delicious
Love your videos but this video could have been half the length and communicated the same information
I saw that Sponsorship plug coming. I watch too much economics content
Anything with Masterworks on it gets a dislike and watch stops right on the ad. I can find something else to watch that isn't sponsored by them.
That last insertion of Mission brand means that this was sponsored by it, and that explains the shadow misrepresentation of "everything from México is tied to narco" and the frame of "Mexican and California oligopoly" which is beyond ridiculous when it involves hundreds of small producers , just that they have bargain power which is something HEALTHY, or we should go back to banana's Countries model? Where the industry determine the cost in detriment of the producers?
I have chickens, avocado, mango and papaya trees. Eggs are free as well as fruit 🇩🇴
wow, a chickens tree?
Del Monte is pronounced
Del Mow-n-te
It means "from the mountains"
*laughs in Caribbean*
I ate an avocado everytime he said avocado. Now I'm an avocado.
Yeah this sounds like an ad for Mission Avocados.
It even have a insertion at the end of the video, just seconds after making the association of "blood green diamonds" of whatever avocado is not sell by Mission
Having a big diverse of vegetables then just depend on one product that market can collapse any day
When I first tried an avocado, I couldn't believe that anyone would eat it of their own free will, and now you're telling me that production can't keep up with demand, this world is doomed.
i eat 50 lbs per year. maybe you got a bad one, or it was under or overripe. i have with just some salt
It's not expensive if you consider paintings are just some paint splashed on a canvas. And avocados are just a seed smashed into dirt and left to grow for a while.
Still haven't had any.
One of those things I will try not to do.