By 2030 it is expected that the middle class in Asia Pacific will be 10 times larger than the total population in the U.S. They are adopting avocado consumption.
China imported 32,100 tons of avocado in 2017, increasing more than 1,000 times from just 31.8 tons in 2011. China’s avocado imports grew 28% year-on-year in 2017. In September 2017 Alibaba sold 80 tons of Mexican avocado to China in just 2 days.
Source: Promexico
1 USD = MXN Investment in USD Investment in MXN Hectares (10'000 m²) Production in tons Nominal price increase of hectare Price increase of avocado
20 10 200 7.00% 3.50%
1,000,000 20,000,000
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
35,000
36,225
37,493
38,805
40,163
41,569
43,024
44,530
46,088
47,701
Projected Sales
7,000,000
7,245,000
7,498,575
7,761,025
8,032,661
8,313,804
8,604,787
8,905,955
9,217,663
9,540,281
Total expenses (40%)
(2,800,000)
(2,898,000)
(2,999,430)
(3,104,410)
(3,213,064)
(3,325,522)
(3,441,915)
(3,562,382)
(3,687,065)
(3,816,113)
Earnings Before Taxes (EBT)
4,200,000
4,347,000
4,499,145
4,656,615
4,819,597
4,988,282
5,162,872
5,343,573
5,530,598
5,724,169
1,260,000
1,304,100
1,349,744
1,396,985
1,445,879
1,496,485
1,548,862
1,603,072
1,659,179
1,717,251
2,940,000
3,042,900
3,149,402
3,259,631
3,373,718
3,491,798
3,614,011
3,740,501
3,871,419
4,006,918
Price per tone (1'000 Kg) in MXN Income
Taxes (30%)
Net Income ROA ( Net Income/ Total Assets) IRR in nominal terms IRR in USD assuming 5% depreciation per year
11.9% 20% 15%