Green with envy: supply of Australian avocados skyrockets
Australia needs to consume and export more avocados, according to a report from RaboBank that outlines the country’s increasing production growth.
The publication, aptly titled ‘The ‘Avolanche’ of Australian Avocados’, suggests that with a large number of trees, particularly in Queensland and Western Australia, maturing in the last season, there is an oversupply of the fruit. This has resulted in a decrease in their prices in the retail market — a welcome reprieve for consumers faced with increased grocery prices.
Production has increased substantially in the past 12 months to the point where each person in the country could be allocated a mighty 22 avocados each from the yearly harvest.
The glut is set to continue in the future, with domestic production expected to increase by 40% in the next half decade. As such, the report suggests that there will need to be measures taken to increase consumption in the domestic market and to export more of the fruits. These motions will be necessary in order to support sustainable prices for growers.
Already exports have gone up, increasing by 350% in the last year, with Singapore, Hong Kong and Malaysia being large importers of the locally grown fruits. The country is also increasing its exports to the Middle East and Japan albeit with the latter market representing something of a hurdle.
Export competition is rising from markets like Mexico and South America and trade barriers prevent Australia from exporting as strongly as it might want to to Japan, China and South Korea.
“While exporting provides the greatest opportunity for Australia’s avocado industry to attract a good price and improve revenue, ensuring high export quality is paramount to maintaining the reputation and premium of the fruit, and continued investment in improving export access remains a key priority for the Australian avocado industry,” said Pia Piggott, the report’s author.
The full report is available online to Rabobank customers.
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