Growers find expanding markets to save bumper avocado crop from oversupply
Summarized and contextualized by DistantNews.
At a glance
- Australia's avocado industry is successfully managing a high-volume crop this year, unlike previous seasons plagued by oversupply.
- Increased domestic consumption and record export volumes are absorbing the bumper harvest, a significant turnaround from recent years.
- Growers are seeing returns on their crops, with prices for Shepard avocados as low as 90 cents per piece, and national production is projected to reach 170,000 metric tonnes in coming seasons.
The Australian avocado industry is navigating a high-volume crop year with unexpected success, finding robust markets both domestically and internationally. This stands in stark contrast to previous seasons where oversupply led to significant market challenges.
We see there's great value in exporting Shepards early, removing them from the domestic market to ensure that growers get the best economic return.
Strategic export initiatives, particularly for early-season Shepard avocados from Queensland, have been crucial. Brent Chambers of The Avocado Collective highlighted the value of exporting this fruit early to ensure growers achieve optimal economic returns. This approach helps manage the domestic supply and prevents market saturation.
During the Shepard season we had supply up around 600 to 650,000 trays a week, which two or three seasons ago we would have said that was impossible to clear [but] that fruit cleared every week.
Rising domestic consumption has also played a vital role in the industry's improved ability to handle large harvests. Lawrence Massasso, an avocado grower and director of Avocados Australia, noted that volumes previously considered unmanageable are now clearing weekly. He credited a growing base of committed Australian customers who consistently support local produce.
We have more and more really committed [Australian] customers who will continue to support us come hell or high water.
Despite lower retail prices, with Shepard avocados sometimes selling for as little as 90 cents each, growers are reportedly receiving a return on their crops. Rabobank senior analyst Michael Harvey projects national production could reach approximately 170,000 metric tonnes in the coming seasons, with Queensland remaining the largest producing state. Up to 30% of the national crop was exported this season, with Hong Kong, Singapore, Malaysia, Japan, and Thailand being key markets. Global demand continues to grow, matching the increasing production.
Queensland's still the largest producing state โฆ we're still heading towards a record production in the coming years and that will mean greater exports as well.
Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.