Key Points
- Higher prices of Australian avocados abroad mean an overabundance for the domestic market.
- Avocados Australia CEO predicts a ‘stable market’ until at least February next year.
- Australia must compete with countries like Mexico and Peru for avocado trade.
Not so long ago smashed avocado was a symbol of unnecessary spending.
But amid rising cost-of-living concerns, one comfort for many Australians has been the consistently cheap price of this beloved fruit.
With industry experts tipping the market to remain stable for the next few months at least, what’s behind these low prices?
Record avocado production
Australia’s avocado production has grown significantly over recent years, with 115,000 tonnes produced in 2022/23, for a retail market value approaching $1 billion.
This was 32 per cent higher than pre-Covid in 2018/19 and 140 per cent higher than 10 years ago.
Relatively new to exporting, Australian producers save found sizeable markets in Hong Kong, Singapore and Malaysia.
An avocado plant. Source: Pixabay / Pixabay
John Tyas is the CEO of Avocados Australia, the peak industry body for the Australian avocado industry.
He said such growth, combined with the higher prices Australian avocados demand abroad compared to other big producers like Mexico and Peru, means there is currently an overabundance of fruit for the domestic market.
The result has been “relatively low prices” at the supermarket, a trend he said was likely to continue until at least February next year.
How much avocado does Australia eat?
According to AusTrade, Australians eat 4.5kg of avocados — or about 20 fruits — per year.
Tyas said this doesn’t paint the whole picture.
“Fifteen per cent of Australian buyers buy 50 per cent of our avos, which means there are a lot of ‘light buyers’ to target,” he told SBS Italian.
Australia is the third-largest avocado consumer in the world, and also one of the world’s top 20 producers.
But exports are struggling to grow at the same pace as production.
“Our focus is certainly Asian markets. We want to expand in Singapore, Malaysia, Hong Kong, and Japan, where only Western Australian avocados can access at the moment,” Tyas said.
Chinese and Indian markets are also currently in the crosshairs.
“We recently got access to India, which has lots of potential, and we desperately want to get access to China. We think it’s a market with fantastic opportunities for Australian avos; we know that Chinese importers are desperately keen to source Australian avocados,” he explained.
John Tyas, CEO of Avocados Australia. Credit: L Yorkston
This month, Avocados Australia signed a purchase agreement with China’s Shanghai Huizhan International Trading Co. Ltd. for $300 million and several memorandums of understanding with key organisations to pave the way for future avocado trade.
“We need the Australian government’s help to push avocados’ prioritisation, along with blueberries, so we do not miss this opportunity,” Tyas said.
He said Australia must compete with other countries, where cost of labour is considerably lower, through quality and service.
Japan imports nearly 60,000 tonnes of avocados a year, 43,000 tonnes of which come from Mexico and 14,000 tonnes from Peru, according to Avocados Australia.
Growing pains
Currently 65 per cent of Australia’s avocados currently come from Queensland, but this could change in the near future.
Giorgio Vacchiano is a forestologist and associate professor of agricultural and environmental sciences at the University of Milan.
He’s concerned about the impact climate change could have on Australian avocado production.
“Climate change will make northern Australia too hot and dry for avocados: we will see more orchards in southern Australia,” he told SBS Italian.
He cited the example of Mexico, the world’s leading avocado producer with 2.5 million tonnes in 2022/23.
“There are major issues of desertification in Mexico related to avocado farming. Avocado trees need a lot of water, and Mexico does not have it. Most water is directed to the orchards, leaving whole areas without water,” Vacchiano said.
In Australia, Vacchiano said there could be further problems at the environmental level.
“Higher temperatures will force trees to produce smaller fruits, enhance the water demand and create more resistant pathogens. Also, the wind will be another issue: avocado trees are susceptible to strong winds, particularly at the end of their lives,” he said.
“This problem can be overcome by planting natural barriers around the orchard, such as eucalyptus trees.”
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