Millennials and other avocado fans can celebrate lower prices now and in the future, but developing export markets is becoming an important goal to ensure the industry will remain sustainable.
As the WA avocado harvest moves into full swing, Hass avocados were selling at Woolworths for $1.50 and Coles for $2 each last week, far lower than the $3.50 or $4 often commanded over the past five years.
Karri Country Produce owner Jennie Franceschi, wholesaler of WA avocados, said between 30,000 and 80,000 trees had been planted annually in the South West over the past six years. As avocado trees take five years to deliver their first fruit, even bigger volumes will hit the market in coming years.
Manjimup avocado and apple farmer Vic Grozotis said though climatic events might cause shortage-driven price spikes, overall the long-term trend was spiralling downwards because of the huge increase in future production.
According to Avocados Australia, 10 years ago WA produced 3000 tonnes of avocado, growing to 20,000 in 2017 and expected to reach 30,000 within five years. Australia-wide, 77,000 tonnes was produced last year, expected to grow to 115,000 tonnes by 2025.
Manjimup grower and packer Vic Grozotis
Mr Grozotis said that despite lower prices this year, growers were still achieving a reasonable return: “Avocados are now more affordable for the consumers and now represent good value for a quality WA product, while the price paid to the farmer is also reasonable. We’ve reached a good pricing point for a sustainable industry, but need to maintain that balance.”
Future bigger volumes mean developing export markets is vital to soak up the rapidly growing supply. WA already exports a small volume to Singapore, Malaysia and Hong Kong.
Avocados Australia chief executive John Tyas said the first consignment of WA avocados to Japan would occur within weeks, after years of negotiations to open up the market. Other potentially important export markets include Thailand and China.
“Australians eat on average 3.5kg of avocados a year,” Mr Tyas told thewest.com.au. “Only 70 per cent of Australian households eat avocados, indicating room for further growth.”