Despite the cost-of-living crisis, avocados have remained affordably priced, with a projection of sustained affordability. Australia is on track to produce a record 139,000 tonnes of avocados this year, with expectations for production to increase over the next five years.
However, this surge in production is causing concern among farmers due to the potential for oversupply as thousands of hectares of avocado trees begin to yield fruit. In response, farmers are exploring new markets to mitigate the risks associated with oversupply. The search for new markets was partly triggered by the pandemic, which saw a decrease in demand from restaurants and cafes, leading to instances of produce being discarded.
Despite a rebound in demand from the hospitality sector, the industry continues to face challenges with managing supply levels. In the 2020/2021 season, avocado production stood at over 78,000 tonnes, escalating by 56% to 122,197 tonnes, valued at $403 million, in the following season. A slight decrease was observed in the 2022/2023 season, but projections for the 2023/2024 season anticipate a 20% increase in production, attributed to 1,500 hectares of new plantings.
According to Rabobank analyst Pia Piggott, the fluctuation in production volumes in Western Australia is due to alternate bearing patterns in avocado cultivation, leading to variable yields.
Source: abc.net.au