In New Zealand, avocado growers have faced challenges with the declining prices of Hass avocados over the past three years. The introduction of the GEM™ avocado presents a potential turnaround, being marketed as a premium variety and sold exclusively online at a price of $3.80 each.
Seeka CEO, Michael Franks, compares its potential impact to that of the Gold Kiwifruit in the 1990s. The industry has been hit hard by extreme weather and increased production in export markets, leading to a decrease in export volumes. With 85% of exports traditionally going to Australia, overproduction there has also impacted New Zealand's market. Domestic retail prices have seen a 61% drop, with avocados once sold at $3.22 now going for $1.25.
This situation has led some growers to consider alternative crops. In response, Peter Guy, a grower, initiated a shift towards direct-to-consumer sales through The Avo Tree, a subscription service, after consulting with Franks. This move aims to offer better returns for growers and superior products to consumers. Thorley Robbins, director of The Avo Tree, supports this approach, highlighting the benefits for both growers and consumers. Franks is optimistic about the GEM™ avocado's potential to revitalize the industry.
Source: ruralnewsgroup.co.nz