Stable pricing, quality and service will sustain Aussie Avo

Avocado growers within Australia are sitting pretty thanks to strong demand and an increasing appetite for one of nature’s superfoods in Asia, particularly Malaysia and Singapore. Price isn’t the only consideration for countries where growers have established relationships though, according to Jennie Franceschi of AusPak Avocados. “We’ve sold a little cheaper, and for a little more, but where we are now is a good price, a good return to the grower and a reasonable price for us and for them,” she says of her export customers. “When it comes to export there is a smaller size demanded, so there can be an issue getting the smaller size fruit. We don’t often talk about money though. They are happy with the result and get it 52 weeks a year.”

According to Ms Franceschi the key is delivering a continuous, consistent supply and stable pricing, which means giving at least a couple of weeks’ notice if prices are to increase. Being careful to educate retailers on how to ensure that their customers get a great product also benefits both retailers and growers. Some of her customers, particularly in Malaysia, have also started accepting slightly larger fruit (18 or even 14 to a box as opposed to 28-30), providing more options for their customer base.

“It is a ‘going places’ industry. The Australian market place supply this season was longer than usual, 30% more compared to previous high volumes. This was due to a large NZ and WA crop," adds Ms Fanceschi. In general things have expanded exponentially, according to her. "With avocados you have a five year plan, as we know we have 5 years from the time of planting before production will be reasonable. This allows us to plan for this increase in production well in advance. Avocados have continued to perform in the market place."

While currency rates may have an impact on the decision to import for other countries, the current value of the Australian dollar against the US dollar is working in Australia’s favour. “Our currency is currently in our favour, as it comes back I don’t get so much pressure on price. In the past I’ve had to compete with New Zealand in Asia, but right now we’re pretty on par with New Zealand prices,” adds Ms Franceschi.

While there is certainly demand for Australian avocados from China too, with Ms Franceschi fielding at least three enquiries per week, lack of market access prevents this at the present time. "We have seen Australian fruit in China but I expect this has gone via Hong Kong. I expect the cost of this route is why avocado is so expensive there.

For more information:
Jennie Franceschi
Auspak Avocados
Tel: 0061 417 988 246
Email: gm@avozexports.com