The avocado industry has hit its stride within Australia, as consumption increased to an average of 3.1kg per person per year, prices remain strong and growers have been able to drive increasing demand to match supply. One of the organisations involved with that success, which has developed over the course of 10-15 years, is 3-year-old Avocado marketing and strategy body The Avolution. Avolution is a grower owned organization set up along the lines of the successful groupings that have appeared in the US, including Mission Produce. “Avolution came together because there were growers that produced and picked successfully for six months of the year, and they wanted to do a good job of marketing, so the thought was ‘why don’t we outsource this?’ get a team together and get people on board for 12 months of the year,” says Avolution CEO, Antony Allen.
Since it first came together in 2012, Avolution has increased from two grower members to close to 75, always focused on a sustainable return and providing up to date strategy and marketing information for industry to act upon. “A lot of it is demand building. It’s at a base level rather than a transaction level as retailers do. Consumption building is a longer term investment,” notes Mr Allen. “With avocados there’s been generous marketing for the last 20-25 years and there’s always been marketing happening to hit the right note. As long as growers have had some small successes along the way they’ve kept going. You have to be future focused.”
Work to be done on exports
As consumption is comfortably sitting high within the Australian market, Mr Allen says it could still be pushed out a further 10-20%, but the focus has also turned to developing export markets, especially in South East Asia (mainly Singapore), where the market is ripe for potential and growers have ‘just scratched the surface’ according to him. Again the focus is on a long-term investment, and the recognition that those export markets are where Australia was around 20 years ago. “it’s about seeing something for the future. At this point the horizon is still a long way out and it’s the evolution of a whole new market but you have to do that because otherwise the product ends up being compromised,” notes Mr Allen. This will be an interesting phase for the industry, he notes, as South East Asia is part open to a very international market for avocados, including those from Peru, Chile, South Africa, Mexico and California. “All of those markets spend amazing amounts on promotion, such as the Superbowl ads, because the product is of the size and drive to go to that level.”
More areas ripe for success
Avolution also works with Lychee growers in the same way, another industry with scope for more success with the right focus and strategy, applying expertise with economies of scale, transport, packaging and volumes, according to Mr Allen. “Our business model runs on volumes, and lychees fit in well. We’ve doubled results over two years working with lychee growers, and expect it to double again.”
For more information
Antony Allen – CEO
The Avolution Pty Ltd
Phone: +61409330030
E-mail: ceo@theavolution.com.au
Website: www.theavolution.com.au