The avocado market in China is increasing in popularity and the acceptance of the Chinese consumer for avocados is also increasing. This does not go unnoticed by Chinese companies who are looking into the avocado business as the market conditions change. Last year in May the avocado market was really good, avocados were sold for good prices and that gave a lot of companies good profits. This year those conditions changed drastically. Many companies saw the conditions last year and decided to start investing in this fruit, which resulted in an oversupply in May this year and lower prices for avocados.
China is a growing market for avocado, but it is not ready yet to absorb such huge amounts of supply. Last year the market demand and supply were in balance, but this year that was not the case. Chilean avocados entered the Chinese market all at the same time, which forced the prices down. So in May the market was bad and now slowly it will develop to a more stable market again as the supply gets less and people that lost money will leave the market. China is not yet at the same level as for example the American of Japanese market with importing avocados, the demand is growing but not at the same pace. China still needs some years to develop a stable demand for this fruit and to let consumers really accept this as a normal fruit for their daily life.