Avocado prices in New Zealand have dropped to as low as US$0.19/kg in some regions, creating a challenging environment for growers despite strong consumer demand.
A Woolworths spokesperson said avocados were the best value seen in years, with large volumes expected over the next two months. "We have been selling pre-ripened avocados for between US$0.60 and US$0.72 each for the last month and have seen record demand. We expect the great value to continue as we move into spring and summer," the spokesperson said.
Grower Hugh Moore from Katikati reported that high volumes of fruit were pushing prices down. "A lot of the Bay of Plenty aren't harvesting for it with winds and that, there's certainly a lot more rejects. But even class one fruit on the New Zealand market has been getting ridiculously low prices," he said. Moore added that larger blocks of younger trees were contributing to the oversupply by harvesting early. "From an avocado grower's point of view, yeah, it's not going to be a stellar season."
Export conditions are also weighing on growers. Moore said: "Export has started a little bit slower than the industry first thought, that's mainly because of tariffs in America on supply from Peru. Peru has got its largest crop ever, it's about 19 million, I think. It's a huge amount. They're in most markets and dropping the price. So America is out for New Zealand, really."
Brad Siebert, chief executive of New Zealand Avocado, said that while the quality this season is good due to weather conditions, market dynamics remain difficult. "We're currently getting into a full swing of our export and harvest season, and I guess this is a natural high-volume period on the local market. Strong international competition is putting real pressure on the entire sector, especially growers. It's a real challenge with the international dynamics around trade, around other nations, putting a lot of fruit into our key markets," he said.
Siebert noted that overall annual estimates are about 1 million trays less than last year. Local market volumes remain similar to previous seasons, suggesting that prices are being driven more by market conditions than supply volume.
Source: RNZ
