New Zealand's avocado sector is entering a difficult season, with growers and exporters preparing for a wide range of market outcomes. According to NZ Avocados chief executive Brad Siebert, pressures are coming from both domestic conditions and the broader global supply environment.
Siebert says global competition continues to intensify as more supplying countries extend their export seasons. This has narrowed the market window for New Zealand exporters. Locally, growers in the western Bay of Plenty have dealt with strong winds, and recent rain has slowed harvest operations by limiting access to orchards.
Exporters have shipped about 65 per cent of the volume expected to be exported. This is typically completed by the end of January, but Siebert says exports are likely to continue into February. Around 60 per cent of New Zealand's avocado crop is exported, with the remaining 40 per cent sold domestically.
Australia has historically been the dominant export destination. For about twenty years, the country took 85 per cent of New Zealand's export crop. Siebert notes that this share fell to around 50 per cent in the last four years, and forecasts for the current season indicate it will be just over 20 per cent.
He says the industry now relies on broader market access across Asia, as well as the USA and Canada. However, growers and exporters face strong competition in many of these markets from other origins with overlapping volumes.
Siebert says the main challenge is timing export flows to align with market demand and secure workable value windows. He adds that there is uncertainty around the level of value that can be achieved from this season's crop, and that long-term strategies will focus on improving productivity and strengthening the presence of Avocados from NZ in key markets.
Domestically, Siebert says there is ongoing work with retailers to promote avocados as a regular household item in an effort to increase local consumption.
Source: HortNews
