Aussies urged to splurge on avos by industry chief

Perfect weather and industry expansion have pushed avocado harvests through the roof. Here’s what it means for farmers and consumers.

Avocado harvests have smashed records this year, driving prices down to record lows with supply up by 26 per cent.

While affordable prices are a welcome thing for consumers, growers are feeling the strain from the record low returns.

Avocados Australia chief executive John Tyas says the dirt-cheap price of avocados doesn’t cover growers’ escalating costs of production.

John Tyas, Avocados Australia chief executive. Picture: Supplied

“Resources required to produce avocados, such as fertiliser, fuel and labour, are expensive and hard to source,” Mr Tyas said. “Growers are seeing no significant returns.”

However he was still optimistic growers could find international buyers willing to pay a good price for the crop, with the industry focusing on “opening new export markets to India, South Korea and China” as well as ramping up exports to already established markets such as Japan, Singapore, Malaysia and Hong Kong.

Exports were critical to create sustainable prices for growers, and ensure the industry remained balanced, he said.

A recent report by Rabobank revealed the sudden boom in avocado harvests was likely to continue for years.

“Australia’s avocado market is cycling through a period of significant production growth” the report states.

“The boom was driven by a 21 per cent increase in the hectares of avocado trees in WA that reached maturity and produced fruit in this season, coupled with optimal growing conditions in the state,” RaboResearch associate analyst Pia Piggott said.

A recent report from Rabobank shows a 21 per cent increase in avocado trees that have produced fruit in WA this season. Picture: Zoe Phillips

The increase in hectares planted was an industry response to past harvests not being able to meet consumer demand.

The report says industry forecasts showed domestic avocado production would expand by 40 per cent – or 50,000 tonnes – in the next five years.

The good news is consumers in Australia and overseas have a healthy appetite for avocados.

Australian households consumed 31.2 per cent more avocados in 2021-22 than the previous year, the Rabobank report said. The number of households that bought the fruit also expanded, up 6 per cent on the previous 12 months.

“There has been a large consumption increase over the last 12 months,” Mr Tyas said. “It used to be 3.8kg per person, however last year it was 4.5kg per person due to incredibly low prices.”

And his advice to consumers was to take full advantage of the value and healthy benefits of avocados by eating even more this year.