Nation grapples with an avo-lanche

A NEW report states Australians will need to consume and export more avocados as growers around the country navigate a period of soaring production growth now and into the future.

According to the report – from specialist agribusiness bank, Rabobank – the per capita (person) supply of avocados is estimated to be up by 26 per cent on the last year, equating to 4.8kg and 22 avocados for every Australian.

Rabobank says a significant maturing of avocado trees in the past season has resulted in a bumper crop and a national oversupply – seeing retail prices fall to a record low of $1 each in June 2021 and July 2022.

While low prices were welcomed by consumers, grower margins have faced extra pressures with increased input costs and labour shortages, according to RaboResearch associate analyst Pia Piggott.

Ms Piggott said while all avocado-growing regions are expecting production growth, it will not be “linear and consistent”.

“Significant weather events and drought are also likely to affect the country’s avocado production, while the recent varroa mite incursion in Australia may pose a threat to pollination and therefore production, and there is likely to be some industry consolidation along the way as well,” she said.

To regain balance in the avocado market, Ms Piggott said both “increased domestic demand and larger export volumes” were required.

“Avocados have a strong health halo and are price competitive amid the broader cost-of-living pressures, and this has supported Australian domestic demand,” she said.

“The Singapore and Hong Kong markets have been stand-out performers, with Australia growing to account for 46 per cent and 12 per cent market share of their avocado imports, respectively.

“Malaysia remains an integral export market and has rebounded from Covid-related impacts, with Australian exports making up 46 per cent of the total imported avocados into Malaysia. Exports to the rest of the world are also up, including to the Middle East and Japan.

“While exporting provides the greatest opportunity for Australia’s avocado industry to attract a good price and improve revenue, ensuring high export quality is paramount to maintaining the reputation and premium of the fruit, and continued investment in improving export access remains a key priority for the Australian avocado industry.”