The avocado industry in Australia faces an avalanche
Fresh Avocado
Australia
Published Jul 29, 2022
Tridge summary
Australian avocado production has soared in the last 12 months and rising consumption and exports will be the key to managing the supply glut, according to a new report from Rabobank.
Original content
In the Australian Avocado 'Avolanche', the bank's outlook for the avocado industry, Rabobank said a significant maturation of avocado trees in the past season – mainly in Western Australia and Queensland – has led to a bumper crop, causing a domestic oversupply and seeing retail prices drop to an all-time low of AU$1 each in June 2021 and again in July 2022. Additionally, retail prices for 2022 remain a 47 % below the five-year average. RaboResearch associate analyst Pia Piggott said low prices have put considerable pressure on growers' margins, already squeezed by rising input costs and labor shortages. “A bumper crop in 2021/22 in Western Australia was a turning point, with industry estimates of avocado production in the state being a staggering 265 per cent compared to the previous year,” said Piggott. "This was driven by a 21% increase in acres of avocado trees in Western Australia reaching maturity and producing fruit this season, coupled with optimal growing conditions in ...
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