FBIN, Food Manufacturing, Global Markets, Market Insights, News

New Rabobank report details Australian avocado production and exports

Australia’s avocado industry is in for another year of increased production and low prices, according to a new report by agribusiness banking specialist Rabobank.

However, the world’s growing appetite for the popular nutrient-packed green fruit is offering growers some relief, with increasing export demand for Australia’s produce, the report says.

In its recently released Global Avocado Update 2024, Rabobank says production forecasts for the financial year 2023/24 Australian avocado crop are up by 20 per cent year-on-year (YOY) to 139,000 metric tonnes. This sees Australian avocado production at a record-high level.

Report co-author, RaboResearch analyst Pia Piggott, said the growth is driven by more than 1,500 hectares of avocado planting expected to reach maturity this year.

“And expansion in Australian avocado production is set to continue with more than 4,000 hectares of orchards maturing in the next five years,” said Piggott.

Piggott said despite the local market remaining oversupplied because of production and low prices, it is the export market, which accounts for 13 per cent of Australia’s total avocado production, that has brought some relief to the oversupplied local market.

The Rabobank report notes total Australian avocado exports increased by 55 per cent YOY in 2023.

Hong Kong, Singapore, and Malaysia remain key markets, but there has also been significant growth in volumes to Japan (up 193 per cent YOY) and ‘the rest of the world’ (up 621 per cent YOY).

However, export prices, on average, have declined by nine per cent in 2023 to AUD 4.59/kg.

Piggott said Australian retail prices for avocados currently “sit at around the same level they were at this time last year”.

“However, in the past year, there has been a lot of volatility in avocado prices, reflecting periods of fluctuating seasonal supply,” said Piggot.

Ms Piggott said the bank expected avocado prices would remain volatile “and we may see some increase in prices in the summer months as Western Australian avocado production is in an ‘off year’, with crops bearing less fruit”.

“But after this, supplies will again start to increase and prices are expected to decline,” she said.

Send this to a friend