Slide 1

WELCOME

TO THE AVOCO
GROWER COMMUNITY.

Slide 2

A SAFE PAIR OF HANDS

TO ENSURE A THRIVING
FUTURE FOR OUR INDUSTRY

Slide 3

PICK A
BRIGHTER FUTURE

WITH AVOCO


Confidence still high despite challenging conditions
1 December 2014

With the New Zealand avocado industry on track to report its biggest season on record, exporting giant AVOCO is confident it has the ability to overcome challenging market conditions across the Tasman.

Wholesale market prices for New Zealand avocados have come under intense pressure on Australia’s eastern seaboard over recent weeks as a result of an increase in New Zealand exports and significant volumes of fruit coming out of Western Australian orchards.

The three months before Christmas were always expected to be testing due to the heavy volumes of fruit being shifted, but AVOCO director John Carroll is optimistic the tide will eventually change and prices will start to lift.

“Right now, fruit from both countries is clashing head on and that has softened the wholesale market. It’s a situation we knew was coming but we’re sticking to our business plan for Australia and honouring AVOCO’s pre-season marketing commitments.

“This season is very different to what we faced in 2011-12 when the value of fruit nose-dived. Back then, every exporter held their cards very close to their chest and no one was prepared to divulge too much about their flow plans with the competition.

“But fortunately for the benefit of everyone in the industry, communication between most exporters is flowing more freely and that means we’re aware of what others are doing both here in New Zealand and in Australia. We can better manage the flow of fruit and plan ahead for market dips so we still come out of these periods in good shape.”

Much like New Zealand, Western Australian crops are enjoying a bumper season, with their peak supply period running from October until January. Flow planning by AVOCO indicates New Zealand crops will be 75% harvested by Christmas so as crops on both sides of the Tasman start to thin out, the Queensland and New South Wales markets are expected to become hungry again for New Zealand fruit, driving prices up.

AVOCO is expecting to handle almost 3 million trays of fruit in 2014-15 – the equivalent of about two-thirds of the industry’s projected export volume. By mid-November, it had packed and shipped over 1.5 million trays of fruit.

Australia is still New Zealand’s biggest market, but over the past two years, much effort has gone into developing new and existing markets outside of New Zealand through the associated AVANZA exporting body.

AVOCO, as the biggest exporter within AVANZA, sends about 34% of its fruit through the AVANZA channel to growing Asian markets like Japan, Singapore, Korea and Thailand. New Zealand shipments have also returned to the US for the first time in many years with the last shipment due to arrive at the Port of Los Angeles before the end of December.

Packing for the Japanese markets continues until early in the New Year. AVOCO director Alistair Young says AVANZA fruit has performed strongly in Japan’s “in season” sales window, with customers and distributors very pleased with the quality of New Zealand fruit for its quality and taste.

Comment on this post

Back to Top


Partners: Southern Produce, Primor, Team Avocado

Member
Login

Username

Password

Join AVOCO