Australian avocado planting expands sharply, production up 65%, import prices plummet

Avocado is a fruit native to South America. In earlier years, prices were relatively good, but with the current growth in planting area, prices have fallen sharply.

In recent years, due to strong consumer demand for avocados, Australian fruit farmers have rushed to plant them in large numbers, and many trees planted in the past two years began to flower and bear fruit this year. In addition, avocados can grow year-round in many parts of Australia, causing this year's supply to surge 65%, with market retail prices at only about 1/3 of previous levels.

According to ABC's agriculture channel, Australia's avocado production is expected to reach 120,000 tonnes in 2021, while last year the figure was less than 80,000 tonnes. Data shows that in 2010 Australia's avocado production was only 39,600 tonnes, and over 12 years production grew by 200%.

According to data from Avocados Australia, in 5 years, that is, by 2026, Australia's avocado production will reach 170,000 tonnes, equivalent to more than double the 2020 production. The Australian avocado industry has launched extensive promotional campaigns nationwide, calling on everyone to eat more avocados, but it still cannot escape unsold inventory. Avocado consumption in Australian restaurants and cafes accounts for about 20% of the entire market, and because the pandemic prevented food and beverage venues from operating normally, avocado consumption was also affected.

Despite facing unsold inventory difficulties, Australia is still importing large quantities of avocados. In 2020, Australia imported a total of 24,700 tonnes of fresh and dried avocados, up 64% from 2019. Most of these avocados came from New Zealand, mainly to fill the market gap during the domestic off-season. In 2020, Chilean avocados also entered Australia for the first time, and it is expected that Chile's import volume will decrease somewhat this year.

According to Bloomberg, in the 2020/2021 production season, Australia's avocado exports accounted for only 4% of total production, with most exported to Malaysia, Singapore and Hong Kong. In order to expand overseas markets, Australia has set its sights on Asia and increased exports to Singapore, Malaysia, Japan and Hong Kong. The drop in avocado prices has also made Australian avocados more competitive in export markets.

At present, Australian avocados are expected to soon open up the Indian market. China is also one of Australia's target markets, but obtaining access to the Chinese market requires a long-term process.