Supply glut means Aussies will have to eat and export more avocados, report says

Australia’s avocado glut is “just the beginning” with domestic production tipped to jump by 40 per cent in the next five years. A supply boom means households have been enjoying more avocados at cheaper prices. But agribusiness bank Rabobank suggests Aussies will need to eat and export even more, as growers grapple with soaring production growth over the next five years. This year alone, the per capita supply of avocados is estimated to be up 26 per cent on the previous year, equating to 22 avocados for every Australian, according to the bank’s analysis. A bumper crop, mainly in Western Australia and Queensland in 2021-22, caused a national oversupply which led retail prices to plunge to a record low $1 each in June last year, and again in early July. Retail prices this year are 47 per cent below the five-year average for the fruit, putting pressure on farmers already dealing with rising production costs and labour shortages, RaboResearch associate analyst Pia Piggott said in the report. The volume of avocados eaten by Aussie households jumped 31 per cent in 2021-22 compared to the previous year, while they spent 29 per cent less on them due to the lower prices. At the same time, export volumes rose by more than 350 per cent in the past year, the Rabobank report said. Domestic production will expand by 40 per cent, or 50,000 tonnes in the next five years, industry forecasts suggest, with all of Australia’s avocado regions expecting growth. It means Aussies and overseas markets will need to love locally grown avocados even more to use up the extra production in coming years. “Ramping up exports will be critical in ensuring the market finds a better balance to support sustainable prices for growers,” the report said. The representative body for Australia’s avocado industry has urged people to stock up on the fruit, which is rich in healthy, good fats. “Like all growers, avocado growers have also been experiencing high input costs from increases in the cost of fertiliser, fuel and labour shortages,” Avocados Australia CEO John Tyas said last month. “Despite this, avocados are being sold at prices that are offering excellent value for shoppers at the moment. “While households are feeling the pinch with inflation, we recommend that shoppers take advantage of the health-giving properties of avocados.”