The Australian avocado industry has evolved over the past decade. It’s doubled production and growers are expanding their orchards across the country. People have created various dishes across the globe from smashed avocado on toast, guacamole or avocado ice cream.
CEO of marketing and grower’s support company The Avolution and avocado expert Antony Allen spoke to Inside FMCG about the growing Australian avocado industry.
“Australia has been very much at the head of the curve for new markets. Mexico still heads the consumption list and the US, UK, Europe and Asia are all at various stages of growth. Asia and India are at the very early stages of avocado consumption,” said Allen.
Inside FMCG: What do you think has fuelled Australia’s obsession with avocados?
Antony Allen: Many things and it’s been a 30 year development phase to get to this point but the main factors are that avocados are a healthy (good fats), fresh, versatile product that matches the currently evolving food desires of consumers. Avocados are unique in the sense that its got no alternative product and it is usable across all meal occasions, breakfast through to dinner, sweet through to savoury and raw through to cooked or baked. The key is that they’re produced and available in Australia all year round.
Inside FMCG: Tell us about the Australian avocado industry in in terms of exports and sales
Exports for the Australian industry are currently a very small percentage of sales. Just 5 per cent are currently exported and this is effectively all going to South Asia, Singapore, Malaysia and Hong Kong. Total sales in Australia in 2016 – 17 were 12 million 5.5kg trays. This was very similar to the previous year and this helps explain the strong price for avocado, supply was the same while demand has increased. Matching supply and demand is challenging in tree crops and then overlay weather challenges, there are no guarantees for anyone – grower, retailer or consumer.
Inside FMCG: Where do you see the Australian avocado industry is heading in the next few years?
Continued production growth as there are many trees already in the ground and many more planned over the next few years. The other area that will grow is the export of Australian avocados particularly into the Asian markets, even if we just focus on the two main emerging markets of China and India, there are 2.5 billion people and in those markets around 400 million new consumers that will be able to afford to buy avocados. Australia just needs the premium end of these markets to maintain growth into the distant future.
