Agriculture banking specialist Rabobank has reported Australia’s avocado industry is bracing for another year of higher supply, but poor prices.
In the Global Avocado Update 2024, Rabobank says that production predictions for the fiscal year 2023/24 Australian avocado crop are up 20 per cent year on year. This puts Australian avocado production at a historic high.
According to report co-author and RaboResearch analyst Pia Piggott, this expansion is being driven by more than 1500 hectares of avocado planting that are scheduled to mature this year, adding to market supplies.
“And expansion in Australian avocado production is set to continue with more than 4000 hectares of orchards maturing in the next five years,” she said.
However, Australian retail avocado prices are currently “sitting around the same level they were at this time last year”.
Piggott says the local market is still oversupplied, and prices are low. Rising export demand is the most significant market growth opportunity for the Australian sector.
The Rabobank report notes total Australian avocado exports climbed by 55 per cent year on year in 2023.
“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,” Piggott added.
