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Farmers smashed as ‘perfect storm’ drives avocado prices down to $1

Alex DruceNCA NewsWire
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Camera IconNot Supplied Credit: Supplied

The sight of $1 avocados on shelves should nix the notion Australians must choose between brunch, or climbing the property ladder.

But those cheering a cheap meal of buttery, green flesh should be aware there’s a massive downside to rock-bottom prices.

A massive avocado oversupply means farmers are struggling to offload their fruit for a decent price, with several having to dump their crops or risk their produce withering on the tree until demand improves.

Avocado Australia boss John Tyas said the current avocado-lanche was the result of “a perfect storm” of soaring Australian production and lockdowns that have kept city cafes and restaurants from serving brunch.

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There’s a downside to the cheap prices.
Camera IconThere’s a downside to the cheap prices. Credit: Supplied

“About 20 per cent of Australia’s avocados go into the food service sector and when you’ve got restaurants and cafes all shut down, then obviously they’re not they’re not moving any,” Mr Tyas said.

As a result, the huge crop is piling up, and some farmers are getting mere cents for a single fruit.

“Growers are just trying to get through this year, as best they can,” Mr Tyas said.

The situation comes after the nation upped its avocado intake in recent years, with people dining out on everything from smashed avocado on toast, to guacamole, and avocado ice cream.

Industry group Hort Innovations says Australian avocado production had doubled in a decade as people expand their orchards. In 2020-21 the sector was worth $845 million on a retail basis.

Fruit
Camera IconA massive avocado oversupply means farmers are struggling to offload their fruit for a decent price, with several having to dump their crops or risk their produce withering on the tree until demand improves. Richard Walker Credit: News Corp Australia

Mr Tyas said there were 80,000 tonnes of avocados produced over the past year – slightly down on the year before – but essentially there was nowhere for them to go.

“The (growing) conditions around Australia were very good, which means virtually all the regions have got bumper crops, and we‘ve got a whole lot of young trees that are also starting to come into production,” he said.

“About the last five years or so, the industry has really responded to the demand for avocados and there been a lot of plantings and it's been a bit of a crunch time this year.”

Disruptions to global shipping have also played a role in the glut, though Mr Tyas said the avocado export situation had improved in recent months.

To try and eat into the oversupply, Hort Innovation launched a patriotic “Our Green and Gold” campaign during the Tokyo Olympics featuring comedian Nazeem Hussein.

Comedian Nazeem Hussain fronted the Our Green and Gold ad campaign for Avocados Australia during the olympics.
Camera IconComedian Nazeem Hussain fronted the Our Green and Gold ad campaign for Avocados Australia during the Olympics. Credit: Supplied

During the Olympic period alone, the campaign had a media reach of 14 million Australians watching 412 Aussie athletes across 30 sports, with Mr Tyas noticing a lift in demand.

Mr Tyas also said the industry’s growth was ultimately not a bad thing, while cheap prices presented a great marketing opportunity.

“There‘s a lot of new consumers … and hopefully when prices get back to normal sustainable levels, we’ll be able to keep a lot of them, so a bit of short term pain for long term gain if you like,” he said.

“I guess what we want to get out to consumers is that (avocados) are phenomenally good value at the moment, and it‘s a great opportunity to draw new recipes and draw different uses and make the most of this time of abundance.”

Originally published as Farmers smashed as ‘perfect storm’ drives avocado prices down to $1

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