Just Avocados' decision to exit the AVANZA joint venture is a commercial business decision with growers' best interests at heart, says NZ Avocado Growers Association chair Ashby Whitehead.

Ashby is commenting on the announcement that Just Avocados will this season, exit the joint venture to market New Zealand avocados to Asia, with Primor Produce and Southern Produce Ltd.

'The AVANZA collaboration is great for the industry and has strongly influenced the collaboration and positive environment we see across the whole industry,” says Ashby, who is also chair of the Avocado Industry Council.

'The avocado industry is in a significant growth mode and with existing and new commercial parties growing their own businesses, I am sure we will see new and different collaborations and partnerships happening in the future.”

The collaborative organisation was formed between competing exporting companies Just Avocados, Primor Produce and Southern Produce Ltd to market New Zealand avocados to Asia and collectively represented 80 per cent of the industry.

Andrew Darling, Managing Director of Just Avocados acknowledges the success of the venture but says the industry has now developed and matured to the extent that Just Avocados, as the smallest of the three supplying companies, considers that it is the right time to 'paddle its own canoe”.

Just Avocado's exit will take effect prior to the upcoming harvest season, scheduled to commence late August.

The parties say the exit is being made on good terms, acknowledging the significant achievements made by the JV partner companies and their grower suppliers over the past decade, with each party respectful of one another's differing business models, commercial drivers and objectives.

Immediate attention will be given to ensuring the separation is as orderly and harmonious as can be achieved, in an effort to not lose any of the market gains realised by the collaboration.

The respective parties will continue to pursue market development outside Australia as a critical ongoing strategic objective of protecting the premium Australian marketplace and helping 'future proof” the industry in anticipation of further increases in crop volumes projected in the years ahead.

Andrew says differing commercial philosophies and growing competitive tensions onshore for supply are key reasons for Just Avocado looking to do things differently going forward.

'However, the most compelling commercial reasons are around improving our grower returns. Reducing costs and optimising market returns will be key drivers in providing greater outcomes for our growers than we can under the current model.”

Just Avocados has agreed to maintain an open and cooperative communication line on all matters that influence market performance outcomes with AVANZA and all other exporters going forward with the best interests of the grower community always in mind.

'It is our absolute intention to remain committed to industry strategy around continuing the development of new markets outside Australia, and we will be committing similar volumes to Asia in the coming season.”