A fierce rivalry between New Zealand's two biggest avocado export companies has ended in a marketing truce that could signal the way forward for other export industries.

Bay of Plenty-based Southern Produce Ltd and Auckland-based Primor Produce Ltd have put aside their long-standing commercial competitiveness in the best interests of their growers by creating The New Zealand Avocado Company Ltd – a joint-venture company to export into Australia.

Southern Produce director Alistair Young (left) with Team Avocado chairman Hugh Moore, and Primor Produce director and general manager John Carroll marking the marketing truce between the companies.

'We have realised that it makes complete sense to work as a partnership against foreign competitors rather than fight among ourselves,” says Southern Produce director Alistair Young. 'The interests of the New Zealand avocado industry and its growers are best served by a unified entity that is focused totally on getting the best orchard-gate returns for growers.”

The two rivals had been working together in some markets outside of their main Australian market, under the umbrella of AVANZA. But the new entity, which will trade as AVOCO, means they are now collaborating in all markets – marking a significant turning-point for the avocado industry and signalling a way forward for other competitive export sectors.

'It is our belief that the way forward for the industry is to collaborate completely, as other primary industries have done successfully,” says Primor Produce director and general manager John Carroll. 'It's the final piece in the marketing jigsaw for us. It marries all avocado export markets under a collaborative model for Southern Produce and Primor Produce.

'Growers have demanded we perform better as an export industry, and this is our response,” says John, following the inaugural AVOCO board meeting at Te Puna this month.

Growers in the Southern Produce-affiliated Team Avocado network are now working with Primor Produce's growers in a coalition that shares one ambition – to leverage their combined expertise to maximise their export earnings.

Alistair, who has worked closely with the country's biggest grower group Team Avocado, says the new entity is committed to getting the best possible returns for growers by providing outstanding product, information and service to its customers worldwide.

'Given our understanding of the industry and our commitment to working alongside our ever-expanding grower network, the formation of AVOCO is a real boost for the avocado export industry in New Zealand and its ability to secure its future growth and increase its relevance and prominence on the world stage.”

Alistair and Ted Thomas, export manager at Primor Produce, are responsible for the day-to-day management of AVOCO, which has contracted to utilise the resources and expertise within Primor Produce and Southern Produce to conduct its business.

The AVOCO member growers collectively dominate the export market for avocados into Australia, both retail and wholesale, with about 75 per cent of the market ex-New Zealand. The industry is estimating returns of about $50 million from this season's harvest, which will get underway in August.

'AVOCO has been formed in time for the 2013/14 harvest,” says John. 'It is starting with about 630 New Zealand avocado growers in its supply partnership that flows through packhouses in Northland and the Bay of Plenty, together producing an estimated 1.5 million trays – close to three-quarters of the total New Zealand avocado export production.”

AVOCO will export avocados only. Both companies will continue to operate their respective businesses in other fresh fruit products. All AVOCO exports into countries other than Australia will be handled through their longstanding AVANZA commercial arrangement.

The new avocado exporter has started out as it means to continue – taking a dominant role as principal sponsor of the four-yearly New Zealand and Australian Avocado Growers' Conference in Tauranga this September.