Australian market rewards growers, exporters

The Australian market, where the avocado is rapidly becoming a 'must-have item” for consumers, has rewarded New Zealand growers and exporters well this season – but the same may not be true for the 2014-2015 harvest.



If predictions of a bumper Western Australian crop prove correct, preference will be given to local fruit – so while not taking the focus off Australia, Kiwi exporters are also looking to other markets.

At the peak of demand, wholesale prices this season reached as high as AU$60 for 5.5kg trays of top quality fruit and consistently achieved in the AU$40-$45 range. Exporters are predicting on average, growers will have received in the mid to high $20 per tray orchard gate return this season.

'We couldn't have picked a better year to start exporting avocados. Values have been great with returns back to growers for single layer 18 to 20 count trays in the late-$20s,” says Te Mata Exports product manager Andrew Thompson.

This was the first year handling avocados for the well-established Hawke's Bay stone and pip-fruit exporter. Global Fresh NZ Ltd / Just Avocados Ltd marketing director Steve Trickett says bulk packs with smaller-sized fruit reached as high at Au$100 Aper carton, although AU$55-60 per carton was perhaps more the norm.

'All good values in anyone's book,” says Steve.

Freshmax growers can expect OGRs of about the mid-$20 mark per tray for the 2013-2014 season, says avocado programme manager Jarrod Redwood.

The Australian market remains a value opportunity for New Zealand avocados, despite increasing volumes of domestic fruit, says Jarrod.

Australia has been a fantastic market for New Zealand avocados this season because of outstanding fruit quality, strong consumer demand and tight control of fruit volumes by exporters, says SeekaFresh manager Annmarie Lee.

Managed flow
'We should thank our growers for the excellent fruit they provided us and most will receive orchard gate, per tray returns in the mid-$20 range.”

Fewer New Zealand exporters this season led to a more managed flow of fruit into Australia, which helped hold prices, says Annmarie.

An over-supply of fruit into the Australian market by some exporters in September/October probably depressed values a little and resulted in some fruit being dumped, says Chris Frost of JP Exports Ltd.

'There was no need to send those volumes early, as the industry as a whole ran out of fruit in early-January.”

However, despite that, the Australian market performed very well, rewarding JP Exports suppliers with good returns, on average in the mid-$20 range, for large and medium sized fruit, says Chris.

The Australian market has performed exceptionally well, in fact beyond expectations, says Ted Thomas, of Avoco.

'It has provided very strong demand for good quality NZ Hass and returned high values.
'Last season was completely different in the sense NZ had a very light crop, approximately 1.2 million export trays compared with over 3m export trays in this current season.”

Prices have been excellent throughout the season and strengthened again in February. With the arrival of local Australian Shepard fruit, values reduced but still remained very good, says Ted.

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