Avocado volumes in the Bay of Plenty are down by 40%. This has increased competition between exporters and the domestic market. Not only were volumes down 40% from last year, but the fruit size was also smaller.
"The New Zealand avocado export window is August through to March. In Australia, New Zealand avocados compete in that period with an increasing volume of avocados from Western Australia. But the hot weather means supply from Western Australia over January and February will be lower, so exporters see a real opportunity to supply in the late December to February window," said NZ Avocado chief executive, Jen Scoular.
In any normal season, the return for exported avocados exceeded the return for avocados on the New Zealand market. "The export markets are looking very strong this season. Saying that, the New Zealand market is also strong and returns will reflect that," she said.
Pole to Pole Fresh Ltd director Todd Abrahams said the supply was very short. But the domestic market was strong and paying well.
However, growers were being asked to hold their crops off for export in December and January. The dilemma for growers is whether they do this or go for the domestic market.
Demand was outstripping supply in the New Zealand domestic market. "We are looking for more supply and we are getting a good level of inquiry from those export growers making the decision to go for the domestic market as opposed to export," Abrahams said.
Commercial growers were being encouraged to look at the domestic market.
Team Avocado, Southern Produce director Alistair Young, said while volumes were down for many growers, "the values being achieved at this time of the year in the New Zealand market are some of the best I've ever seen, however, the export values are considerably higher. Many growers were motivated to pick as much crop off their trees as early in the season as they could for orchard cultural reasons however, we must keep premium export customers satisfied, as the next big crop year will see New Zealand reliant on their vital custom."
Picking more than once and choosing larger fruit to pick, greatly improved the orchardists return per hectare. "Smaller fruit can be worth up to 10 dollars per tray less than the larger fruit. Leaving your smaller fruit to size for a second pick greatly improves orchard revenue, by 30% or better at times," he said.
Building strong relationships with export customers was essential. "Committing to and delivering on the contracted volumes is very much part of that. I am happy with what I hear about returns from both the export and New Zealand markets, all avocados will return good value this season and in my view it would be short-sighted to chase value in the New Zealand market to the potential detriment of our export programmes." Young said.
