Australian avocado producers have increased exports to stabilize the market.
In the current season, Australian avocado growers have faced a significant increase in supply, which has led to a decline in retail prices. In particular, the cost of the Shepard cultivar dropped to 90 cents per piece. Despite low profit margins, product sales allowed farmers to generate revenue from the harvest.
To prevent a surplus crisis, the industry has expanded its export strategy. By the end of June, the volume of shipments abroad exceeded the figures for the same period last year by more than 50 percent. In the current season, up to 30 percent of the total national harvest was directed to exports. The main markets remain Hong Kong, Singapore, and Malaysia, while expansion into Japan and Thailand also continues.
According to forecasts by Rabobank senior analyst Michael Harvey, in the coming seasons, national production could reach 170,000 metric tons. Queensland will maintain its status as the largest producer, providing about half of the total Australian harvest. It is expected that the growth in production will require a further increase in export capacity.
At the same time, the industry is subject to cyclical fluctuations. For instance, while about 13.5 million trays of avocados were produced this year, the figure may decrease to 5 million trays next year due to the natural biological characteristics of the trees following a heavy harvest. This is expected to lead to an increase in prices in supermarkets, especially in January and February. Production is projected to rise again by 2028, when high yield figures are expected in Western Australia and northern Queensland.