Avocado export season commences

Just Avocados, New Zealand avocado supply group, celebrated a positive season for grower returns in 2020-21 despite the disruptions of Covid-19, with their pool one average orchard gate return for premium sizes at $27.27 and $30.42 for pool two.

The team are now rolling out their plans for the 2021-22 season that include working with a new set of challenges of higher volumes to Asia and forecasts of a significant domestic crop in Australia during the New Zealand export window.

Exports of New Zealand avocados are underway this month, with first volumes due to hit shelves in Asia in early September.

Darling Group general manager of sales and marketing, Jacob Darling, says Just Avocados will be starting off their season with programmes into Thailand and Hong Kong retail stores where they will have a strong brand presence at consumer level.

“In 2020-21 we built a great base for the increased volumes we are shipping to these markets this season.

“We had very positive feedback from our customers on our product and brand presentation at retail.”

Significant volumes to Korea and China are expected this season after programmes did not continue in 2020-21 due to poor pricing and late volumes into these markets from Peru. Exporters across the industry opted to prioritise volumes to a high performing Australian market where excellent grower returns were able to be captured.

“Last season, we continued to service markets in Asia that worked in with both our grower profitability strategy and our market development strategy. We backed out of those that did not hit our goals for returns to growers.”

New challenges

With the experience of shipping through a global pandemic now under their belts, the team can focus on the further challenges that this season has in store.

The Australian market has been heavily supplied in 2021 leading up to the New Zealand export window and a large Western Australian crop is forecast to coincide with New Zealand volumes.

“They [Western Australia] are forecast to be up by four million trays from last season. We anticipate that the volumes will be significant all season with values improving as we get close to Christmas, including the post-Christmas window.”

Jacob says that Darling Group’s Brisbane-based operation JH leavy & Co. plays a key role in speed to market and managing cost in the supply chain. Their capability will be crucial to optimising value for growers in the coming months.

Of Asia, Jacob says the group has planned for these markets to take 40 per cent of the business’ total volume.

“Our position in our key Asian markets will add value to our growers this season but our strategy to place this amount of volume will come with its challenges.”

Adding value

Jacob says the group’s fully integrated model (from growing through to in-market representation) will continue to add value this season.

“Being able to manage harvest through Avoworks, including taking time out of the supply chain with packing efficiencies, will all contribute to adding four to five additional days of shelf life in the marketplace. We will be working hard to maximise this model for our growers’ benefit.”

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