NZ: building markets to support record avocado crop

Countries More News Top Stories
NZ: building markets to support record avocado crop

In a year when New Zealand's avocado industry plans to export greater volumes overall, but a lower percentage to the high-value Australian market, strengthening destinations further afield is key. The United States is one of them, where Avanza director John Carroll caught up with www.freshfruitportal.com during the Produce Marketing Association (PMA) Fresh Summit in Anaheim to discuss the season outlook and opportunities in Asia.

Carroll said New Zealand was having its "biggest crop yet" this year, and would export around five million trays between September and January.

Photo: Avanza director John Carroll

Photo: Avanza director John Carroll

"We got a bit of showery weather early on which made harvesting a challenge, but we’re shipping fruit to multiple destinations – the United States, a range of Asian markets and Australia," said Carroll, who is also the general manager of Primor Produce and a director of Australia-focused marketer Avoco.

"We ship to the United States with bigger fruit early, which allows us to do the things we need to do in Asia and Australia, without pushing too much volume at any one market.

"With a big crop, it's an important part of the mix for us - it's not the best value market, which is essentially because of the currency. The U.S. dollar has been quite weak, we'd love it to get stronger and then we’d be here more regularly."

One reason why the larger fruit goes to the U.S. is that Asian consumers tend to prefer smaller fruit; a preference that avocado marketers needs to try and alter if they are to fully maximize their potential in that part of the world.

"We've got to try to get them [Asian consumers] to take fruit that’s a little bit bigger; not the biggest fruit, but not the smallest fruit, because the numbers just won't support it," he said.

Nonetheless, the Asian market has proven a healthy outlet for New Zealand growers who currently sell the majority to their neighbor across the Tasman Sea.

"The biggest market we've got in Asia is Japan and it keeps growing, off a reasonable base. The consumption’s not massive but it's been there for a while and it is growing," he said.

"Some of the other Asian markets like Thailand and Malaysia in particular, they've got good populations, good potential, but off a very low base at the moment.

"Our sales in Singapore and the growth in avocados has been strong there – we'd love that to be replicated in other markets."

The anime style of Avanza's Avochan character is designed to appeal to Japanese consumers.

The anime style of Avanza's Avochan character is designed to appeal to Japanese consumers.

One market where Carroll would like to see growth is South Korea, but it's a tough nut to crack between very high tariffs and a tendency to sell unripe avocados.

"They're stuck between the safety of selling green fruit and getting into ripe fruit which sells better, but for the commercial parties they have the issue of waste.

"You have to take the big dive and Korea hasn't taken it yet."

He said New Zealand didn't have access to the Chinese market yet, but it was a priority to negotiate a phytosanitary agreement so the country could join the likes of Mexico and Chile in that market.

"At the moment we're not missing China, but we can’t have an attitude that we don’t need that because over time we absolutely will. Once that develops, that’ll make a big impact on us and other suppliers.

"The trick with Asia is you’ve got so many opportunities, it’s just which one's going to strike first?"

In the meantime, Avanza and others are working with locals in a variety of Asian markets, trying to find ways to bring the fruit into daily diets.

"Asia’s got a lot of different cultures and cuisines, but nobody looks at an avocado and says 'yuck'," Carroll said.

"Our focus focus is working with food writers and chefs to get the thought process of 'how would you get avocados into the diet of your nationality?'

He added the group was investing money at food shows as well, and was working with Mission Produce to help with 12-month programs to ensure consistent supply.

In New Zealand's key export market Australia, he said the market was going well despite heightened competition from an important local growing region.

"This year they've got a big crop, particularly Western Australia. The significance of Western Australia is their timing is the same as ours, so that's very head on with us.

"But we're just in that period now where we're feeling it all out. It looks like the market is taking good volume at a good price...we're a little anxious, and I think the Western Australians were too, but the market’s doing the right thing at the moment."

While the New Zealand dollar has strengthened, Carroll said the country's saving grace was that the Australian dollar was strong too.

"It's probably the best value market in the world. It keeps growing and that means good value for us too, but it makes a comparison to any other market quite stark."

www.freshfruitportal.com

 

Subscribe to our newsletter