New Zealand's avocado crop is set to be up 20% on the previous record, while production growth continues with a two-year waiting list on trees. 

Avanza export manager Martin Napper says avocado growth "defies gravity" at the moment, with the fruit becoming a must-have food item for an increasing number of health conscious consumers. 

Napper tells www.freshfruitportal.com irregular bearing cycles are still an issue from a production standpoint, but the industry is working to reduce their severity while more investments continue in new plantings.

"The higher returns over the past few seasons has encouraged more corporate developments - there is approximately 450 hectares under development - with a lot of existing grower development as well that probably matches the corporate expansion.

"There is currently a two-year waiting list for trees."

This momentum has led to expectations for a record crop in 2016-17.

"We have had a mild, wet winter which has led to a record crop of large size fruit of good quality," he says.

"It is estimated at 5.4 million export trays, which is double the size of last year but only 15-20% up on the previous high year in 2014/15 of 4.5 million export trays.

"Traditionally about 80% will be exported to Australia and 20% to other markets like Japan, Singapore, Korea, Thailand, Taiwan, India, Malaysia, Pacific Islands. We still do not have phytosanitary access to China - it is still pending."

Last season the value of New Zealand avocados sold at home and abroad reached NZ$134 million (US$96.6 million), which is very similar in fact to sales in the record 2014-15 season despite coming from a much lower crop.

Market diversification

He says Australia is currently the highest paying avocado market in the world, but domestic production is on the rise and Mexico is pushing to gain access to the market as well.

"Population growth - the Aussie population to be 46 million by 2075 based on moderate growth projections - and increased consumption in Australia, are fueling growth," he says, adding Australia's avocado consumption per capita is 3.4kg, compared to 2kg in the U.S., 1.6kg in New Zealand and 9kg in Mexico.

"Mexico are pushing for entry and the Australian Government has promised to review their entry request by the end of this year."

An Australian Senate Standing Committee on Foreign Affairs, Defence and Trade assigned "high priority" to import risk analyses for Mexican agricultural goods such as avocados, table grapes and limes.

While the rising Australian population bodes well for demand, the Mexican access and local production factors do warrant a greater push towards diversification from New Zealand. Napper says the sector is hoping to have protocols for the Chinese market in place within the next two years.

"New Zealand crops will keep increasing  and as Australia becomes more self-sufficient in supply with a lot of planting also occuring, Avanza will continue to actively pursue these new market opportunities."

Avanza mascot Avochan, not be confused with Pokemon.

Aside from market access arrangements, Avanza has several approaches to boosting consumption in a wide range of export markets.

The first is market research to identify who consumers are generate messages they will respond to, and this information is more commonly coming from researching social media platforms.

Secondly, Avanza works with NZ Avocado Ltd to promote consumption by emphasizing messages of health and beauty, and avocados as a first food for babies.

"Channels for promotion include bloggers, TV and internet sales, retail tastings, avocado smoothie wagon for consumer tasting, celebrity chefs, local brand collaborations, local recipe development and food service training," Napper says.

"In most countries we start off getting the consumer to drink a smoothie and then we move to simple recipes – Californian roll, salads, on bread/crackers, guacamole," he says, adding materials and websites are also provided in the different languages of countries where Avanza sells the fruit, such as South Korea.

Thirdly, where possible Avanza appoints in-market representatives to organize promotions and assist importers and retailers.

"We undertake technical visits to inspect fruit and promote ripening techniques and we utilise specialist controlled atmosphere containers to improve out-turns," he says.

For example, Avanza partners with California-based Mission Produce to help offer 12-month supply, particularly in Japan, Singapore and South Korea.

When asked whether the group's Avochan mascot was ever confused with Pokemon, he jokes of regretting not having invented 'Avochan Go' before Pokemon Go got in the act.

"As you can see he was originally modelled on Japanese Anime characters," he says.

Materials from an Avanza brochure for the South Korean market.

www.freshfruitportal.com