Australian avocado industry faces export profitability issues despite broader market access

The Australian avocado industry has reached a significant milestone in its global expansion: the ability to export year-round to multiple markets. After years of regulatory work, building commercial relationships, and strategic investment, the sector managed to consolidate a sustained presence in different international destinations.

However, the fresh produce marketing company The Avolution warns that the next step in maturity is not about continuing to expand access, but about more rigorously evaluating the economic performance of each destination.

More Australian avocado volume, less return

According to figures from The Avolution, Australian avocado exports grew 55 percent year-over-year in 2023. However, the average FOB price fell nine percent, standing at AUD $4.59 (around $3.3) per kilo.

In 2024, volumes remained virtually stable, but the average price recovered 13 percent, reaching AUD $5.18 (approximately $3.7) per kilo. The message is clear: a higher volume of Australian avocado does not necessarily translate into better returns, says The Avolution, while a more contained supply can favor price recovery.

The destination-by-destination analysis reinforces this conclusion. During the 2024–2025 season, the gap between the markets with the highest and lowest returns exceeded 85 percent per kilo. It was the same Australian avocados and the same season, but with very different commercial results depending on the destination market.

“The sector has done an exceptional job building access over the last decade,” said Antony Allen, CEO of The Avolution. “The next phase of maturity is measuring success by what those markets actually return, not just how many weeks we can supply them or how many destinations are on the list.”

Global competition pressures prices

The debate gains greater relevance amid increasing international competition. Mexican avocado exports are projected to exceed 1.5 million metric tons by 2026, while Colombia is moving to position itself as the third-largest global exporter. Peru, meanwhile, is approaching 650,000 metric tons.

In this context, Rabobank has warned of significant price pressures not seen since 2020, driven by supply growth outpacing global demand expansion.

The Avolution maintains that Australian exporters must strengthen their focus on program reliability, quality consistency, and destination performance, beyond competing solely on volume.

“Market access indicates where you are selling. Destination performance indicates whether it is actually working. The industry needs to measure both,” Allen concluded.

*All photos are referential. Price chart courtesy of The Avolution. 

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