Strong avocado returns driving investment

NZ Avocado CEO Jen Scoular and avocado grower Tony Gibbs on the site of a new 125ha avocado orchard in Tapora, Northland.

The New Zealand avocado industry’s draft result for the 2017-2018 season is $150m in sales, with $105m from export markets and $45m from the New Zealand market.

The result has been achieved from 3.8m trays – just 50 per cent of the production volume of the previous year, which achieved $200m across all markets.

Avocado exporters and New Zealand avocado suppliers acknowledge it’s been a phenomenal season for avocado demand, with record returns to growers.

New Zealand Avocado Growers Association chair Tony Ponder says the Government’s five-year Primary Growth Partnership investment and the commitment of research funding through Plant and Food Research and the Ministry of Business, Innovation and Employment has “strongly supported growth in returns to avocado growers”.

Orchard gate returns were as high as $40 per tray, a huge improvement from the $10-$12 per tray prior to this investment in 2012.

NZ Avocado CEO Jen Scoular says demand continues to grow in all markets – and the focus is now on increasing productivity of existing orchards and supporting new orchard development.

“More than 1000ha of dairy and drystock farms in Northland have been converted to avocado orchards over the last three years, and some of these orchards are expecting their first crops in the coming season,” says Jen.

In the Bay of Plenty, orchardists are rejuvenating orchards and investing in implementing best practice orchard management to reap the high values being returned for premium quality avocados.

These new avocado plantings and improving production will enable further growth towards the industry goal of $280m in total sales value by 2023, says Jen.

“This will also help to bridge the current gap between avocado supply and demand in NZ and globally, with a growing supply of NZ fruit for avocado lovers to enjoy.”

New Zealand currently produces just two per cent of the global supply but is the ninth largest international avocado exporter, with more than 4000ha of avocado trees planted primarily in the Bay of Plenty and Northland.

Supported by innovation and collaboration with stakeholders and new partnerships with the Crown and Crown Research Institutes, the NZ avocado industry has a vision and strategy to quadruple sales to $280m and triple productivity by 2023. For more information, visit www.nzavocado.co.nz

 


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