AVOCO growers benefit from secure retail programmes
Another satisfying Orchard Gate Return for AVOCO growers reflects the export group’s retail-first marketing strategy and collective efforts to improve the quality of fruit shipped to Australia.
Now, with attention turning to the 202021 export season, growers still undecided on who to supply are being urged to consider the security that comes from supporting New Zealand’s largest export marketing group, which has strong relationships in place with Australia’s biggest supermarkets and the expertise to navigate upcoming challenges related to Covid-19.
In late April, more than 800 growers who export their avocados with AVOCO received their Pool Statements and final payments for the 2019-20 season. Another first-class performance by the grower-led company has ensured growers have banked healthy returns for their fruit.
The result reflected committed efforts across AVOCO’s supply chain to improve the quality of fruit supplied to customers, especially in Australia, where a record 76% of AVOCO’s pool volume was sold directly to supermarkets.
AVOCO marketing and communications manager Steve Trickett says Australia’s major retailers trusted AVOCO to consistently deliver good quality fruit and the company rewarded that faith with tighter picking and packing disciplines and in-market quality checks, ensuring the seven-month supply programme to Australia met the expectation of discerning shoppers.
In 2019-20, AVOCO shipped 2.3 million trays, a 23% increase in volume on what AVOCO handled in the previous season. It also recorded a further lift in its share of the overall industry crop, ending the season by accounting for 64% of total industry exports.
About 85% of fruit was sent to Australia, with the remaining volume shipped to Asia where its avocados are marketed under the AVANZA brand.
With the new export season set to start in August, AVOCO’s experienced export marketing team has been refining market flow plans, based on estimates which show New Zealand’s export crop is likely to increase by as much as 20% on last season.
Steve says the Covid-19 pandemic has created uncertainty about how Asian markets will perform this season, and AVANZA is keeping a watching brief on any changes in consumer behaviour.
Further, consideration around supply chain logistics is needed as these could pose the greatest risk in delivering to our market plans.
The outlook for the Australian market is generally positive, with domestic Australian production projected to be well down. AVOCO again has firm retail chain orders in place and welcomes fruit from new suppliers to fully meet the scheduled demand from both supermarkets and wholesale customers.
“Growers need to be thinking about supporting businesses that can provide secure channels for their fruit to market.
“At AVOCO we are fortunate to have strong retail chain demand in Australia as well as the scale and experience to build contingencies into our planning in Asia, reallocating volumes where necessary in a worst-case scenario.”
He encourages anyone wanting to make the switch to talk with a grower representative at any of the four packhouses that AVOCO partners with in the Bay of Plenty – KauriPak, Trevelyan’s, DMS Te Puna and Apata.