Avocado prices expected to remain stable

After last year’s bumper avocado crop, which had doubled year-onyear, it was expected that lower volumes would be coming onto the market in 2019, due to the crop’s alternate bearing tendency. However, prices were not expected to increase substantially as supply bottlenecks occured during peak season in Europe, which was South Africa’s main export market. This was according to Derek Donkin, CEO of the South African Subtropical Growers’ Association (Subtrop), who added that the 1 000ha of additional plantings undertaken in the local industry in recent years had started coming into production, and would reduce the effect of alternate bearing on supplies. Despite an increase in global production, prices were expected to remain stable in the long term due to aggressive marketing campaigns aimed at increasing avocado consumption.

“Global campaigns that we have embarked on in conjunction with the World Avocado Organization are gaining momentum. Locally, we have been marketing avocados for the past 20 years, and as a result we are seeing a strong demand across all income groups.”

Donkin cautioned against the stricter phytosanitary requirements that would be introduced in 2019, along with reduced maximum residue levels for avocados to be exported.

“As an industry we have to ensure we are ahead of the game, and adhere to the regulations so that we can continue to enjoy access to our primary markets.”

He added that the trade tensions between the US and its global trading partners had resulted in South Africa’s application to export avocados to that country being delayed. Europe thus remained the main export market and South Africa needed to look after this destination in light of strong competition from Peru. – Lindi Botha

LINDI BOTHA BELOW: Sustained marketing campaigns have increased avocado consumption across global markets.