The 2023-24 harvest period for New Zealand's avocado sector concluded with notably diminished export sales, marking the lowest volume in a decade. This downturn has set expectations for grower prices that might only cover the costs associated with picking and packing operations. The industry's anticipation post hosting the World Avocado Congress earlier in the year did not translate into a successful harvest, with exports not exceeding 1.5 million trays—a stark contrast to the up to 5 million trays in more productive years.

The total yield is anticipated to be around 4.5 million trays, significantly lower than the 7-8 million trays of the preceding four years. Despite a consistent domestic demand of approximately 3 million trays annually, the larger quantities of smaller, lower-grade fruit led to reduced prices for both consumers and growers, with some growers ceasing harvest operations due to inadequate returns.

Financial outcomes for growers are expected to fall below $10,000 per hectare, a sharp decline from the previous range of $17,000 to $45,000. The export-grade fruit is projected to generate $6 to $7 per tray for growers, a reduction from the $30 returns seen in recent years.

Source - https://www.freshplaza.com