Here's Why Australia Is Currently Overflowing With Avocados
Avocados pair well with a lot of things – toast, chips, and burritos — to name just a few. But there's also some ways to eat the fruit that you may not have thought of. Avocado can be added to everything from warm zucchini bread to a frozen margarita. The produce is not only versatile and delicious, it also has a lot of health benefits. According to Healthline, it's rich in antioxidants, is an excellent source of nutrients, and can even help to reduce the risk of heart disease.
This popularity has led to skyrocketing prices in the U.S., with ProduceIQ reporting that a carton of 48 Hass avocados reached a high of over $78 this year, per CNN. However, while Australia, as well as many other countries, continue to produce the fruit to fulfill the needs of their own countries and other countries around the world, they appear to be doing so at too rapid of a pace — especially after an unusually abundant harvest in Australia.
According to news.com.au, Australia is experiencing a national oversupply, with the surplus of avocados reaching a record low of just $1 each in June 2021 and again in July. And while this is great news for customers, it's a different story for farmers.
Farmers are having to rethink their strategy amid this oversupply
An overabundance of avocados means that farmers are feeling a hit to their bottom line. A RaboResearch associate analyst said in a report that the retail price for the crop is 47 cents below the five-year average, which adds extra stress for farmers that are already grappling with labor shortages and increasing production costs, according to news.com.au. This means they are looking for alternative ways to make money from the fruit, like reminding the public about growing costs and what a deal they're getting right now.
"Like all growers, avocado growers have also been experiencing high input costs from increases in the cost of [fertilizer], fuel, and [labor] shortages," said Avocados Australia CEO John Tyas. "Despite this, avocados are being sold at prices that are offering excellent value for shoppers at the moment."
The RaboResearch report also said that ultimately, farmers will need to rely on increasing their exporting of avocados to other countries to make a profit.