Avocado industry sets export sights on Europe and beyond
Date: 8 Feb 2012
New Zealand avocados could soon be exported as far away as Europe thanks to technology that is being trialed by the industry to open up new markets for its fruit.
Two thousand trays of avocados were packed into shipping containers fitted with Dynamic Controlled Atmosphere equipment and exported to France in late December, with promising results. The technology creates a low oxygen atmosphere to prevent the fruit from ripening.
The aim is to develop new export markets and reduce the New Zealand avocado industry’s reliance on exporting fruit to Australia.
Another shipment is currently en route to Honolulu, and two further containers will be sent to France shortly to help determine the ideal conditions required when transporting avocados for more than 20 days at a time.
Dynamic Controlled Atmosphere technology was developed overseas and has never been used in New Zealand before. The avocado trial is being monitored by Plant and Food Research in association with the Avocado Industry Council (AIC).
The New Zealand Avocado Growers’ Association Inc. (NZAGA) chief executive Jen Scoular says growers produced a record-breaking avocado crop this season, but exports to Australia did not go smoothly, leading to lower Orchard Gate Returns for growers.
“Early in the season Australia forecast their crop would be light because of adverse weather. But the actual crop out of Australia was significantly higher, so when New Zealand avocados arrived across the Tasman their market was swamped and prices fell,” Scoular explained.
“We do get ‘invited’ into the Australian markets by the two major retailers, Coles and Woolworths. They look at our forecast volumes and make the decision to switch to New Zealand fruit, which starts our export programmes.”
Cold weather prior to Christmas also meant less consumer demand for avocados (along with other fresh produce) and fruit age became a problem, damaging New Zealand’s reputation for high quality product.
“Some, but perhaps not all, avocado exporters did try to limit their exports to orders to lessen the oversupply in the market.”
Scoular says that Australia remains a very valuable market for New Zealand avocados and must be retained and promoted, but developing new export markets throughout Asia and even Europe must be given high priority. Next week the NZAGA will meet with growers across the North Island to discuss this season’s performance and how to improve future outcomes.
Scoular and NZAGA chairman John Schnackenberg will front a road show presentation for growers in Katikati and Te Puke on 8 February, followed by Houhora on 16 February, and Whangarei on 17 February.
“It’s an opportunity for growers to talk to us so we can hear how they’re feeling and what direction they want us to take from here,” Scoular says.
The avocado industry’s 11 exporters are responsible for the commercial side of developing new markets, while the AIC is there to help open doors and facilitate market access.
“Growers need to ask their exporters key questions about what plans they have in place for the current and future seasons,” she says.
“Growers have the ultimate tool by choosing their exporter. If an exporter has not provided up-to-date forecasts on returns or is unable to talk about their longer term market strategy, growers should question whether that exporter is their best business partner.”
Following the problems experienced in Australia this year, some growers have called for a single-desk export system similar to Zespri to be established for the avocado industry. But Scoular says this is not possible under World Trade Organisation (WTO) rules. “It is not an option open to us. But we are certainly keen to see exporters collaborate a lot more to achieve far more sustainable returns for our growers.”
The industry’s goal had been to export 25 per cent of this year’s crop to markets outside of Australia. But despite a successful push into Japan, volumes fell short of this target and reached just 19 per cent.
Growers attending next week’s road shows will be told a lot more work is required to understand the opportunities offered by Asian markets. AIC is engaged in a project with MAF to promote agreement on residue levels in six Asian countries and is also working with government and industry to assess the potential for exports to China and India, neither of which currently allows avocados into the country.
“New Zealand’s avocado industry is a competitive multi-exporter environment. The NZAGA and AIC will do what they can to influence how those exporters conduct themselves,” Scoular says.
“But we strongly believe all parties in the industry need to look to longer term planning to help achieve a sustainable Orchard Gate Return per hectare in future.”
About NZ Avocado Growers' Association Inc. and Avocado Industry Council Ltd
The New Zealand avocado industry is the third largest fresh fruit export from New Zealand with exports last year (2010-11) totalling $67m. The 2011-12 season will see the industry produce its biggest crop ever at 5.4 - 5.8 million trays (31,900 tonnes), which represents a jump of just under one million trays from the previous biggest season.
The NZ Avocado Growers' Association Inc. (NZAGA) and Avocado Industry Council Ltd (AIC) work with the New Zealand industry to set export standards, facilitate market access, promote New Zealand avocados and provide technical information to all New Zealand growers of which there are over 1600 based mainly in the Bay of Plenty and Northland.
