The global appetite for avocados is adding to the price pressures of the fruit. The consumption of avocados has skyrocketed over the past two decades. Avocado is now one of the most traded fruits in the world.
According to figures from data company, OEC, the total world trade of avocado in 2019 was US6.6 billion dollars. Since avocado attained superfood status, its price has been changing frequently. Sometimes its high and sometimes its low depending on supply against the demand.
Even with the price fluctuations, avocados have become much more affordable for many consumers around the world. More countries that import avocados are eliminating import customs duties.
Avocado Prices South Africa
The avocado business in South Africa has evolved in the last decade to become a lucrative trade. Avocados are sometimes referred to as ‘green gold’ because of the price they fetch in international commodity markets. Exports of avocados from South Africa were valued at about 110 million US Dollars in 2021.
Here are the total values in export for avocados from South Africa between 2012 and 2021.
South Africa sees higher profit margins from avocado exports than from those sold in the domestic market. It is not only the second biggest avocado supplier to the Netherlands with an 11% share but also to the larger European market with a 14% share.
Although 2021 was a low season for South African avocados, they made it to the international market. Prices of Fuerte avocado from South Africa were nearing record levels in the Europe. A 4kg carton was sold for between 6.2 euro (R110) and 7.3 euro (R130.) Consumers were willing to pay a premium due to the stable supply.
During the same year, the prices of Hass avocado from South Africa in Europe were 40% lower than Fuerte. A 4kg carton was sold for between 3.4 euro (R60) and 4 euro (R70.) Export volumes in 2020 were similar to 2021 as South Africa sent around 16 million 4kg cartons to overseas markets.
According to 2022 numbers from Joburg Market, the largest fresh produce market in South Africa, the average price of a 10kg carton of Fuerte avocados is R81 while a similar carton of Hass avocados is R60. The average price of a 4kg carton of Fuerte avocados is from R20-R77 while a similar carton of Hass avocados is from R65-R80.
South African Avocado
Just like previous years, timing is crucial for the success of South African avocados in the European Union (EU) market. June is one of the most risky periods since it is when the South African and Peruvian avocado shipments peak and start to overlap. This leads to prices plummeting due to three successive weeks of oversupply.
This was the case in 2014 when market prices fell sharply and were between 5.50 and 6.50 euros per 4kg carton. Total supply from the two competing countries reached 4 million boxes.
According to data by Statistics South Africa (Stats SA), avocado is one of South Africa’s most popular retail items that has seen a steady climb over the last three years. The average price of a single avocado in June 2018 was R6.78 while in January 2020, the price was R18.04. They attribute this notable increase to reduced supply and seasonal fluctuations.
Certain retailers like to keep avocados throughout the year and so they import the fruit. Imported avocados from Spain, Israel and now Tanzania during the off peak season in South Africa come at a high cost. But prices drop when avocados are in season and in huge volumes.