The global avocado market is experiencing tight supply and rising prices as weather factors and biennial bearing combine across the world.
A large reduction in volume in the US crop earlier in the summer by some 50 per cent led to bullish conditions in that marketplace. “That was the starting point,” said one market analyst. “The Peruvians then gained access to the US market this year and we sent some 500 containers there when that volume would otherwise have gone to the UK or continental Europe.”
South African volumes were drastically reduced over the summer due to hail damage and biennial bearing. And now Chilean fruit has started hitting the marketplace but because of the pull from the US, UK buyers are having to pay high prices to secure volumes.
“We are getting heavily squeezed by the retailers,” said one importer. “We are having to pay 20 to 25 per cent more higher prices than this time last year. Some of that is down to exchange rates, some down to shipping as well, but if you look at the selling prices, they are very similar to this time last year. We as a business are getting squeezed.”
Wholesale prices on UK markets this week bore this out with 4kg cartons from Chile, South Africa and Spain averaging more than 700p.
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