Holy guacamole! Why avocados are so expensive?!
If you have been wondering why avocado farming in Kenya has all of a sudden become the song of every investor, then this sneak peek into the global avocado prices will open your eyes.
If you have been wondering why avocado farming in Kenya has all of a sudden become the song of every investor, then this sneak peek into the global avocado prices will open your eyes.
Avocados have been expensive for a while now.
Typically, most Canadians would expect to pay $1 per unit. Many have noticed
that avocado prices have been high in most parts of the country. In the last
few months, it’s almost impossible to find them below $2. And if you do buy an
avocado, it will likely be smaller, darker and much less appetizing.
However, if you’re expecting avocados to be cheaper,
you’ll need to wait a while longer. The same high price is happening in the
United States due to rising trade and border tensions between the U.S. and
Mexico.
Hass Avocado Variety: the most prefered in the export market |
The production of California avocados was down this
past year as a result of dry weather. Yields were much lower and forced the
United States and Canada to go elsewhere to purchase avocados. And since July
is a low point for Mexico’s production cycle for avocados, prices are not going
to be dropping any time soon. In Canada, 95 per cent of all avocados come from
Mexico, which produces 34 per cent of the world supplies of avocados.
What’s adding pressure on avocado prices is its
popularity. Canadians spend almost $300 million on avocados a year. In an era
where you see many new diets become mainstream, avocados are fairing quite well
compared to other commodities. Vegans and vegetarians stay away from meat
products. Ketogenic loyal fans stay away from bread, potatoes and many other
products. Avocados are appealing because they are immune to many of the dietary
trends.
Consumers’ greater interest and awareness of healthy
eating is certainly a driving force, headed by guacamole’s increasing
popularity. Also, improvements have been made in the supply chain in areas such
as ripening and grading. Avocados on toast is more fashionable than ever. Over
the last few years, the quality of avocados we find in Canada has improved
vastly.
The food service industry is trying to cope with these
prices by using less avocados for guacamole and salads. Some opt to either
serve something else or to serve a substitute. Some are using edamame,
broccoli, green peas or even asparagus instead of avocados to make guacamole.
These are cheaper ingredients and restaurateurs save by reducing the number of
avocados they are using. Whether or not restaurants are telling the consumer
about these subtle changes is another matter. Nevertheless, many restaurants
are changing recipes.
It is easy to see how the market for avocados will only
continue to expand, and no doubt, Mexico will have more competition from
emerging producers, such as China, Australia and elsewhere, which could supply
Canada with a more socially acceptable product. With more segmentation,
innovation, expansion and new styles of merchandising, growth can easily be
obtained for avocados. If someone can bring a seedless avocado to Canada,
consumers will likely return the favour by buying more of the green stuff.
Read also:
As for retail prices in Canada, the good news for
avocado lovers is that prices are expected to lower by October as Mexico ramps
its production back up again. Yet until then, hold on to your guacamole!
By: Dr. Sylvain Charlebois, Director of the
Agri-Food Analytics Lab, Dalhousie University, Canada.
A wise investor can tell an opportunity of a lifetime from the market trends. It is easy to see that Avocado farming in Kenya is one such opportunity. We would love to help and guide you as you invest in avocado farming.
That is why avocado we have compiled this hass avocado farming guide for kenya to help you with information on the go. It is now available in pdf so you can even carry it in your phone and refer any time. You can now request for it from our Resources Page.
That is why avocado we have compiled this hass avocado farming guide for kenya to help you with information on the go. It is now available in pdf so you can even carry it in your phone and refer any time. You can now request for it from our Resources Page.
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