Produce company Seeka is working to export more avocados to Asia this season to minimise its reliance on Australia.
Avocados are an unknown quantity in parts of Asia. Photo: Wikicommons
Australia is our biggest export market for avocados - but last season it had an oversupply of the fruit so bought less from New Zealand - pushing down prices for growers.
Seeka produces between 750,000 and a million trays of the fruit annually.
Company chief executive Michael Franks said the domestic season started about three weeks ago but exports were just getting started.
"We've already had air freight go up to Thailand and we've got China starting this week and we will also export to South Korea and Japan. So for us pushing into Asia is an important buffer against increasing volumes in Australia.
"We have good relationships with fruit handlers in Asia. In China we work with Halls which has 135 years in the country so they distribute a lot of our fruit."
Franks said the quality of avocados this season was excellent but yields were looking like they would be down by about 20 percent - a normal fluctuation in the industry.
"Last year was a poor year for returns for growers after four or five good years. Returns last year were at or below the cost of growing so we're looking into the current year with a bit more hope and optimism because volumes in Australia look down."
Exporting more avocados to Asia will give Seeka more flexibility in its exports, he said.
"We need to decrease our dependency on Australia.
"Avocados are still a very new category to the Chinese market and to many markets in Asia so we have to build the category and build consumer understanding of the product because in Asia they are normally blended in smoothies and drinks. So it's about consumers getting used to the idea of eating a fresh avocado as well."
Avocados are typically blended for smoothies and drinks in Asia. Photo:
Trials of a new variety going well
Franks said Seeka's trials of a new avocado variety which would see the fruit on supermarket shelves for longer were going well.
It is licensed to grow GEM avocados which was developed at the University of California.
"It's a smaller, more compact tree so the fruit hides inside the tree a little bit more so it's protected from the elements. We think it's naturally a later maturing piece of fruit.
"We have a lot of demand in New Zealand and Australia after Christmas and that's a long time for the traditional Hass to actually be holding onto fruit. It gets a lot of fruit drop.
"So if we can get this new variety GEM to mature in that January, February, March window, well then there's a market opportunity for us in those months when there's a natural shortage of supply."
Franks said 2500 trays of GEM will be produced this year but Seeka has 40,000 plants in the ground which will increase the volume to about 50,000 trays next year.
He said all going well the GEM variety will be widely available in 2024.