THE planets have aligned for avocado growers with some receiving the best prices they've seen in 40 years.
Sydney Markets figures show high grade Hass avocados achieving up to $55 per carton for July, averaging about $46, with other lines achieving similar averages over the $40 per carton mark.
The prices have been sustained for several weeks now, even up on last year's average at this time of year of about $36/carton.
A decade ago, such figures were the stuff of dreams.
Markets figures show cartons of top-line Hass averaging about $20 with the lowest quality achieving just $13.
The trajectory to improved returns has not been an overnight rocket according to president of the International Avocado Society and former Avocados Australia CEO, Antony Allen.
"It's been building for the past 10 to 15 years, he said. "There have been ups and downs in that past decade but it's been a steady increase."
He puts it down to a considerable amount of hard work and collaboration between growers, marketers and researchers.
"Nothing comes from nothing. We've been doing product positioning for a long time and built up the brand's presence," Mr Allen said.
"Avocado growers have backed themselves and are now enjoying elevated grower returns."
Mr Allen is now the CEO of the cooperative marketing group, The Avolution, which provides avocados year round.
Some of those down times included an oversupply in September and October of 2011 when prices dropped to between $9 - $14 per carton.
Mr Allen said this prompted many within the industry to re-think their businesses. That thinking has continued to steady the ship.
"Nobody is resting on their laurels. We need to manage it carefully when looking at a good sustainable position, we need to keep it flowing and take a careful approach," he said.
Part of that positioning has been to show the versatility of the fruit. There are few fresh vegetables or fruit that can feel at home at breakfast as much as they do at supper.
Who's eating avos?
Avocados' appeal also stretches across a broad demographic base, from guacamole and chip-eating football viewers, to high-end hors d'oeuvre serving restaurants.
Mr Allen said there is a "specialness" to avocados, something Aussies have apparently embraced consuming an average of about 3.1kg per capita, an increase of more than 100 per cent in the past decade.
While the increased domestic demand has nudged the industry along, export markets are also beckoning.
Mr Allen said China and India haven't really been scratched as far as exports go.
Globally, avocado growers and representative groups have been all singing from the same songbook, with worldwide consumption on the increase.
Mr Allen said other major production countries such as Chile, Peru, Mexico, New Zealand, the United States and Israel all pour money into marketing.
Avocados Australia's three-year industry levy-funded marketing campaign is continuing this year with a new burst of television spots expected to hit the air in Spring.
A strong social media campaign is also building momentum with consumers.
On top of this, many of the major fast food chains now provide avocado as an optional extra on their wraps, rolls and burgers.
Grinning Growers
Avolution grower Lachlan Donovan, Childers said it's been pleasing to see the solid prices of late, something he puts down to avocados becoming almost a staple item.
"There's been a huge amount of marketing that's really driven it," he said. "Overall production has increased but not as much as demand."
The Wide Bay region was severely hit with substantial wet weather and flooding in 2010 and 2013, something which impacted growers.
Recent conditions have been ideal although Mr Donovan said it does take a while to get over such substantial wet events.
It was a thought echoed by general manager of avocado supply company Sunfresh, Judy Prosser who said some growers still haven't caught up since the last lot of Queensland flooding so higher prices were a nice change.
She said the business had snared some of the magic $50/carton money in Melbourne.
Ms Prosser said avocados have been selling extremely well and a continual supply has been met despite crops being down in some areas due perhaps to poor pollination rates.
"It's just steady, steady. We just keep rolling them out," Ms Prosser said.
"As long as growers stay together and no one gets greedy and starts pushing fruit onto the floor, then I can't see a dramatic drop in price," she said.
"I'm confident prices will stay up for a while."
Strategic investment
Over the years, Avocados Australia has carefully re-invested its levy-supplied dollars into research and information gathering.
Products such as the Infocado data collection system and the Qualicado grower workshops continue to engage growers for the betterment of the entire industry.
But Mr Donovan said many growers were concerned they would not have as much input into usage of levy funds through the new Horticulture Innovation Australia model.
Avocaodos Australia CEO John Tyas said today's growers are reaping the rewards of great industry leadership over many years focussed on building consumer demand.
"It doesn’t happen overnight," he said.
"The industry is in a 'sweet spot' but it doesn’t take much to bring it undone and requires ongoing effort to keep things in balance."
Mr Tyas said some of the key things that have boosted avocados' position include establishing year round supply; improvements in product quality and reliability; strategic levy-funded industry marketing and promotional support by suppliers and retailers; and more stable weekly supplied based on industry production forecasts.
Except for the ACT, avocados are grown in every state and territory with new ground continually being planted up.
Significant plantings are currently underway in Western Australia, Victoria and South Australia.
The risk of oversupply is somewhat negated with the wait-time by nurseries supplying stock.
Avocados Australia says 30pc of plantings are yet to reach maturity and nurseries are booked up for at least two years.
The precise natural resource requirements of avocados including soil type, water and climate also constrain supply increases.
But Mr Tyas said with significant plantings coming online in future years, it is likely that supply is expected to increase quite rapidly.
"Supply could easily start to exceed demand in the next few years which will see prices start to soften," he said.
