Alistair Young: Avocado Growers' Association Chair on the changing markets, growing Asian demand for our avocado exports

Demand for New Zealand avocados is changing, with growth now less reliant on our trans-Tasman neighbour.  

Rabobank's latest exports report found exports in the latest season reached more than 3.4 million trays – down 9% due to wind damage.  

Exports to our biggest market —Australia— are dropping, while shipments to Asian markets are booming, with South Korea up 70%.  

Avocado Growers' Association Chair Alistair Young told Mike Hosking Australia's shrinking because of their own production.  

He says the uptake in Australia was greater than expected, so it's not done for just yet. 

And there’s still considerable room for growth in Asian markets, Young explained, with the recent Free Trade Agreement allowing us to be more competitive in India’s market. 

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Episode Transcript

Speaker 1 (00:00):
We talked to Rabobank yesterday about Dearie. They've also produced
numbers around abbos last season reached three point four four
five million trays down a better. Australia biggest market shrinking,
but come on, in Asia, South Korea is up seventy percent, China,
Hong Kong and India have almost doubled. Elsta Young as
the avocado grows chair and as with us Elliston, good
morning to you.

Speaker 2 (00:19):
Yeah, good morning mate.

Speaker 1 (00:20):
So where are we going with this growth? Is this
seventy percent for South Korea with more to come?

Speaker 2 (00:25):
It was a it was a considerable We're in growth
in all of those Asian markets because of the uptake
of good old avocados by the wider populations there.

Speaker 1 (00:37):
So you're discovering new markets because why is Australia shrinking?
Are they growing more of their own and just not
eating as many.

Speaker 2 (00:45):
Australia shrinking because of their own production. Right, there's been
over the last fifteen years has been a massive amount
of new plantings in Australia and we have seen a
bit of a change there this year. Is that the
demand and actually kept up with their new supply and
the value and the uptake in the market and increased

(01:07):
greater than we expected. So Australia is not done for us.
It's part of our global basket.

Speaker 1 (01:13):
Okay. So when you talk about a place like India,
you've done that off your own bat Is the FTA
recently signed going to help or was the FDA part
of what you've done in India already?

Speaker 2 (01:24):
The FAA will help. The biggest problem we have is
where we live New Zealand and how far away it
is from countries and markets like India. Avocados are a very
perishable product. It's a long voyage in a ship from
here to India. So currently we're using aircraft and the
removal of terraces assist us with being more competitive in

(01:47):
that marketplace in the future.

Speaker 1 (01:49):
Can you stick these things on a plane, land them
anywhere and still charge the price to make the money?
Does it work?

Speaker 2 (01:56):
It does when the demand is there. Last year, free example,
the African supply to India became very short. In India
switched to New Zealand and was comfortable to pay the
air freight pricing. But in order to get good growth
in the markets with consumers teams buy, you need to
have an economic price and therefore, we have to keep

(02:19):
the logistics as sharp as we can. Makes India a
little difficult becuse of cost.

Speaker 1 (02:24):
Well, I'm good to. I'm pleased to hear the good
news on that one. And keep up the good work
and long may the growth continue for your eldest young
who does the ebbos. For more from The Mic Asking Breakfast,
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