March 11, 2025 • 5 mins
A Katikati grower and Avocado Grower Services Representative in the Bay of Plenty discusses the many issues the industry is facing.
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Speaker 1 (00:00):
You get some interesting emails in this job. Got one
from a guy by the name of Alistair Niven who's
an avocado grower and Caddy Caddy. He's also a service
rep in the industry, and as fate would have it, Alistair,
you and I had chatted before on the Country when
we were talking to Angus from Wonky Box a couple
of years ago about selling wonky fruit at reduced prices.
(00:21):
Now here's a starter for ten for you avocados. Is
that a wonky fruit at the moment in terms of returns.
Speaker 2 (00:29):
Jamie, you're dear right. It was good last year. We've
actually had a very successful season. This one just gone.
But looking forward, it don't think it's going to be
that flash. We've obviously got a few headwinds from Australia
and they've actually got some massive production predictions coming forward.
So if it carries on, our opportunity of last year
will be subsiently reduced. We had a really good returns
(00:51):
this coming season, so let's hope the Ford season that
as better as it's predicted.
Speaker 1 (00:55):
Now, I reckon, as I say on this show, horticulture
is a tough again. Event can wipe your whole crop out.
It's worse for avocado growers because kind of your crop
correct me if I'm wrong here, because I don't know
that much about it. Is sort of like by any or,
you're not always guaranteed an annual crop.
Speaker 2 (01:13):
One hundred percent, Jamie. So we're trying to get the
trees to produce fruit every year, but they're pretty fussy.
If they do a lot of work that first year,
they don't do much the second year. It's pretty tough
to get them going. But we're finding this year that
the extra production looks pretty much the same as last year.
The trees that didn't do any work last year are
full noise this year and they are really fill of fruit.
(01:34):
So let's hope it's going to be the same sort
of volumes.
Speaker 1 (01:37):
I remember being in Northland, it must have been three
or four years ago and driving past massive new plantings
of avocado. The corporates were getting into it.
Speaker 2 (01:47):
How are they faring, Jamie, I don't think we're feeling
too good. Obviously, the heart of avocado is Caddy Caddy,
which is where we're growing ours. But the boys up
north had to go and they put some serious investment
into some of these places that probably weren't ideal avocado orchards,
so they bought dairy country converted it to avocados. But
(02:07):
you get a bit of wind and a bit of
storm up that Northern Way, and of course that's taking
its toll of the orchard's up there. And I know
in some cases the guys are struggling to actually open
the gate to even.
Speaker 1 (02:17):
Pack on the world stage. We are a very small player,
something like two percent of global production.
Speaker 2 (02:24):
Correct, we're not even in the top twenty by way
of production. So our forty thousand approximate tons a year
of production. In comparison, if you look at Western Australia,
they produce sixty five thousand tons in one state, so
we don't tick the dial very much. But the thing
is we've got a beautiful fruit at the right time
(02:45):
of the year and that's what the people are looking.
Speaker 1 (02:47):
For, and millennials love it. Are smashed on toast they do.
Speaker 2 (02:51):
But the problem is not eating enough jamie. In Australia,
they're eating probably four or five kilos per person. The
good old Kiwi's only doing just two kilos per person.
So we want those South Islanders to get a better
price and eat more than because not eating enough avocados
down south. That's the killer at the moment. If we
could actually get New Zealanders to eat more avocados, we
(03:13):
wouldn't have to export, and of course the prices for
the grow would be much more beneficial, but also the
product in New Zealand would be probably I'd stay probably
twelve months of the year. We can guarantee that production.
Speaker 1 (03:24):
Mexico is the top exporter of avocados around the world.
Now with Trump's tariffs, are they going to not export
into the US and maybe flood other markets?
Speaker 2 (03:38):
They're already moving down into Asia, Jamie. So we've gotten
both Mexico and Peru some of the biggest production companies
countries in the world. Looking at our Asian markets, we
cover the majority of the Asian markets, not in great volume,
but the issue with the fruit up in their countries
is it's a lot smaller and drier, so they can
send it a lot further And look, we're looking to
(03:59):
go into Canada in America this year. In fact, I
think the Big Don got a postcard from Bob Charles
to say, I'm looking forward to that next round, Don.
And we replaced the actual golf ball with an avocado,
so I hope he remembers us. But we had Costco
from Canada on our orchard last year and they couldn't
believe the quality that we are producing. And they're going
(04:20):
to fill that gap for probably three or four months
through August, September October, and they'll take as much as
we can produce. So we do have some specific markets,
but the competition is really stiff. So if the Big
Don's going to put the pressure on Canada, it could
be a real benefit to us.
Speaker 1 (04:36):
Yes, God bless the Big Don. Hey, just finally, when
it comes to horticulture, you guys in the avocado industry,
and I know I'm not comparing apples with apples here,
but you must be envious of the likes of Zespriy
the key we fruit situation where they're a single desk
seller and they are a big player on the world stage.
Speaker 2 (04:56):
It's a massive problem to us. Every time you go
to a meeting or field day, every grower says the
same thing. We should have got on board a number
of years ago and didn't do so, so it's going
to be pretty tough now. But we have obviously the
opportunity to sell into various markets with various exporters, but
in some case we'll have a New Zealand export competing
(05:17):
with another New Zealand export, and of course the only
thing that goes down is the price. The quality stays
the same, the production stays the same, but we don't
get as much. So a single desk opportunity would be
massively beneficial to avocados.
Speaker 1 (05:30):
See you sound a bit like the red meat industry
competing against each other off sure. Hey Aliston Ivan, it's
been great to catch up again since we last had
a chat with you and your made angus from wonkey Box.
You've got my number, keep in touch.
Speaker 2 (05:41):
Look forward to it. Thanks Jamie,
You get some interesting emails in this job. Got one
from a guy by the name of Alistair Niven who's
an avocado grower and Caddy Caddy. He's also a service
rep in the industry, and as fate would have it, Alistair,
you and I had chatted before on the Country when
we were talking to Angus from Wonky Box a couple
of years ago about selling wonky fruit at reduced prices.
(00:21):
Now here's a starter for ten for you avocados. Is
that a wonky fruit at the moment in terms of returns.
Speaker 2 (00:29):
Jamie, you're dear right. It was good last year. We've
actually had a very successful season. This one just gone.
But looking forward, it don't think it's going to be
that flash. We've obviously got a few headwinds from Australia
and they've actually got some massive production predictions coming forward.
So if it carries on, our opportunity of last year
will be subsiently reduced. We had a really good returns
(00:51):
this coming season, so let's hope the Ford season that
as better as it's predicted.
Speaker 1 (00:55):
Now, I reckon, as I say on this show, horticulture
is a tough again. Event can wipe your whole crop out.
It's worse for avocado growers because kind of your crop
correct me if I'm wrong here, because I don't know
that much about it. Is sort of like by any or,
you're not always guaranteed an annual crop.
Speaker 2 (01:13):
One hundred percent, Jamie. So we're trying to get the
trees to produce fruit every year, but they're pretty fussy.
If they do a lot of work that first year,
they don't do much the second year. It's pretty tough
to get them going. But we're finding this year that
the extra production looks pretty much the same as last year.
The trees that didn't do any work last year are
full noise this year and they are really fill of fruit.
(01:34):
So let's hope it's going to be the same sort
of volumes.
Speaker 1 (01:37):
I remember being in Northland, it must have been three
or four years ago and driving past massive new plantings
of avocado. The corporates were getting into it.
Speaker 2 (01:47):
How are they faring, Jamie, I don't think we're feeling
too good. Obviously, the heart of avocado is Caddy Caddy,
which is where we're growing ours. But the boys up
north had to go and they put some serious investment
into some of these places that probably weren't ideal avocado orchards,
so they bought dairy country converted it to avocados. But
(02:07):
you get a bit of wind and a bit of
storm up that Northern Way, and of course that's taking
its toll of the orchard's up there. And I know
in some cases the guys are struggling to actually open
the gate to even.
Speaker 1 (02:17):
Pack on the world stage. We are a very small player,
something like two percent of global production.
Speaker 2 (02:24):
Correct, we're not even in the top twenty by way
of production. So our forty thousand approximate tons a year
of production. In comparison, if you look at Western Australia,
they produce sixty five thousand tons in one state, so
we don't tick the dial very much. But the thing
is we've got a beautiful fruit at the right time
(02:45):
of the year and that's what the people are looking.
Speaker 1 (02:47):
For, and millennials love it. Are smashed on toast they do.
Speaker 2 (02:51):
But the problem is not eating enough jamie. In Australia,
they're eating probably four or five kilos per person. The
good old Kiwi's only doing just two kilos per person.
So we want those South Islanders to get a better
price and eat more than because not eating enough avocados
down south. That's the killer at the moment. If we
could actually get New Zealanders to eat more avocados, we
(03:13):
wouldn't have to export, and of course the prices for
the grow would be much more beneficial, but also the
product in New Zealand would be probably I'd stay probably
twelve months of the year. We can guarantee that production.
Speaker 1 (03:24):
Mexico is the top exporter of avocados around the world.
Now with Trump's tariffs, are they going to not export
into the US and maybe flood other markets?
Speaker 2 (03:38):
They're already moving down into Asia, Jamie. So we've gotten
both Mexico and Peru some of the biggest production companies
countries in the world. Looking at our Asian markets, we
cover the majority of the Asian markets, not in great volume,
but the issue with the fruit up in their countries
is it's a lot smaller and drier, so they can
send it a lot further And look, we're looking to
(03:59):
go into Canada in America this year. In fact, I
think the Big Don got a postcard from Bob Charles
to say, I'm looking forward to that next round, Don.
And we replaced the actual golf ball with an avocado,
so I hope he remembers us. But we had Costco
from Canada on our orchard last year and they couldn't
believe the quality that we are producing. And they're going
(04:20):
to fill that gap for probably three or four months
through August, September October, and they'll take as much as
we can produce. So we do have some specific markets,
but the competition is really stiff. So if the Big
Don's going to put the pressure on Canada, it could
be a real benefit to us.
Speaker 1 (04:36):
Yes, God bless the Big Don. Hey, just finally, when
it comes to horticulture, you guys in the avocado industry,
and I know I'm not comparing apples with apples here,
but you must be envious of the likes of Zespriy
the key we fruit situation where they're a single desk
seller and they are a big player on the world stage.
Speaker 2 (04:56):
It's a massive problem to us. Every time you go
to a meeting or field day, every grower says the
same thing. We should have got on board a number
of years ago and didn't do so, so it's going
to be pretty tough now. But we have obviously the
opportunity to sell into various markets with various exporters, but
in some case we'll have a New Zealand export competing
(05:17):
with another New Zealand export, and of course the only
thing that goes down is the price. The quality stays
the same, the production stays the same, but we don't
get as much. So a single desk opportunity would be
massively beneficial to avocados.
Speaker 1 (05:30):
See you sound a bit like the red meat industry
competing against each other off sure. Hey Aliston Ivan, it's
been great to catch up again since we last had
a chat with you and your made angus from wonkey Box.
You've got my number, keep in touch.
Speaker 2 (05:41):
Look forward to it. Thanks Jamie,
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