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Home / The Country

Green gold: NZ's love affair with avocados

The Country
20 Oct, 2016 04:30 AM3 mins to read

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Pocketing almost $100m in global sales, New Zealand's avocado industry is looking robust.

Pocketing almost $100m in global sales, New Zealand's avocado industry is looking robust.

The New Zealand love affair with the avocado has gone from strength to strength in recent years, with last year's $41 million of domestic sales setting a new benchmark.

Only five years ago, the sales would have been less than half that amount, having bounced along at those numbers for several years.

With our global sales last year almost touching $100 million, growers are feeling confident about what the future brings for their sector.

New Zealand Avocado Growers Association chairman Ashby Whitehead says the industry is looking forward to coming developments in the Chinese market.

"Until now, we have not been able to export to China due to phytosanitary restrictions.

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"However, there have been two Chinese delegations down here, and we have had industry reps up there and looks like next year will see us able to export there. This is a huge breakthrough."

This comes after the sector secured access to the enormous Indian market two years ago.

He says there would be considerable education required in both markets, but the Chinese market has become more familiar with the fruit, thanks to exports already arriving there from Peru.

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The positive news coming out of the sector for both domestic and international markets has lifted interest among buyers in avocado orchards.

Bayleys Tauranga sales consultant Karen Payton says investor and orchardist interest in avocado orchards is growing with the maturing of the industry in recent years.

"We see a good proportion of buyers who may be ex or retired farmers wanting to make a move off the farm, but not ready or not wanting to go into town. Generally they do very well with the orchards they are on."

She says an avocado orchard offers the flexibility they need to combine income and lifestyle and their new orcharding career.

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"The industry has developed to a point that the support is there in terms of advice, and contractors to do the work if needed, so you can tune it to however much you chose to put into it," she said.

The boom in domestic growth has also been matched by more overseas consumers finding what New Zealand consumers have known for years about the fruit's versatility and increasingly appealing health-giving benefits.

The industry is also starting to research more closely into the nutritional benefits of New Zealand avocados, riding a wave of consumer demand for healthier, smarter foods in their diets.

This year the industry is anticipating a heavy crop, with the initial crop harvest meeting demand from the buoyant Australian market before Australian fruit hits the market.

Ashby Whitehead says there is a lot of optimism in the sector at present, and prospects of strong orchard expansions taking place, particularly in the Far North and around the Kaipara Harbour.

He says the greatest constraint at present is the ability to source avocado trees, with nurseries all out of stock.

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Returns vary year to year depending upon the fruit's cropping pattern, but it is possible for a reliable orchard to deliver its owner an average orchard gate return of $50,000 a hectare.

"But with avocados like any crop, it is all about doing your due diligence. Location is critical, but if you have a good orchard it is possible even for one with 40-50 trees to still make you a reasonable sort of income."

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