As we start 2019 there seems to be consensus that supply for the balance of the season looks to be somewhat limited from week 5 onwards – nothing surprising in that.
There is a surprise however – and probably not the sort of surprise we were all looking for. It seems there are a number of marketers with stock in store that is impacted by date / age. It is clear that reasonable volumes of pre-Christmas harvested fruit is entering the market at heavily discounted prices alongside export over-run product that is also being discounted.
There is little uniformity to some of this discounted pricing. Some segments of the market are better than others and demand varies from region to region. The issue remains the size of some of the reductions in value and I deduce from those reductions that these are quality driven with clearance being the objective as opposed to simple volume pressures.
Our values have been impacted to a degree, especially in large count sizes. On a positive note, we do not believe that prices can maintain at low levels. Fruit volumes for February packing look very light and we see the market rebounding quickly.
From Zeafruit’s standpoint, demand overall remains good. Instore adverts/promos are working to keep demand up and fruit-flow is happening as we would envisage. Our recent pre-pack adverts have been hugely successful and value has been added to lines that in a heavy packing season may have been sent for processing. This has to be a positive outcome as we continue our drive to make a sustainable return off every avocado produced. With export packing not far from closure we will update pricing once we get a sniff of any change in supply patterns. Zeafruit aims to be the driver of ‘value lifts’ as we predict a very under- supplied late season market.
Glen and team.