Week 10

Following a few of weeks of market uncertainty, it appears that a period of stability has emerged.

Latest weekly packed figures published by NZ Avocado seem to align with what we are noting in the market with regard to available stock numbers and values.

We mentioned in our previous market up-date that there was a considerable volume of non-forecasted fruit in the smaller size range due to hit the market. The last few weeks have certainly confirmed that. Returns for sizes 32 – 42 have been dismal. To this end Zeafruit made a call to send a portion of this size category to oil. On a more positive note, the lower returns achieved for the smaller sizes did not cause any impact on values for the sizes between 28 – 16.

Late export over-run fruit that was re-directed to the domestic market has now cleared though the system. We anticipate an increase in harvest activity during the next few weeks as values lift and demand remains strong across our retail programmes. You will note that prices listed below have strengthened since our last report.

There needs to be a word of caution however. We are aware that a significant number of orchards are still holding volumes of small size fruit. In certain cases, the size of this fruit is at the very smallest end of the profile. If larger than controllable volumes do emerge, we may see a return to marginal pricing that may not provide an economic return. We will continue to monitor and report on this.

We are starting to field some enquiry about Reeds and should values continue to be stable then we are well positioned to accommodate this variety as harvesting proceeds.

New Zeafruit Employee:

After a week in retirement Rick Hannay is back on the avocado visitation beat as he introduces Steven Merriman to our business. Steven will initially focus on the Bay of Plenty as he finds his feet and I will manage growers in the Mid and Far North until we visit in April. Steven’s contact details are Steven.m@zeafruit.co.nz or 0272703794.