As the new domestic season gets underway we could say that ‘challenging’ is an appropriate description to headline current market activity.
Maturity clearances are being achieved but only sporadically. This in turn is creating a thin supply and consequently demand is strong and pricing very satisfactory.
Our overview is that currently the market appears to be under-supplied and this in itself is an issue. The industry’s retail partners want to continue to promote and grow the avocado category and consumers are buying good volumes at good values. However, based on current volume, the industry seems to lack the appetite or capability to meet this demand. There are reasons without doubt including the recent inconsistent weather pattern, anticipated strong export opportunities later in the season, lack of awareness around the current market situation, poor fruit sizing and varying maturity levels across the sector.
However the fact remains that the market currently is providing an opportunity to return healthy OGR values with high pack-outs and quick cash turnaround timeframes.
Our forecast is that we will see $28.00 to $30.00 OGR average levels across the next fortnight – something that may be worth considering.
Glen and team