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The avocado boom: when will prices drop?

The avocado boom.
The avocado boom.

It’s the million dollar question.

Who would have thought that a piece of fruit could become one of the most talked about items in Australia? However, the avocado is high on the discussion list for many, thanks in part to the avocado on toast debate born from Bernard Salt’s claim last year that the dish is preventing the youth of today from stepping into the housing market.

We know in reality that avocados probably aren’t the main reason many Australian’s are struggling to get a foot in the door, though what Salt’s article did do was address the rising cost of the fruit. Avocado in Australia is now a bona fide culinary delight, with demand for the fruit doubling in the past ten years and cementing it as the third biggest seller in supermarkets around the nation.

In short, we are addicted.

Increase fervour for the fruit, as well as interest in organic and sustainable food creation, is helping to fuel the rising prices. So will the bubble burst on avocado prices anytime soon?

The subject was discussed at Melbourne’s recent Global Food Forum, with Barham Avocados CEO Katrina Myers confirming that the price of avocados isn’t going to drop anytime soon. Before we point and play the blame game, though, she says that there should be faith and understanding that the price is fair to those involved, especially considering the time and energy it takes to produce a single piece of fruit.

“It is all consumer-driven. It costs a lot of money to produce good quality food. Avocados are very hard to grow,” she said, citing that the average avocado tree takes five years to reach adulthood, with fruit sitting for a year onto the tree before it can be picked. “We just want to produce good quality avocados in a sustainable manner,” she said of her own company’s intentions.

Guzman Y Gomez CEO Steven Marks knows all too well the pain in shovelling out extra dollars for the avocado. Guacamole is a huge part of the retailer’s Mexican chain, making him the third-biggest buyer of the avocado around the country –  currently at 25 tonnes per week.

A vegetable-baed diet trend for 2017 is what Marks believes is helping to fuel demand for avocados (and in turn drive up prices). “We believe in more of a plant-based diet. Eating less meat or meat that is of a higher quality. There will be an emergence of that trend moving forward.” Unfortunately, that means more expensive avo. “The last five years has been an incredible run for an avocado grower.” He continues that he has all but lost faith in lower avocado prices. “I am done praying for a better price,” he said.

Looks like buying a home will have to wait.

And for those who still want to indulge in a little avocado on toast out, there’s a growing number of cafes across the globe focused solely on the fruit. Including Avocaderia, in New York.

The Global Food Forum was presented by The Australian. 

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