Executive Briefings

Global Avocado Shortage Fails to Dent Demand

Drought and flooding have caused global shortfalls in the supply of 'green gold,' while demand continues to rise.

Global Avocado Shortage Fails to Dent Demand

Perhaps it is a measure of how far the not-so-humble avocado has come that it is now the stuff of royal gifts.

When Prince William paid an official visit to a leisure centre in Merseyside this September - leaving Kate at home, suffering with severe morning sickness - a little boy very sweetly handed over an avocado tied with a ribbon. Young Archie's mother also suffered from morning sickness and eating avocados had proved effective against nausea.

The fruit’s appeal shows no sign of abating, riding a wave of hipster popularity — usually the Hass variety in the U.S. and western Europe. U.S. consumers are spending almost $900,000 a month on avocado toast, according to payment company Square. In June 2014, the figure was just $17,000, but by June 2017 it had reached $890,500.

In New Zealand, thieves are raiding orchards at night and selling the fruit at roadside stalls, small shops and even on Facebook.

Wholesale prices have spiked recently following a reduced crop in California this year, which has put pressure on Mexican supplies, according to Mintec. In the U.K., wholesale prices hit 86p a fruit in September, the highest since October 2016 when it was 92.5p — on the back of growing demand and a drought in California.

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Perhaps it is a measure of how far the not-so-humble avocado has come that it is now the stuff of royal gifts.

When Prince William paid an official visit to a leisure centre in Merseyside this September - leaving Kate at home, suffering with severe morning sickness - a little boy very sweetly handed over an avocado tied with a ribbon. Young Archie's mother also suffered from morning sickness and eating avocados had proved effective against nausea.

The fruit’s appeal shows no sign of abating, riding a wave of hipster popularity — usually the Hass variety in the U.S. and western Europe. U.S. consumers are spending almost $900,000 a month on avocado toast, according to payment company Square. In June 2014, the figure was just $17,000, but by June 2017 it had reached $890,500.

In New Zealand, thieves are raiding orchards at night and selling the fruit at roadside stalls, small shops and even on Facebook.

Wholesale prices have spiked recently following a reduced crop in California this year, which has put pressure on Mexican supplies, according to Mintec. In the U.K., wholesale prices hit 86p a fruit in September, the highest since October 2016 when it was 92.5p — on the back of growing demand and a drought in California.

Read Full Article

Global Avocado Shortage Fails to Dent Demand