You’re in trouble if you’re a business owner and can never predict avocado wholesale prices. Why, you ask? Well, you will find out in this article.
Understanding avocado wholesale prices is important and helps you make better, more informed decisions. In addition, the knowledge helps you maximize your return on investment and get better avocado fruit for your consumers.
Here is the cheat sheet; if you want to easily predict avocado wholesale prices, you need to know what causes their fluctuation.
Here are the main factors influencing avocado wholesale price fluctuations throughout the year:
- Seasonality
- Weather
- Demand
- Importation
- Current Exchange Rates
But how do these factors cause fluctuation in avocado wholesale prices? We expound on that and more below.
#Factor 1: Seasons
Avocado seasons are the major influencers of fluctuations in avocado wholesale prices. Seasons effectively affect prices by influencing the supply and demand chains. The seasons vary with the region and the country’s production capability.
Avocado peak season in Kenya starts in mid-March, just after the end of the mango season. However, depending on the avocado variety, the season may commence as early as late February. Most Kenyan avocado varieties’ peak season starts early, whereas Hass, Keitt, and Fuerte start from mid to late March.
The current avocado wholesale price of Kenyan Avocado is between USD 1.50 and USD 1.70. The avocado wholesale prices are lowest during the peak season, as low as USD 1.00 or KES 130 per kg. But the wholesale price may further vary depending on the variety. Hass and Fuerte are Kenya’s best export varieties and, therefore, the most expensive.
On the other hand, during the low season, which extends from November to December, the avocado wholesale price is at its peak. The reason for this is that the supply is low, so the competition for the available avocados is high. Therefore, during this period, the wholesale price for export during the low season is north of USD 1.50 or KES 185.
The best time to source avocados from Kenya is between March and October when the wholesale prices are low. Otherwise, if you don’t source while the supply is still high, you will compete when the prices are high.
If you’re looking for affordable avocado wholesale prices, contact us at FrutPlanet exporters. Our prices are not inflated because we keep a balance between reasonable compensation for the farmer and a fair price for you, the buyer. You can request a quote for avocados today by calling or emailing our customer service.
#Factor 2: Weather
Weather is not a definite contributing factor to the fluctuation of avocado wholesale prices, but it certainly, plays a role. Extreme weather conditions affect the production cost and yield levels for avocados, therefore affecting the wholesale prices of avocados.
Avocados appreciate warm weather, usually more than 50 degrees Fahrenheit all year round. The average temperature may vary, but it’s generally between 5 and 40 degrees Celcius. Prolonged low temperatures inhibit the growth and production of the avocado tree.
Apart from temperatures, the avocado plant demands sufficient rainfall and an annual precipitation of 800 to 1700 mm. The cultivation farm should be at least 2400m above sea level and the soil slightly acidic but with pH levels of 5 to 7.
However, the avocado production pattern is affected when the weather goes south. For example, when the temperature drops below 5 degrees Celsius, there is an overall decrease in production for the season.
Likewise, in areas that experience frost, such as Australia, there’s a delay in seasons. Experts in avocado production explain that this results from the overlap between the open stages of male and female flower parts. Consequentially, this reduces the chances of pollination and fruiting.
Of all the weather-related factors, low rainfall has the worst effect on avocado production. Avocados appreciate high rainfall as it helps reach the salts in the soil. On the other hand, low rainfall results in salt and drought stress during the flowering stages.
Consequently, the flowers and leaves drop due to diseases like black streaks and bacterial canker infestation. The fruits may also drop due to fruit blight, a destructive bacterial disease.
Bad weather results in poor yields, consequently crippling the avocado supply chain. As a result, the cost of the available fruits skyrockets. Unfortunately, weather is often unpredictable, and you can only feel its effects on avocado wholesale prices once the fruiting season commences.
At FrutPlanet, we offer avocado wholesale prices that caution our buyers from drought and adverse weather conditions. What’s better, we follow avocado seasons from the start informing how various aspects along the way will affect the eventual season.
You can order from FrutPlanet exporters by contacting our customer service by email, calling, or requesting a quote.
#Factor 3: Importation
An increase or decrease in importation impacts avocado wholesale prices domestically, resulting in fluctuations throughout the year. This often occurs in countries with avocado production deficit but still produce locally.
For example, when there is an increase in the importation of avocados from Mexico, the domestic wholesale price in the United States decreases. However, the opposite is also true; a decrease in the importation of avocados from Mexico increases the price.
This factor often causes high avocado wholesale price fluctuations in countries with high importers. For example, Kenya is a surplus avocado-producing country; therefore, importation doesn’t factor in.
If you’re looking to source avocados wholesale, Kenya is one of the best places to source from. Kenya was the 7th largest producer in the world in 2021. However, as a caution, we advise you to partner with us, a leading exporter in Kenya.
We guide you on sourcing, processing, and exporting logistics, and we deeply understand the local avocado markets and the global supply chain. You can order from FrutPlanet exporters by requesting a quote or emailing us today.
#Factor 4: Demand
The demand and supply chain greatly affect avocado wholesale prices, whether locally or internationally. First, let’s focus on demand; when there is demand, there’s an increase in prices. But how does the demand fluctuate throughout the year?
The demand for avocados is higher during specific times of the year but mainly during summer and holidays. For example, avocado demand is highest in the United States from May to August. This is because most outdoor activities happen during these months, making cuisines and fresh fruit juices.
In addition, the demand skyrockets during major holidays and outdoor events such as Super Bowl, Christmas, Thanksgiving, and more. During these events, people consume more fruits, including avocados, in meals and blended juices. In addition, more factors increase demand, including cultural events and regional events.
An increase in demand results in higher avocado wholesale prices. Therefore, as a business owner, you can take advantage of when prices as low and sell them during such celebratory events in your region. But how do you keep track of these events in the region you’re looking to source from?
Well, it’s important to monitor different market trends and consumer behaviors in other regions. But you can automate this process through the help of an exporter, such as FrutPlanet exporters.
At FrutPlanet, we have data on local events and guide you on when it’s best to source fruits and get the best avocado wholesale prices. You can contact us via email or request a quote for avocados online, and our customer service team will get back to you within 24 hours.
#Factor 5: Currency Exchange Rate
Wholesale avocado prices highly fluctuate with changes in currency exchange rates. Government policies also have a huge play in wholesale avocado prices, and the cost is mainly affected in importing countries. But how?
When the United States Dollar (USD) strengthens against the Kenyan Shilling (KES), the buyers’ Avocado prices become less expensive. That means the consumers in the US will be buying avocados at lower prices.
And the contrary is also true.
When the KES (or any local currency) strengthens against the USD, the avocado wholesale prices become expensive for the buyers. Consequently, the price unit increases for consumers in the United States. But how can you benefit from being informed about currency exchange rates?
As a business owner, you can benefit by taking advantage of the country’s exchange rates. That way, you will get more avocados at prices that you’d otherwise get lesser fruits if from a different region. So let’s demystify this further.
For example, in Kenya, the avocado wholesale price in 2023 in Kenya is between USD 1.50 and 1.70, or about KES 176 per Kilogram. On the other hand, the avocado wholesale price is between USD 2.35 and 2.53. Moreover, the current exchange rate for US Dollar to Mexican Peso is 18.26, whereas US Dollar to Kenya Shilling is KES 133.60.
From the above example, the Mexican Peso is stronger than the US Dollar than the Kenyan Shilling is to the US Dollar. Therefore, avocados are more expensive in Mexico than in Kenya, and exchange rates are one of the contributing factors.
Verdict
Various factors cause fluctuations in avocado wholesale prices, including seasons, weather, demand, importation, etc. And yes, farmers, distributors, and consumers need to monitor these factors if they want to stay ahead of the prices.
If you’d love to source avocado at the best wholesale prices, contact us or request a quote from FrutPlanet Exporters today.
Would you love to know more about how we source avocados? Read our guide on how you can buy avocados online and the processes we go through when you order.
