If you’re an Avocado farmer or buyer, staying informed about the current wholesale avocado prices is essential. It means you can make informed decisions about your business, plan long-term strategies, and make profits. But what influences these wholesale avocado prices?
As a global avocado supply chain player, we’ve been monitoring wholesale avocado prices for a long time. We’ve been helping businesses source and export avocados for years and have witnessed significant price fluctuations. If you’d love a trusted exporter to help you buy avocados in bulk, request a quote today.
Number 1 – Supply and Demand
This is the most significant force that influences the cost of wholesale avocado prices. A shortage of avocados, whether influenced by any other factor, results in an increase in prices. This is because the buyers will have to compete on very few avocados.
On the other hand, if the season has been generous and the global avocado supply chain is oversupplied, the prices fall. This variation of seasons contributes to the high fluctuation of avocado prices in the market.
For example, most avocados are available during the peak season between January and March. At this time frame, the fruit price falls as the supply from farmers is often higher than the demand the market can afford. However, as the year progresses, the supply reduces, increasing wholesale avocado prices.
Number 2 – Weather and Climate Change
We might have hinted at how weather and climatic conditions affect the supply and demand chain. Weather plays a pivotal role in wholesale avocado prices.
Avocado plants require specific environments that are conducive to growth. The trees perform best in environments with cool temperatures ranging between 20 and 24 degrees Celsius, and the plant also appreciates mild humidity and less wind. Such regions in Kenya include Murang’a, Kitui, Machakos, and Nyeri.
On the other hand, drought, floods, and hurricanes result in a significant reduction in avocado harvests. High temperatures result in the dropping of immature avocados, resulting in a shortage of supply and, consequentially, rising prices.
Number 3 – Logistics Costs
Depending on where you’re sourcing the fruits from, there are logistics costs involved. Some of these costs include transport, labour, and operation costs.
For example, if you’re sourcing avocados from Kenya, the wholesale Avocado price will factor in the transport costs. The Avocados are grown in rural areas and have to identify, harvested, processed, and packaged. All these processes, transport included, require costs. If the costs of operation and transport are high, this will also increase consumer prices.
Labour costs, on the other hand, are a great deal when harvesting. Avocado trees have a height ranging from 5 metres to 12 metres. Therefore, the tree requires enormous labour to prune and harvest. The higher the production costs, the higher the wholesale avocado prices.
Government Policies: Policies, licensing, and tariffs affect wholesale avocado prices. For example, some countries have tariffs and import restrictions, which affect the supply chain in the market. In addition, by subsidising farm inputs, the government may lower the cost of production. This, in turn, causes fluctuation in prices.
Number 4 – Market Competition
You will likely buy at higher prices if you’re located in areas with low avocado supplies. This is because the region will be competitive, unlike regions with enormous supply and low demand.
For example, the supply of Avocados in Kenya is high; therefore, you’re more likely to find favourable wholesale prices in Kenya than in most countries.
We can help you find favourable wholesale avocado prices for bulk orders. FrutPlanet has supplied avocados for years, and our prices are not exaggerated.
Factors such as supply and demand, changes in weather, cost of production, competition, and government policies can profoundly influence wholesale avocado prices. The best way to escape the mess of the global supply chain is trusting an expert in the market.
One such reliable expert is FrutPlanet exporters. We are a leading fruit and vegetable exporter with years of experience in the industry. Help guide you through the market prices once you request a quote. Documented prices back our quotation over the last five years. You can request a quote online today.