Avocado’s popularity has increased in the last decade thanks to its irresistible taste, health benefits and industrial uses in cosmetics. But what influences avocado prices per kg?
This article expounds on what farmers, distributors and processors ought to know. Knowing the price will help you devise strategies for managing your business for more return on investment.
If you’re frustrated about sourcing avocados and need an exporter to work with, FrutPlanet can help. We have been helping businesses maximise their return on investment for years. Request a quote from FrutPlanet today.
Season Variations
The season of the avocado greatly affects its price. The avocado price per kg during peak seasons is lower compared to other timeframes within the year. The peak season of most avocado varieties is from January to March. However, the season may change depending on the region and weather conditions in the area.
For example, apart from the local indigenous avocados in Kenya, only two major commercial varieties are grown for export, Fuerte and Hass. The Fuerte variety has its peak season in February, while Hass peaks in march. During these peak seasons, the avocado price per kg is lower because there is an enormous supply of fruit. But since the harvesting seasons extend to September, the avocado price per kg increases as the supply reduces.
On the other hand, Florida avocados have their peak seasons from June through January. Therefore, the avocado price per kg in Florida will be lower from June when other regions, such as Kenya, will be experiencing low supply and, therefore, high prices.
As a leading exporter of avocados in Kenya, we help business source and export when the fruit is in peak season. And since Kenya has a higher supply when most avocado-producing countries are low on supply, you get affordable avocado prices per kg.
Production Costs
The cost of production directly affects the cost of avocado price per kg. Some production costs include preparing the soil, irrigating, dressing, pest control, pruning, etc. These are minor steps that most distributors overlook that significantly affect the cost.
In addition to production cost, labour cost is another factor affecting the avocado price per kg. For example, if you want us at FrutPlanet exporters to fulfil your order, there are enormous labour costs to factor in. Some of this include harvesting, transport costs and packaging.
The higher the production cost, the higher the avocado price per kg. But what if you want to avoid higher productions cost?
The best solution is to work with an expert avocado exporting company such as FrutPlanet. We guarantee you the best quotation and quality in the market, and we source from farmers who believe in our commitment to providing organically grown avocados. Request a quote today.
Market Demand
Like all other products in the global supply chain, market demand greatly influences the avocado price per kg. Over time, there has been an increase in demand for avocados globally, and this popularity has skyrocketed the demand for fruit, thereby increasing in price. When demand is higher, the avocado price per kg increases.
The current increase in demand for avocados can be attributed to the fruit’s health benefits and consumer preferences. The consumer is becoming more health conscious, and changes in food trends globally, amongst other reasons.
In addition, avocado benefits range from improving memory and critical thinking to skin ageing and preventing heart diseases, amongst others. Also, the demand for avocado fruit in the pharmaceutical and cosmetics industry has increased in the last decade. Such an increase in demand has only raised the avocado price per kg.
Cost of Storage
Avocado is a perishable fruit; therefore, it needs careful storage with special equipment such as freezers and well-conditioned rooms. The cost of preventing avocados from perishing also impacts the overall cost of avocado price per kg. And even though this factor may not significantly influence the overall price, it still contributes to the final cost,
Conclusion
The above four factors are the significant influencers of avocado price per kg. The global avocado supply chain players need to understand these factors and how they affect them. That way, they make informed decisions when selling or buying avocados.
But from seasonal variation and market demand to storage costs, each factor has a remedy. One of the best quick fixes is partnering with a trustworthy exporter like FrutPlanet. An exporter helps you manage the logistics involved in production, transport and delivery. If you’d love to partner with a reliable company, request a quote today.
