Hass avocado prices have become notoriously volatile, season after season. Consequentially, traders who are not well informed about the influencing factors are making daily losses.
This article informs you of some of the factors that contribute to the volatility. But before we do, working with a reliable Hass avocado exporter is one of the best remedies for benefiting from these fluctuations.
FrutPlanet is a leading Hass avocado supplier with an extensive reach of avocado farmers in Kenya. You can contact us for inquiries or request a quote today.
Here is why Hass avocado prices are so volatile.
Supply and Demand
The Hass avocado prices are volatile due to supply and demand. The relationship between supply and demand is fluctuating often, resulting in volatility in the Hass avocado prices. When the demand for avocados increases, the competition for the available fruits increases, resulting in higher prices. When the market supply of Hass avocado increases, the price lowers.
The relationship between supply and demand is mainly controlled by external factors such as weather, diseases outbreak, and pest infestations, among other conditions.
For example, during the metamours strike in Mexico on January 12, 2019, the demand for fruits and vegetables in Mexico increased by 20%. Conditions such as labour strikes and drought can greatly influence Hass avocado prices. What’s worse, these conditions are highly unpredictable.
If you run a business that sources Hass avocado in bulk, we’d highly recommend partnering with a reliable supplier or exporter such as FrutPlanet. We help business owners stay informed on trends and changes in the avocado supply chain. That way, your business will stay ahead of such conditions and have enough stock before the prices increase.
International Trade and Relations
There are dozens of countries involved in the global avocado supply chain, including Mexico, the United States, Chile, Peru, Kenya, and Uganda. The relationship between these countries could significantly affect the prices by increasing the demand.
Tariffs and trade policies have a huge impact on international relations. During the Trump administration, tension halted the relationship between the US and Mexico. Tariffs on products from Mexico caused prices to rise in the US due to increased demand. On the other hand, the supply increased in Mexico, resulting in lower prices.
Another great example is the effects of the Russia-Ukraine war on products. The war disrupted the prices of various products worldwide. But how do you stay unaffected by such tariffs as a business owner?
One of the best solutions is creating networks with suppliers and exporters in different regions that grow the product you’re interested in. Creating such a partnership shields you from closing your business at one point due to a lack of supplies. Contact us today if you’re looking for such an exporter to partner with.
Transport and Logistics
One major factor influencing the Hass avocado prices is transport and logistic costs. Suppliers source Hass avocados from growers in the interior regions, and the fruit requires specialised handling and transportation to protect it from physical damage and spoilage. Increasing transport costs and rising logistic issues such as flight delays may factor into the overall avocado prices.
For example, at FrutPlanet, once we receive an order, we source avocados from growers in counties such as Murang’a, Kitui, and Machakos, amongst others. Once the fruits are sourced, we transport the fruits in wooden and cardboard boxes to our warehouse. Once processing is done, the fruits are transported to the airport for delivery to a global destination. Any delay in the process factors into the overall costs of the fruits to the consumer.
But transport and logistics shouldn’t be a concern should you partner with the right suppliers and exporters. An exporter should be able to seal you from any unpredictable changes in the shipping process.
Conclusion
To sum it up, Hass avocados prices are volatile due to several factors that include consumer trends, supply and demand, the international tariffs and policies, among other factors. These factors create intense fluctuations for both growers and traders.
However, traders who partner with the right exporters can sport the opportunities and take advantage of market conditions to maximize return on investment. If you’re established or just starting and looking for a reliable exporter to help you source Hass avocados, contact me today.
