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Analysis of the competitive threat to Australian fresh avocado market from processed avocado products (AV11006)

Key research provider: The Department of Agriculture, Fisheries and Forestry, QLD
Publication date: May, 2022

This is a final research report from Hort Innovation’s historical archives. Please note that as these reports may date back as far as the 1990s, the content and recommendations within them may be superseded by more recent research.

What was it all about?

The project ‘Analysis of the competitive threat to Australian fresh avocado markets from processed avocado products’ was undertaken by the Queensland Department of Agriculture, Fisheries and Forestry in conjunction with Simpson Farms. This project was formulated in response to both the current importation of processed avocado products and the threat of large volumes of South American processed product entering the Australian market in the coming years.

The use of fresh avocado continues to remain strong and grow in both retail and food service markets. The current impact of imported processed avocado is small but the potential future impact could be high in both retail and food service markets. The best strategy for competing with imported processed products is increasing consistent supply of quality and suitability ripened Australian avocado to retain and grow these markets.

Fresh fruit generally have a price advantage over processed products on a $/kg of product flesh basis. The gap is smaller when the true cost of labour, preparation, wastage, handling and storage are included in the cost/kg of fresh fruit pulp. Cafes and quick service restaurants are the primary domains where processed products (both Australian made and imported) become attractive due to these attributes and are subsequently utilised significantly.

Restaurants, clubs, pubs and hotels have been the key markets identified (by the HAL coordinated food service initiatives) to retain and increase use of fresh avocado, in the food service sector. These sectors value fresh avocado and the various training and promotion activities appear to be working well in developing its use. The current quality and ripeness of avocado being delivered appears to be generally good. However there is scope to better understand and strengthen the supply chain by including providores in future survey and promotion work.

A gap exists in both retail and food service markets for a whole avocado alternative that satisfies the need for a ready ripe, high quality, convenience format such as a fresh cut avocado product. Such a product could directly block imported product as it could only be Australian made given the relatively short shelf life. However the size of markets and whether products can be made and sold profitably are two key questions that need to be answered.


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Funding statement:
This project was funded by Hort Innovation (then Horticulture Australia Limited).

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