Avocado sales set to quadruple

Much of the avocado crop went to Australia. Photo / File

NZ Avocado is confident avocado sales will quadruple by 2023 and hit $280 million but the goal has been described as ambitious by one major player and would require "access into high-paying markets outside Australia".

Another warned while the industry was in great shape it could not afford to get complacent.

However, NZ Avocado chief executive Jen Scoular said it was on track and off to a roaring start.

The industry almost broke the halfway mark last season with a record 7.1 million trays worth $135 million harvested during the 2014/15 season, she said.

It was aiming to met the target by 2023 through a five-year Primary Growth Partnership programme (PGP) with the Ministry of Primary Industries.

"Confidence is riding high, and the industry is on track to achieve the PGP objectives and significantly boost avocado sales and productivity in less than 10 years."

Co-operation among exporters delivered excellent results in the Australian market in particular last season, with 3.2 million trays of New Zealand avocados sold at stronger-than-forecast values despite a huge Australian-grown crop also being available, she said.

A further 1.2 million trays were sold into new and developing markets, including Japan, Singapore, South Korea, Malaysia, Thailand with future focus on Asia.

"We are working on gaining a presence in all of our Asian markets through the PGP and also working on access to China and supporting the development of India."

Avoco director Alistair Young said world production continued to lag behind consumption so the plan to quadruple sales was focused on an achievable target.

But it would need some strong crop growth to achieve "as our handbrake is fluctuating crop volumes rather than market demand", he said and while "the industry is in excellent shape ... we cannot get overconfident.

"We have had three good market years, it's because we were disciplined in our market planning. Lose sight of these disciplines and there will be pain."

Seeka grower services general manager Simon Wells said the goal of $280 million in sales by 2023 from a five-year marketing plan and research projects in eight years was ambitious and would require access into high-paying avocado markets outside of Australia suited to the fruit size profile of New Zealand-grown avocados.

It supported the ambition to create further high value avocado markets outside of Australia resulting in profitable orchards consistent with PGP, Mr Wells said.

"With limited supplies of avocados worldwide, opening new markets will help to maintain good demand at good values."

Andrew Darling, chairman of the avocado exporters' council, said after some tough years the industry was maturing and working together closer. "We are recognising collectively the potential value of our industry and working on a common industry strategy to achieve greater growth.

"As exporters, we are competitive but collaborate on planning and volume forecasting. The Australian market remains crucial to New Zealand."