WHANGAREI - Fierce competition for a slice of a rapidly expanding avocado market is heating up between rival packhouses on the eve of a new export picking season.
Several Bay of Plenty-based companies are investing in packhouse operations in Northland, many of them in the Whangarei area where the avocado crop
is expected to double in two years.
That has packhouses courting growers as they compete for a share of the crop.
Two main export companies, Team Avocado and Freshco, have been the main players in Northland for several seasons. Last year they were joined by Primor Produce Ltd.
Now the three appear to be competing for growers by offering different returns and crop management services.
None of the exporters was willing to reveal price schedules publicly, but net returns to growers last season ranged from $11 to $14 a tray. This season, some exporters are predicting returns of $18 to $20 to entice the growers.
That has put packhouses, which are aligned with different exporters, in a race to sign up growers for the impending season with cut-rate packing costs and orchard management advice.
With Northland's avocado crop expected to grow markedly in the next five years, that competition is expected to continue, according to industry experts.
The chairman of the Independent Avocado Growers and Exporters Association, Jeremy Olphert, said the level of competition was a notable factor in Northland and one that would challenge packhouse operators. - NZPA
