"In terms of prices, the situation in the European market is better than last year," said Derek Donkin, Executive Director of Subtrop.
He added that last year the cost of avocado reached a record low. The fall coincided with a year of explosive growth in production in South Africa. This year in some production areas there was a fall fruit because of the heat. In particular, the drought affected the Northern regions of the country. Because of this, the season, usually lasting from late March to mid-October, may be shorter than the previous one.
It is noted that this season Peru, the main competitor of South Africa, will reduce production by 5-10% to 338 thousand tons. At the same time, the main market, in California, is projected to decline in supply, so South Africa will increase exports in this direction.
The total volume of avocado production in South Africa in 2019 will be 120 thousand tons. Less than half will go to the domestic market, another 10% is intended for processing in puree or oil.
Over the next 5 years, South African avocado producers (mainly Hass varieties) plan to increase the area of cultivation by 1.5 thousand hectares.